2. 1929-1939 Stock market crash Didn’t realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.

3. The Roaring 20’s The new concept of “credit” People were buying: –Automobiles –Appliances –Clothes Fun times reigned –Dancing –Flappers –Drinking

4. Why was this bad? Credit system –People didn’t really have the money they were spending WWI –The U.S. was a major credit loaner to other nations in need –Many of these nations could not pay us back

5. The Stock Market People bought stocks on margins –If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall –Now the person has less than $100 and no money to pay back

6. And then…. With people panicking about their money investors tried to sell their stocks –This leads to a huge decline in stocks –Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke

7. Why Buy Stock? Pepsi stock is $10/share. You have $100. How many shares of Pepsi stock can you buy? Ans.__________________________ Pepsi stock goes up to $15/share. You sell your stock. What is your profit ? Ans.__________________________

8. Buying Stock on Margin (pay 10%,borrow 90%) Pepsi stock is $10/share. You have $100. With $100 you could borrow $900 to buy stock on margin. How many shares of Pepsi stock can you buy on margin? Ans.___________________________ Pepsi stock goes up to $15/share. You sell your stock. What is your profit ? Ans.____________________________

9. Can you lose money in the stock market? I would rather use my own money to invest and make a profit. Agree or disagree. Why? I would rather use someone else’s money to invest and make a profit. Agree or disagree. Why?

10. Causes of the Great Depression (1929-1941) Buying on Margin/Stock Market Crash Rash of selling caused stock prices to fall Brokers asked investors to pay the money still owed on stocks bought on margin Investors who could not pay had to sell their stocks Prices dropped even more Black Tuesday: October 29, 1929 – prices fell sharply as no one was buying stock (stocks were now worthless)

11. Problems in the Banking System During the 1920’s, banks made loans to Americans who invested in the stock market When the stock market crashed, borrowers could not repay their loans Without money from the loans, the banks could not give depositors their money when they asked for it Many banks were forced to close Depositors lost their money they had in the bank Bank Run Media — History.com

13. Overproduction/Underconsumption Overproduction – farms and factories produced huge amounts of goods in the 1920’s Wages did not keep up with the cost of goods Underconsumption – Americans were not buying as many products Factories closed or laid off workers Too many goods, too few buyers

14. Herbert Hoover was president at the start Philosophy: We’ll make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

15. Farmers were already feeling the effects –Prices of crops went down –Many farms foreclosed People could not afford luxuries –Factories shut down –Businesses went out Banks could not pay out money People could not pay their taxes –Schools shut down due to lack of funds Many families became homeless and had to live in shanties

17. Many waited in unemployment lines hoping for a job.

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

19. Some families were forced to relocate because they had no money.

20. “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.

23. A drought in the South lead to dust storms that destroyed crops. “The Dust Bowl”

24. The South Was Buried Crops turned to dust=No food to be sent out Homes buried Fields blown away South in state of emergency Dust Bowl the #1 weather crisis of the 20th century

26. Two Families During the Depression

27. A Farm Foreclosure

28. Some families tried to make money by selling useful crafts like baskets.

29. *FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instated the “New Deal” Yea! Frankie!

30. People everywhere were effected by the depression It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

31. Major Historical Happenings... Jim Crow Laws Scottsboro Trials Recovering from the Great Depression Racial Injustice Poor South

32. Jim Crow Laws After the American Civil War most states in the South passed anti-African American legislation. These became known as Jim Crow laws.American Civil War These laws included segregation in… –Schools-- Hospitals –Theaters-- Water fountains –Restaurants –Hotels –Public transportation –Some states forbid inter-racial marriages

33. These laws were instituted in 1896 and were not abolished till the late 1950’s (even then still not completely).

34. 9 young African- American men (13- 20) accused of raping 2 white girls in 1931 Immediately sentenced to death Trials went on for nearly 15 years before all the men were dismissed

35. Started on a train bound for Memphis Several white men boarded and picked a fight with the black men Whites were forced off train by the 12 black men. The white men reported the the black men had raped two white girls on the train to authorities They were immediately arrested and tried in front of an all-white jury.

36. The trials caused a huge uproar amongst the black community.