The Great Depression How did the Great Depression begin, and what did the United States do to fight against it?

The Great Depression

How did the Great Depression begin, and what did the United States do to

fight against it?

Key Vocabulary

• Credit: ______________________________________________________________________• Buying on margin: ____________________________________________________________• Stock Market: A particular market where

stocks and bonds are traded.• Hoovervilles: _________________________________________________________________

Stock Market Crash of 1929

• ____________________________________– ______________________________________.– Some who could not afford the stocks’ full price

began buying on margin

• Stock prices peaked in the summer of 1929.– Prices started to drop.– ___________________________________________________________________________________

Black Tuesday

• ________________________________________________________________________________________

• On Thursday, October 24, panic hit the stock market.– Within three hours the market lost $11 billion in value.

• On Monday, October 28, prices dropped again.• __________________________________________– ______________________________________________________________________________________________

• ___________________________________

How did Stock Market Crash?

BANK

Lends out $100 to Person 2

Stock Market, with everyone’s money, crashes-banks close

$100$100

Person deposits $100 into bank

Person 2 takes the $100 and invests into the stock market

The Economy Follows the Stock Market

• _____________________________________– Customers unable to pay back bank loans– _________________________________________

__________________________________________________________________________________

• ____________________________– Customers rushed to banks to withdraw their

money.– ______________________________

President Hoover’s Reaction

• _______________________________________________________________________________________________________________– Resisted giving direct assistance to individuals

• __________________________________________________________________________

• Hoovervilles, or groups of tin and cardboard shacks, were built.

Roosevelt’s New Deal

• _______________________________________________• Said that economic recovery was possible• _________________________________________________

A New President

• Roosevelt called special session of Congress that became known as the Hundred Days.

• ______________________________________________________________________________________________________________________________

• ______________________________________________

The Hundred Days

Roosevelt Restores Confidence

• Roosevelt worked to restore confidence in American banks.– ________________________________________

– ________________________________________

– Government inspected finances of a bank before it was allowed to reopen.

• ______________________________________________– _____________________________________________________

– Gave many chats over the course of his administration