1. Crash and Depression
Chapter 12

2. Economic Danger Signals
Uneven Prosperity (Rich richer)
Buying on credit
Playing the Stock Market Game
Too many goods, too little demand
Farmers in debt
Bad working conditions

3. Welcome to the “Game of Life”
House $500
Car $500
Furniture $100
Refrigerator $50
Toaster $5
Stocks $50
Vacuum Cleaner $20

4. The Stock Market Crash
Dow Jones Industrial Average- An average of stock prices of major industries- reached an all time high
Prices of stock went down
People began selling a lot of stock
October 29, 1929-Stock market Crashed (Black Tuesday)
Loans were called in

5. Crash Affected Millions
Workers/Farmers-Loss of jobs/food prices went down
Banks closed
Americans turned to Europe to repay WWI debt, could not do it….World wide depression
Dust Bowl, Page 388*

6. Effects of Depression Poverty – “Hoovervilles” (Where homeless stayed.
Bad Health
Working women accused of taking men’s jobs
Discrimination increased
Gross National Product falls dramatically
Rugs/Hobos*

7. Surviving the Depression
America pulled together while riots erupted in Europe
Sought political solutions- Rise of Communism and Socialism candidates*
See business cycle

8. Signs of Change 1933 Prohibition ended Empire State building
Read page 392*

9. The Election of 1932
Hoover (in office ) blamed world condition, not his control
Tried to help:
--Highest import tax in history!
Still unrest
--Hoover seemed cold hearted
--Bonus Army marched in Washington (WWI vets wanted their pension EARLY!!)

10. Government should help vs. Government should not interfere!!!
Franklin Delano Roosevelt (FDR) said, “ Private economic is a public trust”
Won election over Hoover! See page 396!
“So first of all let me assert my firm belief that the only thing we have to fear is fear itself.”