The Great Depression

1
The Great Depression the New Deal

• Chapter 25
• Section 1

2
Economic Collapse

• Key ? How did 1920s prosperity affect different
  social groups?
• Economic prosperity in the 1920s.
• More products were being produced incomes of
  middle class and poor not rising.
• Many products went unsold.
• Farmers produced more crops than they could
  sell.

3
The Illusion of Wealth

• Most Americans could not afford cars and
  appliances. Vast majority had only small incomes
  and little savings.
• Many could not find steady work. Continued to
  use credit an arrangement for delaying payment
  on a purchase. Large debts were accumulated.
• Stock market still climbing.
• Many investors bought stock on speculation-buying
  and selling risky stocks in the hope of making a
  quick profit. Bought borrowed money to buy
  stocks, but couldnt repay when prices fell.

4
The Crash and the Great Depression

• Key ? What caused the crash of 1929 and the
  Great Depression?
• President Hoover economic depression-financial
  slump.
• Financial panic led to the Stock Market Crash of
  1929. Black Tuesday
• Great Depression of the 1930s worst economic
  crisis in the nations history.

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6
Great Depression

• Global affect when the American economy failed,
  so did Europes.
• Lasted until World War II in 1941.
• Millions experienced starvation, homelessness,
  and extreme suffering.

7
Hoover Loses the Nations Trust

• Key ? Why did the American people lose faith in
  Hoover?
• Hoover did not believe the government aid to the
  needy and depended on charitable organizations.
  Solicited voluntary wage rates maintained by
  businesses.
• Reconstruction Finance Corporation- gov. funded
  organization that gave loans directly to banks
  and railroads.
• Public works projects Hoover Dam

8
The Bonus Army

• World War I veterans were promised a bonus for
  wartime service.
• Summer of 1932, 15,000 veterans went to
  Washington - Many stayed and camped out in a
  Hooverville a village of huts, shacks, and
  other temporary residences.
• Mac Arthur tried to drive them out with tear
  gas, fired shots, one died.
• President Hoover not reelected. FDR first goal
  would be to rebuild Americans hope and trust.

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