What Economic Problems of the Late 1920s Caused the Great Depression? United States History & Government 11th Grade Boys & girls| Br. Siraj| Al-Madinah School | April 9, 2019

Sick Economy at the late 1920s There was a sickness under the surface of the good economy of the 1920s. Clothing, steel-making, and mining were not making any profit. Auto manufacturing, construction and consumer goods manufacturing were also losing money by the late 1920s. Farming was the biggest problem Dropped demand for food after the war caused farmers’ income to go down. They lost their land due to their inability to pay mortgage payments. Congress tried helping by passing price supports bill.

Credit buying was another problem. People bought on credit and accumulated high amount of debt.

The Election of 1928 & The Bull Market Republican Nominee Herbert Hoover defeated Democratic Nominee Alfred E. Smith People Believed in Hoover’s Claim of a Strong Economy People Saw a Bull Market: a long period of rising stock prices People were buying on margin – paying a small down payment and borrowing the rest from the stockbroker. People also practiced speculation – buying risky stocks hoping to make a quick profit

Stock Market Crash (Black Tuesday) In September 1929 stock prices began fall sharply. On October 29, 1929 (Black Tuesday) stock prices fell so sharply that people termed it Stock Market Crash. People panicked and started to sell their stock pushing prices further down. By Mid-November $30 billion had been lost.

Great Depression A period of bad economic times when many people were out of work that lasted from 1929 to 1940. Effects of Stock Market Crash on Business Banks began to close as panicked customers began to withdrew their money Businesses began to close too Millions of Americans lost jobs or had to work less hours for little wage. Worldwide depression – worsened by Hawley-Smoot Tariff Act.

Main Causes of Great Depression Tariffs and war debt policies that cut down the foreign market for American goods a crisis in the farm sector the availability of easy credit unequal distribution of income. Homework: Q 1 and 2 on page 677

What were the Effects of Great Depression? U.S. History & Government / 11th Grade / Br. Siraj Tuesday, April 09, 2019

The Effects of Great Depression Effects on City People Millions lost jobs Millions became homeless Shantytowns grew Soup kitchens offered food Waiting in the bread lines African Americans and Latinos suffered the most They were attacked by the whites Whites demanded that Latinos be sent back to their country of origin

The Effects of Great Depression Effects on Rural People Farmers earned less and less due to food price drop. Farmers lost their land (400,000 between 1929-1932) Great Plains (Texas to North Dakota) was hit by long drought Dust Bowl covered Kansas, Oklahoma, Texas, New Mexico & Colorado. Many farmers became migrant workers. (Okies)

The Effects of Great Depression on American Family Some families stayed together with stronger bonds. Shared their earnings / parents and children stayed home instead of going out for entertainment Played board games or listened to the radio Some families Broke Apart Many men were ashamed of not being able to support their family They left the families and wandered around looking for work Women tried finding jobs Got paid less / some people argued against giving them jobs.

The Effects of Great Depression Effects on Children Terrible suffering for them Poor diet & healthcare Many ran away from home Many were robbed and killed by criminals or beaten by railroad guards Effects on Mental Health Suicide and mental illness increased Young people gave up many of their dreams including going to college

The Effects of Great Depression Effects on Government Did not provide any direct relief Charities and city governments struggled to help Cities and states collected less tax money Child welfare budgets were cut Cities could not keep the schools open of full year. Humane Side of the Story It sometimes brought out the best of individuals, families & Communities Many people shared resources with their neighbors or gave food and clothing to the needy.

HOMEWORK QUESTIONS 1, 2 & 4 ON PAGE 683