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1929-1939
• Stock market
crash
• Didn’t realize
the effect it
would have
• No money to
replenish what
was borrowed
Many found being broke
humiliating.
The Roaring 20’s• The new concept of
“credit”
• People were buying:
– Automobiles
– Appliances
– Clothes
• Fun times reigned
– Dancing
– Flappers
– Drinking
Why was this bad?
• Credit system
– People didn’t really have
the money they were
spending
• WWI
– The U.S. was a major
credit loaner to other
nations in need
– Many of these nations
could not pay us back
The Stock Market• People bought stocks
on margins
– If a stock is $100 you can pay $10 now and the rest later when the stock rose
• Stocks fall
– Now the person has less than $100 and no money to pay back
And then….• With people panicking
about their money investors tried to sell their stocks
– This leads to a huge decline in stocks
– Stocks were worthless now
• People who bought on “margins” now could not pay
• Investors were average people that were now broke
Read pages 336-337• What event put an
end to the
prosperity of the
1920’s?
• What was the Great
Depression?
• What factors
caused the
Depression?
• The stock market crash in
October 1929
• A period of hardship and
unemployment in the
United States and other
countries that lasted
through the 1930’s.
• The Depression was
caused by problems on
farms, bank failures, and a
slowing economy
• Herbert Hoover was
president at the start
• Philosophy: We’ll
make it!
• What He Did: Nothing
• The poor were looking
for help and no ideas
on how to correct or
help were coming
• Farmers were already feeling the effects
– Prices of crops went down
– Many farms foreclosed
• People could not afford luxuries
– Factories shut down
– Businesses went out
• Banks could not pay out money
• People could not pay their taxes
– Schools shut down due to lack of funds
• Many families became homeless and had to live in shanties
Many waited in unemployment
lines hoping for a job.
People in cities would wait in line for
bread to bring to their family.
Some families were forced to relocate
because they had no money.
“Hooverville”• Some families were
forced to live in
shanty towns
– A grouping of shacks
and tents in vacant
lots
• They were referred to
as “Hooverville”
because of President
Hoover’s lack of help
during the depression.
A drought in the South lead to
dust storms that destroyed crops.
“The Dust Bowl”
The South Was Buried
• Crops turned to dust=No food to
be sent out
• Homes buried
• Fields blown away
• South in state of emergency
• Dust Bowl the #1 weather crisis
of the 20th century
Two Families During
the Depression
A Farm Foreclosure
Some families tried to make money by
selling useful crafts like baskets.
Page 338-339
• What did charities and other
organizations do to help
people during the Great
Depression?
• Where was the Dust Bowl?
• Why did people build
shantytowns and stand in
breadlines during the
Depression
• Charities donated meals
to feed the hungry.
• The Dust Bowl is located
in the Great Plains.
• People lost their homes
and did not have enough
money to buy food.
*FDR*• When he was
inaugurated
unemployment had
increased by 7
million.
• Poor sections (like
Harlem) had 50% of
the pop. unemployed
• Instated the “New
Deal”
• Yea! Frankie!
• People everywhere were effected by the depression
• It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope
Read 344-345
• What were Hoover’s
strategies for improving
the economy?
• What did Roosevelt
promise that he would do
as president?
• Hoover waited for the
economy to improve on its
own and then asked
Congress to help
businesses and unemployed
workers.
• He promised to create
government programs that
would help people who
were suffering.
Read page 346-347
• Roosevelt created the
New Deal. Name
some of the programs
he created.
• What New Deal
programs are in effect
today?
• CCC-Civilian Conservation
Corp, TVA-Tennessee Valley
Authority, WPA- Works
Progress Administration,
Social Security
• Social Security, banking
regulations, minimum wage