1. The Stock Market Crash and Social Effects of the Depression
Chapter 22 Section 1 and 2
The Stock Market Crash and Social Effects of the Depression

2. Dow Jones Industrial Average
An average of the stock prices of major industries
Reached an all time high during Hoover’s Presidency
People paid a great deal to the rising stock market

3. Black Tuesday October 29, 1929 16.4 million shares were sold
Compared to an average of 4 to 8 million

4. Great Crash The massive collapse of the stock market in 1929
Overall losses totaled $30 billion

5. List and briefly describe 5 ways the Great Crash spread to all Americans.
Risky loans hurt banks
Consumer borrowing- took out loans and could no longer pay them back
Bank runs
Bank failures
Savings wiped out
Cuts in production
Rise in unemployment

6. Business Cycle
Over a period of time, the economy grows, then contracts

7. Great Depression Time period from 1929 to 1941
The most severe economic downturn in American history

8. Which part of the business cycle did the Great Depression represent?
A trough

9. How did the unstable economy in the 1920s contribute to the Great Depression?
Production far outpaced demand
Wealth was unevenly distributed
The boom in stock market prices was based mainly on borrowed money, not real value

10. List and briefly describe the 3 underlying causes of the Depression.
An unstable economy
Overspeculation
Government policies- limited money supply to discourage lending and speculation, but this left people short on money

11. Hooverville
Towns of shacks, or shanties, made from anything people could use to construct a shelter

12. Who lived in Hoovervilles?
Unemployed laborers and their families

13. Dust Bowl
Massive dust storm that consumed the midwest

14. What factors led to the creation of the Dust Bowl in the 1930s?
Exhaustion of the topsoil
Drought
Wind erosion

15. What impact did the Depression have on health?
Many went hungry
Children suffered from poor diet and inadequate medical care

16. How did the Great Depression impact families?
Living condition declined
Had to give up personal interests/hobbies
Many men were ashamed and left their families
Women lost jobs

17. What were some causes and effects of increased discrimination during the Great Depression?
Competition for jobs
Legal system ignored civil rights for non-whites
Individual racism
Deportations
Lynchings
High African American unemployment

18. What can you learn about the Depression from Wilson Ledford’s experiences?
His experiences demonstrate the hardships of finding work, which was often only temporary or was located far from home
He and his family made the best of the situation in order to survive