The Great Depression

By ianne_fr

  • Beginning of WWI

    1. World War I begins. The war transforms the United States into a largest creditor nation in the world, which causes overproduction in agriculture in the US and develops advertising techniques that use mass persuasion.

  • Enormic Recession

    The economic expansion from the war deflates, creating an economic recession. It ends in July, 1921.

  • The stock market begins its rise.

    Another expansion peaks and recession hits the country. It ends in July, 1924. The stock market begins its rise in 1924, though it has little to do with the rest of the economy.

  • Lowering of the top tax rate

    The top tax rate is lowered to 25%, which is the lowest top rate in the 20th century. The Supreme Court makes a ruling that trade organizations do not violate anti-trust laws if some competition manages to survive.

  • Recession

    Recession begins in October, and continues until November of 1927. The Federal Reserve reduces the discount rate by half of a point. It buys $230 million in government securities.

  • Stocks Continue

    Stocks continue to rise artificially. Market speculators push stock prices higher than they are realistically worth. Herbert Hoover is elected President of the United States.

  • Black Tuesday

    Wall Street crash, also known as the most devastating stock market crash in the history of the United States

  • Horrible Conditions

    Farmer's lands are destroyed due to drought and dust bowls. A condition that lasted until 1935.

  • Food Riots

    Food riots broke out, workers marched on Detroit, and “foreign workers” were deported out of the country.

  • Lowest of lows

    Late 1932, stocks reached their lowest point.

  • Closing

    -More than 11,000 of the nation’s 25,000 banks had closed.
    -Unemployment reached its highest level, at 25%.

  • Rescue

    -The National Recovery Administration (NRA) was introduced.
    -The Civil Works Administration (CWA) was established to employ up to 4 million people on public works projects.

  • Federal Deposit Insurance

    FDR asked Congress for an additional $3.75 billion to stimulate the still floundering economy.

  • End

    Preparations for World War II stimulated the American economy and effectively brought an end to the Great Depression.