1. The Great Depression

2. Review Terms: Stock Shares in a company (part ownership) Credit
Wall Street
Shares in a company (part ownership)
Buy now, pay later
Where stocks are bought and sold

3. New Key Terms:
Speculation - Buying and selling stocks to make a quick profit.
Buying on Margin – buying stocks on credit
Black Tuesday/Crash of 1929 – a date when stocks fell sharply, causing the Great Depression
Depression – a sharp downturn in the economy

4. Steps to the Great Depression
Create a 10 box flow map to fill in the steps as we go.

5. Step #1:
Many Americans began to buy stocks on Margin (credit) hoping to get rich quick.

6. Step #2: Stock begin to fall, and people panic
(People lost confidence in the market…sound familiar?)

7. People begin to sell their stock, at cheap prices, just to break even.
Step #3:
People begin to sell their stock, at cheap prices, just to break even.

8. Step #4:
Stock prices continue to fall further because more people want to sell stock than buy it.

9. The Stock Market Crash of 1929 (aka “Black Tuesday”) occurs.
Step #5:
The Stock Market Crash of 1929 (aka “Black Tuesday”) occurs.

11. Step #6:
Banks began to demand that people pay back money they had borrowed to buy stocks on margin.

12. Step #7:
Banks begin to lose, or run out of, money because people can’t repay their debts.

13. Step #8:
People began to panic and close their bank accounts before the banks ran out of money.

14. Since banks could not pay their investors, they closed.
Step #9:
Since banks could not pay their investors, they closed.

15. Step #10:
Millions of Americans, even ones who did not invest in the stock market lost all of their money. This caused the Great Depression.

16. Life During the Depression

18. Breadlines – people waiting for free food

19. Hoovervilles/Shantytowns:
Shacks set up into small villages during the Great Depression.

20. Dustbowl – dust storms caused by droughts in the Midwestern US

24. Unemployment:

25. Ending the Great Depression

26. The president who helped end the Great Depression was Franklin D
The president who helped end the Great Depression was Franklin D. Roosevelt.
His plan of action was called the New Deal

27. The New Deal The New Deal had 3 main goals (the 3 R’s): Relief
Recovery
Reform

28. New Deal Programs of Significance:
Works Progress Administration – Created jobs for Americans

31. The Lincoln Tunnel

33. New Deal Programs of Significance Cont’d:
Federal Deposit Insurance Corporation – Protects your money in insured banks.

34. New Deal Programs of Significance Cont’d:
Social Security Act – Provided Workers with unemployment insurance and retirement benefits.