1. The End of Prosperity…The Beginning of a Colossal Struggle
The Great Depression
The End of Prosperity…The Beginning of a Colossal Struggle

2. 1920’s- Evidence of Prosperity
million cars sold
million cars sold
80 million people to movies/ week
Rising stock prices
1928 RCA ($85- $420)

3. Rising Stock Prices= Bull Market
Continuing rising stock prices
“Everybody Ought to be Rich”
People “bought on the margin”
Speculation

4. What goes up…must come down!
Few predicted a Bear Market
This is a continual drop in stock prices

5. And then BAM!!

6. October 29,1929 Black Tuesday $15 Billion in stock lost in one day
Panic spread- everybody sold their stocks

7. Panic of 1929 ensued… $50 billion loss by end of November Examples
GE- $396- $168
US Steel- $261- $150
“on the margin” purchasers forced to sell everything

8. Economic collapse…a vicious cycle
Andrew Mellon and comrades in denial
Businesses slowed production/ laid off workers
No jobs/ no consumption
More lay offs/ slower production

9. And this is how the Great Depression began
Between 1929 and 1931 the GNP dropped by almost 30%
Unemployment quickly rose to over 20%

10. Banking crisis Unable to pay bank debts(farmers, individuals)
Small banks could not pay big banks and failed
People rushed to take out their money
,700 banks failed

11. What did people think?
This was all part of the natural business cycle in a free enterprise economy

13. Causes of the Great Depression
Overproduction
Bank failures
Stock market crash
Struggling industries
Unequal distribution of wealth
Unwise trade policies

14. Coming to a classroom near you…
President Hoover and the Great Depression

15. HERE IT IS….

16. Depression hits home Who suffered? Everybody
Especially new immigrants, Latin American, African Americans
They were the last to be hired, first to be fired

17. In the Cities…
Thousands of unemployed competed for jobs, food, and shelter
Sometimes literally-
American citizens fought for food scraps like animals

18. Farm families Better equipped to get basic necessities
“It’s my sister’s turn to eat” WV schoolgirl

19. People lost their homes and left to look for work…
People begged for food
Stole food
Some starved to death
Built clusters of shacks from cardboard or wood
Blamed Hoover…

20. Hooverville

21. How did people survive? They needed food clothing, shelter, and money.
Relatives, neighbors, and churches
Red Cross
Salvation Army
People robbed bread trucks
Private charity could not provide for all

22. More to come…

23. Hoover’s philosophy Gave little help to Americans
Insisted economic downturn was temporary
In 1930 declared, “The Depression is Over”