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The Great depression

The Great depression. 1929-1941. Vocabulary. Bankrupt: Unable to pay one’s debts Stocks: The ownership element of a corporation divided to give the owners an interest Credit: An arrangement for delaying payment on a purchase Invest: To commit money in order to gain a profit

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The Great depression

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  1. The Great depression 1929-1941

  2. Vocabulary • Bankrupt: Unable to pay one’s debts • Stocks: The ownership element of a corporation divided to give the owners an interest • Credit: An arrangement for delaying payment on a purchase • Invest: To commit money in order to gain a profit • Speculation: The taking part of a big risk in business in hopes of making a big profit

  3. Depression Begins, The Roaring Twenties have gone Silent • 1929-1941 (WWII) • Worst economic crisis in history • Americas crash meant other countries’ did as well • -No money to borrow • Extreme suffering • -Unemployed (9 Million) • -Hungry (Bread lines) • -Homeless

  4. Problems in Business • Overproduction of goods • -people were unable to purchase them • -businesses couldn’t pay salaries, equipment, or materials

  5. Problems With Farmers • Produced more crops due to technology • -ex: Irrigation & motorized machinery • Not selling crops caused lower prices on food

  6. 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*

  7. 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 • https://www.youtube.com/watch?v=EX33ZpRPoUU

  8. Stock Market Crash • 2 month period in 1929 • NYSE stocks went from worth a fortune to worthless • Black Tuesday (October 29th, 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

  9. Current Stock Market Peek • http://www.nasdaq.com/ • http://money.cnn.com/data/us_markets/ • https://www.youtube.com/watch?v=Yp7u328PKu4

  10. Bankers Suicide

  11. Herbert Hoover, Bonus Army, and Dust Bowl • Americans blamed Hoover • -”Do Nothing” President • WWI vets promised a bonus for service • -Hooverville’s • Drought in Midwest causes farms to dry up • -wind carried dust (day into night) • https://www.youtube.com/watch?v=guTek7ipD4U

  12. Review • When did the Depression take place? • Name an example of the suffering Americans went through. • People bought things with _________ rather than cash. • Veterans who were promised bonus were called the ______ _______. • How would investors try to make a quick profit? • What happened on “Black Tuesday”? • The drought throughout the Midwest was known as what?

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