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The Great Depression

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					The Great Depression
The Great Depression- 1929 to 1941

   In 1928, Herbert Hoover is elected President
Main Causes of the Great Depression:

   Over production and under
 1.
 consumption of farm crops.
  –    Many farmers went into debt to buy
       tractors and new machines but after WWI
       the demand for crops went DOWN.
 2.   Uneven distribution of income
  –    *The rich get MUCH richer and the
       workers just become less poor*

  –    In 1929, the wealthiest 1% of the
       population earned about the same
       amount of money as the bottom 42%!
 3.   Consumer debt grows-
  –    Credit is easy to get
  –    60% of cars are purchased using
       installment buying
  –    People are going in debt to get the
       latest appliances…
 4.   Stock market speculation-
  –    SPECULATION= making high-risk
       investments hoping to make a lot of
       money
  –    i.e. You invest your life savings into
       a new product because you think it
       will be the next “hot item”
Assignment:

   Open your textbook to pg. 366.
   Begin reading the section.
   Answer the following questions (in
    complete sentences) on a separate piece
    of paper
    –   Pg. 372 #1, 4, 5, 6
STOCKS! STOCKS! STOCKS!

 Welcome to Miss. Wilson’s stock exchange!

 Today you will have the opportunity to
  purchase and sell stocks.
 Will you end up on top?

   $$$ A reward will be given to the person
     who finishes with the most amount of
                  money! $$$
                  1920
   Kroger Foods         $100
   Radio Corp. (RCA)    $100
   Mammoth Oil          $100
   City Corp. Bank      $100
   Durant Motors        $100
   Midland Utilities    $100
   Kansas Pacific RR    $100
   Tel-Tone             $100
                  1923
   Kroger Foods         $150
   Radio Corp. (RCA)    $100
   Mammoth Oil          $100
   City Corp. Bank      $50
   Durant Motors        $200
   Midland Utilities    $50
   Kansas Pacific RR    $100
   Tel-Tone             $150
                  1925
   Kroger Foods         $100
   Radio Corp. (RCA)    $200
   Mammoth Oil          $150
   City Corp. Bank      $50
   Durant Motors        $200
   Midland Utilities    $75
   Kansas Pacific RR    $50
   Tel-Tone             $200
                  1929
   Kroger Foods         $75
   Radio Corp. (RCA)    $50
   Mammoth Oil          $50
   City Corp. Bank      $0
   Durant Motors        $0
   Midland Utilities    $75
   Kansas Pacific RR    $50
   Tel-Tone             $25
What are you worth?!?!?

   Add up both your money and what your
    stocks are worth at this point.

   Who has the most?
   The least?

THE CRASH!! October 29, 1929
 Also known as “Black Tuesday”
     Effects
      of the
Great Depression
Effects

   1. Banks and businesses fail:
    –   Banks cannot pay back the customers and
        people were running to take out their
        MONEY

   2. Unemployment soars:
Effects

   3. Personal income shrinks:


   4. American loans to Europe dry up:
    Hawley-Smoot Tariff- this raised prices on
     foreign imports so they could not compete in
     American market
 Thetariff DESTROYS
 INTERNATIONAL TRADE

 Depression   goes GLOBAL
The Great Depression creates…

Hard times for ALL Americans
Urban:
      Factory jobs are cut and for those who
    keep their jobs, hours and wages go DOWN
   *Just when many people thought they could
    move up in society*
   Breadlines-
    –   Places to wait for free scraps of food

   Hoovervilles-
    –   Homeless people grouped together and
        set up tents and shacks
    –   One of the largest= Central Park
    –   “Hoover blankets” and “Hoover flags”
Rural:

    Low prices for farm goods and many
    farmers lost their jobs
   I.E. In 1919 a bushel of wheat= $2.16
        In 1932 a bushel of wheat= $0.38
Minorities:
 During the Great Depression, African
 Americans were the “last to be hired, first
 to be fired”
     *nearly 50%!
The Dust Bowl!!

   mid 1930s
Hoover Responds…

   Hoover’s actions failed to get the United
    States out of the depression
   He wanted trickle-down economics
    –   *see picture on whiteboard

   Hoover was NOT re-elected
   In 1933, in steps Franklin D. Roosevelt…

				
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