The Stock Market Crash Of 1929, Great Depression, Dust .

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The Stock Market Crashof 1929, GreatDepression, Dust Bowl,Franklin Roosevelt andthe New DealSS5H5: The Student will explain how the GreatDepression and New Deal affected the lives of manyAmericans.A. Discuss the Stock Market Crash of 1929, HerbertHoover Franklin Roosevelt, the Dust Bowl andSoup Kitchens.B. Analyze the main features of the New Deal;include the significance of the CCC, WPA and TVA.

The Stock Market Crash of 1929 The decades leading up to 1929 were very exciting andprosperous. They were called the Roaring Twenties. Women took new roles and gained the right to votewith the 19th Amendment. African Americans received praise for works of art,literature, music, and contributions to society. Thesemovements were called the Jazz Age and HarlemRenaissance. Most of the US economy was strong, except for farmerswho suffered from falling agriculture prices!

The Stock Market Crash of 1929In 1929, the Stock Market Crashed!! The stock of a business represents the original money paidinto or invested in the business by its founders. So the stock represents how much money wasoriginally invested in a business by the people whostarted the business. When someone starts a business, they divide thebusiness into parts called shares. When people buy shares of a company, they aremaking an investment in that business.

Investment - is putting money into somethingwith the hope of profit Many people bought stock expecting companies tomake money. But when the stock prices fell, many investors or,people who bought stocks, lost everything!

The Stock Market Crash of 1929People were BUYING, BUYING, BUYING stocks inbusinesses that were not worth the amounts theywere paying for them and the banks were loaningout more money then what peoples’ investmentswere worth. The crash caused others to panic and sell the stockthey had.Banks were recalling loans. Thismeant they made people payback loans early. But, manypeople could NOT pay!

The Stock Market Crash of 1929 People could NOT pay, sobanks ended up closing. People who put theirmoney in the bank losttheir life savings.The Stock Market Crashof 1929 marked the startof theGreat Depression!

Why did it become the GREATDepression ?“The Domino Effect ” People lost their jobs after the stock market crashed.Therefore, many needed to spend their savings. Savings – the money an individual sets aside foremergencies or special events When large numbers of people tried to take money outof the banks, many banks went out of businessbecause they did not have the people’s money! Because people had so little money, they bought fewgoods.

Why did it become the GREATDepression ?“The Domino Effect” Continued The producers could not sell what they made so theydid NOT make a profit! Without a profit, factories could not pay theiremployees so the factory workers lost their jobs. When workers lost their jobs, they could not paywhat they owed to banks or businesses. So more banks and more businesses began to fail.

The Great DepressionIt was the worst economic crisis in US history. People had to rely on soup kitchens, which gave out freefood to the poor, because they could not survive withoutthis.

The Great DepressionHerbert Hoover was the president when The GreatDepression started.Most citizens blamed Hoover for the crisis.During the depression many people lost theirhomes and had nowhere to live; so they built shacksout of scrap pieces of wood and metal.These soon became communities where poorhomeless people lived.They were called “Hoovervilles” after HerbertHoover.

The Dust BowlFarmers struggled even before the Depression. The Dust Bowl devastated farmers in the Midwest. During WWI, farmers did well, because the war createda demand for farm produce and raised farm prices. Farmers raised a lot of crops, but many of them did notunderstand crop rotation method (invented by GeorgeWashington Carver) and the crops used up many of thenutrients in the soil.These methods left the land dry,useless, and uncovered by crops.

The Dust BowlDuring the early ‘30s, the Midwest also experienced adrought (lack of rain), which made the soil drier. The Dust Bowl was a series of windstorms that carriedthe soil high in the air and created massive dark cloudsof dust. Some of these storms buried entire homes and cities.The Dust Bowl forced manyMidwest farmers to leave andmove to other parts of thecountry.

The Dust Bowl

Franklin Roosevelt and The New DealIn 1932, voters elected a new president: Franklin D.Roosevelt (FDR).Roosevelt was very positive andoffered hope to hurting Americans.He was prepared to try new thingsto deal with the Great Depression.He is famous for his pledge he made, “I pledge you,I pledge myself to a new deal for the Americanpeople”.

Franklin Roosevelt and The New Deal He introduced the New Deal, which is a governmentprogram that relied on deficit spending.– Deficit spending is when the government goes into debt byspending borrowed money, in hopes that its programs wouldget people back to work and the economy headed in the rightdirection.One New Deal program was the Civilian ConservationCorps (CCC). The CCC provided jobs for young, unmarried men. These men worked in national parks installingelectric lines, building fire towers and plantingnew trees.


Franklin Roosevelt and The New DealAnother New Deal program Roosevelt pushed Congress tocreate was the Tennessee Valley Authority (TVA) in1933. TVA built hydroelectric dams. These dams turned waterinto electricity by suing the rushing water’s power torun a generator and supply power. It created jobs and supplied cheap electricity to parts ofthe South that had never had electric power before. The southern Appalachians were one of the poorestareas in the nation and prospered.– The Hoover dam was also built during the New Deal andsupplied electricity to Southern California and Arizona whichhelped these areas grow.


Franklin Roosevelt and The New Deal Another New Deal program that Congress established in1935 is the Works Progress Administration (WPA). This was a part of a second group of New Dealprograms, sometimes called the Second New Deal. It provided jobs for unskilled workers. The WPA hired people to build government buildings,roads and other public projects.It also provided money for writers andartists to take photographs or write,draw, and paint about life duringthe Great Depression.


Franklin Roosevelt and The New DealThe New Deal also introduced a program to help peoplewho retired or who were out of work. This program was called Social Security. It promised government money to the unemployed andthose over 65. Social Security is the only New Deal program that stillexists today.

Franklin Roosevelt and The New DealThe New Deal did NOTend the Depression. It wasn’t until WWII thatthe US economy greatlyimproved. The New Deal DID supplysome relief to help getpeople through one ofthe darkest economictimes in US history.

The Stock Market Crash of 1929 In 1929, the Stock Market Crashed!! The stock of a business represents the original money paid into or invested in the business by its founders. So the stock represents how much mone

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The Stock Market Crash of 1929 In 1929, the Stock Market Crashed!! The stock of a business represents the original money paid into or invested in the business by its founders. So the stock represents how much money was originally invested in a business by the people who started the business. When someone starts a business, they .

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