Presentation Transcript

1. Great Depression

2. Borrowed Money Many people wanted new inventions. Many people wanted to be a part of the stock market. People borrowed money from banks to invest in the stock market and buy new goods.
3. Trouble Ahead Farmers: Borrowed money to buy more land during World War One. They needed land to make more crops for soldiers. They were left with too much land, extra farming equipment, and too many workers when the war ended. Farmers owed the money they had borrowed, but they weren’t making money. Many lost their land and went into debt.
4. Trouble Ahead Factory Owners: They hired many workers during WW1, and kept those workers to make new inventions in the 1920s. Consumers quit buying, so the factories faced overproduction. Factories began losing money. Factories began to lay off workers.
5. Trouble Ahead Other industries suffered: Oil began to replace the mining industry Concrete and steel began to replace the lumber industry
6. Unemployment Workers began to lose their jobs. Many people became unemployed. Unemployment: the condition of being out of work It was a domino effect.
7. Domino Effect Laid off workers Decreasing Wages Decreasing Buying Power Decreasing Prices Explanation: Factories had to lay off workers People began making less money They weren’t able to buy products Factories had to lower their prices Factories had to lay off more workers…..
8. Trouble on the Stock Market Business owners began to lose money, so their businesses were worth less money. The value of businesses began to drop in the stock market. Investors in the stock market noticed the decrease in stock, so they sold their stocksback to the company.
9. Trouble on the Stock Market People began to panic and sell all of their stocks. On October 29, 1929, the stock market crash occurred. People sold all of their stocks, and the companies became worthless. Some people never got money when they sold their stock.
10. Trouble for Investors Investors had lost $26 billion in the market. Many people had borrowedmoney from banks to buy the stock. They had planned to pay back the bank when their stocks made money. Now, no one was able to pay the banks.
11. Trouble for Banks Banks had loaned money to investors that they would never get back. Banks lost a lot of money. People became frightened and went to collect all of their savings from the bank. Many banks had run out of money, so they were not able to give customers money. Many banks closed and people lost all their money.
12. Hard Times The Great Depression had begun. Many people lost their jobs. 100,000 people a week Many people faced hunger and poverty for the first time. Many schools had to close. Farmers suffered because people couldn’t buy crops.
13. Hard Times Young People: Graduated and could not find jobs Put off getting married or having children There were 250,000 fewer weddings in 1932 than in 1929. Families: Many women went to work for the first time. Some left home to try to find work.
14. Hard Times People stood for hours in breadlines to get free soup and bread. Homeless people built shelters called shanties out of cardboard and other scraps. Groups of shelters were called “shantytowns.”
15. Blaming President Hoover People blamed President Herbert Hoover for the depression. Shantytowns were called Hoovervilles. Empty pockets were called Hoover Flags. Newspapers used as blankets were called Hoover blankets.
16. Trouble on the Plains A severe drought hit the Great Plains The soil turned to dust in the hot sun High winds stirred the soil and caused dust storms. Much of the soil was unusable.
17. Dust Bowl The mid-west became known as the “Dust Bowl” because everything was covered in dust. The worst dust storm is nicknamed “Black Sunday.” April 1935 A dust cloud blew across the plains. It was as dark as night Affected Kansas, Colorado, Texas, and Oklahoma Pg. 332
18. Looking for a Change Many people moved to find work or a better life. African Americans had moved North and West. Many farmers moved to California to become migrant workers. Migrant worker: a worker who travels around to find work
19. Looking for a Change Young people began traveling highways or riding the rails to search for work. They looked for handouts from others (free food or supplies). They became known as hoboes.