1. United States History Chapter 15 Crash and Depression (1929-1933)

2. Section 1 The Stock Market Crash

3. 1929 Stock Market Crash Black Tuesday (October 29, 1929) the day on which the Great Crash of the stock market began (October 29, 1929) the day on which the Great Crash of the stock market began As stock prices fell, investors nationwide raced to get their money out of the stock market; 16.4 million shares were sold As stock prices fell, investors nationwide raced to get their money out of the stock market; 16.4 million shares were sold The Crash would continue beyond “Black Tuesday,” losses would total more than $30 billion The Crash would continue beyond “Black Tuesday,” losses would total more than $30 billion

4. Effects of the Stock Market Crash Bank Failures A combination of unpaid loans and the people pulling their money out of the bank led to thousands of banks across the country to fail A combination of unpaid loans and the people pulling their money out of the bank led to thousands of banks across the country to fail As the banks failed, people loss what savings they had in the bank As the banks failed, people loss what savings they had in the bank

5. Effects of the Stock Market Crash Rise in Unemployment Because businesses could not borrow money to expand and produce more goods, production would fall Because businesses could not borrow money to expand and produce more goods, production would fall As production fell, businesses were forced to lay off workers, increasing unemployment nation wide As production fell, businesses were forced to lay off workers, increasing unemployment nation wide

6. What was the Great Depression? The most severe economic downturn in the nation’s history, which lasted from 1929 to 1941 The most severe economic downturn in the nation’s history, which lasted from 1929 to 1941 The Great Depression was a result of the economic issues of the time The Great Depression was a result of the economic issues of the time

8. What impact did the Great Depression have on the world? Countries around the world had depended on the United States for investments and loans Countries around the world had depended on the United States for investments and loans When the economy of the United States fell, the global economic system began to collapse When the economy of the United States fell, the global economic system began to collapse

9. Underlying Causes of The Depression Unstable Economy National wealth was unevenly distributed, with most money in the hands of a few who tended to save or invest rather than spend National wealth was unevenly distributed, with most money in the hands of a few who tended to save or invest rather than spend Industry produced more goods than most consumers wanted or could afford Industry produced more goods than most consumers wanted or could afford Farmers and workers did not share in the benefits in the economic boom Farmers and workers did not share in the benefits in the economic boom

10. Underlying Causes of The Depression Overspeculation Speculators bought stocks with borrowed money and then pledged those stocks as collateral to buy more stocks Speculators bought stocks with borrowed money and then pledged those stocks as collateral to buy more stocks The stock market boom was based on borrowed money and optimism instead of real value The stock market boom was based on borrowed money and optimism instead of real value

11. Underlying Causes of The Depression Government Policies Poor monetary policy led to greater financial problems in the United States Poor monetary policy led to greater financial problems in the United States The lack of money in circulation made it near impossible for the economy to recover after the stock market crash The lack of money in circulation made it near impossible for the economy to recover after the stock market crash

12. Section 2 Social Effects of the Depression

13. What were “Hoovervilles”? Term used to describe a makeshift homeless shelter during the early years of the Great Depression Term used to describe a makeshift homeless shelter during the early years of the Great Depression As people began to lose their jobs they were unable to pay their rent, which resulted in homelessness; the homeless would build shanty towns out of whatever scrap material they could find As people began to lose their jobs they were unable to pay their rent, which resulted in homelessness; the homeless would build shanty towns out of whatever scrap material they could find

14. Hooverville

15. What problems did many farmers face during the depression? Low crop prices cut income, and when they could not pay their mortgages they lost their farms to the bank, which sold them at auction Low crop prices cut income, and when they could not pay their mortgages they lost their farms to the bank, which sold them at auction

16. What was the “Dust Bowl”? Term used to describe the central and southern Great Plains in the 1930s, when the region sustained a period of drought and dust storms Term used to describe the central and southern Great Plains in the 1930s, when the region sustained a period of drought and dust storms The Dust Bowl was the result of farmers stripping the lands of its natural protection [prairie grasses]; as drought and severe winds set in dust was blown nationwide [“black blizzards”] The Dust Bowl was the result of farmers stripping the lands of its natural protection [prairie grasses]; as drought and severe winds set in dust was blown nationwide [“black blizzards”]

17. What impact did the Dust Bowl have on the population patterns of the Midwest? The combination of bad weather, poor crops, and low prices would cause thousands to lose their farms The combination of bad weather, poor crops, and low prices would cause thousands to lose their farms Thousands of families in the Midwest would pack up and head westward in hopes of finding a better life Thousands of families in the Midwest would pack up and head westward in hopes of finding a better life Many migrants of the Dust Bowl would find work in California Many migrants of the Dust Bowl would find work in California

19. Section 3 Surviving the Great Depression

20. Identify the 21 st Amendment. Amendment that repealed Prohibition (18 th Amendment) Amendment that repealed Prohibition (18 th Amendment)

21. Section 4 The Election of 1932

22. What was the Hawley-Smoot Tariff? What was the impact of this legislation? The highest import tax in history, passed by Congress in 1930 The highest import tax in history, passed by Congress in 1930 This tariff was passed in hopes of protecting American industry from cheaper foreign imports during the depression This tariff was passed in hopes of protecting American industry from cheaper foreign imports during the depression The tariff backfired, European countries responded with their own tariffs which brought a slowdown in international trade The tariff backfired, European countries responded with their own tariffs which brought a slowdown in international trade

23. What was the Reconstruction Finance Corporation? Was this legislation successful? Corporation set up by President Hoover in 1932 to give government credit to a number of institutions, such as large industries and insurance companies Corporation set up by President Hoover in 1932 to give government credit to a number of institutions, such as large industries and insurance companies The goal of this legislation reflected the theory that prosperity at the top would help the economy as a whole [example: government money was provided to banks, which would be loaned to businesses, which would expand business and create new jobs] The goal of this legislation reflected the theory that prosperity at the top would help the economy as a whole [example: government money was provided to banks, which would be loaned to businesses, which would expand business and create new jobs] This attempt was too little too late, banks and businesses continued to fail and the depression lived on This attempt was too little too late, banks and businesses continued to fail and the depression lived on

24. Explain the events surrounding the Bonus Army. World War I veterans who, with their families, marched on Washington, D.C., in hopes of receiving immediate payment of a pension bonus promised for 1945 World War I veterans who, with their families, marched on Washington, D.C., in hopes of receiving immediate payment of a pension bonus promised for 1945 These veterans believed that the bonus could help in their current economic condition, but the Senate did not These veterans believed that the bonus could help in their current economic condition, but the Senate did not Much of the “Bonus Army” went home, but many remained living in shacks; after some violence the president would call in the military to remove the last of the protestors Much of the “Bonus Army” went home, but many remained living in shacks; after some violence the president would call in the military to remove the last of the protestors

25. Bonus Army

26. What was the outcome of the 1932 presidential election? Hoover (R) vs. F. Roosevelt (D) Hoover (R) vs. F. Roosevelt (D) The American people, and even his own party, had lost faith in Hoover, Roosevelt won by a 7 million vote margin The American people, and even his own party, had lost faith in Hoover, Roosevelt won by a 7 million vote margin

27. 1932 Electoral Results