2. The Great Depression The Great Depression

3. Black Tuesday & the Great Crash bull market – rising stock prices (way too fast)  plummeted to bear market – falling stock prices –business community with big profits investors tried to sell their stocks before prices fell any lower  too many selling stock market collapsed! Dropped $30 billion in 1 st week

4. The Bank loans busted because of stock investments  banks closing people panicked & rushed to withdraw their money  banks don’t keep a lot on hand, they ran out of money  banks closed

5. Business Failures when banks closed, many businesses lost their corporate savings & operating accounts  businesses closed or cutback on production & workforce Unemployment increases (rate = 25%)

7. Causes of the Great Depression overproduction – production exceeded consumption & surpluses piled up global trade problems – world trade declined (Europe recovering from WWI)  not a lot of aid the Dust Bowl

8. President Hoover thought that relief and recovery should come largely through voluntary cooperation rather than federal efforts created the RFC (Reconstruction Finance Corporation) – direct relief to unemployed; loaned money to railroads and banks lowered taxes to stimulate the economy did not realize how severe the depression was

11. Election of 1932 FDR (NY governor/D) vs. Hoover (U.S. President/R)  FDR won Roosevelt promised relief, recovery, and reform A new deal for the American people with federal help

12. The New Deal federal govt. approved and financed programs that battled the depression How did they afford this? –Raise taxes –Inflation

13. Farmers as prices bottomed out, many farmers could not sell their crops without income, they could not repay their house and land loans banks foreclosed on their homes & land If things weren’t bad enough, drought struck! Dust Bowl – dust storms on the Great Plains families migrated west for a new life (to California)

15. Family Life divorce rates increase, marriage & birth rates decreased men left their families (some in search of jobs) children dropped out of school to help make money (hoboes) food lines (aka soup kitchens, bread lines) – fed the poor

16. QUIZ TIME https://www.youtube.com/watch?v=QPKKQnijnsM SUMMARY

17. 1. T/F Consumerism of the 1920s was a contributing factor of the Great Depression.

18. 2. T/F Unemployment reached 50% during the Great Depression.

19. 3. Which of the following was NOT a cause of the Great Depression? –a. overproduction –b. global trade problems –c. America’s involvement in WWI –d. the Dust Bowl

20. 4. Which president was blamed for the Great Depression? –a. Woodrow Wilson –b. Herbert Hoover –c. FDR –d. Teddy Roosevelt

21. 5. Which president was credited with saving the country from the Great Depression? –a. Woodrow Wilson –b. Herbert Hoover –c. FDR –d. Teddy Roosevelt