The Great Depression 2

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1 Warm-Up Exercise 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? 1

2 The Great Depression 2

3 Essential Question How did the Great Depression affect America? 3

4 Topics of Discussion The Roaring Twenties The economy in the late 1920s The stock market crash The Dust Bowl The New Deal 4

5 Activity 1: Think-Pair-Share The first topic we will cover is the decade called the roaring twenties. Why do you think we call them the roaring twenties? Take one minute to write your answer. When I tell you to, share what you wrote with the person next to you. 5

6 The Roaring 1920's Swingin!!!!! Business Booms First shopping mall built 1920's Model-T Ford 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

7 Think-Pair-Share Contrast the women in these two drawings. Take two minutes to write down as many differences as you can. When I tell you, share what you have written with the person next to you. Victorian Woman Jazz Age Woman 7

8 The Economy of the Late 1920s Income Distribution, $10,000 and Over $5,000-$9,999 $2,000-$4,999 $1,999 and under 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 8

9 The Stock Market Crash Stocks hit all-time highs in September of 1929 In October, stocks began to fall Example: General Electric stocks bought for $400 sold for $283 Black Tuesday (Oct. 29, 1929):16.4 million shares sold, compared to average of 4 million Stock prices fell on that day and they continued to fall, at an alarming rate, for a full month. This collapse of the stock market is known as the Great Crash 9

10 Why did the market crash? Crowd outside New York Stock Exchange Many people bought stocks without having the money to back it up 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 10

11 The Stock Market Crash: From 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 11

12 12

13 Unemployed (in millions) How many people were unemployed in 1925? In 1929? In 1932? Unemployment Year 13

14 Hoovervilles Settlements that were often formed in unpleasant neighborhoods and consisted of dozens or hundreds of shacks and tents that were temporary homes of those left unemployed and homeless by the Depression. Named after the President of the United States at the beginning of the Depression, Herbert Hoover because many Americans were frustrated with his involvement in the relief effort for the Depression. 14

15 A family in a lean-to tent 15

16 Number of Suspensions (in thousands) How many banks were suspended in 1925? In 1933? Bank Suspensions Year 16

17 The Dust Bowl 17

18 18

19 A Dust Storm in Eastern Colorado 19

20 Another Dust Storm 20

21 A father and his two sons seek shelter from a dust storm 21

22 Sand covering a farm after a dust storm 22

23 An abandoned farm in Kansas. 23

24 A collage of newspaper headlines from the Dust Bowl 24

25 A man in the midst of a dust storm 25

26 The Dust Bowl Where was it? What Caused it? The Great Plains region N. & S. Dakota, Nebraska, Colorado, Kansas Oklahoma and northern Texas Farmers over plowed the plains, eliminating the protective layer of grass Severe drought High winds Layers of top soil blown away, leaving dunes of grit and sand 26

27 As a result of the Dust Bowl: As many as 50 million acres of land were destroyed Farmers and families were now homeless and broke Many people died or developed respiratory illnesses due to the dust Over 2.5 million people left the Dust Bowl area; most headed west for California. 27

28 The New Deal Started by President Franklin D. Roosevelt A series of programs initiated between 1933 and 1938 with the goal of providing relief, recovery, and reform (3 Rs) to the people and economy of the United States during the Great Depression. 28

29 Essential Question How did the Great Depression affect America? 29

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