2025 T1 Gr11 political & economic causes of the Great Depression

Page 1: Cartoon Analysis

• Source Name: "Watch Your Step!" Cartoon, LA Times, 1925

• Observations: Identify objects, words, and actions in the cartoon.

  • Look for caricatures, symbols, and text.

• Interpretation: Consider potential sarcasm or irony.

• Implication on U.S. Prosperity: The cartoon likely suggests a critique or caution about the overconfidence in U.S. prosperity during the 1920s.

Page 2: Political and Economic Causes of the Great Depression

• Focus: Inquiry into the political and economic causes of the Great Depression in the U.S.

Page 3: Inquiry Question

• Research Area: Political and economic causes of the Great Depression in the U.S.

Page 5: Review of the Industrial Revolution

• Start: Late 18th century

• Key Changes:

  • Growth of cities and transportation links

  • Improvements in agricultural productivity

  • Emergence of factory systems and mass production

  • Changing working conditions - labor increasingly industrialized

• Regional Impact: Western Europe and Northern U.S. industrialized rapidly while other regions lagged.

Page 6: Review of the Late 19th Century Global Economy

• Advancements:

  • Agricultural machinery and railway expansion

  • Rise in mass consumption of agricultural products

  • Availability of cheap industrial products

• Economic Dominance: European powers and the U.S. gained significant influence over global markets.

Page 7: The Gold Standard and Capitalism

• Gold Standard: Countries based currency on gold reserves, ensuring stable prices; avoided major currency fluctuations.

• Financial Networks: Development of complex banking and stock markets in late 19th century.

• Capitalism:

  • Promoted trade and innovation, provided loans to governments.

  • Also brought instability; stock market crashes were common.

• Perspectives: Varied views on capitalism - detrimental (Marx) versus self-regulating (laissez-faire).

Page 10: Background to the Period - First World War

• Inflation: Increased money supply led to inflation post-war.

• Loans Impact: U.S. loans to Britain and France disrupted financial systems.

• Agricultural Demand: High demand during war affected prices.

Page 11: Economic Landscape Post-War

• Effects on Economies: Germany’s economy was devastated.

• Shifts in Global Power: U.S. emerged as the leading economic power post-war.

• International Dynamics: Events in Europe post-Bolshevik Revolution altered global commerce, leading to disruption in trade.

Page 12: Post-War Economic Problems

• Global Agricultural Prices: Prices fell significantly.

• End of Free Trade: Resulted in financial upheaval.

• Shifts in Financial Centers: New York Stock Exchange became the key financial hub, leading to the Wall Street Crash of 1929 and subsequent Great Depression.

Page 15: Reasons for Post-War Prosperity

• Productivity Increases: Advances in production methods, including assembly line efficiency.

• Industry Expansion: Notable growth in automobile, radio, and film industries.

Page 16: Rise in Consumption

• Consumer Dynamics: Increased wages, low taxation, easy credit led to consumerism.

• Product Demand: Ordinary families affording electrical goods and automobiles shifted economies.

• Advertising Influence: Mass culture and consumerism flourished.

Page 18: Government Policies in the 1920s

• Economic Policies:

  • Laissez-faire capitalism with minimal regulations.

  • High tariffs restricted trade; tax cuts favored the wealthy. --

Page 21: Signs vs. Limits of Prosperity

• Indicators of Prosperity:

  • Growth in housing, stocks, GNP.

• Social Issues:

  • Persistent poverty; inequality impacted groups like unskilled workers and African Americans.

Page 23: Impact of Global Economy

• Globalization Risks: International events increasingly impacted nations.

• Market Disruptions: Post-WWI changes disrupted global trade and demand for goods.

Page 27: Nature of the Capitalist System

• Economic Cycles: Characterized by boom and bust phases.

• Dependency: Countries were economically interdependent, vulnerable to global shifts.

Page 29: Wealth Distribution in 1929

• Disparities: Top 0.1% held equal wealth to bottom 42%.

• Economic Consequences: Reduced consumer demand led to layoffs and economic contraction.