Great depression begins

Start of the depression

Bell work 2/2

• What do you know about the Stock Market in the United States?

p. 29 The Great Depression (1929-1941)

1. Economic Cause

• Too many people buying stocks that they can’t afford (with loans)

• Everyone tries to sell stocks at once• Banks had used $ to invest- they lost cash and

had to close

1. Economic Effect• Vagrant (homeless) kids• Thousands lose jobs/

homes/lifesavings• Hoovervilles- homeless

camps

2. Political Cause• Pres. Hoover was a

conservative (laissez faire=hands off) and didn’t like a lot of gov control of business

• Believed in the American spirit and will to “pull themselves up by the bootstraps”

• High tariffs (tax on imports)=trade war

2. Political effects(don’t copy) President Herbert Hoover declared, "Nobody is actually starving. The

hoboes are better fed than they have ever been.”

• felt that assistance should be handled on a local, voluntary basis. (Churches and businesses offer help)

• Hoover dam- projects to stimulate economy

3. Agricultural Cause

• Over production=low prices AND poor soil

3. Ag. Effect

• Dust Bowl- loose dirt picked up/blown away from The Dakotas to Texas

• Farmers leave the mid west (called Oakies)

4. Social Causes• Buying on credit (consumerism)• False optimism (thinking everything is ok)

4. Social effects

• Low divorce rate (too expensive)= lots of abandoned families, Low birthrate

• Poor health/nutrition• High crime rate and alcoholism• Escapism- radio, movies, sports

p. 28 A picture is worth 1000 words

• Divide the page into 4 squares• For each: • 1. what you see• 2. what is says about the era