History 2201E great depression.doc

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22 Mar 2012
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History 2201E
Henry Ford and the Model T
Assembly line
Model T first mass produced car 2nd largest selling car in history
Explosion in production best example of early mass production
America becomes the first automotive country
By the time the depression hits 1 in 4 families have a car
Advertising industry creates rationales for mass consumption
What we start to see is a shift on how products are being sold they would sell
goods on the pretence that these goods will give you things that you want like status and
love.
Economy is based upon personal consumption when people stop buying depressions
hit.
Why did the great depression happen?
Began in 1929 and ended around when the Second World War began (unemployment
began to lower once the us entered to the war)
The great depression started in the United States and spread throughout the world
“Spread like a virus”
Rapid decline in the production and sale of goods and a spike in unemployment many
businesses closed down and people lost their homes and savings and many people had to
rely on charity
15 million Americans out of work in 1933 that is ¼ of the workforce and many others
and underemployed many people and zero income.
FDR was elected for a third and fourth term as president and his administration lead
the new deal
Answer: economists still argue about the cause. Many people argue it was because the
stock market crashed but this is too simple an answer.
The 1920s was a decade of prosperity but it was not shared equally
Huge inequality of wealth corporate profits grew by 65% between 23 and 29 and
working people profits grew 8% which was lower than the rate of inflation
The richest 1% had more assets than the bottom 50%
People no longer had enough money to keep consumer spending at the same level
People are buying things on credit
Peoples incomes are barely able to keep up with paying for the interst of their old
spending and they cannot buy new things
The consumer bubble bursts
Panic began and people started selling their stocks in the hope that they would not lose all
their money
Oct 29 1929 15 billion $ lost
In Nov everything that was gained in the last two years was whipped out
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