The Great Depression A time of struggle for many Americans.

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Presentation transcript:

The Great Depression A time of struggle for many Americans

Objective By the end of the lesson, SWBAT describe what America was like during the Great Depression.

Vocabulary Stock Market - A place where people buy and sell parts of a company. The stock market determines how much a business is worth. Unemployment - The number of people that do not have jobs. A person who does not have a job is unemployed. Depression - A time where the economy is bad. A lot of businesses close and people do not have jobs. Debt - When a person owes more money than they have. Soup Kitchen - A place a person goes to get free food.

Background After World War I (1919), business was booming! Businesses were selling new inventions, helping rebuild Europe, and working around the clock. Banks were busy - people were depositing money, many business were borrowing money and taking out loans.

Stock Market Crash A bunch of people were opening up businesses, taking out loans, and hoping that they would be able to pay back their loans to the bank. Many businesses were not able to pay their loans back so the Stock Market Crashed! The stock market crashed on October 24, This day is known as Black Tuesday.

Example of a Business that Crashed! Stacy owned a school supply company called Stacy’s Supply. Before the stock market crashed, Stacy’s Supply was worth $25,000 After the stock market crash, on Black Tuesday, Stacy’s Supply was only worth $1,000. What do you think Stacy is going to have to do with her business?

Stacy’s Supply Company Stacy will have to close her factories Stacy will not be able to pay back her loans to the bank. Stacy will have to lay off (fire) her employees because she cannot afford to pay them. What do you think will happened to her workers who are now unemployed?

Great Depression When the stock market crashed and businesses closed, many people were unemployed and did not have any money or anyway to make money. This period was known as the Great Depression. The Great Depression was a time of high unemployment, and desperation for many families.

Factories Close What do you notice about this factory?

Unemployed Workers Many of the workers that lost their job after the Stock Market crashed searched everywhere to find jobs. However, unemployed workers had a really hard time finding work. Why did the unemployed workers have a really hard time finding work during the Great Depression?

People Unemployed

Job Hunt - No Use! People had a hard time find jobs because a lot of businesses either had to close, or were not hiring new workers! If a person does not have a job, what happens to that person and their family?

Hoovervilles Many people were forced to leave their apartments or houses because they could not afford the rent. Many people had to move to Hoovervilles. Hoovervilles were poor neighborhoods called shantytowns where houses were made of cardboard or tin. They did not have electricity, and were very small. Hoovervilles were named after the current president, President Hoover who was not popular! durinpresidency.

Charities and Soup Kitchens Many charities saw that people were not only struggling to find a place to live, but also struggling to buy clothes and food. Charities set up Soup Kitchen, or a free place for people to get food and clothing. The Soup Kitchen had really long lines. These lines were called Bread Lines. Why do you think the lines were really long at the Soup Kitchens?

Soup Kitchen and a Bread Line

Conclusion The stock market crashed on October 24, 1929, and many businesses were forced to close Many people lost their jobs. People were forced to move to Hoovervilles. People had to go to Soup Kitchens to get food.