1. The Aftermath of Black Tuesday
The Great Depression:
The Aftermath of Black Tuesday

2. In the U.S., the 1920s was a decade of prosperity
Bold Cultural Ideas
New Inventions available to broad audiences
CONFIDENCE in the U.S. economy

3. How did the U.S. Economy grow so much in the 1920s?
Lots of new inventions
Automobiles
Radios
Telephones
telegraphs
Lots of supply, not enough demand
Solution?

4. FINANCING! 60% of Americans financed automobiles in the 1920s
80% of Americans financed radios in the 1920s
Created an artificial demand (people were imagining they had money that they didn’t)

5. The Stock Market in the 1920s
A stock is a percentage of a company.
The value of a stock is based on confidence in the market, not the actual profits of the company.
The value of stock increased 120% from

6. The Upward Spiral (or so it seemed….)
Americans borrowed money not just to buy goods, but also stocks

7. Economic Danger Signs of the 1920s
Overspeculation on stocks with borrowed money
Large gaps between the rich and poor
Post-WWI international economic slump
Economic Danger Signs of the 1920s

8. Black Tuesday
As rumors spread about inflated stock value, Americans started selling.

9. What happened to consumers?
Consumers were afraid of economic failure, so they stopped spending money.
Businesses lost the profit they relied on.
Businesses Closed.

10. What happened to workers?
As businesses lost money, salaries were lowered and many workers were laid off or fired.
Many businesses couldn’t hire the unemployed because they didn’t have the funds to sustain salaries.

11. The Downward Spiral (describe)
People stopped spending money…
Businesses Closed
People Lost their jobs
People became homeless

12. What happened to homeowners?
As homeowners lost their jobs, they couldn’t afford to pay their mortgages.
Banks foreclosed on farms
Homeowners became homeless.

14. On an International Scale…
In the 1920s, billions of dollars were loaned to European Allies
Allies struggled after WWI and couldn’t repay the money
The U.S. increased tariffs to recoup $ (Hawley Smoot Tariff)
European countries retaliated with tariffs as well

15. Bank Closings
With so many mortgage foreclosures, banks could not return depositors/ money
Banks closed
Depositors lost everything

16. How now would you provide for your family?
Many moved west in search of work, after all, farmers will need workers as long as people need to eat!
EXCEPT……

18. The Dust Bowl “The Dust Bowl”
Caused by lack of crop rotation and overplowing in the 1930s
Drought and wind caused the land to be unfarmable
“The Dust Bowl”

19. Effects of the Dust Bowl
Farm foreclosures
Food became scarce
Dust Pnemonia

20. The Great Depression People were desperate Americans blamed themselves
Suicide rates at an all-time high
It seemed there was no end sight.

21. Is it time for a change? Presidential election of 1932
Herbert Hoover vs. Franklin Delano Roosevelt

22. The End