1. Warm-Up
Read The Great Depression: An Overview and What caused the Great Depression?
As you read answer the following questions:
What happened during the Great Depression
What were some of the causes of the Great Depression and why?

2. The Stock Market crash and the Great Depression
US History
Objectives:
**Identify the causes of the Great Depression
**Describe how the Great Depression affected America
SOL – VUS.10
Timeline –

3. The Roaring 1920s Growing economy – businesses booming BUT…
**consumers overuse of credit
**gambling or overspeculating on US stock market

4. Federal Reserve Board Put little controls on
banks which invested in the stock market

5. The Stock Market Crashes on October 29, 1929 Black Tuesday
Stock prices lose ¼ of value in 2 days
**buyers/sellers panic
**no buyers

6. The Bank Panic
People run to get money out of banks BUT – banks lost money invested in the market – could not meet the demands for withdrawals

7. The Great Depression - Causes
The Stock Market Crash
The Federal Reserve’s Failure to prevent the collapse of the Banking System
Hawley-Smoot Tariff Act (1930)
Raised US protective tariff
killed world trade + economies

8. The Great Depression Effects: 1.) Unemployment
1933
**25% unemployed
**forced pay cuts for the employed
Year
% jobless
1928
4.2%
1933
25%
1940
19%
1944
1.4%
2010
10%

9. 2.) Homelessness
Hoovervilles (homeless shacks)
Drifting
Schools close

10. 3.) Farms Foreclosures and Migration
400K farms close in 3 years
Thousands migrate (see Dust Bowl)

11. 4.) Banking System Collapses
With no money, banks close
1 out of every
4 banks closes

12. 5.) Political Unrest
Growth of militancy in USA in labor unions

13. 6.) Decline in the demand for goods
No money to buy products
Demand for products decreases
Factory workers laid off
Factory production decreases

14. President Herbert Hoover (1929-1933)
The “Do-Nothing” Prez.
**gave little Federal help to US people
**”leave it alone”

15. The Dust Bowl (early 1930s) Huge drought + high winds in Great Plains
Soil dries to a powder and blows away
Huge migration to CA (California)

16. The Election of 1932 Franklin D. Roosevelt
Promises a “New Deal” to the people
Optimistic outlook
Wins the election in a landslide