1. WHAT WERE THE Economic Problems of the Late 1920s THAT CAUSED Great Depression?
United States History & Government
11th Grade Boys & girls
Br. Siraj | Al-Madinah School | Saturday, September 14, 2019

2. Sick Economy in the late 1920s
There was a sickness under the surface of the good economy of the 1920s.
Clothing, steel-making, and mining were not making any profit.
Auto manufacturing, construction and consumer goods manufacturing were also losing money by the late 1920s.

3. Sick Economy in the late 1920s
Farming was the biggest problem
Dropped demand for food after the war caused farmers’ income to go down.
They lost their land due to their inability to pay mortgage payments.
Congress tried helping by passing price supports bill.
Credit buying was another problem.
People bought on credit and accumulated high amount of debt.

4. The Election of 1928 & The Bull Market
Republican Nominee Herbert Hoover defeated Democratic Nominee Alfred E. Smith
People Believed in Hoover’s Claim of a Strong Economy
People Saw a Bull Market: a long period of rising stock prices
People were buying on margin – paying a small down payment and borrowing the rest from the stockbroker.
People also practiced speculation – buying risky stocks hoping to make a quick profit

5. Stock Market Crash (Black Tuesday)
In September 1929 stock prices began fall sharply.
On October 29, 1929 (Black Tuesday) stock prices fell so sharply that people termed it Stock Market Crash.
People panicked and started to sell their stock pushing prices further down.
By Mid-November $30 billion had been lost.

6. Great Depression
A period of bad economic times when many people were out of work that lasted from to 1940.
Effects of Stock Market Crash on Business
Banks began to close as panicked customers began to withdrew their money
Businesses began to close too
Millions of Americans lost jobs or had to work less hours for little wage.
Worldwide depression – worsened by Hawley- Smoot Tariff Act.

7. Main Causes of Great Depression:
Tariffs and war debt policies that cut down the foreign market for American goods
a crisis in the farm sector
the availability of easy credit
unequal distribution of income.

8. Homework
Questions 1, 2, & 3 on page 677

9. What were the Impacts of Great Depression?
U.S. History & Government
11th Grade Boys/Girls || Br. Siraj
Saturday, September 14, 2019

10. The Effects of Great Depression
Effects on City People
Millions lost jobs
Millions became homeless
Shantytowns grew
Soup kitchens offered food
Waiting in the bread lines
African Americans and Latinos suffered the most
They were attacked by the whites
Whites demanded that Latinos be sent back to their country of origin

11. The Effects of Great Depression
Effects on Rural People
Farmers earned less and less due to food price drop.
Farmers lost their land (400,000 between )
Great Plains (Texas to North Dakota) was hit by long drought
Dust Bowl covered Kansas, Oklahoma, Texas, New Mexico & Colorado.
Many farmers became migrant workers. (Okies)

12. The Effects of Great Depression on American Family
Shared their earnings / parents and children stayed home instead of going out for entertainment
Played board games or listened to the radio
Some families stayed together with stronger bonds.
Many men were ashamed of not being able to support their family
They left the families and wandered around looking for work
Some families Broke Apart
Got paid less / some people argued against giving them jobs.
Women tried finding jobs
The Effects of Great Depression on American Family

13. The Effects of Great Depression
Effects on Children
Terrible suffering for them
Poor diet & healthcare
Many ran away from home
Many were robbed and killed by criminals or beaten by railroad guards
Effects on Mental Health
Suicide and mental illness increased
Young people gave up many of their dreams including going to college

14. The Effects of Great Depression
Effects on Government
Did not provide any direct relief
Charities and city governments struggled to help
Cities and states collected less tax money
Child welfare budgets were cut
Cities could not keep the schools open of full year.

15. The Effects of Great Depression
Humane Side of the Story
It sometimes brought out the best of individuals, families & Communities
Many people shared resources with their neighbors or gave food and clothing to the needy.