II- The Ripple Effect The stock market crash of 1929 was only the first cause of the Great Depression Further economic catastrophes will build on the damage caused by the market crash

A) The Banks Collapse 1) Many banks had made risky loans to stock market speculators 2) Because the loans would never be paid back, many banks went out of business

3) The public panicked and tried to withdraw all of their deposits at one time. This is known as a “Run on the Bank” 4) Banks did not have the money on hand for the massive withdrawals and went under 5) 5,000 bank collapse between 1929 and 1932

B) Unemployment 1) In 1930 alone, 26,355 business failed due to bad economics 2) 25% of all Americans lost their jobs 3) With no incomes, millions were evicted and became homeless

4) Many families were forced to live in shanty towns built in parks and abandoned buildings. 5) These towns became known as “Hoovervilles”, named after President Hoover

a) Many depended on charity just to survive. b) Thousands would line up daily for bread and soup handouts.

C) The Dust Bowl 1) In 1932 to 1936 drought struck to Midwest of America. 2) The dried up topsoil would be driven by high winds to create storms of dust.

3) Dust storms destroyed crops, farms, and even stopped trains from operating. 4) Millions of farmers were forced to abandon their farms and go on the road in search of work.