Crash and Depression 1929 1933 Chapter 12 Economic

Crash and Depression 1929 -1933 Chapter 12

Economic Danger Signals n n n Uneven Prosperity (Rich richer) Buying on credit Playing the Stock Market Game Too many goods, too little demand Farmers in debt Bad working conditions

Welcome to the “Game of Life” n n n n House $500 Car $500 Furniture $100 Refrigerator $50 Toaster $5 Stocks $50 Vacuum Cleaner $20

The Stock Market Crash n n n Dow Jones Industrial Average- An average of stock prices of major industries- reached an all time high Prices of stock went down People began selling a lot of stock October 29, 1929 -Stock market Crashed (Black Tuesday) Loans were called in

Crash Affected Millions n n Workers/Farmers-Loss of jobs/food prices went down Banks closed Americans turned to Europe to repay WWI debt, could not do it…. World wide depression Dust Bowl, Page 388*

Effects of Depression n Poverty – “Hoovervilles” (Where homeless stayed. Bad Health Working women accused of taking men’s jobs Discrimination increased Gross National Product falls dramatically n Rugs/Hobos* n n

Surviving the Depression n America pulled together while riots erupted in Europe Sought political solutions- Rise of Communism and Socialism candidates* See business cycle

Signs of Change n n n 1933 Prohibition ended Empire State building Read page 392*

The Election of 1932 n n n Hoover (in office 1929 -1933) blamed world condition, not his control Tried to help: --Highest import tax in history! Still unrest --Hoover seemed cold hearted --Bonus Army marched in Washington (WWI vets wanted their pension EARLY!!)

Government should help vs. Government should not interfere!!! n n n Franklin Delano Roosevelt (FDR) said, “ Private economic is a public trust” Won election over Hoover! See page 396! “So first of all let me assert my firm belief that the only thing we have to fear is fear itself. ”