1 The Great Depression. 2 The Start of Depression Describe what you see in this picture. What is happening here? What is unusual about the family in this.

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Presentation transcript:

1 The Great Depression

2 The Start of Depression Describe what you see in this picture. What is happening here? What is unusual about the family in this picture? What reasons can you think of for why they are in this situation?

3 Introduction Essential Question—How did the Great Depression affect America?

4 Topics of Discussion The “Roaring Twenties” The economy in the late 1920s The stock market crash The Dust Bowl The New Deal

5 The Roaring 1920s— Swingin’!!!!! Business Booms First shopping mall built First fast food chain, A&W Root Beer Appliances all the rage—radios, washing machines, telephones, cars Companies spend $1.5 billion on advertising in 1927 Ford built his automobile empire People began to buy things on credit

6 The Economy of the Late 1920s “Everybody ought to be rich” 200 large companies controlled 49% of all American industry Too many goods, not enough demand Farm prices fell after WWI Farmers not able to repay their debts The Stock Market Crash –Stocks hit all-time highs in September of 1929 –In October, stocks began to fall –Ex. General Electric stocks bought for $400 sold for $283 –Black Tuesday— 16.4 million shares sold, compared to average of 4 million –This collapse of the stock market is known as the Great Crash

7 Why did the market crash? Many people bought stocks on margin— like a loan Companies lied about their profits— remember Enron? Economies like ours go through natural “boom” and “bust” cycles Republican Presidents believed in laissez faire—no control on businesses Stock market was not regulated by government

8 The Stock Market Crash From Riches to Ruin Many wealthy families lost everything Some even committed suicide Millions of people who never owned a single stock lost their jobs, farms and homes The crash triggered a much wider, long term crisis known as the Great Depression The Depression lasted from 1929 to 1941 when America entered WWII The Depression had a ripple effect that hurt the economies of other countries

9

10 How many people were unemployed in 1925? In 1929? In 1932?

11 How much did a bushel of wheat cost in 1925? 1932?

12 Great Crash What was the average stock value in 1929? 1932?

13 How many banks were suspended in 1925? In 1933?

14

15 A Dust Storm in Eastern Colorado

16 Another Dust Storm

17 A father and his two sons seek shelter from a dust storm

18 Sand covering a farm after a dust storm

19 An abandoned farm in Kansas.

20 A collage of newspaper headlines from the Dust Bowl

21 A man in the midst of a dust storm

22 The Dust Bowl Where was it? What Caused it? The Great Plains region—N. & S. Dakota, Nebraska, Colorado, Kansas Oklahoma and northern Texas Farmers plow the plains, eliminating the protective layer of grass Wheat replaces grass—tractors make it much easier Severe drought High winds Layers of top soil blown away, leaving dunes of grit and sand

23

24 A family in a “lean-to” tent

25 Another mother and her child living in a lean-to tent

26 A family trying to escape the dust bowl

27