americans face hard times
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Americans Face Hard Times. 11-2 and 11-3 Notes. Causes of the 1929 Crash. Economic Factors. Financial Factors. Poor distribution of wealth Consumers relied on credit Consumer spending dropped Industry struggled. Stock markets rise in 1920s Speculation in stock increases Margin buying - PowerPoint PPT PresentationTRANSCRIPT
Americans Face Hard Times
11-2 and 11-3 Notes
Causes of the 1929 CrashEconomic Factors Financial FactorsPoor distribution
of wealthConsumers relied
on creditConsumer
spending droppedIndustry struggled
Stock markets rise in 1920s
Speculation in stock increases
Margin buyingStock prices rise
to unrealistic levels
Key Terms:Hobos – jobless, homeless wanderersGreat Depression – most severe
economic downturn in the history of the U.S.
Foreclosure – when a bank or other lender takes over ownership of a property from an owner who has failed to make loan payments.
Hoovervilles and HobosIn the early 1930s, no federal government
provided food or money to the poorHoovervilles are established as a resultHobos often jumped trains traveling from
town to town looking for work or a place to live.
Hobos had dangerous lifestyle – develop sign language to determine if a town was a safe place for them
Key Terms ContinuedHoovervilles – sprawling
neighborhoods of shacks sprang up on the outskirts of towns and public parks. – blamed this on president Hoover
Bank FailuresMany had entrusted their savings to banks.How has that changed today?
Insurance from the federal government protects most people’s deposits
Laws require that a bank keep a greater percentage of assets in cash to be paid out by depositors
1930 – almost 350 banks closed due to runs.
Key Terms Continued:Drought – a period of below-average rainfall,
this lasted several years during the 1930s
Dust Bowl – Oklahoma, Kansas, Colorado, New Mexico, and Texas became known as this due to large wind storms and dry dusty conditions
Dust BowlCaused many deaths due to inhalation of
dust.
Destroyed crops and buried farm equipment
The storms stripped off the topsoil and blew it away
Farm FailuresFaced hard times in 1920s – got worse in the
1930s
Farmers produced more than they could sell and price dropped drastically------------- INFLATION
How does this effect farmers income?
Many suffered foreclosure
Unemployment1933 – GNP dropped 40%
Unemployment reached a high of 25% (50% in some areas such as Harlem)
Writers and MusiciansWoody Guthrie – songs about the dust bowl
describe the disaster’s effect on the people
John Steinbeck – wrote several books describing life during the depression and dust bowl – often very tragic endings