1. Major Impacts of the Stock Market Crash and Great Depression

2. Review: Causes of Crash
Stock Market Crash
Overconfidence in Markets
Speculation
Stock prices are overvalued
Immediate cause of the Great Depression

3. Review: Causes of Depression
Long Term:
Overproduction of goods (industry and farmers)
Low profits for major industries
Housing decline
Easy Credit
Unequal distribution of income
Tariff policies lower U.S. exports

4. Financial Collapse
Bank Failures
Bank Runs
Loss of Savings
Stock Market Collapse
$30 billion in investments lost through Nov
Lack of confidence in financial sector prolongs Depression

5. Increased Tariffs Goal: protect American business
Impact: reduced foreign demand for American goods
Hawley-Smoot Tariff—highest protective tariff in U.S. history; passed in 1930.

6. Unemployment About 90 million businesses fail. Unemployment
3% before Depression
Reached 25% during the Depression

7. Poverty Millions face hunger and homelessness.
City—can’t pay rent or mortgage
Rural—400,000 farms lost to foreclosure.

8. Family Impacts Children—Malnourished, No school
Broken Families—Kids sent away; men leave home

9. Health Issues Mental Health: Physical Health: Suicide Rate up 30%
Malnutrition
No dentist/doctor

10. Lasting Impact on Depression Generation
Financial Security: #1 goal
Saving and thriftiness: lasting habit