The Stock Market Crash and Social Effects of the Depression

CHAPTER 22 SECTION 1 AND 2

An average of the stock prices of major industries

Reached an all time high during Hoover’s Presidency

People paid a great deal to the rising stock market

DOW JONES INDUSTRIAL AVERAGE

October 29, 1929

16.4 million shares were sold

Compared to an average of 4 to 8 million

BLACK TUESDAY

The massive collapse of the stock market in 1929

Overall losses totaled $30 billion

GREAT CRASH

Risky loans hurt banks

Consumer borrowing- took out loans and could no longer pay them back

Bank runs

Bank failures

Savings wiped out

Cuts in production

Rise in unemployment

LIST AND BRIEFLY DESCRIBE 5 WAYS THE GREAT CRASH SPREAD TO ALL AMERICANS.

Over a period of time, the economy grows, then

contracts

BUSINESS CYCLE

Time period from 1929 to 1941

The most severe economic downturn in American

history

GREAT DEPRESSION

A trough

WHICH PART OF THE BUSINESS CYCLE DID THE GREAT

DEPRESSION REPRESENT?

Production far outpaced demand

Wealth was unevenly distributed

The boom in stock market prices was based mainly on borrowed money, not real

value

HOW DID THE UNSTABLE ECONOMY IN THE 1920S CONTRIBUTE TO THE GREAT DEPRESSION?

An unstable economy

Overspeculation

Government policies- limited money supply to discourage lending and speculation, but

this left people short on money

LIST AND BRIEFLY DESCRIBE THE 3 UNDERLYING CAUSES OF THE DEPRESSION.

Towns of shacks, or shanties, made from

anything people could use to construct a shelter

HOOVERVILLE

-Unemployed laborers and their families

WHO LIVED IN HOOVERVILLES?

Massive dust storm that consumed the midwest

DUST BOWL

Exhaustion of the topsoil

Drought

Wind erosion

WHAT FACTORS LED TO THE CREATION OF THE DUST BOWL IN THE 1930S?

Many went hungry

Children suffered from poor diet and inadequate medical

care

WHAT IMPACT DID THE DEPRESSION HAVE ON HEALTH?

Living condition declined

Had to give up personal interests/hobbies

Many men were ashamed and left their families

Women lost jobs

HOW DID THE GREAT DEPRESSION IMPACT FAMILIES?

Competition for jobs

Legal system ignored civil rights for non-whites

Individual racism

Deportations

Lynchings

High African American unemployment

WHAT WERE SOME CAUSES AND EFFECTS OF INCREASED DISCRIMINATION DURING THE GREAT DEPRESSION?

His experiences demonstrate the hardships of finding work, which was

often only temporary or was located far from home

He and his family made the best of the situation in order

to survive

WHAT CAN YOU LEARN ABOUT THE DEPRESSION FROM WILSON LEDFORD’S EXPERIENCES?