The Great Depression

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The Great Depression

• Dates 1929-1941
• The period of economic hard times that followed
  the Great Stock Market Crash of 1929
• Prosperity of the 1920s hid weaknesses in the
  economy

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The Election of 1928

• Calvin Coolidge chose not to run for a second
  term
• Republican Herbert Hoover won election

3
Signs of Economic Trouble

• Clothing Industry ? no more elaborate dresses
• Coal Mining ? dwindling demand
• Rail Roads ? cars were more popular
• Farmers ? post WWI demand decrease rising debt

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Compare

• The 1920s
• Booming!
• Low unemployment rates 2-3

• The 1930s
• Busting!
• High unemployment rates 7-10

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The Economic Cycle
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The Crash

• By August 1929, some investors worried that the
  boom would soon end.
• Investors Panicked and began selling their stock.
• This increase in selling caused the stock prices
  to fall.

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The Crash

• Black Thursday
• October 24, 1929
• Marked the beginning of the stock market crash
• Black Tuesday
• October 29,1929.
• Marked the heaviest day of selling stocks.
• Stocks became worthless

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New York Stock Exchange
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Buying on Margin

• 1. Occurs when an investor does not have enough
  money to buy stocks
• 2. Investors pay only part of the cost of the
  stock when investors make the purchase, borrowing
  the rest from their stockbroker.

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The Great Depression

• Causes
• 1. Overproduction
• 2. Wages did not keep up with prices (inflation)
• 3. People were not buying goods
• 4. Factories closed or laid off workers
• 5. Weakness in the banking system

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Impact the Depression had on Families

• Unemployment soared
• Less work hours
• Pay Cuts
• Many jobless lost their homes ? Hoovervilles and
  Hobos
• Selling random items on the street
• Beggars for money
• Pick through garbage
• Marriage and birthrate dropped
• Families split up
• Drifters
• Children stopped going to school
• People went hungry

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Bread Line
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