The Great Depression THE CAUSES AND EFFECTS.

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Presentation transcript:

The Great Depression THE CAUSES AND EFFECTS

The market turned into a bear market remember… People started to sell of their stocks The market turned into a bear market CREDIT! BOO!!! Buying on margin and with credit Ruined a lot of people!!!!

October 29, 1929

The crash was caused by… A downturn in the business cycle Lack of profits Flooding the market trying to sell stocks A lot of people selling stocks, very few buying them… When supply increases, and demand decreases… prices decrease

OVERPRODUCTION Factories produced Too much…prices fell No profits!!! Farmers produce Too much…prices Go down…NO PROFITS

No jobs!!!! Unemployment increases! Because of the decrease in profits, a lot of people find themselves being laid off from their jobs… No jobs, no money. No money, no shopping… Just makes a big ol’circle

What about the banks? Where did the money go????? Banks start going out of business because their loans can’t be repaid (remember, the credit thing) People start to panic and try to take all of their money out of their accounts in the banks Banks RUN OUT OF MONEY!!! WHAT?!?!?!

What are these people doing?!?!

Who is to blame? Most blamed HOOVER They thought he did little to help You can also blame the people for abusing CREDIT Buy now, pay later….but what if you can’t pay later!

And as if things couldn’t get any worse….

The Dust Bowl Midwest farmers were buried in a dust storm Caused by over-farming the land and a drought Many had to pack up and move… where did they go? CITIES: But there’re no jobs!!! OOPS!

And Hoover still thinks… NO JOBS…NO MONEY… PEOPLE LOST EVERYTHING! HOOVERVILLES- makeshift houses in parks/streets HOOVER FLAGS- inside out pockets BREAD AND SOUP LINES- free food, mainly at churches .05 APPLES- had to do what you could to get money WEALTHY? Still had money…not as much “CAN YOU SPARE ME A DIME”- song/saying of the time And Hoover still thinks… No depression!