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End of WWI recession
Federal spending rose larger then tax collections. In an attempt to balance the budget a recession occurs. The government had been spending alot of money on the war and when it ended we were stuck with a global debt. -
Period: to
The Great Deperession
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Numerous banks fail after WWI
Banks forced to close as many people and coperations go bankrupt because they can not pay off their large loans to the banks in which assigned them. -
1920 Income earners removed
80% of all income earners were removed from tax rolls completely. Taxes on the rich fall. -
1924 stock market rise.
Speculation happens and the stock markets begin to rise dramaticly. Many people are buying stocks at low rates as an income stratgey unaware of what is to happen to the price of the stocks they are pruchasing. -
Top tax lowered
Top tax lowered to 25% lowest since WWI. They lowered it and later the top tax was raised to 63% to combat the great depression. -
The great depression begins.
People panic as banks close and stock prices drop as a result of speculation(describes in previous slide). Many people lose everthing and many cooperations have closed down and claimed absolute bankruptcy. -
Welfare nation
More then half of americans living in poverty or on welfare. -
BLACK TUESDAY
Stock markets have crashed and a total of $16 billion was lost. Many people lost their fortunes some people even committed suicide. People did not to lose money so they rushed to sell off all the stocks they currently had bringing the price to almost nothing. -
Canadas unemployment rate increases
unemployment rate in canada raises to almost 30%. -
Tarrifs cause trades to fall.
International trade has fallen by two thirds. International trade tarrifs to protect countrys economys works in a chain reaction and this slows the international trade greatly. -
Dust Bowl
The Dust Bowl is a series of dust storms blowing in the breadbasket of the United States. The storms ravaged the farms of Oklahoma, Kansas, Colorado, and Texas making agriculture futile and making the Depression even worse. -
World War II
World War II starts the war causes a large boom in industry to keep up with the war demand. With production at a high more people are employed marking the end of the Great Depression.
