Chapter 25 The Great Depression

America goes from Roaring to Depressing

Hoover on Poverty“We in America today, are nearer to

the final triumph over poverty than ever before in the

history of any land.”

Buying on Credit

What is credit?Borrowing money and promising to pay

later

Buying on Margin

Investing in the stock market with borrowed money

Why is it a good thing that people invest their money?

How could it be a bad thing that people invest in the stock market?

Black Tuesday

October 29, 1929

Massive stock market panic, everyone starts selling their stocks

Too many people wanted to sell and not enough buyers… prices of stocks fell!

Newspaper Headlines Worksheet

Looking over the headlines from the newspapers

What is the impression you get as you read the headlines?

Is America doomed, is there hope, what do you think?

Daily Speak 1-11-11

When people lose their jobs today what can they do to survive? (give me 2 ways)

Causes of the Depression

OVER PRODUCTION!!!!!

STOCK MARKET

TOO MUCH CREDIT

Causes a snowball effect

Effects on Americans

People and businesses hurt big timeEntire savings accounts disappearBanks closed their doors

Huge unemployment

Soup lines

Hoovervilles

Hoover to the Rescue!

Hoover knew people needed help

He did not believe that it was the job of the gov’t to provide direct relief to Americans

Loaned 1.2 Billion to businesses and financial institutions

Make an argument for an against loaning to the businesses and not the people.

Re-Elect Hoover?

America said, “No thank you!”Many blamed Hoover for making

things worseDemocrat Roosevelt becomes

popular, wins 1932 election.“I pledge you, I pledge myself, to a new

deal for the American people.”