Causes of the Great Depression

This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market

• Buying on Margin 

• Speculation 

• Buying on Credit 

• Overconsumption 

This is the idea that the rich become richer, while the poor become poorer

• Black Tuesday 

• Speculation 

• Unequal distribution of wealth

• Buying on Credit 

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

• Speculation 

• Black Friday 

• Bank Run 

• Underconsumption 

This is making a very risky investment in the stock market, in hopes of earning a large profit

• Speculation 

• Buying on Margin 

• Bank Run 

• Bull Stock 

This cause led many businesses to close, because they were producing more goods than consumers were willing to buy.

• Overproduction 

• Underconsumption 

• Buying on Credit 

• Stock Speculation 

Put 10% down to buy stock, pay rest later.

• Credit

• Debt

• Speculation

• Buy on Margin

President 1928-1932: "People can handle themselves."

• FDR

• Herbert Hoover

• Calvin Coolidge

• Warren Harding

Name of longest economic disaster in US History

• Great Panic

• Great Recession

• Black Tuesday

• Great Depression

What effect did the Dust Bowl storms have on the Great Depression?

• Many farmers were forced to leave the Great Plains.

• Unemployment decreased gradually.

• Many homes along the Mississippi River were flooded.

• Hoover was re-elected as president.

Long period of no rain

• Blizzard

• Tornado 

• Hurricane

• Drought