THE GREAT DEPRESSION Depression Begins, The Roaring Twenties have gone Silent (WWII) Worst economic crises in history Americas crash meant other countries did as well -No money to borrow Extreme suffering -Unemployed (9 Million) -Hungry (Bread lines) -Homeless Problems in Business Overproduction of goods -people were unable to purchase them -businesses couldnt pay salaries, equipment, or materials Problems With Farmers Produced more crops due to technology -ex: Irrigation & motorized machinery Not selling crops caused lower prices on food Illusion of Wealth Most Americans had small income and little to no savings. -fancy cars and modern appliances were the new fad Many still bought goods on credit* Stock Market Americans rushed to buy stocks* Investors borrowed money & bought on speculation* -tried to make a quick profit -Unable to pay it back Americans risked bankruptcy* due to debt Stock Market Crash 2 month period in 1929 NYSE stocks went from worth a fortune to worthless Black Tuesday (October 29 th, 1929) -Stocks fell more than 75% -Lost savings in less than 2 hours No money meant no purchasing. -Lay offs -Mass unemployment Bank closures, no money Bankers Suicide Herbert Hoover, Bonus Army, and Dust Bowl Americans blamed Hoover -Do Nothing President WWI vets promised a bonus for service -Hoovervilles Drought in Midwest causes farms to dry up -wind carried dust (dark into night) Review 1. When did the Depression take place? 2. Name an example of the suffering Americans went through. 3. People bought things with _________ rather than cash. 4. Veterans who were promised bonus were called the ______ _______. 5. How would investors try to make a quick profit? 6. What happened on Black Tuesday? 7. The drought throughout the Midwest was known as what?