1. 1929 - 1941

2. Great Depression Economic disaster that hit the United States following the stock market crash of 1929 It involved widespread business failure and massive unemployment

3. Causes of the Great Depression

4. Cause #1 1.Over speculation on stocks Stocks bought on margin – part cash/part credit Loans could not be repaid after Stock Market Crash People’s homes repossessed

5. Cause #2 2. Black Tuesday October 29,1929 Stock Market crashed 16 million shares traded (daily average 4 million) Many businesses instantly went bankrupt

6. Cause #3 3. Failure of Federal Reserve Failed to supply banks with enough money to prevent the banking system from collapsing Caused Americans to lose their savings

7. Cause #4 4. Smoot-Hawley Act Put high tariffs (taxes) on imported goods to force people to buy American products Other countries placed retaliatory tariffs on American products These actions stopped world trade and caused businesses to fail

8. Impact of the Great Depression

9. Unemployment & Homelessness 25% of Americans unemployed Hoovervilles – neighborhoods of homeless people; named after President Herbert Hoover

10. Businesses Failed Surviving businesses had to cut wages and fire most employees Labor unions became militant

11. Businesses Failed Demanded companies rehire workers

12. Collapse of Financial System Banks did not have any money for people to borrow Federal Reserve did not have money to loan banks so they could stay open

13. Farm Foreclosures and Migration Dust Bowl – farm area of U.S. which experienced a drought in 1920’s and 1930’s Farmers went bankrupt and couldn’t pay bank loans

14. Farmers moved west to California to work on fruit farms

15. Political Unrest Bonus Army – 20,000 WWI veterans marched on Capital demanding pension payments

16. Political Unrest People demanded government do something to create jobs and generate money