The Great Depression (1929-1939) was triggered by the stock market crash and characterized by significant economic weaknesses including unequal wealth distribution and poor bank and corporate structures. President Herbert Hoover's lack of action contributed to widespread poverty, with many families facing homelessness and unemployment, while cities saw the emergence of shantytowns known as 'Hoovervilles.' The situation deteriorated as businesses closed, farms foreclosed, and people struggled to afford basic necessities.

1. The Great Depression

2. 1929-1939
• The Stock market crash
• Didn’t realize the effect it would have
• No money to replenish what was borrowed
• Many found being broke humiliating.

3. Short Term Cause

4. Long-Term Causes…
• Weakness is the overall economy
• Unequal distribution of wealth
• Excessive buying on credit
• Week corporate structure
• Weak banking structure
• Inadequate government policies
• Week international economy

5. The Stock Market
• People bought stocks on margins
• 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

6. And then….
• With people panicking about their money investors tried
to sell their stocks
• This leads to a huge decline in stocks
• Stocks were worthless now
• People who bought on “margins” now could not pay
• Investors were average people that were now broke

7. President Hoover
• Herbert Hoover was
president at the start
• Philosophy: We’ll make it!
• What He Did: Nothing
• The poor were looking for
help and no ideas on how to
correct or help were coming

8. What about the people?
• Farmers were already feeling the effects
• Prices of crops went down
• Many farms foreclosed
• People could not afford luxuries
• Factories shut down
• Businesses went out
• Banks could not pay out money
• People could not pay their taxes
• Schools shut down due to lack of funds
• Many families became homeless and had to live in shanties

9. Many waited in unemployment lines hoping for
a job.

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

11. Hoover Ville
• Some families were forced to live in
shanty towns
• A grouping of shacks and tents in
vacant lots
• They were referred to as “Hoover
Ville” because of President
Hoover’s lack of help during the
depression