1. Chapter #15 The Great Depression

2. Causes American industry over- expanded production. Too much supply=low demand ($) for products.

3. Causes Consumers lacked sufficient income to purchase the total output of industry. Could not afford payments on installment buying. Wealth was unevenly distributed.

4. Unemployment Chart

5. Causes Farmers had lower incomes after WWI because of overproduction. Dust Bowl: severe drought in the Great Plains. Farmers lose everything, move West.

6. Dust Bowl Map

8. Causes Bankers made risky loans. “Bank Runs” cause many banks to close. Investors “speculated” on stocks.

9. Bank Suspensions

10. Causes High protective tariffs (Hawley-Smoot Tariff) interfered with the flow of goods between countries. International trade declines.

11. Causes The Federal Reserve made money expensive to borrow.

12. Causes The immediate cause was the severe stock market crash starting in October 1929. —Black Tuesday.

13. Stock Chart

14. Causes Many people bought stock “on margin” and could not afford to pay loans after stock value dropped.

15. Causes Laissez Faire The believe that the government was not responsible for the economy.

16. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production. Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States. Great Crash Investors Investors lose millions. Businesses lose profits. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States. Effects of the Great Crash, 1929 Chapter 22, Section 1 Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States.

18. Life during the Depression Physically and psychologically, it was devastating to many people

19. Life during the Depression Physically-- Few people died from starvation, but many suffered from poor diet and anxiety.

20. Family living in shanty

21. Life during the Depression Psychologically— Effects were more severe for men than women. Because society expected a man to provide for his family.

22. Life during the Depression Working women were accused of taking jobs from men. Children took on greater responsibilities at an earlier age.

23. Life during the Depression Impact was less dramatic, but more damaging, for minorities. Many black people lost jobs to unemployed whites.

24. Pic of black man

25. Separate dining outside of Nashville

26. Colored Theater

27. Life during the Depression Notes/Hoover Cartoon

28. Hoover’s Policies Would not give money directly to individuals. Belief that this destroys ones spirit.

29. Election of 1932 FDR wins by a landslide.. Democrats take control of Congress also.

30. The End of the Depression December 1941--US goes to war. Unemployment is replaced by a shortage of workers.