26.1 The Great Crash The Great Depression Chapter 26

a.Some industries had problems throughout the 1920’s Farming Textiles (Clothing and Materials) Coal Mining b.Lack of government statistical data c.Hoover reassures the public 1. Signs of Economic Trouble

a.Investors sell their stocks b.Prices plunge – no buyers c.People bought on margin – bought part of the cost of the stock at purchase d.Black Tuesday – the day of the crash on October 29, The Crash

Americans rush to the bank to claim their money

The Great Depression – economic hardship that lasted from a. Causes Overproduction Weak Banking Low Wages 3. The Great Depression Begins

Banks –Granted unwise loans –Over 5,000 banks close –Lifetimes savings gone overnight

3. The Great Depression Begins b. The Downward Spiral One disaster after another No business growth Factories cut production, wages, employees Businesses go bankrupt – unable to pay debts

What happened to Europe? American banks lent money to Europe after WWI. US banks stop loaning, and European banks collapse

4. Hard Times a.Rising Unemployment 1 in 4 workers jobless On the streets: apple sales, beggars, garbage pickers, sidewalk stands b.The Human Cost Marriage and birth rates down Families split “Riding the rails”

5. Hoover Responds A.Government Aid –Relief programs – helped the needy –Soup kitchens – set up by communities to feed the hungry –Public works – projects built by government for the public B.Depression Deepens –Hoovervilles – shacks where homeless lived

6. The Bonus Army Congress tries to help WWI veterans but fails WWI vets are angry –Bonus – additional sum of money –Bonus Army – a community of jobless veterans that lived in tents in Washington DC