Lesson 6: The Start of the Great Depression and President Hoover 1929-1933.

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Presentation transcript:

Lesson 6: The Start of the Great Depression and President Hoover

Business Cycle Important Words: Recession  temporary economic decline Depression  a long and severe recession Peak Trough Expansion Recession A Roller Coaster Where would the Great Depression be on the graph below?

“Brother, can you spare me a dime?” They used to tell me I was building a dream. Once I built a railroad I made it run Now it’s done. Brother, can you spare a dime? Once in khaki suits Gee we looked swell Full of that yankee doodly dum. Why don’t you remember? I’m your pal. Say buddy, can you spare a dime? What did the singer do before the Great Depression? What is he doing now?

Causes---Why!? O! Why? Stock market Crash Consumer Debt Unequal distribution of wealth Creation of credit Speculation (guessing at stocks)

…Causes continued

What Happened to the Banks? Over 9,000 banks closed because they didn’t have any more money. People who lost their money in these failed banks could not pay for shelter, food, or clothing.

Unemployment Year % unemployed 19293% 19309% % % % % % % % % % Important! For people who did get to keep their jobs, their wages were cut drastically. Your Chart BeforeDuringAfter 0 25

What Did People Do? Breadlines For people who were unemployed, the government served meals in lines for families. Bonus Army An assembly of 43,000 WWI veterans, who gathered to demand cash- payment redemption of their service certificates. Hoovervilles Groups of shacks made from tin or cardboard that people built after they lost their homes. Names after President Hoover. Other Farmers revolted Hunger marches

A GLOBAL Great Depression Why would Germany be particularly hard hit with this Great Depression?

Hoover’s Response Did not believe in providing relief Attempted to rescue banks Increased public-works projects “Economic depression can not be cured by legislative action or executive pronouncement. The basic of successful relief in national distress is to mobilize and organize the infinite number of agencies of self help in the community. That has been the American way.” -Herbert Hoover