The Great Depression: Stock Market Crash and Economic Turmoil of 1929-1934
In the early 1930s, the United States faced a severe economic downturn known as the Great Depression. Triggered by the stock market crash of 1929, the nation experienced widespread financial devastation, with millions of people losing their jobs, homes, and savings. The period was marked by economic hardship, defaulting on loans, foreclosures, and a general sense of despair as businesses collapsed and the economy plummeted. President Hoover's efforts to pass laws to help the people were overshadowed by the growing unrest and anger towards the government.
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1929-1934 CHAPTER 19: THE GREAT DEPRESSION
INTRODUCTION: TO DO (34 PTS): Define 9 terms List 4 ways people expressed their anger with the government List 3 laws that Hoover asked Congress to pass to help the people
TERMS Stock Market: Stock Market: a place where stocks, or shares in businesses are bought and sold Depression: Depression: a time when the economy of a nation falls sharply Default: Default: to fail to pay a loan when it is due Foreclose: Foreclose: to take the property of someone who has failed to pay back a loan Bonus: Bonus: money given in addition to what is owed
REMEMBER? The 1920s were portrayed as carefree or exciting People had barely enough money to pay bills (installment buying) US economy began to all apart Almost everyone suffered How would you feel if all of your money suddenly disappeared?
THE STOCK MARKET CRASH 1920s fewer than 5% of Americans were wealthy Yearly income? $3000 or less Long hours for low pay Borrowed money to buy something that cost a lot *also used installment plans* People turned to the stock market Hoped to become rich as businesses grew
THE STOCK MARKET CRASH Hoped to become rich as businesses grew People made money / wanted to make more money Began borrowing money to buy stocks Bought stocks on margin Autumn 1929: stock prices started to drop To save money, people sold their stocks Selling stocks dropped prices even more October 29, 1929: prices plunged Stocks became worthless Many people lost their money INSTANTLY Known as Black Tuesday
THE GREAT DEPRESSION During WWI: farmers sold crops to forces Made $$$ Fewer crops were needed / prices fell Farmers defaulted on loans for equipment US entered a depression End of the 1920s: Millions out of work Farmers lost farms Banks went out of business Used their customer s savings to buy stocks Coal and clothing businesses shrank as big business grew larger Thousands lost their jobs
HARD TIMES: THE VICIOUS CYCLE 1932: economy broken Businesses closed Owners could not pay their employees Jobs were lost Americans could not afford to buy goods being made Factories made fewer goods Needed fewer workers More jobs were lost
HARD TIMES: CONTINUED Farmers began to default on payments Banks foreclosed on their property 1932 / in one day: banks foreclosed on of ALL FARMS in MISSISSIPPI Americans lost homes couldn t pay bills People stood in line for hours for free food Families sold apples / anything for money Children had to pick through garbage for scraps
JOBLESS AND HOPELESS Some workers without jobs joined the Communist party. Some farmers destroyed their crops rather than sell them for unfair prices. Some farmers joined together to stop banks from taking their property. WWI veterans marched on Washington, DC, in 1932. No one had any answers Hoover was asked to help Felt government charity was not the answer Americans should help themselves This made people angry angry
JOBLESS AND HOPELESS After WWI, Congress voted to give veterans a bonus Depression hit, Veterans asked for the bonus Congress refused to pay it 15,000 veterans formed the Bonus Army Went and camped on the nation s capital Promised to stay until they got their bonus
JOBLESS AND HOPELESS Hoover feared violence from the Bonus Army US Troops ordered to drive out the protestors Veterans camps attacked Most people were sickened soldiers attacking those who had served the country **Change needed in the government**
TO DO Pg. 354 (Critical Thinking) USE COMPLETE SENTENCES FOR FULL CREDIT Pg. 356 (1-3) Exercise 79
TERMS Drought: Drought: A long period of very dry weather Migrant Worker: Migrant Worker: A worker who travels from place to place to harvest crops
RECALL: The Depression affected Americans in different ways Farmers suffered the most African Americans Immigrants Unskilled workers Unemployment for African Americans was 2x the national average Many families had to move to try again somewhere else
CHANGES IN FAMILY LIFE Families worked together = drew closer More likely? Families torn apart Men (hopeless) left their wives and children Teenagers felt they should support themselves Left home Children had to work to help families 7 years old Sold newspapers, yard work, ran errands Had to leave school to work or watch younger children
THE DUST BOWL Newcomers = not welcome California was suffering also did not need new workers Signs at borders Vegetable / fruit growers picked crops Poor living - $1.50 a day People crowded into living situations Moved on when job was done
THE DUST BOWL WWI farmers FARMED Falling prices = farming a difficult way of living Drought turned farms into dust 1934: Farmers had to leave their farms Often headed west to California Became migrant workers
AFRICAN AMERICANS AND THE GREAT DEPRESSION African Americans Poorest Americans for a long time Lives became harder 1stworkers to be fired Lower pay (owners were trying to save money) Jobs lost to white people 1932: of African Americans had no jobs
AFRICAN AMERICANS AND THE GREAT DEPRESSION African Americans: In the South Farmers worked land of white owners Whole families grew cotton Raised animals and a few crops for themselves Falling prices = hardships Lived in shacks No heating or plumbing Lived on corn meal, pork scraps, weeks Violence escalated Lynching was always a threat
MEXICAN AMERICANS AND THE GREAT DEPRESSION Mexican Americans: Immigrants moved to large cities / worked in factories Factory workers = Mexicans worked for lower pay, taking jobs from Americans Worked on farms Farmers = Mexicans were taking jobs from Americans Forced to live in the poorest areas Immigrants still came to settle in US Local authorities ordered thousands of Mexican immigrants to leave
TO DO Pg. 358 (1-2) Pg. 361(1-3) Exercise 80 Bonus points (complete sentences): How much was a loaf of bread sold for during the Depression?
19.3: THE US GOVERNMENT AND THE GREAT DEPRESSION
TERMS Public works: Public works: construction projects paid for by public funds Relief: Relief: help given to poor people
WHOS TO BLAME? Americans blamed Hoover Did not do enough to fight the depression Hoover had no answers Americans turned to a new leader
PRESIDENT HOOVERS ACTIONS Smart businessman / millionaire by 40 WWI headed bureau that sent troops and clothing to people in need in Europe Depression Hits: Americans wonder: How can a smart business man have so few plans? Why can t Hoover find a way to help Americans? Hoover made problems a little worse Signed a law that hurt trade with foreign countries Fewer goods into and out of US Slow trade? Europe defaulted on money owed to the US
PRESIDENT HOOVERS ACTIONS Finally realized how serious the problem was Started public works programs to put people to work Cut taxes Lent money to banks and other businesses Plans were too little too late Thought helping people would destroy their freedom Depend too much on the government Government should not be responsible for solving the problems of the economy
A NEW PRESIDENT Hoover Believed Roosevelt s plan was a danger to US way of life Roosevelt gave government too much power Danger = strong government Roosevelt Government should do more to help US during this time WON election people felt a change was necessary Speeches were filled with hope for the US
A NEW PRESIDENT Roosevelt: Strong government programs to care for suffering families Called for relief no citizen shall starve Governments job to end the Depression Our greatest task is to put people to work
TO DO Pg. 362 (1-2) Pg. 365 (1-3) Exercise 82
