the great Depression Mr. Fiondella/U.S. History
Herbert Hoover “We in America today are nearer to the final triumph over poverty than ever before in the history of any land…We have not yet reached the goal, but, given a chance to go forward with the policies of the last eight years, we shall soon, with the help of God, be in sight of the day when poverty will be banished from this nation” –Herbert Hoover 1928
Before the Crash By the late 1920s, Americans were caught up in the excitement of the “Roaring Twenties”. Dependent on the new culture of consumerism. Businesses were booming at this time. Cities under went a period of urbanization.
Before the Crash ~ Roaring Twenties ~
Before the Crash ~ Roaring Twenties ~
Before the Crash ~ Roaring Twenties ~
Before the Crash Purchases on credit reached $7 billion by 1929! Throughout the 1920s stock prices rose steadily, which generated interest in the market. Up until the crash, market defined as the Bull Market Americans started to “play” the stock market. This was done by buying and selling stocks for a quick profit. The practice of margin buying further encouraged entry into the stock market. Allowed to pay as little as 10% of borrowed money.
The Stock market Crashes 1920s bubble about to burst and enter a bear market Black Thursday(Oct. 24, 1929) marked the beginning of the stock market crash. Panicked investors sold over 11 million shares. Hoping to restore confidence, big bankers bought stocks back up. Black Tuesday(Oct. 29, 1929) 16 million shares were sold on this day.
Banking Crisis After the stock market crash, banks started to suffer as well. Borrowers who had lost in the stock market could no longer pay back loans to banks. Panicked customers attempted to withdraw lifesavings from their banks. Between 1930 and 1933, over 9,000 banks either went bankrupt or closed to avoid bankruptcy.
Business failures and unemployment Lack of diversification in the American economy. American industries were tied to the stock market, which meant…… A drastic decline in consumer demand forced companies to scale back. By 1932, the unemployment rate reached 23.6%
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Images Of UNEMPLOYMENT
Income Gap In the 1920s, the wealthiest (1%) disposal income increased 63% while the poorest decreased 4%. Before the depression more than half the American families lived on or below the minimum subsistence level. The majority of people no longer had buying power to support the economy.
Global Depression European countries struggled to pay off massive war debts (shocking!). Failures of WWI Treaty of Versailles Germany was fully blamed for WWI Germany’s Depression was Severe International trade decreased significantly. Declining exports meant a surplus of American goods. Congress passed the Smoot-Hawley Tariff to protect American industries.
The dust bowl
The dust bowl
The dust bowl - images
The dust bowl - images
The dust bowl - images
The dust bowl - images
The dust bowl - images
The dust bowl - images
President Hoover’s attempts to fix the poor economy
- Extreme poverty - “hoovervilles”
- Extreme poverty - “hoovervilles”
President Hoover vs. F.D.R.
President Hoover vs. F.D.R.
Roosevelt wins by a landslide!
Roosevelt wins by a landslide!
President Roosevelt’s new deal
President Roosevelt’s new deal
President Roosevelt’s new deal
President Roosevelt’s new deal
President Roosevelt’s new deal
President Roosevelt’s new deal
Fireside chats https://www.bing.com/videos/search?q=video+fireside+chats+fdr&view=detail&mid=F0B62CA19F8F0BC95CCCF0B62CA19F8F0BC95CCC&FORM=VIRE
Visual Learning via Video clips http://www.youtube.com/watch?v=GCQfMWAikyU John Green – Review of Great Depression https://youtu.be/PmFp32MVsGY Cinderella Man Scene Begging for Money https://youtu.be/SwxRZLADhBU Hooverville Footage https://youtu.be/FxZnYALXpGE
The end of the great depression
The end of the great depression
The end of the great depression
Could this happen again? Any Thoughts?