Chapter 15 Crash and Depression (1929-Great Crash!) (1930’s-Great Depression)

Section One: The Stock Market Crash 1 Section One: The Stock Market Crash 1. What caused the stock market crash in October 29, 1929) 2. List some effects of the stock market crash 1. After hearing news of the stocks falling prices, people began to take their money out of the stock market, selling their shares all at once. (Black Tuesday) 2. --businesses and individual people couldn’t afford to repay loans back to banks (business and consumer loans) ---people rushed to banks to pull their money out (bank runs) ---banks were forced to close (bank failure) ---people lost their savings as banks closed ---production slowed down as business couldn’t borrow money to run the business and people weren’t buying ---rise in unemployment

Black Thursday

Black Tuesday, October 29, 1929

Mobs of people rushed to Wall Street to try to sell their stocks before the prices dropped too much.

Business Cycle peak expansion contraction 1920s 1930s trough

Thousands of “failed”and boarded-up banks dotted the entire country.

Definition of Great Depression: a severe economic downturn. 3. How did the stock market crash (The Great Crash) and other factors lead to the Great Depression (1929-1941) (1930’s)? (what caused the Great Depression?) Definition of Great Depression: a severe economic downturn. 3. what caused it? A. The stock market crash of 1929 (the main event) B. Unstable economy C. Buying on credit D. Overproduction (surplus, too much—can’t sell it for much) E. Overspeculation (betting too much into stock market) F. Federal Reserve bank not having enough money in circulation of insurance. I. High tariffs that limited world trade.

4. How did the Great Depression affect the U. S. and the world 4. How did the Great Depression affect the U.S. and the world? (political/economic effects of the Great Depression) 4. A. businesses laid off workers. Farmers couldn’t sell their products. About 25% or 1/4th of working Americans were unemployed. B. America’s GNP (gross national product—the total value of goods and services fell from 103 billion to 56 billion) (see United states GNP today) C. The world was affected (global economy declined)—countries depended on loans and products from each other. Countries couldn’t sell to the U.S. as much, then their economies were affected, then their people couldn’t afford to by American goods.

ACTIVITY 1! LEARN HOW YOU CAN INVEST IN THE STOCK MARKET! WHAT COMPANY OR COMMODITY DO YOU THINK WOULD BE A GOOD INVESTMENT? https://research.sharebuilder.com/customer/sharebuilder/stock-market/overview

Section Two: Social effects of the Great Depression 1 Section Two: Social effects of the Great Depression 1. How did the Great Depression affect every day life/society? 1. A. Poverty and hunger spreads--homeless people lived in “Hoovervilles”—a nickname given because many blamed the Depression on President Hoover.---farms suffered,----Dust Bowl made farms suffer more as the drought and nutrient stripped soil flew with the wind across the U.S. ---people went hungry/starved,--many children went back to work, and nothing was wasted. B. Migration—many farmers had to move West (places like California), losing their farms because of falling prices and the Dust Bowl.

Disease increases--tuberculosis and other diseases increased as people moved to overcrowded apartments, Discrimination increases---married women were discriminated against because some people thought they were taking jobs away. Deportation of people such as Mexicans, Asians, and certain groups of Europeans. Lynchings/unfair legal practices increased against African Americans, ---often leading some people to turn to Communist groups who helped them. . (see lyrics from Great Depression famous songs) http://www.library.csi.cuny.edu/dept/history/lavender/cherries.html Listen to songs from the Great Depression http://www.amazon.com/gp/recsradio/radio/B0006BGXPY/ref=pd_krex_listen_dp_img?ie=UTF8&refTagSuffix=dp_img

Soup line in NYC

Hooverville in Seattle, WA

A “squatter” in Chicago “Brother Can You Spare a Dime?”

The Dust Bowl

Black Sunday April 14, 1935. The dust storm that turned day into night Black Sunday April 14, 1935. The dust storm that turned day into night. Many believed the world was coming to an end.

They packed everything they owned and migrated west…hoping to find work.

ACTIVITY 2! Create an example of a primary source. This needs to be a short, 3-5 sentence letter, describing your experience either in the urban (city) or rural(country). You are one of the 25% (1/4th) of Americans unemployed or who has lost farmland. Tell what your occupation is and your problems. Write in first person point of view.

Section Three: Surviving the Great Depression 1 Section Three: Surviving the Great Depression 1. How did Americans cope with or survive Great Depression? 2. What were some signs that things were getting better? 1. --people fed others ---farmers stuck together with “penny auctions” to try to hold on to their farms that the banks wanted to take in foreclosure ---teenagers/homeless people “rode the rails”(trains) to escape bad life. ---people turned to humor 2. ---the 21st amendment passed, repealing the 18th amendment (Prohibition—alcohol was illegal). Many believed it was a failed experiment, and the 21st amendment would now get rid of organized crime.(Al Capone was caught) gave hope and business ---Empire State building was a symbol of hope and jobs

More than a million teenagers and homeless men “rode the rails” during the Great Depression.

“Hoover blankets”: old newspapers used for warmth while sleeping on park benches. “Hoover flags”: the fabric of empty pockets turned inside-out. “Hoover hogs”: jackrabbits and armadillos caught for food. “Hoover wagons”: old broken-down autos towed by mules. “Hoovervilles”: groups of shacks and shanties on the outskirts of town.

Section Four: The Election of 1932 1 Section Four: The Election of 1932 1. Who were the two presidential candidates in the election of 1932? 2. How were their views different? 3. Who won? 1. Herbert Hoover ( a Republican who was already the President) vs Franklin D. Roosevelt (a Democrat) “FDR” 2. Hoover believed: “trickle down effect”—if you help the top (rich business/banks), you help the rest.--couldn’t blame Great depression on U.S., blame it on world economy, it will get better with confidence, believed big business could fix things without government butting in. He decided the government had to step in and created jobs with building projects such as the Hoover Dam, but most of his new laws were a failure. People blamed him for not giving direct federal aid to help people. FDR believed: A “New Deal” is what Americans needed. Believed government should play a bigger role. Believed government should help people at the bottom directly. He was seen as more optimistic. 3. Roosevelt won.

ACTIVITY 3! Let’s play the stock market game!