The Great Depression

1. Productivity and Unemployment

1.1. in 1920's U.S. Eco. was based on the productivity – purchasing power - employment cycle.

1.2. electricity and mechanical advances made for better production, but no new jobs were added to the economy

1.3. The middle class depended on their salaries and when productivity declined they lost their jobs

2. 1920's Crash

2.1. On Oct. 29th, 1929 the NYC stock market crashed.

2.2. This would cause a depression that would last until 1942.

3. Americans React To Hoover

3.1. Hoover was increasingly unpopular, but he continued to try... he persuaded Congress to establish the reconstruction finance corporation.

3.2. People were frustrated with the isolated protest movements. For example Dairy farmers were mad about the low price of milk.