1 / 10

#1 Chapter 14 The Great Depression Begins

#1 Chapter 14 The Great Depression Begins. SECTION 1 : THE NATION’S SICK ECONOMY. OBJECTIVE: UNDERSTAND THE CAUSES OF THE GREAT DEPRESSION. I. Causes of the Great Depression. A. Post-WWI Depression Less worldwide trade Less demand for goods Less Jobs. B. Crisis in the Farm Sector

vholloway
Download Presentation

#1 Chapter 14 The Great Depression Begins

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. #1Chapter 14 The Great Depression Begins SECTION 1: THE NATION’S SICK ECONOMY. OBJECTIVE: UNDERSTAND THE CAUSES OF THE GREAT DEPRESSION

  2. I. Causes of the Great Depression A. Post-WWI Depression • Less worldwide trade • Less demand for goods • Less Jobs

  3. B. Crisis in the Farm Sector • Demand for crops declined after WWI. • Farmers fall into debt. • Congress attempts to help with price supports: governments buy surplus crops, guarantee prices. -Vetoed by President Coolidge. Why?

  4. C. Availability of Easy Credit • Consumers purchase goods on credit: buy now and pay later. • Consumers pile up large consumer debt. • Too much debt = less consumer spending.

  5. D. Unequal Distribution of Wealth • Rich got richer, and the poor got poorer. • Poor cannot afford to buy consumer goods. • Led to surplus of goods. • Led to less jobs. • More poor people.

  6. II. Hoover Takes the Nation • Republican Herbert Hoover wins election in 1928. • Hoover was the Secretary of Commerce. Inexperienced as a politician. • Most Americans belief in Hoover’s leadership.

  7. III. Stock Market Crashes • Americans dream of striking it rich in the Stock Market. • Americans engage in speculation: buying stocks and bonds on the chance of quick profit. • Buying on margin: pay small percent of price, borrow the rest. • Government did little to regulate the stock market.

  8. Black Tuesday October 29, 1929 • Stock prices falling; shareholders attempt to sell before prices lowered even more. • People who had purchased stock on credit were stuck with huge debt. • Hoover asks businesses not to lay off employees.

  9. IV. The Great Depression • 1929-1940 • Effects: children had poor diets, families became homeless, men became unemployed, and some committed suicide. • Unemployment rates leaped from 3% to 25%. • People developed habits of saving and thriftiness. • Led to rise of charity (soup kitchens and bread lines) • Hoover’s approach to the Depression was voluntary cooperation.

  10. Short Answer Question In your opinion, what was the primary cause of the Great Depression? Support your answer in 3-4 sentences.

More Related