Great Depression and New Deal Strategies

📋 Course Outline

1. Economic growth and stock market boom before 1929 crash
2. Causes and effects of the 1929 Black Thursday financial crash
3. Global and European economic impacts of the 1929 crisis
4. Franklin D. Roosevelt’s New Deal and Keynesian economic policies
5. Key programs and reforms during Roosevelt’s First Hundred Days
6. Financial regulations and taxation measures under the New Deal
7. Economic outcomes and social changes from the New Deal era
8. Daily life hardships and social consequences during the Great Depression

📖 1. Economic growth and stock market boom before 1929 crash

🔑 Key Concepts & Definitions

• Industrial production increase: Economic indicator reflecting the overall growth in manufacturing and industrial output, which increased by 50% globally between 1923 and 1929.
• Stock market boom: Rapid rise in stock prices in New York, driven by unmonitored speculation and artificial wealth creation, making it the global financial center.

📝 Essential Points

• New York became the global financial center due to the stock market boom.
• The U.S. government followed a non-interference principle, avoiding regulation of financial markets.
• Unmonitored speculation created artificial wealth, leading to overpriced stocks and unsold goods while workers remained underpaid.

💡 Key Takeaway

Rapid industrial growth combined with laissez-faire financial policies created unstable economic conditions before the crash.