The Great Depression Reasons it happened and effects on people.
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Transcript of The Great Depression Reasons it happened and effects on people.
The Great DepressionThe Great Depression
Reasons it happened Reasons it happened and effects on peopleand effects on people
Cause #1Cause #1
Stock Market crashed—Black Tuesday Stock Market crashed—Black Tuesday October 29, 1929October 29, 1929 Investors (people who owned stocks) lost $40 Investors (people who owned stocks) lost $40
billion at oncebillion at once Country could not recover from such a lossCountry could not recover from such a loss
Cause # 2Cause # 2
Bank Failures—Over 9,000 banks failedBank Failures—Over 9,000 banks failed Banks were uninsured so people could not get Banks were uninsured so people could not get
their money backtheir money back Banks stopped loaning money because they Banks stopped loaning money because they
were unsure the economy would recoverwere unsure the economy would recover
Cause # 3Cause # 3
People just stopped buying products— People just stopped buying products— consumers couldn’t afford to purchase things consumers couldn’t afford to purchase things or were afraid to purchase big itemsor were afraid to purchase big items
Less items were bought—so people who made Less items were bought—so people who made those items lost their jobsthose items lost their jobs
Unemployment went up to 30% of the Unemployment went up to 30% of the populationpopulation
Cause #4Cause #4
Smoot-Hawley Tariff—taxed goods coming Smoot-Hawley Tariff—taxed goods coming from Europe to protect American productsfrom Europe to protect American products
Europe retaliated and Americans lost money Europe retaliated and Americans lost money by losing some trade with Europeby losing some trade with Europe
Cause #5Cause #5
Drought in the Mississippi Valley and Great Drought in the Mississippi Valley and Great PlainsPlains
Created the Dust Bowl—no grass or trees and Created the Dust Bowl—no grass or trees and huge dust storms killed crops huge dust storms killed crops
Farmers had to sell their land and leaveFarmers had to sell their land and leave
Cause #6Cause #6
Hoover Administration and Congress cut taxes Hoover Administration and Congress cut taxes on the wealthyon the wealthy
Tax rate went down from 73% to 24%Tax rate went down from 73% to 24% Government could not help people with Government could not help people with
revenue (money coming in to run the revenue (money coming in to run the government) lowered so muchgovernment) lowered so much
Herbert HooverHerbert Hoover
President during the depressionPresident during the depression Laissez-faire (which means hands off) was his Laissez-faire (which means hands off) was his
way of handling the needs of people who way of handling the needs of people who needed help during the Depressionneeded help during the Depression
Businesses should not be coerced to do the Businesses should not be coerced to do the right thingright thing
No direct help to people in need—would make No direct help to people in need—would make them dependentthem dependent
Hoover (cont)Hoover (cont)
Shacks built by homeless people came to be Shacks built by homeless people came to be known as Hoovervillesknown as Hoovervilles
Hoover’s policies were said to be too little too Hoover’s policies were said to be too little too latelate
LinkLink
This link takes you to more facts about the This link takes you to more facts about the Great Depression (and some New Deal facts)Great Depression (and some New Deal facts)
http://www.thegreatdepressioncauses.com/http://www.thegreatdepressioncauses.com/facts.htmlfacts.html
Results of Great DepressionResults of Great DepressionMillions out of a jobMillions out of a job
Millions with no homeMillions with no homeSoup Kitchens (stand in line for one bowl of Soup Kitchens (stand in line for one bowl of soup and bread—all day only thing you get)soup and bread—all day only thing you get)
No way to make moneyNo way to make moneyFarms closed because of the Dust Bowl—Farms closed because of the Dust Bowl—higher food prices—supply and demandhigher food prices—supply and demand