1 / 7

The Great Depression: From Roaring Economy to Devastating Crash

The late 1920s saw a flourishing economy with signs of impending doom, such as the farming crisis and soaring debts. Increasing reliance on credit and speculative stock market trading led to the catastrophic Black Tuesday crash of 1929, wiping out billions and triggering the Great Depression. Unemployment soared, banks collapsed, and global economic stability faltered.

camden-marsh
Download Presentation

The Great Depression: From Roaring Economy to Devastating Crash

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Great Depression

  2. Roaring Economy of the Late 1920’s • While the Economy continued to grow, there were signs that the prosperity would not last: - Farming Crisis -farmers were not making $ -increased production -greater debt • Buying on Credit • Loans in 1928- $5 million • Loans in 1929- $850 million

  3. Nation’s wealth was not spread evenly • 0.1% of the population held 34% of country’s savings • Rich got richer, poor got poorer • President Herbert Hoover elected - belief in small government and self-reliant business • Stock Market: • Many new buyers • Speculation • Buying on Margin

  4. Stock Market Basics • The American public spends money by buying stock in different companies • If the companies do well, the person makes money • If the companies do poor, the person loses money • One large gamble on the market

  5. The Market Before the Crash • Bull Market- The economy was in such great shape that stock prices kept rising • So many people wanted to buy expensive stock so they bought by using credit from a broker • The brokers borrowed this money from the banks

  6. Black Tuesday • October 29, 1929 • Thousands of worried investors began selling stocks to get their money out of the falling stock market. • In just one day, the market lost a full year of profit • People lost everything!!! • Forced to pay their brokers with savings • Sell china, clothing, or jewelry to get cash • Caused the “Great Crash,” where overall loses totaled 30 billion dollars. • Began a 12 year period known as the Great Depression

  7. Aftermath of the Stock Market Crash • By 1932, more than 12 million people (1/4 of the workforce) were unemployed • Banks were closing down and people were losing their money • By 1933, money from 9 million savings accounts had vanished • Global Economy began to crumble.

More Related