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under-production
By the end of the 1920s, factories produced too many durable goods
Causes of the great depression
stock-based economy; superficial economy
Unequal distribution of income
problems in industry and farm sector
increasing consumer debt
stock market speculation and crash
Effects of the causes of the great depression
people out of work
development of shantytowns
banks fail and schools close
world economy suffers
hoover employs more active government involvment
The end of WWI led to a decline in demand for agricultural products and a 40% decline in ____ prices
crop
Farmers could not pay back loans and many had their farms
Foreclosed
Railroads, textiles, coal were losing money and faced ________ from cars, synthetic fabrics, natural gas
competition
Many Americans used ________to live beyond their means, generate large debts, and had to cut back on spending by the end of the decade
credit
1 of the main reasons for the crash
Uneven distribution of wealth
The decade was not as ______
as it appeared; Despite rising wages, the ____ between the rich and poor grew wider in the 1920s
wealthy;gap
70% of Americans were considered “_______” so most of the spending was done by 30% of the population
poor
The stock market soared throughout the 1920s and people speculated by _______ money to pay for stocks (called buying on _______)
borrowing;margin
The stock market was not regulated which allowed some companies to alter their stock _____
to increase profits…
This created a “bubble” in the stock market
values
The spark the triggered the
Great Depression was the
stock market crash in October 1929
On October 29, 1929 (Black Tuesday) the
Stock market crashed
People rushed to sell, stock prices dropped, and investors lost a total of
$30 billion
Speculators who bought on the _______, could not pay off their debts
Margin
When banks could
not produce money
for all their customers, the banks failed.This led to a____ on banks across the U.S… hundreds of banks failed and thousands of people lost their savings
run
From 1929 to 1932, unemployment grew to __ million people
12
The decline in consumer confidence made the depression drag on until the
1940s
The Great Depression
led to a global depression in
Europe, Asia, and Latin America
World trade fell by ___%
40
To encourage citizens to buy from U.S. companies (not foreign competitors) the government passed new
High Tariffs
…European nations responded with their
own _____ which made it difficult for U.S. companies to sell their goods overseas
tariffs
The Great Depression led to a collapse
of
The American finance system by 1933
Americans lost confidence in banks as ______ banks failed; The lack of banking meant there was no money for investment
25,000
The lack of spending and stock market crash led to failure of _______businesses
90,000
Unemployment peaked at ____ of all Americans; People lost their homes, farms, and businesses
25%
he USA had record _______________ and healthcare declined; Charities offered soup kitchens and breadlines to help
Povery and suicide rates
The effects of the depression were made worse by the _____
Dust Bowl
Dust Bowl
Decades of over-farming and droughts in the Plains led to windstorms that swept away soil and made farming impossible
