The Great Depression

How did the Great Depression begin, and what did the United States do to

fight against it?

Key Vocabulary

• Credit: ______________________________________________________________________• Buying on margin: ____________________________________________________________• Stock Market: A particular market where

stocks and bonds are traded.• Hoovervilles: _________________________________________________________________

Stock Market Crash of 1929

• ____________________________________– ______________________________________.– Some who could not afford the stocks’ full price

began buying on margin

• Stock prices peaked in the summer of 1929.– Prices started to drop.– ___________________________________________________________________________________

Black Tuesday

• ________________________________________________________________________________________

• On Thursday, October 24, panic hit the stock market.– Within three hours the market lost $11 billion in value.

• On Monday, October 28, prices dropped again.• __________________________________________– ______________________________________________________________________________________________

• ___________________________________

How did Stock Market Crash?

BANK

Lends out $100 to Person 2

Stock Market, with everyone’s money, crashes-banks close

$100$100

Person deposits $100 into bank

Person 2 takes the $100 and invests into the stock market

The Economy Follows the Stock Market

• _____________________________________– Customers unable to pay back bank loans– _________________________________________

__________________________________________________________________________________

• ____________________________– Customers rushed to banks to withdraw their

money.– ______________________________

President Hoover’s Reaction

• _______________________________________________________________________________________________________________– Resisted giving direct assistance to individuals

• __________________________________________________________________________

• Hoovervilles, or groups of tin and cardboard shacks, were built.

Roosevelt’s New Deal

• _______________________________________________• Said that economic recovery was possible• _________________________________________________

A New President

• Roosevelt called special session of Congress that became known as the Hundred Days.

• ______________________________________________________________________________________________________________________________

• ______________________________________________

The Hundred Days

Roosevelt Restores Confidence

• Roosevelt worked to restore confidence in American banks.– ________________________________________

– ________________________________________

– Government inspected finances of a bank before it was allowed to reopen.

• ______________________________________________– _____________________________________________________

– Gave many chats over the course of his administration