Chapter 25 The Great Depression
America goes from Roaring to Depressing
Hoover on Poverty“We in America today, are nearer to
the final triumph over poverty than ever before in the
history of any land.”
Buying on Credit
What is credit?Borrowing money and promising to pay
later
Buying on Margin
Investing in the stock market with borrowed money
Why is it a good thing that people invest their money?
How could it be a bad thing that people invest in the stock market?
Black Tuesday
October 29, 1929
Massive stock market panic, everyone starts selling their stocks
Too many people wanted to sell and not enough buyers… prices of stocks fell!
Newspaper Headlines Worksheet
Looking over the headlines from the newspapers
What is the impression you get as you read the headlines?
Is America doomed, is there hope, what do you think?
Daily Speak 1-11-11
When people lose their jobs today what can they do to survive? (give me 2 ways)
Causes of the Depression
OVER PRODUCTION!!!!!
STOCK MARKET
TOO MUCH CREDIT
Causes a snowball effect
Effects on Americans
People and businesses hurt big timeEntire savings accounts disappearBanks closed their doors
Huge unemployment
Soup lines
Hoovervilles
Hoover to the Rescue!
Hoover knew people needed help
He did not believe that it was the job of the gov’t to provide direct relief to Americans
Loaned 1.2 Billion to businesses and financial institutions
Make an argument for an against loaning to the businesses and not the people.
Re-Elect Hoover?
America said, “No thank you!”Many blamed Hoover for making
things worseDemocrat Roosevelt becomes
popular, wins 1932 election.“I pledge you, I pledge myself, to a new
deal for the American people.”
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