The%20Great%20Depression

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The Great Depression
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1929-1939

• Stock market crash
• Didnt realize the effect it would have
• No money to replenish what was borrowed

Many found being broke humiliating.
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Cause The Roaring 20s

• The new concept of credit
• People were buying
• Automobiles
• Appliances
• Clothes
• Fun times reigned
• Dancing
• Flappers
• Drinking

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Why was this bad?

• Credit system
• People didnt really have the money they were
  spending
• WWI
• The U.S. was a major credit loaner to other
  nations in need
• Many of these nations could not pay us back
• France, Britain, Germany

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Cause The Stock Market

• People bought stocks on margins
• If a stock is 100 you can pay 10 now and the
  rest later when the stock rose
• Stocks fall
• Now the person has less than 100 and no money to
  pay back

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And then.

• With people panicking about their money investors
  tried to sell their stocks
• This leads to a huge decline in stocks
• Stocks were worthless now
• People who bought on margins now could not pay
• Investors were average people that were now broke

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Black Tuesday!

• On October 29, 1929, Black Tuesday hit Wall
  Street as investors traded some 16 million shares
  on the New York Stock Exchange in a single day.
  Billions of dollars were lost, wiping out
  thousands of investors. 

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• http//www.history.com/topics/1929-stock-market-cr
  ash

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Cause President Hoover

• Herbert Hoover was president at the start
• Philosophy Well make it!
• He thought the stock market decline was a part of
  the business cycle that would correct itself if
  industries improved
• The poor were looking for help and no ideas on
  how to correct or help were coming

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What about the people?

• Farmers were already feeling the effects
• Prices of crops went down
• Many farms foreclosed
• People could not afford luxuries
• Factories shut down
• Businesses went out
• Banks could not pay out money
• People could not pay their taxes
• Schools shut down due to lack of funds
• Many families became homeless and had to live in
  shanties

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Many waited in unemployment lines hoping for a
job.
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People in cities would wait in line for bread to
bring to their family.
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Some families were forced to relocate because
they had no money.
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Hooverville

• Some families were forced to live in shanty towns
• A grouping of shacks and tents in vacant lots
• They were referred to as Hoovervilles because
  of President Hoovers lack of help during the
  depression.

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Hooverville
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Out of the Dust
The South and the Dust Bowl
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A drought in the South led to dust storms that
destroyed crops.
The Dust Bowl
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The South Was Buried

• Crops turned to dustNo food to be sent out
• Homes buried
• Fields blown away
• South in state of emergency
• Dust Bowl the 1 weather crisis of the 20th
  century

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Two Families During the Depression
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A Farm Foreclosure
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Some families tried to make money by selling
useful crafts like baskets.
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FDR

• When he was inaugurated unemployment had
  increased by 7 million.
• Instated the New Deal a series of programs
  designed to fix Depression problems like poverty
  unemployment

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• People everywhere were effected by the depression
• It wasnt till President Roosevelt took over and
  tried to put the economy back together that
  people even saw a glimmer of hope

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The End