The Great Depression Part 2

The Great Depression Part 2

By Michael Stange

The Great Depression

From 1929 to 1939, the United States experienced one of the harshest economic downturns in the history of the country. Initiated by the stock market crash of 1929, the decade that followed was marked by high unemployment rates and bank failures. Workers lost jobs along with their homes and possessions. Many of those who were able to keep their jobs barely made enough to make ends meet. The value of currency declined steadily, and the agricultural market spiraled downward. Panic spread throughout the country, and lives were turned upside down.

Multiple Choice

Which of these INCREASED during the 1920s?

• Farmers Debt

• Foreign Demand for Crops

• Price of Crops

• Farming Happiness & Positivity

Multiple Choice

Which of the following was a cause of the Great Depression?

• Overproduction by Farms & Factories

• The Election of 1928

• World War 1

• The Panic of 1893

Multiple Choice

What was the "Trigger" of the Great Depression?

• Stock Market Crash

• Mortgage Collapse

• Housing Bubble

• Bolshevik Revolution

Multiple Choice

During the worst part of the Great Depression, the unemployment rate was...

• 10%

• 25%

• 50%

• 75%

Multiple Choice

A problem in the 1920s economy is that people relied TOO MUCH on _____, which led to Debt.

• Farming

• Speculation

• Taxes

• Credit

Multiple Choice

What is one way that starving people living in the cities got food during the Great Depression?

• Stealing from Farms

• Joining the Army

• Breadlines & Soup Kitchens

• Direct Relief from the Federal Government

Multiple Choice

Consumer who borrowed money to buy more stocks were buying on

• a whim

• guarantees

• their feet

• margin

The Great Crash of '29

• ​​Herbert Hoover was inaugurated as president in January of 1929 with the highest stock market average in history and it continued to climb until September, earning it the nickname of the "Hoover Bull Market".

• By September of 1929, the stock market reached its highest peak, but over 300 million shares of stock​ had been bought on margin, and nobody had really been collecting any of the money!

• Share prices began to drop, but speculation continued.​ ​

Multiple Choice

Which best explains the reason behind the Crash of '29

• Consumers were working too hard in the factories

• Americans lost their savings and could not pay their bills

• Factories closed when demand for products decreased

• Europeans started to import more American wheat

Black Tuesday

• ​The market went slowly downward through into October, 1929, but finally crashed on Tuesday, October​ 29th. ​

• As values crashed, investment bankers called in margin after margin to try to shore up as much stock as they could.

• This and the news of the market crash caused massive amounts of "bank runs" where people went to t​he bank to withdraw as much as they could.

• This caused thousands of banks to fail within a month​.

What Crashed the Economy​?

​Margin Calls - Demanding people pay for the stocks they borrowed money to buy.​

​

Market Crash - Stock prices plummet as people try to sell stock for cash.

​

Bank Runs - People all going to the bank at once to get their money because of the stock market crash.​

• Hoover did not help people who lost their jobs, savings, and homes from the market crash.

• Hoover believed in "Rugged Individualism," and wanted families to help themselves even though there were no jobs available.​

Hoover's Blunder​s

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During the grain price boom during WWI, people flocked​ to the great plains to make a fortune in farming.

Using new technology, they plowed more and more farmland and did not take care of the soil.

This led to the "Dust Bowl" when millions of tons of soil blew away.​

Making It Worse: The Dust Bowl

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• With President Hoover doing nothing to help farmers, communities, or the unemployed, it fell to communities to help people.

• ​Civic organizations, churches, and other groups organized daily to feed the unemployed and their families.

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Bread & Soup Lines

​

• After the Crash of '29, banks continued to fail.

• By 1933, 10,000 banks had failed due to bank runs, margin calls, and banks having invested people's savings in the stock market.

• Hundreds of thousands of people lost their savings due to bank failures.

Bank Failures

​

Multiple Choice

Hoover's idea that the people needed to take care of themselves & their own families was called...

• A New Deal

• The BOLSHEVIK Revolution

• Rugged Individualism

• Capitalism

Multiple Choice

This group marched on Washington, D.C. in an attempt to get an early payment of their pension

• Doughboys

• Farmers

• Bonus Army

• Sons of Liberty

Multiple Choice

The main cause of the Dust Bowl was...

• Bank Failures

• Angry Locusts

• Severe Droughts & High Winds

• Floods on the Great Plains