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2. What are your strategies for saving money?QW
What are your strategies for saving money?
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3. QW
If the stock market collapsed today, how would your family be affected?
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4. What was the Great Depression?
The worst economic crisis of the century
Over 13 million people unemployed
“Dust bowl” as a result of drought
Farmers lost crops
Many lost their homes
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5. What caused the Great Depression?
Unequal distribution of wealth
Stock market crash of 1929
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6. Unequal Distribution of Wealth
Limited middle class
Supply not equal to demand
Credit cards created false demand
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7. THE STOCK MARKET
By 1929, many Americans were invested in the Stock Market
The Stock Market had become the most visible symbol of a prosperous American economy
Role of margin buying.
By 1929, 4 million Americans owned stocks
Roughly 10% of America
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8. THE 1929 CRASH
On October 29, now known as Black Tuesday, the bottom fell out
16.4 million shares were sold that day – prices plummeted
People who had bought on margin (credit) were stuck with huge debts
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12. FINANCIAL COLLAPSE
After the crash, many Americans panicked and withdrew their money from banks
Banks had invested in the Stock Market and lost money
Bank run 1929, Los Angeles
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13. Not enough cash to go around
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14. In thousands
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15. Unemployment
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18. Loss of homes “Hoovervilles”
Before long whole shantytowns (sometimes called “Hoovervilles” in mock reference to the president) sprung up
Another symbol people began to display was their pants pockets turned out, which were known as “Hoover Flags”
Here were all these people living in old
rusted-out car bodies. ... One family ... [was]
living in a piano box. This wasn't just a little
section, this was maybe 10 miles wide and 10
miles long. People living in whatever they
could junk together. ..."
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26. Dustbowls
A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up.
Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out,
the traveler asked if he wanted a ride into town. "No, I'll get there myself,"
the man replied, "I'm on a horse."
(Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.)
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31. Depression
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34. Did everyone suffer during the depression?
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35. “The only thing we have to fear is fear itself”
Franklin D. Roosevelt
“Our greatest primary task is to put people to work”
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36. FDR’s New Deal Relief for the needy Jobs provided
Business and government reformed
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38. People’s faith in democracy…
Created fertile ground for extremists who promised radical solutions.
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