1. The Great Depression 1929-1939 Write what’s in BLUE

2. Depression: a period of low economic activity & high unemployment Great Depression: severe depression; economic slowdown in the 1930s Black Tuesday: Oct. 29, 1929; when the stock market crashed

3. Chapter 26 Copyright © by Houghton Mifflin Harcourt Publishing Company Next Texas History BOOM BUST TEXAS FARMING, 1920s Farming began replacing ranching in the Panhandle. Farmers expanded production during World War I. Mechanization and new irrigation methods increased West Texas farm production. Demobilization and the introduction of synthetics lowered demand for cotton. Overproduction of cotton led to lower prices and profits. Cost of operating farms rose. Many farmers went into debt.

4. The Great Depression The availability of credit in the 1920s made it easier for consumers to buy expensive goods. It also made it easier for consumers to acquire large amounts of debt.

5. Stock Market Crash of 1929 Thursday, October 24 th, investors sold more than 13 million shares of stocks. Prices dropped sharply. To help the market recover, banks bought stocks to level out the market on Friday and Saturday. Monday, prices dropped again. Tuesday, so much money was lost, it was known as Black Tuesday.

6. Aftermath of Black Tuesday During the weeks after Black Tuesday, $26 billion dollars were lost. Prices fell so low that the stocks weren’t worth the money people borrowed to pay them. Result: Many debts were left unpaid. Banks ran out of money because they couldn’t collect the debts owed.

7. Aftermath of Black Tuesday The government did not insure banks in those days, so people lost their savings. People didn’t have money, so factories and stores closed. Thousands of people lost jobs. This began the Great Depression.

8. Effects Lowered crop prices Slowed production Banks closed, people lost savings Oil prices dropped Causes Overproduction Credit Supply & Demand

9. President Hoover Herbert Hoover was president at the start Philosophy: We’ll make it! What he Did: Nothing

10. Great Depression Lasted from 1929 to the beginning of World War II. People lost their homes and farms. They roamed from place to place searching for jobs. Built temporary shacks to live in. One-forth of all workers were out of a job. It was the longest and worst depression in U.S. History.

11. Great Depression

12. People in cities would wait in line for bread to bring to their family.

13. “Hooverville” Some families were forced to live in shanty towns A grouping of shacks and tents in vacant lots They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

14. Texas and the Depression At first, the depression didn’t affect Texas as much because many people did not invest in stocks. More farmers than industrial workers, so fewer people lost their jobs. Texas was a poor state before the stock market crash, so it didn’t experience a big change.

15. Texas and the Depression The Depression spread worldwide, affecting European markets for Texas goods. 1931, cotton crop was the largest is Texas. Cotton went from selling at 18 cents a pound to 5 cents a pound. Demand for other crops dropped, causing Texas businesses to close.

16. Boom-&-Bust Cycle Great Depression to WWII Due to overproduction of agriculture products & Stock Market Crash Dust Bowl Businesses close, jobs lost Agriculture supply higher than demand WWII increases demand of agriculture products

17. People John Nance Gardner: Vice President Under Franklin Roosevelt; Speaker of the House for the U.S. House of Representatives Miriam “Ma” Ferguson & W. Lee “Pappy” O’Daniel were governors during the Depression

18. PoliticalEconomicSocial New Deal programs Created State Jobs TX agricultural industry suffers because of the Dust Bowl Funding for education & government services were cut Prices for food & other products fell Oil industry began to increase due to demand New Deal programs employ Texans; built & repaired bridges, dams, roads, & parks North Texans migrate to California for work Social security system established Texas Centennial High unemployment Crime Increased (Bonnie & Clyde ) Impact Copy this Down

19. Closing Question Identify the Cause & Effect - Fill out the cause-&-effect diagram with the correct events listed: The economy plunged into a depression People bought and sold stocks The stock market crashed CauseCause/EffectEffect