Transcript stock market crashed

This was the worst and
longest economic collapse
in the United States. It
lasted from the end of
1929 until the early
1940’s. It started with the
crash of the stock market
and ended with the
entering of World War II.
Causes
“Black Thursday”, was the day the stock market
crashed on October 29, 1929. 16 million shares of stock
were quickly sold by panicking investors who had lost faith
in the economy.
Causes
Unfortunately, many
people borrowed
money to purchase
these stocks. When
they were unable to
pay the loans back,
the banks were
forced to take their
belongings or lose
their money.
Causes
Banks also made investments in the stock market. When the
market crashed, many people worried that the banks would
go bankrupt and rushed to withdraw their cash. This
caused 9,000 banks to go out of business and 9 million
savings accounts were wiped out.
Causes
Farmers grew more food
than they could sell. This
caused prices to fall.
Many farmers could not
make enough money to
pay for their farms.
Families were forced to
leave their homes and start
all over again.
Causes
At this time, factories were making more products than
people could buy. Factory owners were forced to lower
their prices. They could not stay in business and were
forced to close. This caused many people to become
unemployed.
Unemployed
In 1933, at the Great
Depression’s lowest
point, more than 15
million Americans were
out of work. That is
approximately 25% of
the nation’s workforce.
Charity
The government did not
have welfare or
unemployment insurance
to help those in need.
Numerous Americans
depended on charity to
survive.
Soup Kitchens
Church groups, the gangster Al
Capone, and other volunteer
organizations provided free food
to the unemployed. Sometimes
this was the only meal a family
had.
Feeding the Family
During this time, people started growing a variety of
vegetables and fruit. One dish suppers and church
potlucks were important ways to have fun and share food.
Magazines and radio shows taught women how to stretch
their food budget with casseroles and meals like cream
chipped beef on toast or waffles. Chili, macaroni and
cheese, soup, and creamed chicken on biscuits were
popular meals.
New
Foods
Even during the
Depression, new
foods were
invented or
introduced
including: Spam,
Toll House
chocolate chip
cookies, Good
Humor ice cream
bars, Bisquick,
Krispy Kreme
doughnuts, Ritz
crackers, Kool-Aid,
Kentucky Fried
Chicken, and
Birdseye frozen
vegetables.
Working
Without the government to
rely on, Americans did
what they could to survive.
Some sold items like jelly
and apples on the city
sidewalks.
Hoovervilles
Shanty towns named
after President Hoover, as
an insult constructed of
packing crates, abandoned
cars and other cast off
scraps sprung up across
the nation.
Hoboes
At the height of the Great Depression, more than 250,000
teenagers were living on the road in America. Groups of
youths, whose families could no longer support them,
illegally rode the rails in box cars trying to find a job.
Dust Bowls
During the 1930’s, a series of destructive wind and dust storms
hit the central United States. It started because the soil started
to be dry and loose. Farmers took over the grassland and
covered it with wheat. In addition there wasn’t any rainfall.
“Okies”
Victims of drought and dust storms in the Great
Plains who left their farms and headed for California
to work on farms. They believed that all they had to do
was reach out and pluck food from the trees.
Schools
During the Depression, some school districts could not pay
their teachers and had to close. With budgets shrinking,
some school had to shorten both the school day and the
year. Some children had to stay home and help with the
family business instead of going to school.
Herbert
Hoover
He was the 31st
President of the United
States, from 1929 until
1933. The Great
Depression began just
months after he took
office. Hoover thought
that state and local
governments should help
their people and not the
federal government. He
also underestimated how
long the Depression
would last. This led to
the election of a new
President with a promise
to try to end the
depression.
Franklin D. Roosevelt
FDR became the 32nd
President of the United
States with his promise of
a “New Deal” He was
President from 1933 until
1945. Under this plan,
the government created
new jobs for Americans,
gave low interest loans to
farmers, and
straightened out the
banks. He was so
popular that he was
elected four times.
Fireside Chat
President Franklin
D. Roosevelt began
making informal
addresses over
the radio as
President on
March 12, 1933.
Sometimes he
began his chats
with “Good
evening, friends”.
Roosevelt urged his
listeners to have
faith in the banks
and to support his
“New Deal”.
New Deal
Programs
President Roosevelt established many new programs to help
the American people out of the Great Depression. His programs
were known by their initials and were given the nickname
“alphabet soup”. Many of these programs are still around
today. Minimum wage was established as well as the
discontinuing of child labor. Federal Deposit Insurance Company
(FDIC), which insures peoples money when they deposit it in a
bank. The Social Security Act which provides aid to the blind,
deaf, disabled, and elderly.
New Deal Programs
Works Progress Administration (WPA) employed 8.5
million workers in construction and other manual labor
jobs. Countless bridges, highways and parks were
constructed or repaired.
New Deal Programs
The Works Progress Administration also hired unemployed
artist, writers, musicians, actors, and directors. At its peak,
the project employed about 6,500 men and women around
the country, paying them about $20 a week.
New Deal Programs
The Civil Works Administration (CPA) provided public works
jobs at $15 dollars a week to about four million workers.
Mainly they improved or constructed buildings, bridges, and
tunnels.
New Deal Programs
The Civilian Conservation Corporation (CCC) put men
between the ages of 18-25 to work building roads, developing
parks, planting trees, soil erosion, and flood-control projects.
They were paid $30 dollars a month and $25 dollars was sent
home to the worker’s family. The men were supplied with free
food, and uniforms
New Deal Programs
The Rural Electrification
Administration (REA)
encouraged farmers to
join cooperatives to bring
electricity to farms.
Despite its efforts, by
1940 only 40% of
American farms had
electricity. By 1950, most
were connected. This
made work easier for
farmers to produce
fresher, higher quality
food for consumers.
New Deal
Programs
The Tennessee Valley
Authority (TVA)
renovated 5 existing
dams, constructed 20
new ones in the
Tennessee Valley,
created thousands of
jobs, and provided
flood control and
hydroelectric power.
It is still in effect
today.
The End
The Great Depression tested the fabric of American
life. It caused them to doubt their abilities and values.
It caused them despair. As a nation, we emerged
stronger than ever, and we are all better today for the
strength and their courage.