The Great Depression

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The Great Depression

• 1929

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1920s Problems
Factories making Too Much, Farms growing too much
BANKS Have NO PEOPLE LOST SAVINGS
JOBS NO ONE TO HELP!
Factories Fire Workers
(Dont need them) Farm Prices fall
(Farmers cant make )
Banks Close because they have no money Loans
have not been paid back, cant give people
their savings
Farmers Factory Workers cant pay back loans to
Banks DEFAULT!!
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Stock Market Crash

• Buying on margin
• Buy stock by just paying a small portion of what
  the stock is worth
• ex.- 100 shares at 10 1000 only pay 300
  
• but still owe 700
• -Problem, stock crashes and you lose your
  money and cant pay back stock broker
• - stock broker cant pay back bank
• -banks forced to close
• -depositors in banks lose everything

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Stock Market Crash

• Oct. 29, 1929
• Black Tuesday
• Overvalued stocks plummeted as investors panicked
  and tried to sell

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Stock Market Crash

• Thousands of investors lost everything
• Banks demanded repayment of loans and stopped
  loaning money to anyone
• People couldnt pay back loans
• Banks are forced to close

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Banks Close
Banks have no money to give people


People Default on Loans
People Lose savings
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• Causes
• Overproduction
• Bank closing
• Spark
• Stock market crash
• Results
• Unemployment
• Life savings lost

TOO MUCH STUFF!
BLACK TUESDAY
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The Great Depression

• Millions lost their savings when banks closed
• Millions lost their jobs as businesses failed
• Vast unemployment
• As high as 25
• 1930-1932 Jobless rate goes from 4 to 12 million
• People lose their homes
• People become desperate
• Loss of faith in capitalism and democracy gave
  rise to dictatorships in Europe

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The Great Depression

• President Herbert Hoover
• Does nothing at first
• Says it is the job of the churches and other
  charities to help the poor, not the government
• Problem people too poor to help the churches
  help the poor
• Problem too big for charities to handle
• Named poor places after Hoover
• Hoovervilles, Hoover blankets,

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The Dust Bowl

• 1931 Drought hits the Great Plains
• Farms just blew away
• Farmers couldnt pay the bank bank took the land
• Many farmers packed up and went to California to
  try to find work
• Jobs werent there either
• Okies

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The Dust Bowl
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The Great Depression

• Franklin D. Roosevelt becomes President
• Starts New Deal programs to put people back to
  work
• Did not end the depression but helped to ease it
• Most wealthy businessmen disliked the New Deal
• Gave people confidence
• Built infrastructure (buildings, roads, parks,
  electricity, artwork)
• Created ABC programs
• Ended bank crisis

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The Great Depression

• Connections to today
• Government monitoring of and control of the
  nations economy
• Stricter controls on banks and the stock market
• Continuation of social programs begun by the New
  Deal
• Social Security, Welfare, government food
  distribution, subsidies