The Great Depression (1929-40) As the prosperity of the 1920s ended, severe economic problems gripped the nation. During the Great Depression America did what they had to do to survive. President Hoover’s conservative response to the Great Depression drew criticism from many Americans.

Essential Question Learning Goals Objectives What were the causes and consequences of the Great Depression? Summarize the problems threatening the 1920s American economy. Describe the causes of the stock market crash and Great Depression. Describe how people struggled to survive during the Depression. Summarize Hoover’s actions to help the economy and the hardships suffered by Americans.

How do you think the Great Depression changed people’s lives How do you think the Great Depression changed people’s lives? Explain as if you were the person in the picture.

The Dow Jones Industrial Average, a barometer of the stock market’s health, was booming during the 1920s. By 1929 investors began to get into trouble because of speculation, the buying of stocks and bonds on the chance of a quick profit. Others began buying on margin, paying a small percentage of a stock’s price and borrowing the rest. On October 29, 1929—now known as Black Tuesday--the stock market collapsed.

Four Causes of the Great Depression Tariffs and war debt limit foreign market exporting. A crisis in the farm sector The availability of easy credit An unequal distribution of income

Shantytowns, little towns consisting of shacks, sprang up all over the country with residents going to soup kitchens and bread lines for food provided by charities and government agencies. Direct relief, cash payments or food provided to the poor, were common during the Dust Bowl, a famine that made the Great Plains worthless for farming by droughts and dust storms. President Hoover tried to stop the Depression with the Federal Home Loan Bank Act, which lowered mortgage rates for homeowners and farmers. He also created the Reconstruction Finance Corporation, which gave $2 billion to banks, insurance companies, railroads, and other large businesses.

Exit Slip Describe the fundamental problems in one of the following areas of the economy and how they helped cause the Great Depression: industry, agriculture, consumer spending and debt, distribution of wealth. Identify some of the physical and emotional health problems caused by the Great Depression. Compare President Hoover’s response to the stock market crash of 1929 to his response to the Great Depression in the early 1930s.