Presentation on theme: "The Great Depression. The Great Depression- 1929 to 1941 In 1928, Herbert Hoover is elected President."— Presentation transcript:
The Great Depression
The Great Depression to 1941 In 1928, Herbert Hoover is elected President
Main Causes of the Great Depression: 1. Over production and under consumption of farm crops. – Many farmers went into debt to buy tractors and new machines but after WWI the demand for crops went DOWN.
2. Uneven distribution of income – *The rich get MUCH richer and the workers just become less poor* – In 1929, the wealthiest 1% of the population earned about the same amount of money as the bottom 42%!
3. Consumer debt grows- – Credit is easy to get – 60% of cars are purchased using installment buying – People are going in debt to get the latest appliances…
4. Stock market speculation- – SPECULATION= making high-risk investments hoping to make a lot of money – i.e. You invest your life savings into a new product because you think it will be the next “hot item”
Assignment: Open your textbook to pg Begin reading the section. Answer the following questions (in complete sentences) on a separate piece of paper – Pg. 372 #1, 4, 5, 6
STOCKS! STOCKS! STOCKS! Welcome to Miss. Wilson’s stock exchange! Today you will have the opportunity to purchase and sell stocks. Will you end up on top? $$$ A reward will be given to the person who finishes with the most amount of money! $$$
1920 Kroger Foods$100 Radio Corp. (RCA)$100 Mammoth Oil$100 City Corp. Bank$100 Durant Motors$100 Midland Utilities$100 Kansas Pacific RR$100 Tel-Tone$100
1923 Kroger Foods$150 Radio Corp. (RCA)$100 Mammoth Oil$100 City Corp. Bank$50 Durant Motors$200 Midland Utilities$50 Kansas Pacific RR$100 Tel-Tone$150
1925 Kroger Foods$100 Radio Corp. (RCA)$200 Mammoth Oil$150 City Corp. Bank$50 Durant Motors$200 Midland Utilities$75 Kansas Pacific RR$50 Tel-Tone$200
1929 Kroger Foods$75 Radio Corp. (RCA)$50 Mammoth Oil$50 City Corp. Bank$0 Durant Motors$0 Midland Utilities$75 Kansas Pacific RR$50 Tel-Tone$25
What are you worth?!?!? Add up both your money and what your stocks are worth at this point. Who has the most? The least? THE CRASH!! October 29, 1929 Also known as “Black Tuesday”
Effects of the Great Depression
Effects 1. Banks and businesses fail: – Banks cannot pay back the customers and people were running to take out their MONEY 2. Unemployment soars:
Effects 3. Personal income shrinks: 4. American loans to Europe dry up: Hawley-Smoot Tariff- this raised prices on foreign imports so they could not compete in American market
The tariff DESTROYS INTERNATIONAL TRADE Depression goes GLOBAL
The Great Depression creates… Hard times for ALL Americans Urban: Factory jobs are cut and for those who keep their jobs, hours and wages go DOWN *Just when many people thought they could move up in society*
Breadlines- – Places to wait for free scraps of food Hoovervilles- – Homeless people grouped together and set up tents and shacks – One of the largest= Central Park – “Hoover blankets” and “Hoover flags”
Rural: Low prices for farm goods and many farmers lost their jobs I.E. In 1919 a bushel of wheat= $2.16 In 1932 a bushel of wheat= $0.38 Minorities: During the Great Depression, African Americans were the “last to be hired, first to be fired” *nearly 50%!
The Dust Bowl!! mid 1930s
Hoover Responds… Hoover’s actions failed to get the United States out of the depression He wanted trickle-down economics – *see picture on whiteboard Hoover was NOT re-elected In 1933, in steps Franklin D. Roosevelt…