1. Chapter 22 Section 1 and 2 The Stock Market Crash and Social Effects of the Depression

2. Dow Jones Industrial Average • An average of the stock prices of major industries • Reached an all time high during Hoover’s Presidency • People paid a great deal to the rising stock market

3. Black Tuesday • October 29, 1929 • 16.4 million shares were sold • Compared to an average of 4 to 8 million

4. Great Crash • The massive collapse of the stock market in 1929 • Overall losses totaled $30 billion

5. List and briefly describe 5 ways the Great Crash spread to all Americans. • Risky loans hurt banks • Consumer borrowing- took out loans and could no longer pay them back • Bank runs • Bank failures • Savings wiped out • Cuts in production • Rise in unemployment

6. Business Cycle • Over a period of time, the economy grows, then contracts

7. Great Depression • Time period from 1929 to 1941 • The most severe economic downturn in American history

8. Which part of the business cycle did the Great Depression represent? • A trough

9. How did the unstable economy in the 1920s contribute to the Great Depression? • Production far outpaced demand • Wealth was unevenly distributed • The boom in stock market prices was based mainly on borrowed money, not real value

10. List and briefly describe the 3 underlying causes of the Depression. • An unstable economy • Overspeculation • Government policies- limited money supply to discourage lending and speculation, but this left people short on money

11. Hooverville • Towns of shacks, or shanties, made from anything people could use to construct a shelter

12. Who lived in Hoovervilles? • Unemployed laborers and their families

13. Dust Bowl • Massive dust storm that consumed the midwest

14. What factors led to the creation of the Dust Bowl in the 1930s? • Exhaustion of the topsoil • Drought • Wind erosion

15. What impact did the Depression have on health? • Many went hungry • Children suffered from poor diet and inadequate medical care

16. How did the Great Depression impact families? • Living condition declined • Had to give up personal interests/hobbies • Many men were ashamed and left their families • Women lost jobs

17. What were some causes and effects of increased discrimination during the Great Depression? • Competition for jobs • Legal system ignored civil rights for non-whites • Individual racism • Deportations • Lynchings • High African American unemployment

18. What can you learn about the Depression from Wilson Ledford’s experiences? • His experiences demonstrate the hardships of finding work, which was often only temporary or was located far from home • He and his family made the best of the situation in order to survive