The Great Depression (1929-1933). Section 1: The Stock Market Crash After years of prosperity, the stock market collapsed in October, 1929, sending the

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<ul><li> Slide 1 </li> <li> The Great Depression (1929-1933) </li> <li> Slide 2 </li> <li> Section 1: The Stock Market Crash After years of prosperity, the stock market collapsed in October, 1929, sending the entire economy into panic and subsequent depression. After years of prosperity, the stock market collapsed in October, 1929, sending the entire economy into panic and subsequent depression. </li> <li> Slide 3 </li> <li> Early 1929 On September 3, 1929, the Dow Jones average was at an all-time high, 381. On September 3, 1929, the Dow Jones average was at an all-time high, 381. Soaring rates brought new investors, but many of the rates were not authentic to the real value of the company. Soaring rates brought new investors, but many of the rates were not authentic to the real value of the company. </li> <li> Slide 4 </li> <li> Black Thursday After the peak in September, stock prices began to slowly decline into October. After the peak in September, stock prices began to slowly decline into October. Some nervous investors began to sell their shares, contributing to the further decline in prices. Some nervous investors began to sell their shares, contributing to the further decline in prices. On Thursday, October 24, after a sharp decline on Wednesday, investors pulled their money out quickly, and the market lost $3 billion in one day alone. On Thursday, October 24, after a sharp decline on Wednesday, investors pulled their money out quickly, and the market lost $3 billion in one day alone. </li> <li> Slide 5 </li> <li> Black Tuesday The market stabilized slightly for a few days. The market stabilized slightly for a few days. On the following Tuesday, October 29, investors sold shares in a panicked frenzy. On the following Tuesday, October 29, investors sold shares in a panicked frenzy. The Dow dropped tremendously in just one day, known as Black Tuesday. The Dow dropped tremendously in just one day, known as Black Tuesday. By November, the Down Jones had fallen from its September high of 381 to 198, nearly cut in half. By November, the Down Jones had fallen from its September high of 381 to 198, nearly cut in half. </li> <li> Slide 6 </li> <li> Dow Jones Graph </li> <li> Slide 7 </li> <li> Aftershock Initially, the Crash hurt only those most heavily invested in the stock market. Initially, the Crash hurt only those most heavily invested in the stock market. Soon, however, the ripple effects spread to even those who werent invested. Soon, however, the ripple effects spread to even those who werent invested. </li> <li> Slide 8 </li> <li> Chain Reactions In the 1920s banks made risky loans to businesses, investors, and consumers. In the 1920s banks made risky loans to businesses, investors, and consumers. When these groups couldnt pay their loans after the Crash, banks revenue dried up. When these groups couldnt pay their loans after the Crash, banks revenue dried up. Fearful that banks would run out of money, people rushed to withdrawal money from their accounts, known as bank runs. Fearful that banks would run out of money, people rushed to withdrawal money from their accounts, known as bank runs. Banks didnt have the money because their loans werent being repaid. Banks didnt have the money because their loans werent being repaid. </li> <li> Slide 9 </li> <li> Bank Failures Because they werent being repaid their loans, many banks failed. Because they werent being repaid their loans, many banks failed. Everyone with savings accounts in these banks lost all of their money, even if they werent invested in the stock market. Everyone with savings accounts in these banks lost all of their money, even if they werent invested in the stock market. </li> <li> Slide 10 </li> <li> Business Cuts Businesses could no longer borrow money from banks. Businesses could no longer borrow money from banks. Consumers stopped buying goods and services from businesses. Consumers stopped buying goods and services from businesses. Soon, businesses started laying off workers, leading to historic unemployment rates. Soon, businesses started laying off workers, leading to historic unemployment rates. As unemployment increased, consumers bought even fewer goods from businesses, which further caused more lay-offs. As unemployment increased, consumers bought even fewer goods from businesses, which further caused more lay-offs. </li> <li> Slide 11 </li> <li> Economic Contraction All of these chain reactions are symptoms of a contracting economy, an economic decline. All of these chain reactions are symptoms of a contracting economy, an economic decline. An economic contraction is known as a recession, a long and severe recession is called depression. An economic contraction is known as a recession, a long and severe recession is called depression. The Great Crash triggered the most severe economic contraction in U.S. history, the Great Depression, lasting from 1929 to 1941. The Great Crash triggered the most severe economic contraction in U.S. history, the Great Depression, lasting from 1929 to 1941. </li> <li> Slide 12 </li> <li> Impact on Workers and Farmers With no money or consumption, factories across the country began to shut down. With no money or consumption, factories across the country began to shut down. Small businesses also suffered with few people who could afford to consume. Small businesses also suffered with few people who could afford to consume. Crop prices fell dramatically and many farmers lost their land. Crop prices fell dramatically and many farmers lost their land. By 1932, 25% of the labor force was unemployed and GNP fell from $103 billion to $56 billion. By 1932, 25% of the labor force was unemployed and GNP fell from $103 billion to $56 billion. </li> <li> Slide 13 </li> <li> Global Economy By this era, the global economy was becoming interdependent. By this era, the global economy was becoming interdependent. France and Britain had been paying the U.S. their war debts, but werent able to after U.S. consumption of imported goods halted. France and Britain had been paying the U.S. their war debts, but werent able to after U.S. consumption of imported goods halted. When American investment in the German economy stopped, Germany could no longer pay their war reparations to Britain and France. When American investment in the German economy stopped, Germany could no longer pay their war reparations to Britain and France. Therefore, it became a Global Depression, with Germany suffering worst of all. Therefore, it became a Global Depression, with Germany suffering worst of all. </li> <li> Slide 14 </li> <li> Causes Despite the rising stock prices of the 1920s, much of the wealth was unevenly distributed to a minority of the U.S. population. Despite the rising stock prices of the 1920s, much of the wealth was unevenly distributed to a minority of the U.S. population. Industries had begun producing more than the population could consume. Industries had begun producing more than the population could consume. Those who did consume often did so imprudently, going into debt without backup savings. Those who did consume often did so imprudently, going into debt without backup savings. </li> <li> Slide 15 </li> <li> Overspeculation In the 1920s, many investors bought stocks with borrowed money, and pledged these stocks as collateral, something of value that could be used as repayment, to buy more stocks. In the 1920s, many investors bought stocks with borrowed money, and pledged these stocks as collateral, something of value that could be used as repayment, to buy more stocks. Much of the stock market boom was based on borrowed money and optimism instead of real value Much of the stock market boom was based on borrowed money and optimism instead of real value </li> <li> Slide 16 </li> <li> Lack of Government Safety Net When banks failed in the Great Depression, people lost their entire savings, there was no way to insure the protection of their money. When banks failed in the Great Depression, people lost their entire savings, there was no way to insure the protection of their money. Today, the government insures money that is saved in banks, even if the bank were to go out of business. Today, the government insures money that is saved in banks, even if the bank were to go out of business. </li> <li> Slide 17 </li> <li> Section 2: Social Effects of Depression Many Americans expected economic recovery to happen quickly after the Crash. Within a year or two, it became evident that the situation was worse than anticipated. Many Americans expected economic recovery to happen quickly after the Crash. Within a year or two, it became evident that the situation was worse than anticipated. </li> <li> Slide 18 </li> <li> Poverty Spreads Poverty spread throughout society. Poverty spread throughout society. Bank closings destroyed the savings of many families. Bank closings destroyed the savings of many families. Job layoffs forced others to foreclose on homes or be evicted from apartments, even white-collar workers who had felt better off than laborers. Job layoffs forced others to foreclose on homes or be evicted from apartments, even white-collar workers who had felt better off than laborers. </li> <li> Slide 19 </li> <li> Hoovervilles Evicted from homes, many homeless Americans moved into shanty towns made of scrap materials, cardboard or tar paper. Evicted from homes, many homeless Americans moved into shanty towns made of scrap materials, cardboard or tar paper. Became known as Hoovervilles, in mockery of President Hoover. Became known as Hoovervilles, in mockery of President Hoover. Many homeless became drifters, traveling, hitchhiking, and jumping trains around the country from one hobo jungle to the next. Many homeless became drifters, traveling, hitchhiking, and jumping trains around the country from one hobo jungle to the next. </li> <li> Slide 20 </li> <li> Farm Distress Low crop prices cut farmers income and many lost their farms to the banks who sold them at auction. Low crop prices cut farmers income and many lost their farms to the banks who sold them at auction. In protest to low prices, some farmers dumped thousands of gallons of milk and destroyed crops. In protest to low prices, some farmers dumped thousands of gallons of milk and destroyed crops. </li> <li> Slide 21 </li> <li> The Dust Bowl Economic difficulties for farmers were magnified by an environmental crisis known as the Dust Bowl Economic difficulties for farmers were magnified by an environmental crisis known as the Dust Bowl During the 1930s, strong winds blew enormous amounts of soil throughout the Great Plains. During the 1930s, strong winds blew enormous amounts of soil throughout the Great Plains. </li> <li> Slide 22 </li> <li> Causes of the Dust Bowl For years, farmers had plowed the land and stripped the topsoil of its protective grass and vegetation. For years, farmers had plowed the land and stripped the topsoil of its protective grass and vegetation. The vegetation had provided the roots to keep soil intact. The vegetation had provided the roots to keep soil intact. Combined with severe drought and heavy winds, this lack of vegetation caused the Dust Bowl. Combined with severe drought and heavy winds, this lack of vegetation caused the Dust Bowl. 60 percent of Dust Bowl families lost their farms. 60 percent of Dust Bowl families lost their farms. </li> <li> Slide 23 </li> <li> Depressions Impact on Health Depression greatly affected the health of those most impacted. Depression greatly affected the health of those most impacted. Thousands went hungry, or lacked nutrition from the food they did have. Thousands went hungry, or lacked nutrition from the food they did have. People lacked the money or resources to properly heat homes or seek medical attention. People lacked the money or resources to properly heat homes or seek medical attention. Widespread poverty greatly increased stress, anxiety, depression, and suicide rates. Widespread poverty greatly increased stress, anxiety, depression, and suicide rates. </li> <li> Slide 24 </li> <li> Stress on Families Difficult times often caused extended families to team up and move in together. Difficult times often caused extended families to team up and move in together. Men who lost their jobs felt like a failure to their family. Men who lost their jobs felt like a failure to their family. Families were often ashamed to ask others for help, even when they desperately needed it. Families were often ashamed to ask others for help, even when they desperately needed it. </li> <li> Slide 25 </li> <li> Discrimination Increases African Americans and other minorities were squeezed out of the labor force. African Americans and other minorities were squeezed out of the labor force. As white Americans lost their jobs, they looked for work doing lower-paying jobs typically filled by minorities. As white Americans lost their jobs, they looked for work doing lower-paying jobs typically filled by minorities. Thousands of Asian Americans and Hispanics not only lost their jobs, but were deported. Thousands of Asian Americans and Hispanics not only lost their jobs, but were deported. By 1932, 56 percent of African Americans were unemployed. By 1932, 56 percent of African Americans were unemployed. </li> <li> Slide 26 </li> <li> Stories of Survival Families showed enormous resiliency throughout the Depression. Families showed enormous resiliency throughout the Depression. Wasting nothing, many who lived through the Depression were changed permanently, living frugally and conservatively for the rest of their lives. Wasting nothing, many who lived through the Depression were changed permanently, living frugally and conservatively for the rest of their lives. People were willing to work hard and do any job to provide for their family. People were willing to work hard and do any job to provide for their family. </li> <li> Slide 27 </li> <li> Section 3: Surviving the Depression Despite difficulty, society worked hard and persevered through the Great Depression. </li> <li> Slide 28 </li> <li> Farmers Stick Together When banks foreclosed on the land of farmers who couldnt pay their loans, the banks sell the farms at an auction. When banks foreclosed on the land of farmers who couldnt pay their loans, the banks sell the farms at an auction. Often, neighboring farmers secretly agreed to keep bids low, even mere pennies for the land and equipment. Often, neighboring farmers secretly agreed to keep bids low, even mere pennies for the land and equipment. Then the buyers gave the land back to the original owner. Then the buyers gave the land back to the original owner. These auctions became known as penny auctions. These auctions became known as penny auctions. </li> <li> Slide 29 </li> <li> Riding the Rails Many young people left home out of necessity or in search of opportunities. Many young people left home out of necessity or in search of opportunities. In the mid-19...</li></ul>