1. 1 st Things 1 st ! Please take out your homework and have it ready to turn in. – Homework was: Challenges of 1920’s Chart

2. Introduction to the Great Depression Chapter 14 Ms. Seaton

3. Prosperity of the 1920’s about the decline Signs of Decline Wages not keeping up with cost of living Production can’t keep up with demand-lots of people laid off Too many people relying on credit Farm prices down too far- 1/3 of Americans are hurt financially Billboard exclaiming that America has the world’s highest standard of living.

4. Buying Stocks Americans thought buying stocks was a sure way to get rich. 1929- Stock prices were 400% higher than 5 years earlier, investors started to sell their stocks. Created a panic and a flood of orders to sell stock came into the New York Stock Exchange. On October 29 th (Black Tuesday) orders to sell at any price swamped market. Fortunes made during the boom of the Roaring 20’s were lost in hours.

5. People Rush to get money out of failing banks Failure of Banks during Great Depression Banks had loaned out lots of money to investors, they couldn’t pay the banks back after the stock market crashed. Between 1929 and 1932- 5,000 banks failed

6. Federal Reserve Policies Federal Reserve FAILED to prevent the widespread collapse of the US banking system  led to a contraction (less) money in circulation – Citizens withdrew their savings (bank runs) which caused more banks to close

7. High Protective Tariffs Tariff Act of 1930 (Hawley-Smoot Tariff) put a high tax on imported goods – People thought it would promote productivity from American Industries and decrease unemployment Unintended Effect  – Other countries put tariffs on US goods creating a trade problem for the whole world – strangled world trade!

8. Unemployment Less Money to Spend Buy Fewer Goods Companies have less profits Fire Workers

9. Demand for Goods Declines

10. Political Unrest Workers were angry and labor unions became more militant – In 1934 alone, 1.5 million workers went on strike.

12. Unemployed people had no help from government There was no such thing as collecting unemployment in the 1930’s. It was fairly common to see people who had lost their whole life savings in banks on the streets selling apples.

13. Work Ethic and Self-Reliance This man’s sign said he wants a job, not charity. Unemployment had reached 25%. Many unemployed men left their families to roam around looking for work.

14. Bread Lines This picture shows people lined up to be fed in a “Bread Line” Many people felt shameful that they needed handouts and charity.

15. Hoovervilles Homeless built shacks from tin, cardboard and crates. Hooverville’s sprung up outside most of our major cities. They were nicknamed “Hoovervilles” because many people blamed President Hoover for not doing enough to help the poor.

16. President Hoover is blamed His advisors told him the depression was just a natural part of the economy. He was against the government intervening too much but pushed for private charities and volunteer organizations to help out the poor.

17. Dust Bowl 1/3 of Americans were farmers During the 1920’s Farmers bought expensive machinery and fertilizers so they were often in debt. The machines helped them produce more so the price of crops fell- which increased their debt. The Dust Storm throughout the mid- west ruined many farmers who abandoned their farms and moved further west.

18. Roosevelt to the Rescue Franklin Delano Roosevelt (F.D.R) campaigns against President Hoover. F.D.R exhibited charm and confidence (Teddy’s cousin) He was optimistic How does the cartoonist make Hoover look?