unit 3 the great depression the nations sick economy economic troubles on the horizon 1. industries...
TRANSCRIPT
Unit 3
THE GREAT
DEPRESSION
The Nations Sick Economy
Economic Troubles on the horizon
1. Industries in trouble
2. Farmers need a lift
3. Consumers have less money to spend
4. Living on credit- buy now pay later
5. Uneven distribution of wealth
Dreams of Riches in the Stock Market1. Dow Jones Industrial Average- A
measure of the stock markets health
2. “Bull Market”- a period of rising stock prices
3. Speculation- buying stock on the chance of quick profit, while ignoring the risk
4. Buying on Margin- Paying a small % of a stocks price as a down payment and barrowing the rest
The Market Crashes
September 1929- Stock Prices Peaked
No Regulations on Wall Street
Black Tuesday- 10/29/1929 the bottom fell out of the market
Financial Collapse
The crash signaled the beginning of the Great Depression- The period from 1929-1940 in which the economy plummeted and unemployment skyrocketed
Bank and Business Failures
People pulled money out of the banks
Banks had invested money in stock
No Regulations on Banks
25% of the nation became unemployed
Causes of the Great Depression
High Tariffs/Few Exports
Overproduction in Manufacturing & Agriculture
Buying on Credit and “On Margin”
No Regulations on Wall Street & Banks
HARDSHIPS AND SUFFERING DURING THE
DEPRESSION
Peoples Lives Devastated
Shantytowns- Little towns consisting of shacks
Soup Kitchens/Breadlines- Free or low cost food from charitable organizations
NOT THE GOVERNMENT
Dust Bowl
Farmers from Texas to North Dakota had destroyed grasslands from drought, high winds, and over cultivation
Hardest hit regions of KS, OK, TX, NM, CO became known as the “Dust Bowl”
Okies- migrant farm workers that headed to California
Effects on the American Family
Men struggled
Walked the streets looking for jobs
Some abandoned their families
Some became “hoboes”
Suicide rates skyrocketed
Children Suffered
Poor diets and no health care
Schools shut down
Many sent to live with their grandparents
Young people quit going to college
People put off getting married and having a large family
HOOVER STRUGGLES WITH THE DEPRESSION
Hoover and the Depression
Believed handouts would weaken peoples self-respect Did not believe in direct relief- aid to the poorFederal Home Loan Bank Act- lowered mortgage rates for homeowners and allowed farmers to refinance to avoid foreclosure
Reconstruction Finance Corporation (RFC)- Provided $2 Billion for emergency financing for banks, insurance companies, railroads, and other large businesses
The Bonus Army
Consisted of 20,000 WWI veterans
Wanted early payment of a promised bonus
Hoover sent in the Army to remove them
Used tear gas and set fire to their shanties
1,000 people gassed including an 11 month old girl who died and an 8 year old boy that was left blind
