3. Unit 3 THE GREAT DEPRESSION

4. The Nations Sick Economy Economic Troubles on the horizon 1. Industries in trouble 2. Farmers need a lift 3. Consumers have less money to spend 4. Living on credit- buy now pay later 5. Uneven distribution of wealth

5. Dreams of Riches in the Stock Market 1. Dow Jones Industrial Average- A measure of the stock markets health 2. “Bull Market”- a period of rising stock prices 3. Speculation- buying stock on the chance of quick profit, while ignoring the risk 4. Buying on Margin- Paying a small % of a stocks price as a down payment and barrowing the rest

7. The Market Crashes September 1929- Stock Prices Peaked No Regulations on Wall Street Black Tuesday- 10/29/1929 the bottom fell out of the market

9. Financial Collapse The crash signaled the beginning of the Great Depression- The period from 1929-1940 in which the economy plummeted and unemployment skyrocketed

10. Bank and Business Failures People pulled money out of the banks Banks had invested money in stock No Regulations on Banks 25% of the nation became unemployed

12. Causes of the Great Depression High Tariffs/Few Exports Overproduction in Manufacturing & Agriculture Buying on Credit and “On Margin” No Regulations on Wall Street & Banks

13. HARDSHIPS AND SUFFERING DURING THE DEPRESSION

14. Peoples Lives Devastated Shantytowns- Little towns consisting of shacks Soup Kitchens/Breadlines- Free or low cost food from charitable organizations NOT THE GOVERNMENT

25. Dust Bowl Farmers from Texas to North Dakota had destroyed grasslands from drought, high winds, and over cultivation Hardest hit regions of KS, OK, TX, NM, CO became known as the “Dust Bowl” Okies- migrant farm workers that headed to California

32. Effects on the American Family Men struggled Walked the streets looking for jobs Some abandoned their families Some became “hoboes” Suicide rates skyrocketed

36. Children Suffered Poor diets and no health care Schools shut down Many sent to live with their grandparents Young people quit going to college People put off getting married and having a large family

37. HOOVER STRUGGLES WITH THE DEPRESSION

40. Hoover and the Depression Believed handouts would weaken peoples self-respect Did not believe in direct relief- aid to the poor Federal Home Loan Bank Act- lowered mortgage rates for homeowners and allowed farmers to refinance to avoid foreclosure

41. Reconstruction Finance Corporation (RFC)- Provided $2 Billion for emergency financing for banks, insurance companies, railroads, and other large businesses

42. The Bonus Army Consisted of 20,000 WWI veterans Wanted early payment of a promised bonus Hoover sent in the Army to remove them Used tear gas and set fire to their shanties 1,000 people gassed including an 11 month old girl who died and an 8 year old boy that was left blind