The Great Depression (1929-1934) Chapter 19
The Nation’s Troubled Economy Chapter 19 Section 1
Words to Know Stock-Market: A place where stocks, or shares in business, are bought and sold. Depression: A time when the economy of a nation falls sharply. Default: To fail to pay a loan when it is due. Foreclose: To take the property of someone who has failed to pay back a loan. Bonus: Money given in addition to what is owed.
The Stock Market Crash 1920’s: Fewer than 5% of Americans were wealthy Lived on yearly income of $3,000 or less Worked longs hours/low pay Bought expensive items on installment plans
The Stock Market Crash cont. Some people started to invest in the stock market: Help solve money issues When people buy stocks they own piece of the business Hoped to become rich as business grew: Late 1920’s-business was doing good Many people made money in the stock market and they wanted to make even more: Some started to borrow money to buy more stocks
Black Tuesday Autumn 1929: October 29, 1929: Stock prices begin to fall People did not want to lose their money so they begin to sell their stocks: Prices drop even more October 29, 1929: Stock prices plunge Many stocks become worthless People who borrowed money to buy stocks lost all their money Crash
The Great Depression Soon after stock market crash, The US entered a depression 1920’s end: Millions of people out of work Farmers losing their farms Banks begin to go out of business: Used their customers’ savings to buy stocks
The Great Depression cont. Other things that helped bring the Great Depression: During WWI: Many farmers sold food crops to armed forces Earned a lot of money After war fewer crops needed Prices fell Many farmers who borrowed money for equipment began to default on payments Clothing and coal mining industries grew smaller as big businesses grew larger Thousands of factory workers lost their jobs
Hard Times Beginning of 1932: US economy almost completely in ruins Thousands of businesses closed Factory owners could not afford to pay their employees Most people lost their jobs
Hard Times cont. Most Americans could not afford to buy all the goods that were being made Unsold goods started to pile up Factories begin to make fewer goods=fewer employees needed: More people lose jobs Workers who had jobs being paid little At times families had less than $1.50 per day to buy food
Hard Times cont. Farm families were deeply hurt by the Great Depression: When farmers began to default on loan payments: banks were forced to foreclose on their property 1 day in 1932: banks foreclose on 1/4th of all farms in Mississippi Many Americans lost homes as well as their jobs In every large city: People stood in line for hours for free loaves of bread People sold apples to earn a few cents Hungry kids picked through garbage pails for scraps of food
Jobless and Hopeless Govt. and business leaders had no answers Americans ask Pres. Hoover for help: Hoover felt that help from the govt. charity was not the answer Hoover felt Americans had to help themselves
Jobless and Hopeless cont. Americans angry with govt. and big business for not helping: How some expressed their anger: 1. Some workers without jobs joined Communist party 2. Some farmers destroyed their crops rather than sell them at unfair prices 3. Some farmers joined together to stop banks from taking their property Many WWI veterans marched on DC in 1932
WWI Veterans Especially angry with govt. After WWI: Congress voted to give veterans a bonus When GD hit Congress refused to pay bonus Summer 1932: 15,000 veterans formed the Bonus Army: Camped out at nations capital Promised to remain there until Bonuses were paid Hoover feared there may be violence: Ordered US troops to drive out the Bonus Army Armed soldiers attacked the veterans’ camps Bonus Army
Classwork Chapter 19 Section 1 Crossword