1. Unit 6 Section 1 The Great Depression
U.S. History
Unit 6 Section 1
The Great Depression

2. Timeline

3. Timeline

4. Herbert Hoover

5. Herbert Hoover
America's 31st president, took office in 1929, the year the U.S. economy plummeted into the Great Depression.
Hoover bore much of the blame in the minds of the American people.

6. Bull Market

7. Bull Market

8. Bull Market When the stock market has an upward trend in stock prices
Caused by heavy buying of stocks
Bull Market

9. Bear Market

10. Bear Market

11. Bear Market When the stock market has a downward trend in stock prices
Caused by heavy selling of stocks
Bear Market

12. Margin buying

13. Margin buying

14. Sell Here
Margin buying
Buy Here

15. Margin buying The practice of buying stocks with borrowed money
Speculators could purchase stocks with as little as a 10% down payment (10% margin)
This meant people could borrow as much as 90% of the price paid for stocks
Margin buying

16. Black Thursday

17. Black Thursday

18. Black Thursday October 24, 1929
Day when nervous stockholders began selling their stocks
This dumping of stocks lowered the price of the stock since there was a large supply available
Caused a panic where many began dumping stocks - 12 million shares changed hands
Black Thursday

19. Black Tuesday

20. Black Tuesday

21. October 29, 1929
Stock prices sink to a new low with panic selling occurring again
More than 16 million shares changed hands
Black Tuesday

22. Gross National Product

23. Gross National Product

24. Gross National Product
The total value of all goods and services produced in a given year
Pre-depression highs reached $103 billion (1929)
Depression lows sank to $56 billion (1933)
Gross National Product

25. Bank Failures

26. Bank Failures

27. Many banks lost a significant amount in the stock market crash
Borrowers began defaulting on their loans
People began withdrawing their savings from banks because they had no faith in the banks
More than 5,000 banks closed between 1930 and 1932
Bank Failures

28. Great Depression

29. Great Depression

30. Worldwide and deep economic downturn that gripped the U. S
Worldwide and deep economic downturn that gripped the U.S. from 1929 until the beginning of WWII in 1939
Made the U.S. economically vulnerable
Changes relationship between federal government and citizens
Now, the federal government took a much more active role in people’s lives
Great Depression

31. Causes of the Great Depression

32. Causes of the Great Depression
Margin buying
High tariffs
Worldwide economic decline
Europe was still recovering from the debt caused by WWI
Falling agricultural prices
During WWI, American farmers grew enough food to feed Europe
This caused a drop in prices
Overproduction of industrial goods
Rapid industrialization caused the production of too many products
This caused unemployment when companies cut back
Causes of the Great Depression

33. Business cycle

34. Business cycle

35. The ups and downs of business in a free-enterprise system
Prosperous time include more people working and more production
Surpluses build up, leading to laid off workers
This creates a recession or depression until the surpluses are sold, then the cycle repeats
Business cycle

36. Widespread unemployment

37. Widespread unemployment

38. Widespread unemployment
Unemployment reached 25% during the Great Depression
Widespread unemployment

39. Deportation and Repatriation

40. Deportation and Repatriation

41. Widespread unemployment increased pressure to deport non-Americans to decrease competition for jobs
500,000 Mexicans were deported in the early 1930’s
The Mexican Repatriation refers to a mass migration that took place between 1929 and 1939,
People of Mexican descent were forced return to Mexico.
Deportation and Repatriation

42. Breadlines

43. Breadlines

44. A place where soup and bread are served to the poverty stricken people
Operated by charitable organizations
Provided the poor with meals they could not afford to eat
Breadlines

45. Shantytowns

46. Shantytowns

47. Shantytowns

48. Shantytowns A collection of makeshift shelters
Built with cardboard, scrap lumber, and any other thrown away material that could be found
Known as “Hoovervilles”
Shantytowns

49. Rugged individualism

50. Rugged individualism

51. Herbert Hoover’s idea that success comes from individual effort and private enterprise
Believed that the government should stay out of economic problems
Believed private charities and local communities could best provide for those in need
Rugged individualism

52. Bonus Army

53. Bonus Army

54. Bonus Army A group of World War I veterans that were unemployed
Asked for the pension they were promised early
Marched on Washington to seek support from a bill to provide these bonuses early
Bonus Army

55. Hoover’s Accomplishments

56. Hoover’s Accomplishments

57. Hoover’s Accomplishments
Back door diplomacy.
Known as the “Do nothing” president.
Reconstruction Finance Corporation – gave emergency loans to banks and businesses
As Hoover later proudly proclaimed: It was a "program unparalleled in the history of depressions in any country at any time."
Hoover’s Accomplishments

59. Franklin D. Roosevelt

60. The Democratic representative for President in the 1932 election
Promised America a New Deal to solve the depression
Overwhelmingly won the election 472 electoral votes to 59 for Hoover
Became President in March 1933
Franklin D. Roosevelt

61. Questions?

62. Chapter 15 Section 1 Quiz
1. Identify who Franklin D. Roosevelt was?
2. Describe what rugged individualism was?
3. Explain what the Great Depression was and how it impacted America?
4. Describe what a Shantytown was?
5. Explain what a Bull Market is?
6. Identify what Gross National Product is?
7. Explain what breadlines were?
8. Describe what the Bonus Army was?