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What are your strategies for saving money? QW What are your strategies for saving money? Ch 13 sec 2 01 09 12

QW If the stock market collapsed today, how would your family be affected? Ch 13 sec 2 01 09 12

What was the Great Depression? The worst economic crisis of the century Over 13 million people unemployed “Dust bowl” as a result of drought Farmers lost crops Many lost their homes Ch 13 sec 2 01 09 12

What caused the Great Depression? Unequal distribution of wealth Stock market crash of 1929 Ch 13 sec 2 01 09 12

Unequal Distribution of Wealth Limited middle class Supply not equal to demand Credit cards created false demand Ch 13 sec 2 01 09 12

THE STOCK MARKET By 1929, many Americans were invested in the Stock Market The Stock Market had become the most visible symbol of a prosperous American economy Role of margin buying. By 1929, 4 million Americans owned stocks Roughly 10% of America Ch 13 sec 2 01 09 12

THE 1929 CRASH On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day – prices plummeted People who had bought on margin (credit) were stuck with huge debts Ch 13 sec 2 01 09 12

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FINANCIAL COLLAPSE After the crash, many Americans panicked and withdrew their money from banks Banks had invested in the Stock Market and lost money Bank run 1929, Los Angeles Ch 13 sec 2 01 09 12

Not enough cash to go around Ch 13 sec 2 01 09 12

In thousands Ch 13 sec 2 01 09 12

Unemployment Ch 13 sec 2 01 09 12

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Loss of homes “Hoovervilles” Before long whole shantytowns (sometimes called “Hoovervilles” in mock reference to the president) sprung up Another symbol people began to display was their pants pockets turned out, which were known as “Hoover Flags” Here were all these people living in old rusted-out car bodies. ... One family ... [was] living in a piano box. This wasn't just a little section, this was maybe 10 miles wide and 10 miles long. People living in whatever they could junk together. ..." Ch 13 sec 2 01 09 12

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Dustbowls A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up. Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out, the traveler asked if he wanted a ride into town. "No, I'll get there myself," the man replied, "I'm on a horse." (Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.) Ch 13 sec 2 01 09 12

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Depression Ch 13 sec 2 01 09 12

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Did everyone suffer during the depression? Ch 13 sec 2 01 09 12

“The only thing we have to fear is fear itself” Franklin D. Roosevelt “Our greatest primary task is to put people to work” Ch 13 sec 2 01 09 12

FDR’s New Deal Relief for the needy Jobs provided Business and government reformed Ch 13 sec 2 01 09 12

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People’s faith in democracy… Created fertile ground for extremists who promised radical solutions. Ch 13 sec 2 01 09 12