The Great Depression • Began when the stock market crashed in October 1929 • Many people used credit to invest, and the companies invested in were worthless
Many companies went out of business, and by 1933, one out of every four people in America had lost his or her job
When investors started to wise up, lots of people sold stock quickly, the prices went down fast, and almost everybody lost money
It wasn't until World War II started that the U.S. and world economies straightened out.
House in St. Helena, SC - Paid taxes with oranges grown on farm
Cook of a fishing boat in Charleston, SC - Peeling potatoes on Christmas Day
Son of sharecropper family at work in the cotton near Chesnee, South Carolina
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Timeline 1920’s and 1930’s Times Leading to The Great Depression During The Great Depression The Great Depression Coming To An End
1920 • The economy is growing fast. • Banks lend money for individuals to buy stocks. • Banks lend money for risky land development.
1929 • The Stock Market crashes. • Farm prices fall. • Less steel is produced. • The start of the Great Depression.
1932 • Many banks close. • People begin to take their money out of banks. • Unemployment is 25% (high). • Stocks lose value. • Federal Home Loan Bank Act of 1932. • Creates the Federal Home Loan Bank Board. • Creates the Federal Home Loan Banks.
1933 • President Franklin D. Roosevelt temporarily closes all banks. • Many more banks fail. • Banking Act of 1933. • Establishes the FDIC as a temporary corporation. • Gives the FDIC authority to regulate and supervise some banks. • Gives the FDIC authority to provide deposit insurance to banks. • Does not allow banks to sell securities.
1934 • National Housing Act of 1934. • Creates the Federal Savings and Loan Insurance Corporation (FSLIC).
1935 • Banking Act of 1935. • Makes the FDIC a permanent independent corporation. • Provides permanent deposit insurance. • Federal Credit Union Act of 1935. • Creates Federal Credit Unions.
1939 • Banks become more profitable. • Fewer banks fail.
The Time They All Waited For… To Get On With Their Lives The Depression Comes To An End…