1. Chapter 25 APUSH Mrs. Price
“No one can make you feel inferior without your consent.” - Eleanor Roosevelt

2. The Great Crash Preceded by stock market boom
Black Tuesday (Oct 29, 1929)
- 16 million shares traded
- 1st visible sign of crisis

3. Causes of the Depression
Lack of Diversification in economy = growth depended on few industries

4. Causes of the Depression
Unequal distribution of wealth = workers could not afford products = surplus = layoffs

5. Causes of the Depression
Credit structure of the economy
1. Farmers in debt
2. Too much reliance on credit
3. Banks speculated in stock market

6. Causes of the Depression
Declining exports

7. Causes of the Depression
International debt structure
1. Allies owed US $ (war loans)
2. Borrowed $ from US banks to pay debt
3. Late 1920s, US banks less willing to
loan $ & US tariffs made it difficult to
sell products in US
4. Countries began to default on loans

8. Effects Banking Collapse
9,000 banks closed; depositors lost $2.5 billion
Declining $ supply = decline in consumer demand = layoffs
GNP dropped, investment declined, unemployment increased

15. Dust Bowl Drought in Great Plains + dust storms
Weather problems made worse by farming techniques
Okies: left for CA to work as migrants
1/3 of farmers lost land; 60% of population left

17. The Dust Bowl
Dust Storms
Health clinic
For homeless

21. Impact on People Minorities saw opportunities decline
Gender Differences
1. Men considered themselves failures
2. Women’s sense of self-importance
increased

22. Impact on People Spending patterns changed Strain on families
Telephone use & clothing sales decreased
Cigarettes, movies, radio, & newspapers became necessities
Strain on families
Birth rate & marriage rate declined
Divorce rate declined

23. Herbert Hoover
Elected 1928
Republican
Gets blamed for the depression

24. Hoover’s Response Believed depression was temporary
Tried voluntary cooperation of business & labor
Tried to use govt spending to fight the Depression – not enough $

25. Hoover’s Response
Tried to help farmers: Agricultural Marketing Act (1929)
Created the Federal Farm Board
Lent $ to farm cooperatives to buy, sell, & store supplies
Hawley-Smoot Tariff (1930): increased tariffs on farm products

26. Hoover’s Response Reconstruction Finance Corporation (1932)
Loans to railroads, banks, other businesses
Loans to local govts for public works & relief
“Pump-priming”
Was not sufficient