1. Great Depression

2. Some thoughts… The Great Depression was probably the lowest point in American economic history Devastating 13 million people were unemployed in 1932. By 1933, one out of every four people in America had lost his or her job.

3. Overview Stock Market Crash Causes of the Great Depression Dust Bowl Life during the Depression Hoover’s approach to improve the situation

4. Stock Market – Whoa!!!!!!! Companies sell shares Shares = small percentage of ownership in a company Companies take $$$ and reinvest in improving their business Stock Market or Stock Exchange = place where people can buy or sell their stock (NYSE, AMEX, NASDAQ, CME, CHX) Stock prices go up – business is doing well – stockholders make money on their initial investments

5. Stock Market Crash Dow Jones Industrial Average – average of stock prices Millionaires were created by speculation. Investors borrowed most of the money to buy stock – buying on margin.

7. “They hollered and screamed, they clawed at one another. The trading floor of the New York Stock Exchange was like a bunch of crazy men.” A Day of Reckoning

8. Warm-up – May 25 Describe the “ripple effect” of the Great Stock Market Crash – p. 741.

9. October 29, 1929 – “Black Tuesday” – The New York Stock Exchange erased over 5 billion dollars worth of share value!

10. Stock Market Crash signaled that there were big problems with the economy!!! The Great Depression followed and lasted through to WWII.

11. Causes Uneven distribution of wealth Too many rich and too many poor and not enough in between Overproduction Factories producing more than people needed Over-speculation Too many people buying with borrowed money Too little money in circulation Government limited $$ supply to discourage lending

12. Stock Market Stock prices plummet Investors lose millions Business lose profits from investors Businesses Business cut back Workers laid off Consumer spending drops Banks Business and workers can’t repay loans Bank fail Saving accounts wiped out

13. Business Failures 1929-1932 = 85,000 Banks 1929-1932 = 9,000 bank failure = 9,000,000 accounts wiped out National Income 1929 = $81 billion 1932 = $41 billion

14. Dust Bowl Caused by over farming – removal of grass to farm Drought Dried soil created large dust storms 500,000 Americans left homeless

17. Life During the Great Depression Unemployment Homelessness Destruction of Families Farm losses

18. p.746-748 Hoovervilles How did the Depression affect people’s health? How did the Depression affect families?

19. Hoover “the ship would right itself” “People will pick themselves up by the bootstraps” Was he willing to help people recovery?

28. Hoover Believed that Federal Relief would destroy “destroy people’s self- respect and create a large bureaucracy.” Thought the key to recovery was confidence. Blamed Great Depression on “world-wide economic conditions beyond our control.” Believed in voluntary controls by business Public began to blame Hoover and the Republicans for depression. FDR Suffered from this disease polio. Promised a New Deal for Americans “The only things we have to fear is fear itself.” Promised bold, persistent experimentation. New Deal refers to the relief, recovery, and reform programs of FDR’s administration that were aimed at combating the Great Depression.

29. FDR http://www.americanrhet oric.com/mp3clips/poli ticalspeeches/fdrfirsti naugural4444438583 52845.mp3 http://www.socialstudieshelp.com/USRA_New_Deal.htm