Chapter 7, Lesson 3 The Good Times End Mr. Julian’s 5th Grade Class

Essential Question What were the causes of the Great Depression?

Places New York, New York

People Herbert Hover

Vocabulary Unemployment Stock market Great Depression Credit Unemployment Stock market Great Depression Credit

Beneath the Surface When Herbert Hoover was elected to President in 1928, the U. S. economy was the best it had ever been. However, many farmers had to borrow money to help feed the war effort during WW I. After the war, less food needed to be produced, yet farmers need to sell the same amount of crops to pay their debt. When Herbert Hoover was elected to President in 1928, the U. S. economy was the best it had ever been. However, many farmers had to borrow money to help feed the war effort during WW I. After the war, less food needed to be produced, yet farmers need to sell the same amount of crops to pay their debt.

Beneath the Surface Factories were also producing more goods than people could buy. Factories began to lay off workers to save money. Unemployment is the condition of being out of work. Other businesses were suffering as well. Factories were also producing more goods than people could buy. Factories began to lay off workers to save money. Unemployment is the condition of being out of work. Other businesses were suffering as well.

The Stock Market Crash The good time ended when the stock market crashed on October 29, Many people invest in companies in hope of making a profit. These investments are called stocks and the stock market is located in New York, New York. The good time ended when the stock market crashed on October 29, Many people invest in companies in hope of making a profit. These investments are called stocks and the stock market is located in New York, New York.

The Stock Market Crash In September 1929 prices began to fall slowly, causing many stockholders to sell their stocks. The selling of stocks causes the entire market to drop. In October with the market already down, the crash happened causing most investors to sell their stocks. October 29, 1929 is known as “Black Tuesday.” In September 1929 prices began to fall slowly, causing many stockholders to sell their stocks. The selling of stocks causes the entire market to drop. In October with the market already down, the crash happened causing most investors to sell their stocks. October 29, 1929 is known as “Black Tuesday.”

The Stock Market Crash As the stock market fell, billions of dollars were lost. Many people lost all of their money!

Causes of the Depression Within weeks of the stock market crash, the entire country entered the Great Depression. The stock market crash was only one of the many causes of the depression. One reason the crash caused panic was that people bought stocks on credit, or borrowed money. Within weeks of the stock market crash, the entire country entered the Great Depression. The stock market crash was only one of the many causes of the depression. One reason the crash caused panic was that people bought stocks on credit, or borrowed money.

Causes of the Depression The credit problem hurt many banks. When people could not pay back their loans, banks went broke as well. Many banks had to close. People heard of the banks closing and they rushed to their bank to withdrawal their money. These banks did not have enough cash for every customer and these banks had to close as well. The credit problem hurt many banks. When people could not pay back their loans, banks went broke as well. Many banks had to close. People heard of the banks closing and they rushed to their bank to withdrawal their money. These banks did not have enough cash for every customer and these banks had to close as well.

Causes of the Depression The last reason for the depression was the high tariffs placed on farming goods. A tariffs is a tax placed on good that are produced in other countries and sold in the U.S. The last reason for the depression was the high tariffs placed on farming goods. A tariffs is a tax placed on good that are produced in other countries and sold in the U.S.

Hard Times People began to cut back on their spending. Because fewer people were buying goods, more businesses had to close placing more people out of work, which lowered the economy even further. People that still had jobs had to take pay cuts. Because fewer people were working the government received few taxes. Some schools had to close because there was not any money to pay teachers. People began to cut back on their spending. Because fewer people were buying goods, more businesses had to close placing more people out of work, which lowered the economy even further. People that still had jobs had to take pay cuts. Because fewer people were working the government received few taxes. Some schools had to close because there was not any money to pay teachers.

Surviving the Depression The Great Depression changed the lives of millions. Most people could not find jobs, people delayed getting married and having children. Families struggled to survive. Some children had to quit school to help the family earn money. The Great Depression changed the lives of millions. Most people could not find jobs, people delayed getting married and having children. Families struggled to survive. Some children had to quit school to help the family earn money.

Surviving the Depression Charity groups and local governments struggled to help those in need. Hungry people stood in line for hours to get a piece or two of bread and a bowl of soup. Homeless people built shelters out of cardboard or other materials. Groups of these shelters became known as “Hoovervilles.” Charity groups and local governments struggled to help those in need. Hungry people stood in line for hours to get a piece or two of bread and a bowl of soup. Homeless people built shelters out of cardboard or other materials. Groups of these shelters became known as “Hoovervilles.”

Surviving the Depression Empty pockets became know as “Hoover Flags” and newspapers were called “Hoover Blankets.”

The Election of 1932 Most people blamed President Hoover for the Great Depression. Hoover believed that the economy would just fix itself. Franklin Delano Roosevelt promised to take bold action to fight the depression. FDR won the election and many people had hope for the first time since the beginning of the depression. Most people blamed President Hoover for the Great Depression. Hoover believed that the economy would just fix itself. Franklin Delano Roosevelt promised to take bold action to fight the depression. FDR won the election and many people had hope for the first time since the beginning of the depression.

Timeline Herbert Hoover was elected President Many people lost all of their money when the stock market crashed More than 25 percent of workers in the U.S. were unemployed Franklin D. Roosevelt was elected President after he promised bold action to fight the Great Depression Herbert Hoover was elected President Many people lost all of their money when the stock market crashed More than 25 percent of workers in the U.S. were unemployed Franklin D. Roosevelt was elected President after he promised bold action to fight the Great Depression.

Writing Response In two or more paragraphs, explain the reasons for the Great Depression.