Great Depression. Some thoughts… The Great Depression was probably the lowest point in American...
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Transcript of Great Depression. Some thoughts… The Great Depression was probably the lowest point in American...
Great Depression
Some thoughts… The Great Depression was probably the
lowest point in American economic history Devastating 13 million people were unemployed in
1932. By 1933, one out of every four people in
America had lost his or her job.
Overview Stock Market Crash Causes of the Great Depression Dust Bowl Life during the Depression Hoover’s approach to improve the situation
Stock Market – Whoa!!!!!!! Companies sell shares Shares = small percentage of ownership in a
company Companies take $$$ and reinvest in improving
their business Stock Market or Stock Exchange = place where
people can buy or sell their stock(NYSE, AMEX, NASDAQ, CME, CHX)
Stock prices go up – business is doing well – stockholders make money on their initial investments
Stock Market CrashDow Jones Industrial
Average – average of stock prices
Millionaires were created by speculation.
Investors borrowed most of the money to buy stock – buying on margin.
1921-1929
0
100
200
300
400
500
1921 1929
DOW
“They hollered and screamed, they clawed at one another. The trading floor of the New York Stock Exchange was like a bunch of crazy men.”
A Day of Reckoning
Warm-up – May 25
Describe the “ripple effect” of the Great Stock Market Crash – p. 741.
October 29, 1929 – “Black Tuesday” – The New York Stock Exchange erased over 5 billion dollars worth of share value!
Stock Market Crash signaled that there were big problems
with the economy!!!
The Great Depression followed and lasted through to WWII.
CausesUneven distribution
of wealthToo many rich and too
many poor and not enough in between
Overproduction
Factories producing more than people needed
Over-speculationToo many people buying
with borrowed money
Too little money in circulation
Government limited $$ supply to discourage lending
Stock MarketStock prices plummetInvestors lose millionsBusiness lose profits from investors
BusinessesBusiness cut backWorkers laid offConsumer spending drops
BanksBusiness and workers can’t
repay loansBank failSaving accounts wiped out
Business Failures
1929-1932 = 85,000
Banks
1929-1932 = 9,000 bank failure
= 9,000,000 accounts wiped out
National Income
1929 = $81 billion
1932 = $41 billion
Dust Bowl Caused by over
farming – removal of grass to farm
Drought Dried soil created
large dust storms 500,000 Americans
left homeless
Life During the Great DepressionUnemployment
Homelessness
Destruction of Families
Farm losses
p.746-748
Hoovervilles
How did the Depression affect people’s health?
How did the Depression affect families?
Hoover
“the ship would right itself”
“People will pick themselves up by the bootstraps”
Was he willing to help people recovery?
Hoover
• Believed that Federal Relief would destroy “destroy people’s self-respect and create a large bureaucracy.”
• Thought the key to recovery was confidence.
• Blamed Great Depression on “world-wide economic conditions beyond our control.”
• Believed in voluntary controls by business
• Public began to blame Hoover and the Republicans for depression.
FDR
• Suffered from this disease polio.• Promised a New Deal for Americans• “The only things we have to fear is
fear itself.”• Promised bold, persistent
experimentation.• New Deal refers to the relief,
recovery, and reform programs of FDR’s administration that were aimed at combating the Great Depression.
FDR
http://www.americanrhetoric.com/mp3clips/politicalspeeches/fdrfirstinaugural444443858352845.mp3
http://www.socialstudieshelp.com/USRA_New_Deal.htm