1. The Great Depression
THE CAUSES AND EFFECTS

2. The market turned into a bear market
remember…
People started to sell of their stocks
The market turned into a bear market
CREDIT! BOO!!!
Buying on margin and with credit
Ruined a lot of people!!!!

3. October 29, 1929

4. The crash was caused by…
A downturn in the business cycle
Lack of profits
Flooding the market trying to sell stocks
A lot of people selling stocks, very few buying them…
When supply increases,
and demand decreases…
prices decrease

5. OVERPRODUCTION
Factories produced
Too much…prices fell
No profits!!!
Farmers produce
Too much…prices
Go down…NO PROFITS

6. No jobs!!!! Unemployment increases!
Because of the decrease in profits, a lot of people find themselves being laid off from their jobs…
No jobs, no money. No money, no shopping…
Just makes a big ol’circle

7. What about the banks? Where did the money go?????
Banks start going out of business because their loans can’t be repaid (remember, the credit thing)
People start to panic and try to take all of their money out of their accounts in the banks
Banks RUN OUT OF MONEY!!! WHAT?!?!?!

8. What are these people doing?!?!

9. Who is to blame? Most blamed HOOVER They thought he did little to help
You can also blame the people for abusing CREDIT
Buy now, pay later….but what if you can’t pay later!

10. And as if things couldn’t get any worse….

11. The Dust Bowl Midwest farmers were buried in a dust storm
Caused by over-farming the land and a drought
Many had to pack up and move… where did they go?
CITIES: But there’re no jobs!!! OOPS!

12. And Hoover still thinks…
NO JOBS…NO MONEY… PEOPLE LOST EVERYTHING!
HOOVERVILLES- makeshift houses in parks/streets
HOOVER FLAGS- inside out pockets
BREAD AND SOUP LINES- free food, mainly at churches
.05 APPLES- had to do what you could to get money
WEALTHY? Still had money…not as much
“CAN YOU SPARE ME A DIME”- song/saying of the time
And Hoover still thinks…
No depression!