1. The Government and the Great Depression
Ms. De La O
English 9

2. Economic Troubles on the Horizon
Problems began threatening economic prosperity by the end of the 1920s
Farm debt
Consumer debt
Declining Trade
Overproduction: too much stuff
Factories and Farm
Bank Failures
Farm debt - many farmers were forced to sell in the 1920's
Consumer debt - many people were buying goods on credit
More goods then buyers - prices rose faster than wages
Declining Trade 's U.S. raised tariffs other countries raised tariffs to retaliate
Important industries struggled
Income disparity - Consumers & farmers went steadily deeper into debt

3. The Stock Market
Late 1920s – Some economist warning of weaknesses in the economy
People began investing in stock market
Dow Jones Industrial Average
1920s - stock prices rose steadily “Bull Market”
September 1929: stock prices peaked & then fell
October 24, 1929 (Black Tuesday) - Market took plunge & many panicked investors unloaded their shares
Late 1920s – Some economist warning of weaknesses in the economy
- Most Americans ignored them
Dow Jones Industrial Average was used as barometer of the market’s health
September 1929: stock prices peaked & then fell
Many investors lost confidence & began selling
- Shareholders sold frantically
- Millions of shares had no buyers
- People who bought on credit were left with huge debts
- Others lose most of their savings

5. The Depression and the Public
economy plummeted & unemployment skyrocketed
After crash, people panicked & withdraw money from banks
Shantytowns
People dug through garbage & begged
- lasted from 1929–1940
Banks that invested in stocks failed& people lost their money
People lost jobs & were evicted from homes
Had to live in parks or sewer pipes
- Soup kitchens offered free or low-cost food
- Bread lines - people lined up for food from charities & public agencies
African Americans & Latinos had higher unemployment & lower pay
Minorities were also targets of violence (Lynching or deportation)
Most farmers could grow food for their families
About 400,000 farms were lost through foreclosure
Many farm families migrated to Pacific Coast states (Route 66)
Shantytowns - settlements consisting of shacks, arose in cities

6. Effects on the American Family
Family was source of strength for most Americans
Believed in traditional values and emphasized the importance of family unity
Some families broke apart under strain of making ends meet
Many men used to working & supporting families had difficulty coping
Many men used to working & supporting families had difficulty coping
Couldn’t find jobs
Many stopped trying
Some men even abandoned their families
- About 300,000 hoboes wandered country on railroad box cars
No federal system of direct relief - cash or food from government