CHAPTER 22 SECTION 1 AND 2
The Stock Market Crash and Social Effects of
the Depression
DOW JONES INDUSTRIAL AVERAGE
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
BLACK TUESDAY
October 29, 1929
16.4 million shares were sold
Compared to an average of 4 to 8 million
GREAT CRASH
The massive collapse of the stock
market in 1929
Overall losses totaled $30 billion
LIST AND BRIEFLY DESCRIBE 5 WAYS
THE GREAT CRASH SPREAD TO ALL
AMERICANS.
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
BUSINESS CYCLE
Over a period of time, the economy
grows, then contracts
GREAT DEPRESSION
Time period from 1929 to 1941
The most severe economic downturn
in American history
WHICH PART OF THE BUSINESS
CYCLE DID THE GREAT DEPRESSION
REPRESENT?
A trough
HOW DID THE UNSTABLE ECONOMY IN THE 1920S CONTRIBUTE TO THE
GREAT DEPRESSION?
Production far outpaced demand
Wealth was unevenly distributed
The boom in stock market prices was
based mainly on borrowed money,
not real value
LIST AND BRIEFLY DESCRIBE THE 3
UNDERLYING CAUSES OF THE
DEPRESSION.
An unstable economy
Overspeculation
Government policies- limited money
supply to discourage lending and
speculation, but this left people short
on money
HOOVERVILLE
Towns of shacks, or shanties, made
from anything people could use to
construct a shelter
WHO LIVED IN HOOVERVILLES?
-Unemployed laborers and their
families
DUST BOWL
Massive dust storm that consumed
the midwest
WHAT FACTORS LED TO THE
CREATION OF THE DUST BOWL IN
THE 1930S?
Exhaustion of the topsoil
Drought
Wind erosion
WHAT IMPACT DID THE DEPRESSION
HAVE ON HEALTH?
Many went hungry
Children suffered from poor diet and
inadequate medical care
HOW DID THE GREAT DEPRESSION
IMPACT FAMILIES?
Living condition declined
Had to give up personal
interests/hobbies
Many men were ashamed and left
their families
Women lost jobs
WHAT WERE SOME CAUSES AND EFFECTS OF INCREASED DISCRIMINATION
DURING THE GREAT DEPRESSION?
Competition for jobs
Legal system ignored civil rights for
non-whites
Individual racism
Deportations
Lynchings
High African American
unemployment
WHAT CAN YOU LEARN ABOUT THE DEPRESSION FROM WILSON LEDFORD’S
EXPERIENCES?
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