1. the great Depression Mr. Fiondella/U.S. History

2. Herbert Hoover
“We in America today are nearer to the final triumph over poverty than ever before in the history of any land…We have not yet reached the goal, but, given a chance to go forward with the policies of the last eight years, we shall soon, with the help of God, be in sight of the day when poverty will be banished from this nation”
–Herbert Hoover 1928

3. Before the Crash
By the late 1920s, Americans were caught up in the excitement of the “Roaring Twenties”.
Dependent on the new culture of consumerism.
Businesses were booming at this time.
Cities under went a period of urbanization.

4. Before the Crash ~ Roaring Twenties ~

5. Before the Crash ~ Roaring Twenties ~

6. Before the Crash ~ Roaring Twenties ~

7. Before the Crash Purchases on credit reached $7 billion by 1929!
Throughout the 1920s stock prices rose steadily, which generated interest in the market.
Up until the crash, market defined as the Bull Market
Americans started to “play” the stock market. This was done by buying and selling stocks for a quick profit.
The practice of margin buying further encouraged entry into the stock market.
Allowed to pay as little as 10% of borrowed money.

9. The Stock market Crashes
1920s bubble about to burst and enter a bear market
Black Thursday(Oct. 24, 1929) marked the beginning of the stock market crash. Panicked investors sold over 11 million shares.
Hoping to restore confidence, big bankers bought stocks back up.
Black Tuesday(Oct. 29, 1929) 16 million shares were sold on this day.

11. Banking Crisis
After the stock market crash, banks started to suffer as well.
Borrowers who had lost in the stock market could no longer pay back loans to banks.
Panicked customers attempted to withdraw lifesavings from their banks.
Between 1930 and 1933, over 9,000 banks either went bankrupt or closed to avoid bankruptcy.

12. Business failures and unemployment
Lack of diversification in the American economy.
American industries were tied to the stock market, which meant……
A drastic decline in consumer demand forced companies to scale back.
By 1932, the unemployment rate reached 23.6%

13. Images Of UNEMPLOYMENT

14. Images Of UNEMPLOYMENT

15. Images Of UNEMPLOYMENT

16. Images Of UNEMPLOYMENT

17. Images Of UNEMPLOYMENT

18. Images Of UNEMPLOYMENT

19. Images Of UNEMPLOYMENT

20. Images Of UNEMPLOYMENT

21. Images Of UNEMPLOYMENT

22. Income Gap
In the 1920s, the wealthiest (1%) disposal income increased 63% while the poorest decreased 4%.
Before the depression more than half the American families lived on or below the minimum subsistence level.
The majority of people no longer had buying power to support the economy.

23. Global Depression
European countries struggled to pay off massive war debts (shocking!).
Failures of WWI Treaty of Versailles
Germany was fully blamed for WWI
Germany’s Depression was Severe
International trade decreased significantly.
Declining exports meant a surplus of American goods.
Congress passed the Smoot-Hawley Tariff to protect American industries.

24. The dust bowl

25. The dust bowl

26. The dust bowl - images

27. The dust bowl - images

28. The dust bowl - images

29. The dust bowl - images

30. The dust bowl - images

31. The dust bowl - images

32. President Hoover’s attempts to fix the poor economy

33. - Extreme poverty - “hoovervilles”

34. - Extreme poverty - “hoovervilles”

35. President Hoover vs. F.D.R.

36. President Hoover vs. F.D.R.

37. Roosevelt wins by a landslide!

38. Roosevelt wins by a landslide!

39. President Roosevelt’s new deal

40. President Roosevelt’s new deal

41. President Roosevelt’s new deal

42. President Roosevelt’s new deal

43. President Roosevelt’s new deal

44. President Roosevelt’s new deal

45. Fireside chats

46. Visual Learning via Video clips
John Green – Review of Great Depression Cinderella Man Scene Begging for Money Hooverville Footage

47. The end of the great depression

48. The end of the great depression

49. The end of the great depression

50. Could this happen again? Any Thoughts?