The Great Depression

The Stock Market Crash of 1929

The Stock Market Crash of 1929 Many Americans become wealthy in the 1920s, but even more are not earning a decent living… Many businesses suffer, especially agriculture Demand for crops falls after WWI. What does this do to the price of crops and the farmers profit? Consumers have less money to spend which means what?

The Great Depression Hits the United States

October 29, 1929 September 1929: Prices peak and then decline Many sell stocks and pull out People and corporations alike frantically try to sell stocks before prices plunge lower Investors lose $30 Billion Signals the beginning of the Great Depression

The Great Depression Economy in severe decline CAUSES Millions out of work Lasted from 1929-1941 CAUSES Old and decaying industrial base Crisis in the farm sector The availability of easy credit Unequal distribution of income

Financial Collapse Americans panic Worldwide Phenomenon Withdraw money and force banks to close 1929: 659 Banks close 1933: 6,000 banks have closed (1/4 of the nation’s total) 85,000 businesses go bankrupt 1 out of 4 workers is unemployed Worldwide Phenomenon How did America’s Great Depression affect Europe? Hawley-Smoot Tariff Act World trade falls more than 40%

Depression Devastates People’s Lives in the Cities Can’t afford rent Live on streets Sleep in parks/sewer pipes Wrap themselves in “Hoover” blankets Live in “Hoovervilles” Wave “Hoover flags”

And in the country… One advantage over city life… Between 1929 and 1932: 400,000 farmers lose their land to foreclosures The Dust Bowl Drought begins in early 1930s Farmers had exhausted the land through overproduction of crops in the 1930s No grass or trees left to hold the soil down in the wind Caused huge dust storms

“Many days this spring the air is just full of dirt coming, literally, for hundreds of miles. It sifts into everything. After we wash the dishes and put them away, so much dust sifts into the cupboards that we must wash them again before the next meal…Newspapers say the deaths of many babies and old people are attributed to breathing in so much dirt.” - Ann Marie Low

Homework for tonight… Read Section 11-5 and complete worksheet TEST THURSDAY!