The Depression HitsGreat Depression: The period

between __________________ of economic hard times that followed the _____________

- The stock market crash did NOT cause the Depression BUT

it shook people’s confidence of the __________________- People were shocked & confused as to how the 20s __________________ vanished

Overproduction- Factories & _____________ produced vast amount of products- Wages didn’t keep up with prices = workers could NOT afford to buy goods- Farmers had little $$ for cars & other items- Factories/ farms produced more _____________ than people were buying- As orders slowed, factories _______________or fired people

___________________of the banking system- Banks made “unwise” _______________- Banks lent $$ to people who invested in the stock market- When market crashed, borrowers could not repay loans- Without the $$ from loans, the banks could not give

______________________ their $$ when they needed it- Result: many banks were ___________________________

CAUSES

Bank Closures- ___________+ banks closed between 1929-1932- If bank closed – depositors lost the $$ that they had deposited- Often, a family’s life savings vanished ________________________

Hard Times- When the crash happened, millions of Americans lived in __________________and worked in ___________________- When factories closed, the jobless had no $$ for _____________ & no _______________to grow any onRising Unemployment

- As depression spread, ___________________________ soared- _________ workers were jobless- Millions worked shortened hours or took pay cuts so people literally worked themselves to death- ________________________________________________________- Streets filled with peddlers, beggars, scavengers- Shoe shiners & _____________________________- Those who were rich now experienced _________________________________

The Human Cost- ________________ & birth rates dropped- Hungry people searched through ________________- Many families split up as men & boys left to find work & hopefully one day return- Many “_________________________________” living in railroad cars & hitching- A return to tenement housing & slum situations- Families starting _________________________to preserve food - The G.D. shook the belief in an American identity - Total _____________________replaced confidence

Hoover was deeply concerned as well as confused BUT didn’t think the gov’t should become directly involved in helping to end the business crisis

- He thought that would cause ____________ to become too ________________- We just fought with other countries led by __________________- He felt it was up to ______ ___________to work together to end the downslide

Government Relief Programs: programs to help the needy

- At first, ________________ was against these & he urged business leaders to keep workers employed/ maintain wages- Hoover called on private charities to help the needy- Churches set up _________________________________: places where the hungry could get a free meal- Ethnic communities organized their own relief efforts- Conditions grew ______________________- Hoover realized other steps were needed- He set up _____________________: projects built by the gov’t for public use- Gov’t hired workers to build ________________, dams & highways - By providing jobs, it enabled people to earn $$- Hoover asked Congress to approve the Reconstruction Finance Corporation- (________): 1932 – loaned money to banks, railroads & insurance companies to help them stay in business- The hope was that by saving these businesses, he would save thousands of ___________

After the crash, the economy slid downhill at a fast pace

Stock market crash ____________________ no $$ from investors businesses could NOT grow or expand businesses could NOT get loan $$ from banks

BECAUSE __________________________________________________

Bankrupt: when businesses are unable to pay debts

Factories cut back on production ________________________ people were fired unemployed workers had little $$ to spend ________________________________

businesses went bankrupt & closed more people were fired from working

Snowball Effects of the G.D.

WW1 Loans

After WW1, U.S. had loaned large amounts of $$ to ______________________________ to pay off war debts…stock market crash U.S. banks stopped making loans as they were hemorrhaging $$ _______________________________________________________

European banks began to fail