The Great Depression - PowerPoint by VlFb8K9

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									The Great Depression
Roaring Economy of the Late
          1920’s
• While the Economy continued to grow,
  there were signs that the prosperity would
  not last:
 - Farming Crisis
     -farmers were not making $
     -increased production
     -greater debt



  – Buying on Credit
     • Loans in 1928- $5 million
     • Loans in 1929- $850 million
– Nation’s wealth was not spread evenly
  • 0.1% of the population held 34% of country’s
    savings
  • Rich got richer, poor got poorer


• President Herbert Hoover elected - belief
  in small government and self-reliant
  business

• Stock Market:
  • Many new buyers
  • Speculation
  • Buying on Margin
        Stock Market Basics
• The American public spends money by
  buying stock in different companies
• If the companies do well, the person
  makes money
• If the companies do poor, the person loses
  money
• One large gamble on the market
  The Market Before the Crash
• Bull Market- The
  economy was in such
  great shape that stock
  prices kept rising
• So many people
  wanted to buy
  expensive stock so
  they bought by using
  credit from a broker
• The brokers borrowed
  this money from the
  banks
         Black Tuesday
• October 29, 1929
• Thousands of worried investors began selling stocks
  to get their money out of the falling stock market.
• In just one day, the market lost a full year of profit
• People lost everything!!!
   – Forced to pay their brokers with savings
   – Sell china, clothing, or jewelry to get cash
• Caused the “Great Crash,” where overall loses
  totaled 30 billion dollars.
• Began a 12 year period known as the Great
  Depression
     Aftermath of the Stock
          Market Crash
• By 1932, more than 12 million people
  (1/4 of the workforce) were unemployed
• Banks were closing down and people
  were losing their money
   – By 1933, money from 9 million savings
     accounts had vanished

•Global Economy began to crumble.

								
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