the great depression (1929-1934) chapter 19. the nation’s troubled economy chapter 19 section 1
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The Great Depression (1929-1934)Chapter 19
The Nation’s Troubled EconomyChapter 19 Section 1
Words to Know
Stock-Market: A place where stocks, or shares in business, are bought and sold.
Depression: A time when the economy of a nation falls sharply.
Default: To fail to pay a loan when it is due.
Foreclose: To take the property of someone who has failed to pay back a loan.
Bonus: Money given in addition to what is owed.
The Stock Market Crash
1920’s: Fewer than 5% of
Americans were wealthy
Lived on yearly income of $3,000 or less
Worked longs hours/low pay
Bought expensive items on installment plans
The Stock Market Crash cont.
Some people started to invest in the stock market: Help solve money issues When people buy stocks
they own piece of the business
Hoped to become rich as business grew: Late 1920’s-business was
doing good
Many people made money in the stock market and they wanted to make even more: Some started to borrow
money to buy more stocks
Black Tuesday
Autumn 1929: Stock prices begin to fall People did not want to lose
their money so they begin to sell their stocks: Prices drop even more
October 29, 1929: Stock prices plunge Many stocks become
worthless People who borrowed money
to buy stocks lost all their money
Crash
The Great Depression
Soon after stock market crash, The US entered a depression
1920’s end: Millions of people out of
work Farmers losing their
farms Banks begin to go out
of business: Used their customers’
savings to buy stocks
The Great Depression cont.
Other things that helped bring the Great Depression: During WWI:
Many farmers sold food crops to armed forces
Earned a lot of money After war fewer crops needed Prices fell Many farmers who borrowed
money for equipment began to default on payments
Clothing and coal mining industries grew smaller as big businesses grew larger Thousands of factory workers
lost their jobs
Hard Times
Beginning of 1932: US economy almost
completely in ruins Thousands of
businesses closed Factory owners could
not afford to pay their employees
Most people lost their jobs
Hard Times cont.
Most Americans could not afford to buy all the goods that were being made
Unsold goods started to pile up
Factories begin to make fewer goods=fewer employees needed: More people lose jobs Workers who had jobs being
paid little
At times families had less than $1.50 per day to buy food
Hard Times cont.
Farm families were deeply hurt by the Great Depression:
When farmers began to default on loan payments:
banks were forced to foreclose on their property
1 day in 1932:
banks foreclose on 1/4th of all farms in Mississippi
Many Americans lost homes as well as their jobs
In every large city:
People stood in line for hours for free loaves of bread
People sold apples to earn a few cents
Hungry kids picked through garbage pails for scraps of food
Jobless and Hopeless
Govt. and business leaders had no answers
Americans ask Pres. Hoover for help: Hoover felt that help
from the govt. charity was not the answer
Hoover felt Americans had to help themselves
Jobless and Hopeless cont.
Americans angry with govt. and big business for not helping:
How some expressed their anger:
1. Some workers without jobs joined Communist party
2. Some farmers destroyed their crops rather than sell them at unfair prices
3. Some farmers joined together to stop banks from taking their property
Many WWI veterans marched on DC in 1932
WWI Veterans
Especially angry with govt.
After WWI:
Congress voted to give veterans a bonus
When GD hit Congress refused to pay bonus
Summer 1932:
15,000 veterans formed the Bonus Army:
Camped out at nations capital
Promised to remain there until Bonuses were paid
Hoover feared there may be violence:
Ordered US troops to drive out the Bonus Army
Armed soldiers attacked the veterans’ camps
Bonus Army
ClassworkChapter 19 Section 1 Crossword
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