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The Great Depression (1929–1939) - Coggle Diagram
The Great Depression (1929–1939)
Causes
Bank Failures
Banks collapsed after crash
Loss of public trust in financial system
Unequal Distribution of Wealth
Limited purchasing power for workers
Economy heavily dependent on credit
Overproduction & Underconsumption
Factories produced more than people could buy
Surplus goods → Falling prices → Business losses → Layoffs →
Unemployment
Global Economic Interdependence
U.S. loans to Europe stopped → Weakening of European economies
Decline in international trade
Stock Market Crash (
1929
)
Over-speculation on stocks → Market collapse
Loss of savings → Decline in consumer spending
Key events
Dust Bowl (
1930s
)
– Environmental disaster worsened agricultural collapse
Mass Unemployment
(
up to 25% in U.S.
)
New Deal Programs (
1933 onward, U.S.
)
– Government intervention under FDR
Banking Crises
– Thousands of banks failed
Black Tuesday (
Oct. 29, 1929
)
– Major stock market collapse
Global effects
Latin America
Collapse of export economies
Push toward economic nationalism and import substitution
World Trade
Protectionist tariffs (
e.g., Smoot-Hawley Tariff
) worsened global decline
International trade plummeted
Europe
Economic hardship fueled political extremism
Contributed to the rise of fascism in Germany and Italy
Weakened democracies
Long-Term Global Impact
Shift toward government regulation of economies
Set stage for World War II due to political instability
United States
Deep unemployment and poverty
Rise of federal government intervention in economy (
New Deal
)