1. The Great Depression The Great Depression I. Economic Decline A. “Too much” competition A. “Too much” competition 1. New business competition 1. New business competition a. Lower prices for consumers a. Lower prices for consumers b. Less profit for business b. Less profit for business 2. Decline in clothing sales 2. Decline in clothing sales a. Manufacturing moved south a. Manufacturing moved south b. Foreign competition b. Foreign competition c. Changing styles of clothing c. Changing styles of clothing -shorter skirts = less fabric -shorter skirts = less fabric

2. B. Decline in Coal Industry 1. New energy sources a. Oil a. Oil b. Petroleum / Gas b. Petroleum / Gas c. Hydroelectric c. Hydroelectric 2. Coal mines shut down

3. C. Farm Over-Production 1. U.S.A. produced mass-quantities of food to help Europe after WWI to help Europe after WWI a. Demand was high a. Demand was high b. Prices were high b. Prices were high 2. Europe stabilized a. Demand decreased a. Demand decreased b. Prices plummeted b. Prices plummeted -profits vanished -profits vanished -Americans panicked -Americans panicked

4. D. Stock Market Crash (October 29, 1929) 1. Panic caused mass-sale of stocks a. Stock values plummeted a. Stock values plummeted 2. “World Depression” a. No foreign demand for U.S. products a. No foreign demand for U.S. products

5. E. Poor Distribution of Wealth 1. Economic decline = loss of jobs 2. 3/5 of U.S. $ owned by 2% of people a. 98% of people = low income (poor) a. 98% of people = low income (poor) b. People had no $ to spend b. People had no $ to spend c. Economy came to a halt c. Economy came to a halt

6. Unemployment During the Great Depression

7. Questions 1. What were the primary causes of the Great Depression? 2. What effects did the Great Depression have on the American people? 3. What actions did President Hoover take to try to deal with the Great Depression?