1. The Great depression

2. Vocabulary Bankrupt: Unable to pay one’s debts
Stocks: The ownership element of a corporation divided to give the owners an interest
Credit: An arrangement for delaying payment on a purchase
Invest: To commit money in order to gain a profit
Speculation: The taking part of a big risk in business in hopes of making a big profit

3. Depression Begins, The Roaring Twenties have gone Silent
(WWII)
Worst economic crisis in history
Americas crash meant other countries’ did as well
-No money to borrow
Extreme suffering
-Unemployed (9 Million)
-Hungry (Bread lines)
-Homeless

4. Problems in Business Overproduction of goods
-people were unable to purchase them
-businesses couldn’t pay salaries, equipment, or materials

5. Problems With Farmers Produced more crops due to technology
-ex: Irrigation & motorized machinery
Not selling crops caused lower prices on food

6. Illusion of Wealth
Most Americans had small income and little to no savings.
-fancy cars and modern appliances were the new fad
Many still bought goods on credit*

7. Stock Market Americans rushed to buy stocks*
Investors borrowed money & bought on speculation*
-tried to make a quick profit
-Unable to pay it back
Americans risked bankruptcy* due to debt

8. Stock Market Crash 2 month period in 1929
NYSE stocks went from worth a fortune to worthless
Black Tuesday (October 29th, 1929)
-Stocks fell more than 75%
-Lost savings in less than 2 hours
No money meant no purchasing.
-Lay offs
-Mass unemployment
Bank closures, no money

9. Bankers Suicide

10. Herbert Hoover, Bonus Army, and Dust Bowl
Americans blamed Hoover
-”Do Nothing” President
WWI vets promised a bonus for service
-Hooverville’s
Drought in Midwest causes farms to dry up
-wind carried dust (day into night)

12. Review When did the Depression take place?
Name an example of the suffering Americans went through.
People bought things with _________ rather than cash.
Veterans who were promised bonus were called the ______ _______.
How would investors try to make a quick profit?
What happened on “Black Tuesday”?
The drought throughout the Midwest was known as what?