Description
It talks about the facts, reasons, stock crash october 1929. It makes use of images and statistics the explain the whole depression
What was the Great Depression?
• • • • • • A worldwide economic crisis The crash of the stock market The failure of banks and businesses America?s worst period of unemployment A nightmare for the American Dream A time of poverty and despair
Causes of the Great Depression
• Industries using machinery produced surpluses of goods • Low salaries prevented many from buying goods • Farmers had bad years and had to borrow money from banks • Huge farm surpluses caused a drop in prices and losses to farmers • Unequal distribution of income
THE NATION?S SICK ECONOMY
As the 1920s advanced, serious problems threatened the economy while Important industries struggled, including:
• • • • • • • • • Agriculture Railroads Textiles Steel Mining Lumber Automobiles Housing Consumer goods
SEEDS OF TROUBLE
• By the late 1920s, problems with the economy emerged • Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit • Margin: Americans were buying “on margin” – paying a small percentage of a stock?s price as a down payment and borrowing the rest
THE STOCK MARKET
•
• By 1929, many Americans invested in the Stock Market
• The Stock Market had become the most visible symbol of a prosperous American economy
THE 1929 CRASH
• In September the Stock Market had some unusual up & down movements • On October 24, the market took a plunge . . .the worst was yet to come • On October 29, now known as Black Tuesday, the bottom fell out • 16.4 million shares were sold that day – prices plummeted • People who had bought on margin (credit) were stuck with huge debts
Major reasons for the stock market crash in October 1929
Stocks were overpriced due to speculation, meaning they were not worth their sale price
Massive fraud and illegal activity occurred due to a lack of regulation and rules
Margin buying, or buying using credit
FINANCIAL COLLAPSE
• After the crash, many Americans panicked and withdrew their money from banks • Banks had invested in the Stock Market and lost money • In 1929- 600 banks fail • By 1933 – 11,000 of the 25,000 banks nationwide had collapsed
Bank run 1929, Los Angeles
GNP DROPS, UNEMPLOYMENT SOARS
•
• Between 1928-1932, the U.S. Gross National Product (GNP) – the total output of a nation?s goods & services – fell nearly 50% from $104 billion to $59 billion • 90,000 businesses went bankrupt • Unemployment leaped from 3% in 1929 to 25% in 1933
• In 1931, 800 banks failed in 2 months
Some of the Statistics
• In 1932 over 30,000 companies closed • Black unemployment rose to 56 % in 1932
• By 1933 salaries fell 40% and hourly wages fell 60%
• By 1935, 10 to 20 thousand children under the age of 10 worked in mills or on farms
People in the Depression
• • • • • Evictions Hunger Malnutrition Disease Breadlines
HARDSHIPS DURING DEPRESSION
• The Great Depression brought hardship, homelessness, and hunger to millions • Across the country, people lost their jobs, and their homes • Some built their houses out of scrap material
Family Troubles
Many families during the depression had to live in the same household. Families that had as many as nine member had to endure unsanitary living conditions.
14
Bad Times = Bad Health
Due to the unsanitary living conditions many people, mostly children, became very ill and was hard to recover from considering the conditions weren?t good and many other member still lived and did daily activities around them.
15
Where To Go?
During the Great Depression many people lost their jobs. In fact, many people lost everything. People resorted to finding places to live during the time being. Some people resorted to friends while others had to live on the streets, just as the person on the left was forced to sleep at the doorway of the town?s local church. 16
Other Troubles
It was hard enough during the depression that many families lost everything but to top it off other unexpecting troubles occurred such as a major flood. The damage was castrophic destroying houses such as to the left in the picture and leaving parts of their belongings scattered throughout.
17
FARMERS STRUGGLE
• No industry suffered as much as agriculture • During World War I European demand for American crops soared • After the war demand plummeted • Farmers increased production sending prices further downward
• Farmers in the Midwest had over farmed the soil. • Drought conditions led to 100 of acres of soil being “blown away.” • These „black blizzards? lasted from 1933 to 1939.
19
Dust storm approaching Stratford, Texas - 1934
Great Depression in the Cities
• In cities across the country people: – lost their jobs – Were evicted from their houses – Ended up living on the street. • Shantytowns, soup kitchens and bread lines appeared
21
People waiting in line for bread and soup and also living out of their car.
22
CONDITIONS FOR MINORITIES
• Conditions for African Americans and Latinos were especially difficult • Unemployment was the highest among minorities and their pay was the lowest • Many Mexicans were “encouraged” to return to their homeland
As conditions deteriorated, violence against blacks increased
GAP BETWEEN RICH & POOR
• The gap between rich and poor widened • The wealthiest 1% saw their income rise 75% • The rest of the population saw an increase of only 9% • More than 70% of American families earned less than $2500 per year
HOOVER WINS 1928 ELECTION
• Republican Herbert Hoover ran against Democrat Alfred E. Smith in the 1928 election • Hoover emphasized years of prosperity under Republican administrations
• Hoover won an overwhelming victory as Hoover was popular for feeding starving Europeans after WWI.
HOOVER?S PHILOSOPHY
• Hoover was not quick to react to the depression • He believed in “rugged individualism” – the idea that people succeed through their own efforts • People should take care of themselves, not depend on governmental hand-outs • He said people should “pull themselves up by their bootstraps”
Hoover believed it was the individuals job to take care of themselves, not the governments
FDR(Franklin D Roosevelt ) and the New Deal
• During the presidential campaign of 1932, • Franklin D Roosevelt promised Americans a NEW DEAL. • This would be his program to get America back on its feet.
Goals of New Deal Program
1. Relief
? Help people right away
2. Recovery
? Get the US out of the Depression
3. Reform
? Make sure another depression does not happen
28
EFFECTS OF DEPRESSION
• Suicide rate rose more than 30% between 1928-1932 • Alcoholism rose sharply in urban areas • Three times as many people were admitted to state mental hospitals as in normal times • Many people showed great kindness to strangers • Additionally, many people developed habits of savings & thriftiness
ROOSEVELT?S PLAN TO EMPLOY PEOPLE
How Did the Great Depression End?
• Franklin D. Roosevelt
• Discontent with Herbert Hoover • Voters elected Roosevelt to the presidency in 1932
How Did the Great Depression End?
• Roosevelt and advisors created the New Deal • Relief and recovery • Public works programs funded by government • Provided thousands of jobs
•
How Did the Great Depression End?
• World War II 1941
• Increased demand for American goods • The end of the Great Depression
CLIP ON GREAT DEPRESSION
CREDITS:
NAME
JAY SHAH ANN BENNY DIVYA SHRIYAN ANKITA AGARWAL VIDHI BHANUSHALI SONI SHETTY
ROLL NO. 19 35 11 51 43 03
doc_787138136.pptx
It talks about the facts, reasons, stock crash october 1929. It makes use of images and statistics the explain the whole depression
What was the Great Depression?
• • • • • • A worldwide economic crisis The crash of the stock market The failure of banks and businesses America?s worst period of unemployment A nightmare for the American Dream A time of poverty and despair
Causes of the Great Depression
• Industries using machinery produced surpluses of goods • Low salaries prevented many from buying goods • Farmers had bad years and had to borrow money from banks • Huge farm surpluses caused a drop in prices and losses to farmers • Unequal distribution of income
THE NATION?S SICK ECONOMY
As the 1920s advanced, serious problems threatened the economy while Important industries struggled, including:
• • • • • • • • • Agriculture Railroads Textiles Steel Mining Lumber Automobiles Housing Consumer goods
SEEDS OF TROUBLE
• By the late 1920s, problems with the economy emerged • Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit • Margin: Americans were buying “on margin” – paying a small percentage of a stock?s price as a down payment and borrowing the rest
THE STOCK MARKET
•
• By 1929, many Americans invested in the Stock Market
• The Stock Market had become the most visible symbol of a prosperous American economy
THE 1929 CRASH
• In September the Stock Market had some unusual up & down movements • On October 24, the market took a plunge . . .the worst was yet to come • On October 29, now known as Black Tuesday, the bottom fell out • 16.4 million shares were sold that day – prices plummeted • People who had bought on margin (credit) were stuck with huge debts
Major reasons for the stock market crash in October 1929
Stocks were overpriced due to speculation, meaning they were not worth their sale price
Massive fraud and illegal activity occurred due to a lack of regulation and rules
Margin buying, or buying using credit
FINANCIAL COLLAPSE
• After the crash, many Americans panicked and withdrew their money from banks • Banks had invested in the Stock Market and lost money • In 1929- 600 banks fail • By 1933 – 11,000 of the 25,000 banks nationwide had collapsed
Bank run 1929, Los Angeles
GNP DROPS, UNEMPLOYMENT SOARS
•
• Between 1928-1932, the U.S. Gross National Product (GNP) – the total output of a nation?s goods & services – fell nearly 50% from $104 billion to $59 billion • 90,000 businesses went bankrupt • Unemployment leaped from 3% in 1929 to 25% in 1933
• In 1931, 800 banks failed in 2 months
Some of the Statistics
• In 1932 over 30,000 companies closed • Black unemployment rose to 56 % in 1932
• By 1933 salaries fell 40% and hourly wages fell 60%
• By 1935, 10 to 20 thousand children under the age of 10 worked in mills or on farms
People in the Depression
• • • • • Evictions Hunger Malnutrition Disease Breadlines
HARDSHIPS DURING DEPRESSION
• The Great Depression brought hardship, homelessness, and hunger to millions • Across the country, people lost their jobs, and their homes • Some built their houses out of scrap material
Family Troubles
Many families during the depression had to live in the same household. Families that had as many as nine member had to endure unsanitary living conditions.
14
Bad Times = Bad Health
Due to the unsanitary living conditions many people, mostly children, became very ill and was hard to recover from considering the conditions weren?t good and many other member still lived and did daily activities around them.
15
Where To Go?
During the Great Depression many people lost their jobs. In fact, many people lost everything. People resorted to finding places to live during the time being. Some people resorted to friends while others had to live on the streets, just as the person on the left was forced to sleep at the doorway of the town?s local church. 16
Other Troubles
It was hard enough during the depression that many families lost everything but to top it off other unexpecting troubles occurred such as a major flood. The damage was castrophic destroying houses such as to the left in the picture and leaving parts of their belongings scattered throughout.
17
FARMERS STRUGGLE
• No industry suffered as much as agriculture • During World War I European demand for American crops soared • After the war demand plummeted • Farmers increased production sending prices further downward
• Farmers in the Midwest had over farmed the soil. • Drought conditions led to 100 of acres of soil being “blown away.” • These „black blizzards? lasted from 1933 to 1939.
19
Dust storm approaching Stratford, Texas - 1934
Great Depression in the Cities
• In cities across the country people: – lost their jobs – Were evicted from their houses – Ended up living on the street. • Shantytowns, soup kitchens and bread lines appeared
21
People waiting in line for bread and soup and also living out of their car.
22
CONDITIONS FOR MINORITIES
• Conditions for African Americans and Latinos were especially difficult • Unemployment was the highest among minorities and their pay was the lowest • Many Mexicans were “encouraged” to return to their homeland
As conditions deteriorated, violence against blacks increased
GAP BETWEEN RICH & POOR
• The gap between rich and poor widened • The wealthiest 1% saw their income rise 75% • The rest of the population saw an increase of only 9% • More than 70% of American families earned less than $2500 per year
HOOVER WINS 1928 ELECTION
• Republican Herbert Hoover ran against Democrat Alfred E. Smith in the 1928 election • Hoover emphasized years of prosperity under Republican administrations
• Hoover won an overwhelming victory as Hoover was popular for feeding starving Europeans after WWI.
HOOVER?S PHILOSOPHY
• Hoover was not quick to react to the depression • He believed in “rugged individualism” – the idea that people succeed through their own efforts • People should take care of themselves, not depend on governmental hand-outs • He said people should “pull themselves up by their bootstraps”
Hoover believed it was the individuals job to take care of themselves, not the governments
FDR(Franklin D Roosevelt ) and the New Deal
• During the presidential campaign of 1932, • Franklin D Roosevelt promised Americans a NEW DEAL. • This would be his program to get America back on its feet.
Goals of New Deal Program
1. Relief
? Help people right away
2. Recovery
? Get the US out of the Depression
3. Reform
? Make sure another depression does not happen
28
EFFECTS OF DEPRESSION
• Suicide rate rose more than 30% between 1928-1932 • Alcoholism rose sharply in urban areas • Three times as many people were admitted to state mental hospitals as in normal times • Many people showed great kindness to strangers • Additionally, many people developed habits of savings & thriftiness
ROOSEVELT?S PLAN TO EMPLOY PEOPLE
How Did the Great Depression End?
• Franklin D. Roosevelt
• Discontent with Herbert Hoover • Voters elected Roosevelt to the presidency in 1932
How Did the Great Depression End?
• Roosevelt and advisors created the New Deal • Relief and recovery • Public works programs funded by government • Provided thousands of jobs
•
How Did the Great Depression End?
• World War II 1941
• Increased demand for American goods • The end of the Great Depression
CLIP ON GREAT DEPRESSION
CREDITS:
NAME
JAY SHAH ANN BENNY DIVYA SHRIYAN ANKITA AGARWAL VIDHI BHANUSHALI SONI SHETTY
ROLL NO. 19 35 11 51 43 03
doc_787138136.pptx