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What Economic Problems of the Late 1920s Caused the Great Depression?

What Economic Problems of the Late 1920s Caused the Great Depression?. United States History & Government 11 th Grade Boys & girls| Br. Siraj| Al-Madinah School | January 1, 2020. Sick Economy at the late 1920s. There was a sickness under the surface of the good economy of the 1920s.

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What Economic Problems of the Late 1920s Caused the Great Depression?

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  1. What Economic Problems of the Late 1920s Caused the Great Depression? United States History & Government 11th Grade Boys & girls| Br. Siraj| Al-Madinah School | January 1, 2020

  2. Sick Economy at the late 1920s • There was a sickness under the surface of the good economy of the 1920s. • Clothing, steel-making, and mining were not making any profit. • Auto manufacturing, construction and consumer goods manufacturing were also losing money by the late 1920s. • Farming was the biggest problem • Dropped demand for food after the war caused farmers’ income to go down. • They lost their land due to their inability to pay mortgage payments. • Congress tried helping by passing price supports bill.

  3. Credit buying was another problem. • People bought on credit and accumulated high amount of debt.

  4. The Election of 1928 & The Bull Market • Republican Nominee Herbert Hoover defeated Democratic Nominee Alfred E. Smith • People Believed in Hoover’s Claim of a Strong Economy • People Saw a Bull Market: a long period of rising stock prices • People were buying on margin – paying a small down payment and borrowing the rest from the stockbroker. • People also practiced speculation – buying risky stocks hoping to make a quick profit

  5. Stock Market Crash (Black Tuesday) • In September 1929 stock prices began fall sharply. • On October 29, 1929 (Black Tuesday) stock prices fell so sharply that people termed it Stock Market Crash. • People panicked and started to sell their stock pushing prices further down. • By Mid-November $30 billion had been lost.

  6. Great Depression • A period of bad economic times when many people were out of work that lasted from 1929 to 1940. • Effects of Stock Market Crash on Business • Banks began to close as panicked customers began to withdrew their money • Businesses began to close too • Millions of Americans lost jobs or had to work less hours for little wage. • Worldwide depression – worsened by Hawley-Smoot Tariff Act.

  7. Main Causes of Great Depression • Tariffs and war debt policies that cut down the foreign market for American goods • a crisis in the farm sector • the availability of easy credit • unequal distribution of income. • Homework: • Q 1 and 2 on page 677

  8. What were the Effects of Great Depression? U.S. History & Government / 11th Grade / Br. Siraj Wednesday, January 1, 2020

  9. The Effects of Great Depression • Effects on City People • Millions lost jobs • Millions became homeless • Shantytowns grew • Soup kitchens offered food • Waiting in the bread lines • African Americans and Latinos suffered the most • They were attacked by the whites • Whites demanded that Latinos be sent back to their country of origin

  10. The Effects of Great Depression • Effects on Rural People • Farmers earned less and less due to food price drop. • Farmers lost their land (400,000 between 1929-1932) • Great Plains (Texas to North Dakota) was hit by long drought • Dust Bowl covered Kansas, Oklahoma, Texas, New Mexico & Colorado. • Many farmers became migrant workers. (Okies)

  11. The Effects of Great Depression on American Family • Some families stayed together with stronger bonds. • Shared their earnings / parents and children stayed home instead of going out for entertainment • Played board games or listened to the radio • Some families Broke Apart • Many men were ashamed of not being able to support their family • They left the families and wandered around looking for work • Women tried finding jobs • Got paid less / some people argued against giving them jobs.

  12. The Effects of Great Depression • Effects on Children • Terrible suffering for them • Poor diet & healthcare • Many ran away from home • Many were robbed and killed by criminals or beaten by railroad guards • Effects on Mental Health • Suicide and mental illness increased • Young people gave up many of their dreams including going to college

  13. The Effects of Great Depression • Effects on Government • Did not provide any direct relief • Charities and city governments struggled to help • Cities and states collected less tax money • Child welfare budgets were cut • Cities could not keep the schools open of full year. • Humane Side of the Story • It sometimes brought out the best of individuals, families & Communities • Many people shared resources with their neighbors or gave food and clothing to the needy.

  14. HOMEWORK • QUESTIONS 1, 2 & 4 ON PAGE 683

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