II- The Ripple Effect The stock market crash of 1929 was only the first cause of the Great...
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Transcript of II- The Ripple Effect The stock market crash of 1929 was only the first cause of the Great...
II- The Ripple Effect
• The stock market crash of 1929 was only the first cause of the Great Depression
• Further economic catastrophes will build on the damage caused by the market crash
A) The Banks Collapse
• 1) Many banks had made risky loans to stock market speculators
• 2) Because the loans would never be paid back, many banks went out of business
• 3) The public panicked and tried to withdraw all of their deposits at one time.
• This is known as a “Run on the Bank”
• 4) Banks did not have the money on hand for the massive withdrawals and went under
• 5) 5,000 bank collapse between 1929 and 1932
B) Unemployment• 1) In 1930 alone,
26,355 business failed due to bad economics
• 2) 25% of all Americans lost their jobs
• 3) With no incomes, millions were evicted and became homeless
• 4) Many families were forced to live in shanty towns built in parks and abandoned buildings.
• 5) These towns became known as “Hoovervilles”, named after President Hoover
• a) Many depended on charity just to survive.• b) Thousands would line up daily for bread
and soup handouts.
C) The Dust Bowl
• 1) In 1932 to 1936 drought struck to Midwest of America.
• 2) The dried up topsoil would be driven by high winds to create storms of dust.
• 3) Dust storms destroyed crops, farms, and even stopped trains from operating.
• 4) Millions of farmers were forced to abandon their farms and go on the road in search of work.