Warm-Up Read The Great Depression: An Overview and What caused the Great Depression? As you read answer the following questions: What happened during the Great Depression What were some of the causes of the Great Depression and why?

The Stock Market crash and the Great Depression US History Objectives: **Identify the causes of the Great Depression **Describe how the Great Depression affected America SOL – VUS.10 Timeline – 1929-1933

The Roaring 1920s Growing economy – businesses booming BUT… **consumers overuse of credit **gambling or overspeculating on US stock market

Federal Reserve Board Put little controls on banks which invested in the stock market

The Stock Market Crashes on October 29, 1929 Black Tuesday Stock prices lose ¼ of value in 2 days **buyers/sellers panic **no buyers

The Bank Panic People run to get money out of banks BUT – banks lost money invested in the market – could not meet the demands for withdrawals

The Great Depression - Causes The Stock Market Crash The Federal Reserve’s Failure to prevent the collapse of the Banking System Hawley-Smoot Tariff Act (1930) Raised US protective tariff killed world trade + economies

The Great Depression Effects: 1.) Unemployment 1933 **25% unemployed **forced pay cuts for the employed Year % jobless 1928 4.2% 1933 25% 1940 19% 1944 1.4% 2010 10%

2.) Homelessness Hoovervilles (homeless shacks) Drifting Schools close

3.) Farms Foreclosures and Migration 400K farms close in 3 years Thousands migrate (see Dust Bowl)

4.) Banking System Collapses With no money, banks close 1 out of every 4 banks closes

5.) Political Unrest Growth of militancy in USA in labor unions

6.) Decline in the demand for goods No money to buy products Demand for products decreases Factory workers laid off Factory production decreases

President Herbert Hoover (1929-1933) The “Do-Nothing” Prez. **gave little Federal help to US people **”leave it alone”

The Dust Bowl (early 1930s) Huge drought + high winds in Great Plains Soil dries to a powder and blows away Huge migration to CA (California)

The Election of 1932 Franklin D. Roosevelt Promises a “New Deal” to the people Optimistic outlook Wins the election in a landslide