The Great

Depression
Economical Effects
Salt Lake Community College
Econ-1740 David Francom
Table of Contents
The Economy during the 1920’s
The Recession of 2020
The Crash of 1929
Let’s Compare
Stock Market Crash Graph
Why recessions matter
Stock Market During the Great Depression
Works Cited
The Great Depression

The Dust Bowl

Recovering from the Great Depression

 The Economy ▪ The early 20’s experienced a recession
and had a drop in the economy
during the 1920’s ▪ After that, the Economy grew by 42%
and the US was producing more than
half the world's output because Europe
was still recovering from WWI
▪ The stock market Dow Jones Industrial
Average had gone from 71.95 to 381
points
▪ The image shows the Per-Capita GDP of
the 1920’s
The Crash of 1929 ▪ October 29, 1929 over 16 million shares
were traded in a single day
▪ In August production slowed and
unemployment rates started rising
▪ Stock values were greater than their
actual value so there was a high risk
▪ There were also many other causes
that I’ll talk about
▪ People got over confident in the
economy and missed warning signs
THE STOCK MARKET LEADING UP TO
THE DEPRESSION AND AFTER
 The Stock ▪ Stock prices had dropped to 20% of
Market During their 1929 value by 1932
the Great
Depression
 Effects of the crash: ▪ Unemployment reaches 30% of the
The Great Depression population
▪ Homeless reached around 2 Million
▪ Minorities were the first to be let go
▪ Women were able to maintain there
historically women jobs and were
better off
The Dust Bowl ▪ The Dust Bowl intensified the effects of
the Great Depression
▪ High winds that ran from Texas to
Nebraska
▪ It killed people, live stock, and crops
throughout the region
▪ Drove many farming families out of the
area
Recovering from the Great
Depression
▪ President Roosevelt created the New
Deal in attempt to lessen the effects
of the Depression
▪ Devaluating gold helped
▪ Increased tax rates to help get rid of
debt
The Recession of ▪ In 2008, Stock Markets were once
2008 again hit hard
▪ Banking and Real Estate industries
were greatly affected
▪ Was an effect of the earlier housing
boom and subprime loans
Let's Compare: Great Depression v.
Great Recession
The Recession of 2020:
Stock Markets
▪ This year we experienced a recession
and a drop in the stock market
▪ People got scared where the economy
was headed as Covid-19 pushed us
all to quarantine
▪ Some people are saying its the worst
global recession since the Great
Depression
The Recession of
2020:
▪ In April the unemployment rate
Unemployment reached a high of 14.7% and today is at
rates 6.9%
▪ Retails stores, particular clothing and
furniture, were hit the hardest because
they couldn’t open
▪ Restaurants were also hit hard because
they got no business
▪
How Recessions ▪ Unemployment rates increase
affect us ▪ Economy will begin to struggle
▪ They are a fact of investing and stock
markets
▪ Learn to protect your money so there is
less risk
Works Cited

● Amadeo, K. (2020). The Economy in the 1920s and What Caused the Great Depression.
Retrieved November 04, 2020, from https://www.thebalance.com/roaring-twenties-4060511
● Pettinger, T. (2007, May 07). US Economy of the 1920s. Retrieved November 05, 2020, from
https://econ.economicshelp.org/2007/05/economics-of-1920s.html
● History.com Editors. (2010, May 10). Stock Market Crash of 1929. Retrieved November 05, 2020,
from https://www.history.com/topics/great-depression/1929-stock-market-crash
● O, R. K. H. (2018). Two Great Trade Collapses: The Interwar Period and Great Recession
Compared. IMF Economic Review, 66(3), 418–439.
https://doi-org.libprox1.slcc.edu/10.1057/s41308-017-0046-0
● A brief history of the 1929 stock market crash. (2018, April 08). Retrieved November 06,
2020, from
https://www.businessinsider.com/the-stock-market-crash-of-1929-what-you-need-to-know
-2018-4
Works Cited (Continued)

● Walton, G. M., & Rockoff, H. (2018). History of the American economy. Boston, MA: Cengage
Learning.
● Doran, J. (2020, August 14). The S&P 500 nears its all-time high. Here's why stock markets are
defying economic reality. Retrieved November 06, 2020, from
https://newsroom.unsw.edu.au/news/business-law/sp-500-nears-its-all-time-high-heres-why
-stock-markets-are-defying-economic
● Marohn, C. (2018, January 24). Which was worse: Great Depression or Great Recession?
Retrieved November 06, 2020, from
https://www.strongtowns.org/journal/2018/1/23/which-was-worse-great-depression-or-great-r
ecession