2. 1920’s 1920’S Seemed like a prosperous time Many invested in the stock market- easy way to make money. Stock prices steadily rose through the 20’s. Could triple your investment in just a few years 1928- REPUBLICAN HERBERT HOOVER ELECTED PRESIDENT.

3. BLACK TUESDAY OCTOBER 29, 1929 Stock Market Plummets Many investors bought stock on-margin (0nly 10% down) and couldn’t repay brokers and were forced to sell. $$$$$ BILLIONS LOST!

6. Causes of the Great Depression Overproduction- –factories were producing more goods but not necessarily hiring more workers. Factories were more efficient- electricity and machines. –When the factories couldn’t sell their goods, they lowered wages and/or laid off workers Falling agricultural prices –Farmers were buying and using new technology too… producing more farm goods. –Prices fell, couldn’t pay back the loans on their tractor Weaknesses in the banking system -Banks were giving out risky loans -Money in the banks was not insured

7. DOWNWARD SPIRAL The crash Ruined investors Businesses couldn’t Grow or expand Banks were Also suffering- Had no money to lend Business cut back On production- cut wages And layed off workers Workers had no Money to buy goods

8. Great Depression sets in RISING UNEMPLOYMENT

9. On an average day, NY employment agency would get 5,000 applicants for 300 positions 15,000 people applied for 6 jobs cleaning offices!

10. The Human Cost Marriage and birth rates dropped Hungry families searched through the city dumps looking for food Families split up- Men and older children left to find work People lost their homes “Hoovervilles” were created- shanty towns, some homes made out of cardboard! http://www.youtube.com/watch?v=eih67rlG NhU

15. Hoover responds Did not feel it was the government’s responsibility Urged businesses to work together to stop the downslide

16. Private Charities Set up soup kitchens to feed the poor In Harlem, Father Divine fed 3,000 hungry people a day.

21. Too little, too late As the depression deepened, Hoover did respond Public Works Programs were set up ( government hired workers to build schools, roads, construct dams) Asked Congress to approve the RFC- Reconstruction Finance Corporation. Lent money to banks, RR, and Insurance companies

22. BONUS ARMY After WWI, Congress voted to give Veterans a bonus, to be paid in 1945 In 1932, A Representative from Texas proposed paying the bonus right away since so many soldiers were out of work. more than 20,000 jobless veterans marched to D.C. to demand the bonus right away They stayed for 2 months H of R voted to give it to them, Senate voted no. Some veterans left, many did not Police tried to force them to go Hoover orders General Douglas MacArthur to clear out the Veterans.- used cavalry, tanks, machine guns, and tear gas. Then MacArthur burned the camp to the ground Lowest point for Hoover

31. UNEMPLOYMENT RATE