The Great Depression
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The Great Depression. 1929-1939. Stock market crash Banks foreclosed Collapse of Farm Economy-Dust Bowl. Many found being broke humiliating. The Roaring 20’s. The new concept of ______________ People were buying: Automobiles Appliances Clothes Fun times reigned Dancing Flappers

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The Great Depression

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The Great Depression


  • Stock market crash

  • Banks foreclosed

  • Collapse of Farm Economy-Dust Bowl

Many found being broke humiliating.

The Roaring 20’s

  • The new concept of ______________

  • People were buying:

    • Automobiles

    • Appliances

    • Clothes

  • Fun times reigned

    • Dancing

    • Flappers

    • Drinking

Why was this bad?

  • Credit system

    • People didn’t really have the money they were spending

  • WWI

    • The U.S. was a major credit loaner to other nations in need

    • Many of these nations could not pay us back

The Stock Market

  • People bought stocks on ____________

    • If a stock is $100 you can pay $10 now and the rest later when the stock rose

  • Stocks fall

    • Now the person has less than $100 and no money to pay back

And then….

  • With people panicking about their money investors tried to sell their stocks

    • This leads to a huge decline in stocks

  • The stock market crashes on



So where is this going?

  • Investors (who bought on “margins”) were average people that were now broke

  • NO $ coming into the bank!

    What will happen?

Banks Fail

  • Common Man is scared- pulls $ out of Bank

  • Banks cannot pay depositors = _________________

  • Without Banks to loan $ ________________

    (could no longer cover payroll)

  • Workers Lose Jobs ______________________ Skyrockets

And with Unemployment….

  • Unemployed people can not buy things!!!

  • Those worker’s who were able to keep jobs did not received a wage increase they can not buy things!!!


  • Farmers have produced more food than consumers needed driving down prices

  • _____________ & _____________

    =Farmers can not pay loans back to the bank

    = Farmers are __________

Good vs. Bad Business Cycle

Workers Can not afford to buy goods

Workers Make Money

Able to buy goods

Factories Hire Workers

Demand Decreases

Factories Fire Workers

Factories Cut Production

Factories need workers to make goods

Overproduction / Reduction in Purchasing

Farms and factories overproduced beyond the demand.

Businesses cut


Demand for

goods fell.

Workers suffered

from wage cuts

and lay offs.

People had

little or no

money to spend.

President Hoover

  • Herbert Hoover was president at the start

  • Philosophy: We’ll make it!

  • What He Did: __________

  • The poor were looking for help and no ideas on how to correct or help were coming

What about the people?

  • Farmers were already feeling the effects

    • Prices of crops went down

    • Many farms foreclosed

  • People could not afford ________________

    • Factories shut down

    • Businesses went out

  • Banks could not pay out money

  • People could not pay their ___________

    • Schools shut down due to lack of funds

  • Many families became homeless and had to live in ________________

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread or soup to bring to their family.

“Hoover Stew”

Some families were forced to relocate because they had no money.


  • Some families were forced to live in shanty towns

    • A grouping of shacks and tents in vacant lots

  • They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.


Out of the Dust:


Dust Bowl of

Great Plains

1933-1936 The Midwest experiences drought - caused farms to dry up and eroderesults in HUGE dust storms.

“The Dust Bowl”

The Center of the Nation was Buried

  • 1933-1936little rain Crops turned to dust=No food to be sent out

  • Farmers did not know how to stop soil erosion, wind picked up loose soil and spread it across the nation.

  • Homes buried

  • _________ ____________the #1 weather crisis of the 20th century

Families During the Depression

A Farm Foreclosure

Some families tried to make money by selling useful crafts like baskets.

  • People everywhere were effected by the depression

  • It wasn’t till President _______________took over and tried to put the economy back together that people even saw a glimmer of hope


  • Emphasized –“the forgotten man”

  • Enthusiastic & Optimistic people _____________ him

  • Won by landslide during worst year of the depression.

  • Instated the “_________ ___________” - policies & programs to boost the economy & put people to work!

The First 100 Days

  • Refers to 1st Hundred Days of FDR presidency

  • Declared ______ _________

    “National Bank Holiday”

    • Inspectors check _______ ________

    • Only those in good shape allowed to reopen

    • Reopen = people deposit money

      = restored public _______________

FDR – Fireside Chats

  • Begins __________ ___________a weekly radio update to country = explained his policies directly to the people = restored ________ ___________


3 R’s:

  • Relief

  • Recovery

  • Reform

The End

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