1. The Great Depression The Stock Market Crash and Its Effects It’s only worth how much?
2. Section Objectives <ul><li>1. Analyze the effects of the Stock Market crash. </li></ul><ul><li>2. Describe the spread of poverty during the Great Depression. </li></ul>
3. 4 Signs of Dangerous Economy 1. Uneven Prosperity 2. Buying on Credit 4. Too Many Goods 3. Playing the Stock Market
4. The Good and Bad of 1929
7. Did People Jump out of Windows? I can’t take it!
8. From Crash to Depression <ul><li>The Crash of the stock market triggered a much larger crisis called the Great Depression . </li></ul><ul><ul><li>A severe economic decline that lasted from 1929 until the U.S. entry into WWII. </li></ul></ul>
9. Domino Effect <ul><li>When the Stock Market crash began in 1929, its effects spread through many areas of society. </li></ul><ul><li>Factory workers, farmers, banks and citizens around the world were affected by the crash. </li></ul>
10. *Domino Effect on Workers/Farmers* <ul><li>As profits and incomes of businesses fell, workers were laid off by the thousands. (cost cutting) </li></ul>
11. *Domino Effect on Banks*
12. Domino Effect on Banks <ul><li>Unfortunately, Americans were using borrowed money, from banks, to play the stock market and lost millions. </li></ul><ul><li>Nervous Americans rushed to banks to withdraw savings account money that was no longer at the bank. </li></ul><ul><li>Banks that could not return people’s deposits simply closed their doors and people’s savings were as good as gone. </li></ul>
15. Domino Effect on the World <ul><li>When the global leader’s banking and investment system fell, the world felt the shock. </li></ul><ul><li>Europeans who were paying back loans to the U.S. no longer could because Americans could not buy or consume European goods. </li></ul>
16. The Bottom Suffers the Most <ul><li>Those at the bottom of the social ladder suffered the most from the Depression. </li></ul><ul><li>Those who were unemployed usually lost homes as well as jobs. </li></ul>
17. The Bottom Suffers the Most <ul><li>The homeless of the big cities carved out existences in make-shift towns called Hoovervilles . </li></ul><ul><li>Make-shift shelter towns built by the homeless of the depression. </li></ul>
23. *Poverty Strained our Society* <ul><li>“ All last winter we never had a fire except about once a day when mother cooked mush or something. When the kids got cold we went to bed. I quit high school of course”. </li></ul>
26. Hope is on the Way <ul><li>The election of Franklin Roosevelt in 1932 is going to spark a sense of hope. </li></ul><ul><li>FDR’s programs to help the Depression work, but it will take WWII to pull us completely out. </li></ul>