THE GREAT DEPRESSION 1929-1941. Depression Begins, The Roaring Twenties have gone Silent  1929-1941 (WWII)  Worst economic crises in history  Americas.

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Presentation transcript:

THE GREAT DEPRESSION

Depression Begins, The Roaring Twenties have gone Silent  (WWII)  Worst economic crises in history  Americas crash meant other countries’ did as well  -No money to borrow  Extreme suffering  -Unemployed (9 Million)  -Hungry (Bread lines)  -Homeless

Problems in Business  Overproduction of goods  -people were unable to purchase them  -businesses couldn’t pay salaries, equipment, or materials

Problems With Farmers  Produced more crops due to technology  -ex: Irrigation & motorized machinery  Not selling crops caused lower prices on food

Illusion of Wealth  Most Americans had small income and little to no savings.  -fancy cars and modern appliances were the new fad  Many still bought goods on credit*

Stock Market  Americans rushed to buy stocks*  Investors borrowed money & bought on speculation*  -tried to make a quick profit  -Unable to pay it back  Americans risked bankruptcy* due to debt

Stock Market Crash  2 month period in 1929  NYSE stocks went from worth a fortune to worthless  Black Tuesday (October 29 th, 1929)  -Stocks fell more than 75%  -Lost savings in less than 2 hours  No money meant no purchasing.  -Lay offs  -Mass unemployment  Bank closures, no money

Bankers Suicide

Herbert Hoover, Bonus Army, and Dust Bowl  Americans blamed Hoover  -”Do Nothing” President  WWI vets promised a bonus for service  -Hooverville’s  Drought in Midwest causes farms to dry up  -wind carried dust (dark into night)

Review 1. When did the Depression take place? 2. Name an example of the suffering Americans went through. 3. People bought things with _________ rather than cash. 4. Veterans who were promised bonus were called the ______ _______. 5. How would investors try to make a quick profit? 6. What happened on “Black Tuesday”? 7. The drought throughout the Midwest was known as what?