1. Chapter 9 – The Great Depression

2. Intro question Imagine this: you come home from school and your parents are outside your house with piles of items from inside. They say to you that they have lost everything they had in savings and they also have lost their jobs. They ask you to come up with a plan as to how they are going to survive. Write down a plan for survival for you and your family. What would you do?

3. How did the U.S. go from this in the 1920s….. DON’T STOP THE PARTY!!!!!

4. To this in the 1930s…

5. The Causes of the Great Depression

6. The Stock Market Crash In early 1928, stocks began a steady climb for 1 ½ years  This is called a BULL MARKET Normal American The rapid growth made “easy” money possible and infected Americans with speculative fever  people were able to get easy credit Guess What???!!!I got a fever!!! Think of “more cowbell” as more speculation, more credit, and more investing!!! October 29, 1929  BLACK TUESDAY Dow Jones (an index of stocks) fell 43% The crash of the stock market was the first visible sign of a disaster that had been building for years.

7. What would you do? If there was a way to make easy money with hardly any risk, would you do it?

8. Capitalist Economy 1920s Oct. 29, 1929 (Black Tuesday)

9. CAUSES OF THE GREAT DEPRESSION Low Interest RatesFederal Reserve kept interest rates low; companies borrowed money and expanded more than necessary. OverproductionCompanies made more goods than could be sold. Uneven Distribution of Wealth Not everyone who wanted consumer goods could afford to buy them. High TariffsTariffs restricted foreign demand for American goods. Falling DemandWith too many goods unsold, production was cut back and employees were laid off. Stock Market Speculation Low interest rates encouraged borrowing money to speculate, endangering bank wealth

10. Why do people put money in a bank? What does the bank do with your money? What would you do if your heard your bank was running out of money?

11. Life During The Great Depression

12. Unemployment and Relief Unemployment reached record numbers bringing much despair to Americans  especially men…why? Many Americans looked to state and local government for assistance; however, they were ill-equipped to handle the magnitude of the situation BREADLINES ROOTING THROUGH TRASH SHANTYTOWNS (HOOVERVILLES)

13. Example of a Shantytown or Hooverville

14. Do you know where this is?

15. What do the majority of these forms of entertainment have in common? Depression Art and Entertainment LiteratureRadioMoviesJournalism John Steinbeck’s The Grapes of Wrath Adventures – Dick Tracy, The Lone Ranger Soap Operas Brought the country together through shared experiences Walt Disney The Wizard of Oz Gone With the Wind Life Magazine (1936) Life Magazine (1936)

16. Depression hits Farmers 1/3 lost their land Farm income dropped dramatically A huge drought led to the “Dust Bowl”