The Coming of the Great Crash

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Presentation transcript:

The Coming of the Great Crash

A. Easy Credit and Advertising Encourage Family Debt I. Early Signs of Economic Disaster A. Easy Credit and Advertising Encourage Family Debt

B. The 20s Only “Roar” for the Rich

C. Foreign Sales Fall Due to Tariffs

II. The Stock Market and the Coming of the Great Crash

A. The 1920s: Stock Prices Soar, Individuals and Banks Buy More

B. Summer 1929: Some Investors Lose Confidence & Start to Sell Stocks C. October 1929: Black Tuesday & the Stock Market Crash

D. Late 1929-1930s: Banks & Businesses Fail

U.S. Unemployment rates 1929-1940 14 of 43

III. Hoover Responds to the Great Depression

A. Hoover’s Philosophy: Rugged Individualism & Laissez-Faire -- Not Welfare "Unemployment in the sense of distress is widely disappearing. . . . We in America today are nearer to the final triumph over poverty than ever before in the history of any land. “ -- Hoover, 1928

C. The Embarrassment of the Bonus Army B. Loaning Money to Banks and Businesses: The Reconstruction Finance Corporation C. The Embarrassment of the Bonus Army

D. Shanty Towns Become “Hoovervilles”