Chapter 10 Lesson 3 EQ: What caused the Great Depression? EQ: How did the Great Depression effect the American people? *Black*Black Tuesday (stop at 2 minutes)

Store owners ordered fewer goods because people were buying less. Fewer orders caused factories to fire workers. – Unemployment increased. Unemployment is the number of people who are looking for a job but can’t find one. Many people unemployed and many businesses went out of business

During the 1920s, many Americans believed the boom would last forever. They borrowed money to buy consumer goods and to invest in the stock market. They didn’t know that the good times were about to end. Then in October 1929, the stock market crashed. That means the total value of all the stocks in the stock market fell very quickly. Panicked stockholders sold their shares for whatever price they could get. Thousands of people and businesses lost money.

Great Depression – A depression is a time when people can’t find work and many businesses close. – Great Depression (1930s) – 25% unemployed by 1932

Causes of Great Depression farmers were in debt o debt is money that one person owes to another. o people could no longer buy new homes or consumer goods like they had in the 1920s. Bank failure – Many Americans lost all of their savings. – Banks could not loan money to businesses.

Many people lost their home – Shanties or shacks Cardboard boxes Broken down cars Scraps of wood – Shantytowns sprang up all over the U.S. Charities donated free meals – A charity is an organization that helps people in need. – Soup kitchen

Farmers (south) – Tenant farmers/Sharecroppers Tenant farmers paid rent to live and farm on land owned by another person. Sharecroppers were tenant farmers who had so little money that they paid a share of the crops they grew to the landowner. – Severe Drought Crops could not grow Winds blew loose dirt across the Plains (Dust Bowl).

Show What You Know Time! 1. When stores could not sell their goods, factories A.didn’t need as many workers. B.needed more workers. C.made more goods. D.borrowed money to buy stores.

Show What You Know Time! 2. What happened after the stock market crashed? A. The economy grew strong. B. The economy grew weak. C. There was a boom in the economy. D. People borrowed money to buy more stocks.

Show What You Know Time! 3. What made life very hard for farmers on the Great Plains? A.There were not enough farmers to harvest the crop. B.There was a bad drought and the soil turned to dust. C.There was no room to build shantytowns. D.Railroads didn’t go to the Great Plains.

Show What You Know Time! 4. During the Great Depression there was A. growth and prosperity. B. work for everyone except farmers. C. unemployment and hardship D. a flood in the Great Plains.

Show What You Know Time! 5. What happened to bank customers in the 1930’s? A.They earned interest on their savings accounts. B.They sold their shanties to the bank for a profit. C.Many of them lost their savings when the banks closed. D.They asked the bank for loans to buy stocks.

Acrostic Poem Debts pile up, Economy slows down, People lose jobs, Religious groups help, Everything dries up, Stock market crashes, Shantytowns grow, Illness is common, Others write songs, No money is left in the banks.