The Stock Market Crash and Social Effects of the Depression Chapter 22 Section 1 and 2 The Stock Market Crash and Social Effects of the Depression
Dow Jones Industrial Average An average of the stock prices of major industries Reached an all time high during Hoover’s Presidency People paid a great deal to the rising stock market
Black Tuesday October 29, 1929 16.4 million shares were sold Compared to an average of 4 to 8 million
Great Crash The massive collapse of the stock market in 1929 Overall losses totaled $30 billion
List and briefly describe 5 ways the Great Crash spread to all Americans. Risky loans hurt banks Consumer borrowing- took out loans and could no longer pay them back Bank runs Bank failures Savings wiped out Cuts in production Rise in unemployment
Business Cycle Over a period of time, the economy grows, then contracts
Great Depression Time period from 1929 to 1941 The most severe economic downturn in American history
Which part of the business cycle did the Great Depression represent? A trough
How did the unstable economy in the 1920s contribute to the Great Depression? Production far outpaced demand Wealth was unevenly distributed The boom in stock market prices was based mainly on borrowed money, not real value
List and briefly describe the 3 underlying causes of the Depression. An unstable economy Overspeculation Government policies- limited money supply to discourage lending and speculation, but this left people short on money
Hooverville Towns of shacks, or shanties, made from anything people could use to construct a shelter
Who lived in Hoovervilles? Unemployed laborers and their families
Dust Bowl Massive dust storm that consumed the midwest
What factors led to the creation of the Dust Bowl in the 1930s? Exhaustion of the topsoil Drought Wind erosion
What impact did the Depression have on health? Many went hungry Children suffered from poor diet and inadequate medical care
How did the Great Depression impact families? Living condition declined Had to give up personal interests/hobbies Many men were ashamed and left their families Women lost jobs
What were some causes and effects of increased discrimination during the Great Depression? Competition for jobs Legal system ignored civil rights for non-whites Individual racism Deportations Lynchings High African American unemployment
What can you learn about the Depression from Wilson Ledford’s experiences? His experiences demonstrate the hardships of finding work, which was often only temporary or was located far from home He and his family made the best of the situation in order to survive