The World Before The Great Depression
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1 The World Before The Great Depression
2 The Great Depression can be described as the total collapse of the US economic system of Capitalism, laissez faire and everything we believed in as a country. Our democracy and way of life was threatened.
3 CAUSES Decrease in consumer spending Unequal distribution of wealth Overproduction of goods Huge farms surpluses War debts not paid back Buying on margin (Credit) Stock Market Crash Black Tuesday,Oct. 23, 1929 EFFECTS Under consumption of goods and services---not buying goods Families had limited income to purchase goods Led to falling prices of goods Led to drop in farm prices Banks didn t get back their $$$ Speculation on stocks Investors buy stocks on credit Wealth on paper Total collapse of US economy, lassiez faire and capitalism events
4 Effects of the Stock Market Crash Great Crash Investors World Payments Investors lose millions. Businesses and and Workers Workers Banks Overall U.S. production plummets. Businesses lose profits. Consumer spending drops. Businesses and workers and workers cannot cannot repay bank repay bank loans. loans. Allies Allies cannot cannot pay debts pay debts to United to United States. States. U.S. U.S. investors have investors little no money have little to invest. or no money to invest. Workers are laid off. Businesses cut investment and production. Some fail. Savings Banks run accounts out of are wiped money and out. fail. Europeans cannot afford American goods. Bank runs occur. German war payments to to Allies fall off. U.S. investments in Germany decline.
5 Run on the Bank domino effect Unemployment Rises People did not have savings Families fell behind on mortgages, rent and credit payments... Lost their homes, businesses & possessions A great drought turned precious farmland into huge clouds of dust and within a year the Great Plains is ruined American values of hard work & individual responsibility were tested Standard of living of Americans reduced Psychological effects on many Americans, especially men.
6 Banks lost their investments in the Market after the Crash Millions of Americans were caught in the panic of the Stock Market crash. Went to their banks to withdraw their savings accounts. Banks loaned out their $$$ and had no reserve funds to give customers withdrawing their savings. Once banks ran out of $$$ they closed their doors and left people stranded = 659 and by 1933 = 5190
7
8 Poverty Strains Society Impact on Health Stresses on Families Some people starved and thousands went hungry. Children suffered long-term effects from poor diet and inadequate medical care. Social and Psychological Effects , suicide rate rises over 30% Admissions to state mental hospitals triple Living conditions declined as families crowded into small houses or apartments. Men felt like failures because they couldn t provide for their families. Working women were accused of taking jobs away from men. Discrimination Increases Competition for jobs produced a rise in hostilities against African Americans, Hispanics, and Asian Americans. Lynchings increased. Aid programs discriminated against African Americans.
9 HOOVERVILLES
10 Assignment / Activity You will see a number of images taken during the Great Depression. 1. Number the image on your paper as they appear. 2. Describe the image as it appears, make sure you are thinking about the time period during the Great Depression 3. Tell me whether the image relates to a political, social, or economic topic
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22 Assignment / Activity You will see a number of images taken during the Recession of Number the image on your paper as they appear. 2. Describe the image as it appears. 3. Compare the image to the time period of the Great Depression. Are they the same / Different? Why? Why Not? 4. Tell me whether the image relates to a political, social, or economic topic
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