Stock Market Crash _ the Great Depression

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					Stock Market
 Crash & the
    Great
 Depression
The Market
 Crashes
  The Dow Jones Industrial
       Average (DJIA)‫‏‬
          -Average of stock prices

-Prices for many stocks soared far
above their “real” value in terms of
  the company earnings & assets

 -Stock prices soar in September
               1929
         Black Thursday
            Oct. 24, 1929


           Stock prices slowly fall

Worried investors sell, prices fall

Bankers pool money to buy stock
Black Tuesday
 Oct. 29, 1929
       Record 16.4 million
               shares sold

            Known as the
            “Great Crash”

             Overall losses
          total $30 billion
Ripple Effects of the
       Crash
a. risky loans hurt banks
b. consumer borrowing
c. bank runs
      Ripple Effects of the Crash
d. bank failures
e. savings wiped out
f. cuts in production
g. rise in unemployment
 Underlying
Causes of the
 Depression
 Unstable Economy
         Wealth unevenly
              distributed



More goods produced than
       consumed
Overspeculation
 Buying stocks w/
 borrowed money
Government Policies
 Mistakes in monetary
        policy


Federal Reserve limits
   money supply
  Social
  Effects
  of the
Depression
Poverty Spreads
   1. Most thought the
 Depression wouldn't last

2. Felt in all levels of society



 3. Many become drifters
 Low crop prices hurt
        farms:
Foreclosed on & sold at
       auction
The Dust Bowl
Caused by drought &
   overplowing




60% of families lose
      farms!
   Poverty
Strains Society
Impact on Health
   1. Took physical &
    psychological toll



2. Children suffered most
   Stresses on Families
           Living conditions decline

           Divorce rate drops, why?

Many men have low self-esteem

Working women accused of
taking jobs away from men
       Discrimination
          Increases
 Competition for jobs increases

 Rise in suspicions & hostilities
       against minorities

Govt. relief
programs
discriminate
Surviving the
   Great
 Depression
 Americans
Pull Together
   Lasting Impact
             1.
       Many pinch pennies
            2.
   Avoid buying on credit
                3.
Little trust in banks
People Help Each Other
1. Tenant groups form




2. Farmers work together
3. Young people leave home

            a. For necessity
            or adventure



b. Faced many
dangers
  Political Solutions
 1. Few call for violent political
              change
  2. Citizens trust democratic
             process
3. Membership in
     Communist & Socialist
        Parties grows
             Humor Helps

                              People use
                           jokes & cartoons

 My father always said, “When I was a kid we had no shoes to wear
and our clothes were hand-me-downs. We had little food to eat, and
        no car to put gas in even if we had money for gas.
     Then came the Great Depression, and things got tough.”
Signs of
Change
Prohibition Repealed
          1.
21st Amendment repeals
         18 th




           2.
Control returns to states
       Empire State
        Building
            1. 2,500-4,000 people
                   worked per day
                  2. Cost $41 million
3. 102 stories;
1,250 ft. tall
       End of an Era
1. Al Capone sent to jail
(always pay your taxes!)


            2. Babe Ruth
                retires

3. Lindbergh baby
kidnapped & murdered
Election
of 1932
Hoover, Henry Ford, Thomas Edison, Harvey Firestone




Hoover's
Limited
Strategy
Voluntary Action
  1. Insists key to recovery is
           confidence
2. Believed voluntary actions by
 businesses was best way to end
             crisis
3. Held rigidly to his principle
4. Public blames him for crisis
Government
   Acts
    Agricultural
    Marketing Act
Created Federal Farm Board
Designed to stabilize prices
            Failed-lost $150
                     million
Spends money on new:
    Public buildings
       Roads
       Parks
       Dams
Hawley-Smoot Tariff
 a. Highest import tax in
         history
       b. Backfired
c. European countries raise
          tariffs
      Reconstruction
   Finance Corporation
a. Gave credit to some
institutions
b. Lent money to banks
c. Passed Home Loan
Bank Act
                 Bonus Army
1. 20,000 WWI veterans encamp in D.C.
2. Wanted immediate payment of pension
bonus
3. House agrees-Senates doesn't
4. Some violent incidents
5. MacArthur uses army to force them out
      The Election:
 2 Views of Government

      Hoover- Voluntary aid:
       Resisted idea of giving
    federal govt. more power
Roosevelt-More
government intervention
   Roosevelt Wins
     Presidency
1. Wins by 7 million popular
           votes


2. Backed by urban workers,
 coal miners, & immigrants

				
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