Our info graphic compares the causes of the great depression and great recession, along with their effects in GDP, unemployment, and minority impacts.
https://magic.piktochart.com/output/10419830-great-depression-vs-recession
Tuesday, January 12, 2016
Piktochart infographic- Great Depression vs Great recession
https://magic.piktochart.com/output/10420211-untitled-infographic
Our infographic is about the differences between the great depression and the great depression, Tara, Sana, Daphne and I split up the work evenly we talked about the : unemployment rate, poverty, home foreclosures and GDP.
Our infographic is about the differences between the great depression and the great depression, Tara, Sana, Daphne and I split up the work evenly we talked about the : unemployment rate, poverty, home foreclosures and GDP.
Piktochart Infographic - Great Depression vs Great Recession
https://magic.piktochart.com/output/10443699-the-great-depression-vs-the-great-recession
Our infographic talks about the differences between The Great Depression and The Great Recession in the following categories: Unemployment, Change in Prices, Bank Failures, and Homelessness.
Our infographic talks about the differences between The Great Depression and The Great Recession in the following categories: Unemployment, Change in Prices, Bank Failures, and Homelessness.
Monday, January 11, 2016
Piktochart Inforgraphic Depression vs Recession
https://magic.piktochart.com/output/10458134-untitled-infographic
Our infographic presents the differences in Home Foreclosure, Causes, Unemployment, and Family Life between the Depression and the Recession
Our infographic presents the differences in Home Foreclosure, Causes, Unemployment, and Family Life between the Depression and the Recession
Thursday, January 7, 2016
Three of the Causes of The Great Depression
Today in class we went over some of the causes of The Great Depression. Many problems that arose during World War One were not taken care of properly in the 1920s.While it is consisted the "roaring twenties" it still had problems.
The first argument for the cause is lack of diversification in the American Economy. The American Economy was growing in the 1920s due to two industries, automobile production and construction. The problem with these industries controlling the economy is that people do not need an excessive amount of cars or construction. An example being that from 1926-29 expenditures of construction went from $11 billion to $9 billion. Also, in 1929 automobile sales fell 33%. The problem caused these industries to slow down and people to be fired. No other areas of the economy could compensate. This hurt all industries because people has no money.
Another cause was maldistribution of wealth. There was structural weakness in consumer demand, and profits were not adequately passed on to the consumers. Over 1/2 of American Families lived at or below subsistence level in 1929. Industries over produced products for consumers, the easiest way to recover from this was laying people off. Unemployed individuals would not spend more money, further increasing the issues with the economy. 26% of wealth was controlled by only 2% of the population and 24% was controlled by 60% of the population.
The third cause for the Great Depression was the Credit Structure of the Economy. Banks were able to invest in the stock market, using peoples money, and after the stock market crash they were unable to pay people back. People lost all of their money that was in the bank, even though the people who put money in the bank did not directly invest in the stock market. Corporations also loaned people money in order to make more money, however, when people could not make payments, they stopped making money. The connected structure of borrowing money came crashing down. When one part of the economy failed, it caused all parts of the economy to fail.
The first argument for the cause is lack of diversification in the American Economy. The American Economy was growing in the 1920s due to two industries, automobile production and construction. The problem with these industries controlling the economy is that people do not need an excessive amount of cars or construction. An example being that from 1926-29 expenditures of construction went from $11 billion to $9 billion. Also, in 1929 automobile sales fell 33%. The problem caused these industries to slow down and people to be fired. No other areas of the economy could compensate. This hurt all industries because people has no money.
Another cause was maldistribution of wealth. There was structural weakness in consumer demand, and profits were not adequately passed on to the consumers. Over 1/2 of American Families lived at or below subsistence level in 1929. Industries over produced products for consumers, the easiest way to recover from this was laying people off. Unemployed individuals would not spend more money, further increasing the issues with the economy. 26% of wealth was controlled by only 2% of the population and 24% was controlled by 60% of the population.
The third cause for the Great Depression was the Credit Structure of the Economy. Banks were able to invest in the stock market, using peoples money, and after the stock market crash they were unable to pay people back. People lost all of their money that was in the bank, even though the people who put money in the bank did not directly invest in the stock market. Corporations also loaned people money in order to make more money, however, when people could not make payments, they stopped making money. The connected structure of borrowing money came crashing down. When one part of the economy failed, it caused all parts of the economy to fail.
Banking & the Stock Market Crash: How things have changed
Today in class we discussed how things have changed for banks and what they can do with their customers' money. Before the stock market crashed, banks were able to take the money deposited in their bank and invest it in the stock market. When the stock market crashed, all the money that the banks had invested was gone. Even if you were a customer of the bank that hadn’t invested in the stock market, your money was totally gone. People also individually invested in the stock market, so when the market crashed, all their money was gone. If they had a loan with a bank, they now wouldn’t be able to pay that bank back- because all their money is gone.
Even worse- people borrowed money to buy stocks. People could not borrow money after the crash because nobody could lend them anymore money. The whole situation during the 20’s was really messed up. Everyone in the chain of stocks/borrowing/ lending was very interconnected. If someone borrowed money to buy stock, they think that they can sell the stock for a higher price. Then they can pay back the lender and make a profit. However, this only works if the stock price goes up, and when it doesn’t, everything goes downhill.
The five causes of the great depression: How do they impact us today
Today in class we discussed some of the causes that might have led to the outbreak of the great depression. I was interested by what people think the causes are but also how America learned from it's mistakes. I think it is very important to acknowledge what caused one of America's worst economical drift and food shortage. It is important that we are of what caused it (Great depression) so that we make sure that the country does no repeat a similar mistake. I think this is a topic that we should discuss even more in class because it changed the countries economic strategies, and America's social rank forever.
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