Wednesday March 8th , 2017 Learning Target; I can explain how the 1920’s were part of what caused the Great Depression(same as yesterday) Agenda News Stock Market Notes on 20’s Things to Remember; Test/Quiz next Wednesday 3/15
Question How did the BOOM of the 20’s cause the BUST of the 30’s
The Great Depression
Many found being broke humiliating. 1929-1939 Stock market crash Didn’t realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.
The Roaring 20’s The new concept of “credit” People were buying: Automobiles Appliances Clothes Fun times reigned Dancing Flappers Drinking
Why was this bad? Credit system WWI People didn’t really have the money they were spending WWI The U.S. was a major credit loaner to other nations in need Many of these nations could not pay us back
The Stock Market People bought stocks on margins Stocks fall If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall Now the person has less than $100 and no money to pay back
With people panicking about their money investors tried to sell their stocks This leads to a huge decline in stocks Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke And then….
President Hoover Herbert Hoover was president at the start Philosophy: We’ll make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming
What about the people? Farmers were already feeling the effects Prices of crops went down Many farms foreclosed People could not afford luxuries Factories shut down Businesses went out Banks could not pay out money People could not pay their taxes Schools shut down due to lack of funds Many families became homeless and had to live in shanties
Many waited in unemployment lines hoping for a job.
People in cities would wait in line for bread to bring to their family.
Some families were forced to relocate because they had no money.
“Hooverville” Some families were forced to live in shanty towns A grouping of shacks and tents in vacant lots They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.
Hooverville
Out of the Dust: The South and the Dust Bowl
A drought in the South lead to dust storms that destroyed crops. “The Dust Bowl”
The South Was Buried Crops turned to dust=No food to be sent out Homes buried Fields blown away South in state of emergency Dust Bowl the #1 weather crisis of the 20th century
Two Families During the Depression
A Farm Foreclosure
Some families tried to make money by selling useful crafts like baskets.
*FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instated the “New Deal” Yea! Frankie!
People everywhere were effected by the depression It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope
Question How did the BOOM of the 20’s cause the BUST of the 30’s
Occupation and Salary Chart Last Initial /Occupation Weekly Salary Savings A - F : Factory Worker $16.89 $33.50 G-L : Cook $15.05 $29.00 M-R: Accountant $45.28 $180.00 S-Z: Doctor $61.11 $488.00
Great Depression Budget Activity Your family is moving to a new town during the Great Depression. You have a spouse and 2 children. You are moving into your 1st house. You each have 2 sets of clothes and 1 pair of shoes. You can take household items that would fit in your car. You may have to buy some new items. Budget for one month’s living expenses including food, entertainment, clothing, expenses for automobile, and housing expense.