1 the great depression. 2 the start of depression describe what you see in this picture. what is...
TRANSCRIPT
1
The Great Depression
2
The Start of Depression Describe what you
see in this picture. What is happening here?
What is unusual about the family in this picture?
What reasons can you think of for why they are in this situation?
3
Introduction
Essential Question—How did the Great Depression affect America?
4
Topics of Discussion
The “Roaring Twenties” The economy in the late 1920s The stock market crash The Dust Bowl The New Deal
5
The Roaring 1920s—Swingin’!!!!!
Business Booms First shopping mall built First fast food chain, A&W Root
Beer Appliances all the rage—radios,
washing machines, telephones, cars
Companies spend $1.5 billion on advertising in 1927
Ford built his automobile empire People began to buy things on
credit
6
The Economy of the Late 1920s
“Everybody ought to be rich” 200 large companies controlled
49% of all American industry Too many goods, not enough
demand Farm prices fell after WWI Farmers not able to repay their
debts• The Stock Market Crash
– Stocks hit all-time highs in September of 1929
– In October, stocks began to fall– Ex. General Electric stocks
bought for $400 sold for $283– Black Tuesday—16.4 million
shares sold, compared to average of 4 million
– This collapse of the stock market is known as the Great Crash
Income Distribution, 1929
1
5
29
65
$10,000 and Over
$5,000-$9,999
$2,000-$4,999
$1,999 and under
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Why did the market crash? Many people bought stocks on margin—
like a loan Companies lied about their profits—
remember Enron? Economies like ours go through natural
“boom” and “bust” cycles Republican Presidents believed in
laissez faire—no control on businesses Stock market was not regulated by
government
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The Stock Market CrashFrom Riches to Ruin
Many wealthy families lost everything Some even committed suicide Millions of people who never owned a single stock
lost their jobs, farms and homes The crash triggered a much wider, long term crisis
known as the Great Depression The Depression lasted from 1929 to 1941 when
America entered WWII The Depression had a ripple effect that hurt the
economies of other countries
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10
Unemployment 1925-1933
02468
101214
1925 1926 1927 1928 1929 1930 1931 1932
Year
Une
mpl
oyed
(in
mill
ions
)
How many people were unemployed in 1925? In 1929? In 1932?
11
Wheat Prices 1925-1933
0
0.5
1
1.5
2
1925
1926
1927
1928
1929
1930
1931
1932
1933
Year
Pri
ce p
er B
ushe
l (in
do
llars
)
How much did a bushel of wheat cost in 1925? 1932?
12
Stock Prices 1925-1933
0
5
10
15
20
25
30
1925 1926 1927 1928 1929 1930 1931 1932 1933
Year
Aver
age
Mon
tly V
alue
$
Great Crash
What was the average stock value in 1929? 1932?
13
Bank Suspensions 1925-1933
0
1
2
3
4
5
1925 1926 1927 1928 1929 1930 1931 1932 1933
Year
Num
ber o
f Sus
pens
ions
(in
thou
sand
s)
How many banks were suspended in 1925? In 1933?
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15
A Dust Storm in Eastern Colorado
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Another Dust Storm
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A father and his two sons seek shelter from a dust storm
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Sand covering a farm after a dust storm
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An abandoned farm in Kansas.
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A collage of newspaper headlines from the Dust Bowl
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A man in the midst of a dust storm
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The Dust Bowl
Where was it? What Caused it?
The Great Plains region—N. & S. Dakota, Nebraska, Colorado, Kansas Oklahoma and northern Texas
Farmers plow the plains, eliminating the protective layer of grass
Wheat replaces grass—tractors make it much easier
Severe drought High winds Layers of top soil blown away,
leaving dunes of grit and sand
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A family in a “lean-to” tent
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Another mother and her child living in a lean-to tent
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A family trying to escape the dust bowl
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