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The Great Depression

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The Start of Depression Describe what you

see in this picture. What is happening here?

What is unusual about the family in this picture?

What reasons can you think of for why they are in this situation?

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Introduction

Essential Question—How did the Great Depression affect America?

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Topics of Discussion

The “Roaring Twenties” The economy in the late 1920s The stock market crash The Dust Bowl The New Deal

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The Roaring 1920s—Swingin’!!!!!

Business Booms First shopping mall built First fast food chain, A&W Root

Beer Appliances all the rage—radios,

washing machines, telephones, cars

Companies spend $1.5 billion on advertising in 1927

Ford built his automobile empire People began to buy things on

credit

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The Economy of the Late 1920s

“Everybody ought to be rich” 200 large companies controlled

49% of all American industry Too many goods, not enough

demand Farm prices fell after WWI Farmers not able to repay their

debts• The Stock Market Crash

– Stocks hit all-time highs in September of 1929

– In October, stocks began to fall– Ex. General Electric stocks

bought for $400 sold for $283– Black Tuesday—16.4 million

shares sold, compared to average of 4 million

– This collapse of the stock market is known as the Great Crash

Income Distribution, 1929

1

5

29

65

$10,000 and Over

$5,000-$9,999

$2,000-$4,999

$1,999 and under

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Why did the market crash? Many people bought stocks on margin—

like a loan Companies lied about their profits—

remember Enron? Economies like ours go through natural

“boom” and “bust” cycles Republican Presidents believed in

laissez faire—no control on businesses Stock market was not regulated by

government

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The Stock Market CrashFrom Riches to Ruin

Many wealthy families lost everything Some even committed suicide Millions of people who never owned a single stock

lost their jobs, farms and homes The crash triggered a much wider, long term crisis

known as the Great Depression The Depression lasted from 1929 to 1941 when

America entered WWII The Depression had a ripple effect that hurt the

economies of other countries

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10

Unemployment 1925-1933

02468

101214

1925 1926 1927 1928 1929 1930 1931 1932

Year

Une

mpl

oyed

(in

mill

ions

)

How many people were unemployed in 1925? In 1929? In 1932?

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Wheat Prices 1925-1933

0

0.5

1

1.5

2

1925

1926

1927

1928

1929

1930

1931

1932

1933

Year

Pri

ce p

er B

ushe

l (in

do

llars

)

How much did a bushel of wheat cost in 1925? 1932?

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Stock Prices 1925-1933

0

5

10

15

20

25

30

1925 1926 1927 1928 1929 1930 1931 1932 1933

Year

Aver

age

Mon

tly V

alue

$

Great Crash

What was the average stock value in 1929? 1932?

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Bank Suspensions 1925-1933

0

1

2

3

4

5

1925 1926 1927 1928 1929 1930 1931 1932 1933

Year

Num

ber o

f Sus

pens

ions

(in

thou

sand

s)

How many banks were suspended in 1925? In 1933?

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A Dust Storm in Eastern Colorado

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Another Dust Storm

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A father and his two sons seek shelter from a dust storm

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Sand covering a farm after a dust storm

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An abandoned farm in Kansas.

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A collage of newspaper headlines from the Dust Bowl

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A man in the midst of a dust storm

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The Dust Bowl

Where was it? What Caused it?

The Great Plains region—N. & S. Dakota, Nebraska, Colorado, Kansas Oklahoma and northern Texas

Farmers plow the plains, eliminating the protective layer of grass

Wheat replaces grass—tractors make it much easier

Severe drought High winds Layers of top soil blown away,

leaving dunes of grit and sand

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A family in a “lean-to” tent

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Another mother and her child living in a lean-to tent

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A family trying to escape the dust bowl

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