The Great Depression Causes of Great Depression Ailing

The Great Depression

Causes of Great Depression Ailing industries – farming, mining, railroads, steel Uneven distribution of wealth – income gap Majority of people can’t afford products they make Overproduction of goods Factories outputting so many items – not enough people can buy them Other countries can’t afford them either – high tariffs on their goods coming into US Buying stock on margin Borrow money to buy stock More people buy stock When it crashes, can’t pay back loans Doesn’t cause GD, but makes it worse Dow Jones Industrial Average – index of 30 blue-chip companies that represent the whole stock market Banking system No guarantee on money deposited Run on the banks worsens the situation

Effects of Great Depression Bread lines Homelessness Shanty towns (Hoovervilles) Deflation – prices go down to try to sell products Families learned to make sacrifices , share resources to survive, and to not take things for granted

Stock Market Crash & Banks Closing

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Run on the Banks

The Dust Bowl

Causes of Dust Bowl 9 • Drought • High winds • Over farming of land • Direct, negative impact on farmers, who are already hurting • Makes Depression worse

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Dust Storms

The Dust Bowl The Grapes of Wrath John Steinbeck wrote about people from Oklahoma who left for California for a better life It wasn’t much better there Too many people doing the same Not enough jobs, money Famous scene

Unemployment

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Families and Children

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Bonus Army

Bonus Army 43, 000 WWI Veterans march on Washington D. C. when their farms, homes are being foreclosed on and they’ve never received the bonus money they were promised for fighting in the war. They were ordered to leave and refused Police came and when they resisted, shots were fired Two were wounded, and later died President Hoover orders police and military to clear them out. Women and children are forced out also. All their belongings are burned.