Great Depression Vocabulary stock depression unemployed Great Depression

Great Depression Vocabulary stock depression unemployed

Great Depression Vocabulary stock a share of ownership in a company depression unemployed

Great Depression Vocabulary stock depression a share of a time when ownership in there are few a company jobs and people have little money unemployed

Great Depression Vocabulary stock depression unemployed a share of a time when people who ownership in there are few have lost a company jobs and their jobs people have little money

The Roaring 20’s • Businesses grew • The new concept of “credit” • People were buying: – Automobiles – Appliances – Clothes • Fun times reigned

1929 -1939 • Stock market crash • Didn’t realize the effect it would have • No money to replenish what was borrowed Many found being broke humiliating.

Why was this bad? • Credit system – People didn’t really have the money they were spending • World War I – The U. S. was a major credit loaner to other nations in need – Many of these nations could not pay us back

The Stock Market • People bought stocks on margins – If a stock is $100 you can pay $10 now and the rest later when the stock rose • Stocks fall – Now the person has less than $100 and no money to pay back

And then…. • With people panicking about their money investors tried to sell their stocks – This leads to a huge decline in stocks – Stocks were worthless now • People who bought on “margins” now could not pay • Investors were average people that were now broke

• Herbert Hoover was president at the start • Philosophy: We’ll make it! • What He Did: Nothing • The poor were looking for help and he had no ideas on how to correct or help.

• Farmers were already feeling the effects – Prices of crops went down – Many farms foreclosed • People could not afford luxuries – Factories shut down – Businesses closed • Banks could not pay out money • People could not pay their taxes • Many families became homeless and had to live in shanties

A Farm Foreclosure

Some families were forced to relocate because they had no money.

Two Families During the Depression

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families tried to make money by selling useful crafts like baskets.

“Hooverville” • Some families were forced to live in shanty towns – A grouping of shacks and tents in vacant lots • They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

How Ohioans were Affected by the Great Depression • Many businesses closed • Many people could not repay money that they had borrowed • Many lost their jobs, savings, and homes.

A drought in the South lead to dust storms that destroyed crops. “The Dust Bowl”

The South Was Buried • Crops turned to dust=No food to be sent out • Homes buried • Fields blown away • South in state of emergency

*FDR* Franklin Delano Roosevelt • Became President in 1932 • When he was inaugurated unemployment had increased by 7 million. • Poor sections had 50% of the population unemployed • Instated the “New Deal”

• People everywhere were effected by the depression • It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

The New Deal (1933 -1936) FDR had a plan to help fix the problems with the U. S. economy. He called that plan the New Deal.

As Part of the New Deal: 1. The U. S. Government started programs that gave unemployed people jobs. – As part of those projects, people built many public buildings and roads.

As Part of the New Deal: 2. Other New Deal programs helped raise the price of farmers’ crops and the animals they sold.

As part of the New Deal: 3. During the New Deal, changes were made to make the U. S. banking system more stable so banks would not go out of business without giving people their money back. The Federal Deposit Insurance Corporation (FDIC) was created. The FDIC: – insured the money people put into a bank up to $5000 – prevented people from losing all their savings if a bank failed

As Part of the New Deal: 4. The New Deal also changed the way businesses operated to help make sure people were paid more fairly.

The New Deal & Ohio • Civilian Conservation Corps (CCC) – Built roads, hiking trails, and camps in Cuyahoga Valley National Park – Constructed buildings at the Toledo Zoo • The Works Progress Administration (WPA) – Hired workers to build roads, airports, and public buildings – Hired artists and painters

Today’s Assignment • Choice Chart Row 4 A B C Write a diary entry about an event in the lesson. Write the diary entry as if you were the person involved in the event. Compare/Contrast The Great Depression time period to today. Create a Venn Diagram. Be sure to include 3 ways that they are the same and 3 ways that they are different. Create a concept map about World War I. Be sure to include at least 6 facts about the war.