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