1. GREAT DEPRESSION THE GOOD TIMES COME TO AN END…

2. CAUSES Stock Market Crash Banking system collapses High tariffs Business fails High unemployment Increased food prices Dust Bowl

3. BLACK TUESDAY 1920’s “Bull” Market ends “Bear” vs “Bull” Market Buying on Margin – purchase of stocks with credit or borrowed money Stock prices peak in August 1929 Tuesday, October 29, 1929 Stock market crashes More people want to sell stock than want to buy September 1929: stocks worth $87 BILLION November 1929: Lost over $30 BILLION

4. COLLAPSE OF THE ECONOMY Banks were heavily invested in the stock market Banks had lent money on margin People rushed to banks to withdrawal money Banks don’t keep money on hand Did not have the money owed to people Banks went out of business 1931 2,200+ banks closed

5. BUSINESSES CLOSED Businesses had money in banks Some businesses closed Some cut back on production Needed fewer workers Unemployment in 1929 went from under ½ million people to more than 4 million in 3 months!!! Stock Market Collapse Businesses close Banks loose money People look for jobs/unemplo yed People can’t buy stocks, rampant debt

6. DUST BOWL Causes Severe drought – 1934-1937 Over farming – fragile root system in plants to act as an anchor High winds – picked up loose topsoil and created “black blizzards” Results Suffocated cattle and pasture land 1934 over 100 million acres of farmland lost One storm blew from Great Plaines to Washington DC

7. WHO TO BLAME??? President Herbert Hoover was the target of many Families struggled to find food Searched city dumps Boiled shoes Soup Kitchens Hoover believed it was up to individuals and institutions to provide charity, not the Federal Government “Hoovervilles” were built Bonus Army was dealt with by using force

8. 1932 PRESIDENTIAL ELECTION Hoover vs. Franklin Delano Roosevelt Public had lost confidence in Hoover (and themselves) Roosevelt was confident and optimistic FDR won the 1932 election in a landslide