2. Between 1922-1928 GROSS NATIONAL PRODUCT(GNP) – the total value of goods and services produced in a nation during a specific period -- rose by 30%. **Triggered a feeling of optimism that proved contagious. -- This led to reckless activity = MORE SPENDING

3.  By 1929- one in five Americans owned a car.  STOCKS – ownership in a company and is sold in SHARES  -- When you buy shares, you are able to buy a piece of a corporation.  - Corporation succeeds=value may rise  -Corporation fails = value decreases

4.  “The Chief business of the American people is business.”  -- President Coolidge  Triumph of American businesses came from the prosperity of the 1920s.

5.  Herbert Hoover – Elected in 1928 (Coolidge decided not to run again)  Impressive record of public service -- Overseen America’s food production during World War I and directed relief efforts in Europe. Reputation of a business-like administrator.

7.  Wealth Distribution - Very uneven - Small number of people saw the wealth - 1. Wealthiest 1% income rose by 60% - 2. Most workers saw 8% - 3. 70% of families had an income below the level that they needed to live. - Easy availability of credit had allowed Americans to buy cars, radios, etc. and reaching limit on credit.

8.  CREDIT People bought stocks on credit Made prices rise sharply BUYING ON MARGIN Buying stocks with loans from stockbrokers – Enthusiasm grew- brokers lowered their margins for stock purchase.  Gave bigger loans  1929: buy stock for 10% of cost

9.  BUYING ON MARGIN Investor wants 100 shares in a company $10/share = $1,000 Only pay for a portion $500 Borrow other $500 from broker Pay off loan once stock sold  RISKS- Brokers could force an investor to repay their loans if the stock’s value fell below a certain point.

10. If stock rose to $15, the $1,000 investment would rise to $1,500 The investor would get back original $500, repay $500 loan, and still have $500 profit If stock fell to $5/share the sale would only be $500 which would have to be used to sell off the loan. No profit, out original $500 investment Investors could be in big trouble if their stocks lost value suddenly.

11.  Federal Reserve System – serves as the nation’s central bank.  -- takes actions and sets polices to regulate nation’s money supply.  Were not able to keep businesses from loaning money to investors.

13. Stock Market reaches it’s high point Many people began to recognize signs of trouble Sales began sagging Rumors spread that big investors were getting ready to take money out of market

14. Nervous investors began selling stocks Others noticed increased activity and joined selling Few people willing to buy millions of stocks flooding market, stock market prices plunged, triggering greater panic to sell Toward the end of the day, a number of leading bankers joined to buy stocks to prevent further collapse.

15.  STOCK MARKET RETURNED TO NORMAL  Some stocks gained value

16.  Good feelings from Friday were gone  Market sank

17. Panic completely overtook the markets Investors dumped more than 16 million shares Affected strongest companies BLACK TUESDAY Stock market lost $16 Billion

19.  Dust Bowl was the name given to the Great Plains region devastated by drought in 1930s depression-ridden America  Oklahoma, Texas, Kansas, Colorado, New Mexico had little rainfall, light soil, high winds Winds easily picked up the loose topsoil and swirled it into dense dust clouds, called "black blizzards."

20.  Recurrent dust storms wreaked havoc, choking cattle and pasture lands and driving 60% of the population from the region.  DROUGHT- a Period of below-average rainfall that lasted for several years.  http://www.history.com/speeches/fdrs-fireside- chat-on-dust-bowl#fdrs-fireside-chat-on-dust- bowl http://www.history.com/speeches/fdrs-fireside- chat-on-dust-bowl#fdrs-fireside-chat-on-dust- bowl

21.  FLEE THE PLAINS!!  Many headed west along Route 66 to California, where they settled in camps and sought work in farms and orchards.  These migrants were called OKIES, after the state of Oklahoma.  -- Truly, the migrants came from a number of different states.  -- INSULTING- migrants were often met by resistance and outright discrimination.

22.  BANK FAILURES- banks collapsed and people panicked. A lot of their money was entrusted in savings in banks.  ** In December alone, 350 banks closed.**  FARM FAILURE- Farmers produced more than they could sell, farm prices sank.  Lower prices=lower income=lose farm.

23. FORECLOSURE occurs when a bank of other lender takes over ownership of a property from an owner who has failed to make loan payments.

24.  HOOVERVILLE- Neighborhoods of shacks that were in the outskirts of town or in public parks to house the newly homeless.   bitter reference to President Hoover (many blamed him for depression.)  HOBOES- Homeless wanderers.

26.  PHILOSOPHY- “rugged individualism.” – favored a federal government that played as little role as possible in the affairs of business.  PHILOSOPHY- “rugged individualism.” – favored a federal government that played as little role as possible in the affairs of business.

27.  Associative State- Voluntary partnerships between business associations and govt. HOOVER DAM – Harness the Colorado River to provide electricity and a safe, reliable water supply to a vast area that included parts of seven states. == This project’s success= private business and federal government partnerships.

28.  COOPERATIVE- Organization that is owned and controlled by its members, who work together for a common goal.  DIRECT ACTION Reconstruction Finance Corporation- Authorized up to $2 billions in direct govt loans to struggling banks, insurance companies and other institutions.

29.  Smoot-Hawley Tariff Act  Raised the cost of imported goods for American consumers, making it more likely that they would purchase cheaper American goods.

30.  Questioned compassion  Unwillingness to consider giving direct relief to people became hard to understand Billions to banks and businesses- none to individuals.  Questioned compassion  Unwillingness to consider giving direct relief to people became hard to understand Billions to banks and businesses- none to individuals.