1. The Great Depression

3. Economy Appears Healthy By October 1929, stock values hit $87 billion Since 1914, wages had risen 40 percent Unemployment averaged below 4 percent The 3 Republican presidents saw that business was good and assumed that everything was

4. Economic Danger Signs An increase in personal debt – People bought radios, vacuum cleaners, refrigerators, etc. even when they could not afford them

6. Republican Economic Policies Coolidge – “The business of America is business.” Trickle-down economics – tax cuts implemented for businesses and the wealthy Taxes were raised for the lower and middle classes European WWI debts and the Hawley-Smoot Tariff led to greater debt in Europe

7. The Election of 1928 Al Smith(D) Herbert Hoover(R) v.

9. Real Estate and Stock Speculation In CA and FL, investors bought land to sell it for a quick profit – land didn’t sell Buying on Margin - Speculators bought stocks with borrowed money, then used those stocks as collateral to buy more stocks

11. The Market Crashes Early 1929 –stock prices climbed to 191 - Bull Market By Sept. – prices reached 381 After this prices fell slowly and brokers called in loans October 24, investors began to sell their stocks October 29, “Black Tuesday”, 16.4 million shares were sold November 13 – stock prices fell to 198.7, losses totaled $30 billion

12. Banks Collapse Banks closed – Depositors rushed to withdraw money – More than 5500 banks failed – The money from 9 million savings accounts vanished

14. Overproduction Americans acquired material goods to forget the war Machinery produced more goods in less time Industrialists & farmers flooded the market

15. The Crash Affects Millions Impact on workers and farmers – Factories closed & workers lost jobs – 1 out of every 4 Americans were jobless – Small businesses also failed – Farm prices dropped lower, bankrupting many

17. Exit Slip 1.List two reasons for the crash of the Stock Market. 2.What is one question you still have?

18. Hoovervilles

19. The Dust Bowl

20. Dorothea Lange

21. Migrant Mother

23. The Bonus Army

24. Franklin Delano Roosevelt