1. The Great Depression: Causes and Effects

2. Black Tuesday Stock Market Crash October 29, 1929 Result not Cause
Signals the start of the Great Depression
*Only WWII gets America out of the Great Depression, not New Deal

3. 1. Disparity of income
Roaring 20’s: good times; high employment and no inflation
However, Gap between rich and poor was very large
Majority of workers lived below poverty line ($2500 in 1929)
Companies were making lots of money, but did not share this with their employees

4. 2. Buying on Credit
At some point creditors will stop giving people credit
Consumers cannot buy anymore
Drop in consumer spending = lay-offs
Layoffs = less spending, which then = more lay-offs

5. 3. Farm Economy farmers produce too much farm prices fall
farmers produce more to keep up
prices fall even more
farmers cannot pay their loans, default
defaulting puts banks out of business

6. 4. laissez-faire policy and the End of Progressivism
Big Business allowed to do whatever they want - laissez-faire
tariff raised on foreign goods to help protect US industry
child labor and minimum wage overturned

7. 5. Stock Market Speculation
“get rich quick”
buy on margin - investor allowed to borrow the money to buy stocks now
People had to sell, which drove the price down even further
Black Tuesday - some wealthy tried to prop up the Stock Market, but to no avail

8. Impact on the People 25% Unemployment
People lost their homes - took to the streets
People that still had jobs had their hours and wages cut
People only bought necessities - further led to lay- offs
“Runs” on banks
people fear losing money and take all their money out of banks

9. Images
Soup Kitchens
Bread Lines
Hoovervilles
Dust Bowls
Bonus Army

10. People people undernourished schools closed
Abandonment increases – Men leave families for work or shame
Suicide rate increases sharply
birthrate fell –
Men no longer the head of the household
People looked to the government for help

11. Birth Rates in U.S.