SSUSH17 Analyze the causes and consequences of the Great Depression.

SSUSH17a:

Causes:

  • Long-term:

______

Overproduction

______

______

Stock market speculation

Buying on the ______

  • Short-term:

Stock Market Crash (______)

Also known as “______”

Farmers Overproduce:

  • The wide spread switch from horse-drawn to mechanized farm equipment allowed farmers to increase their production of ______.
  • Instead of making more money though, ______, causing farmers to lose money and the inability to pay back farm loans
  • The result of farmers failing to pay back loans led many small towns ______to fail, creating a strain on other banks

Underconsumption:

•Though more efficient machinery in factories and on farms led to ______, few consumers had the money to purchase these ______.

•The average consumer had very little ______

•______led to lower prices which resulted in the loss of money for farmers and manufacturers

Stock Market Speculation

•In the late 1920s many Americans began to invest heavily in the ______

•Americans invested in ______that would allow them to make a lot of money quickly, or lose a lot of money quickly

Causes of the Crash

•Speculators were those who tried to make ______on the stock market:

•Many speculators bought ______

•Buying on margin means that speculators ______money to buy stocks: this works if the stock price goes up, but is disastrous if the stock price falls

•Many speculators of the 1920s borrowed ______of the stock’s value

Stock Market Crash:

•Oct. 1929

•“Black Tuesday”

•Sparked a chain of events that quickened the ______of the US economy

•Americans, fearful of the dip in stocks, tried to withdraw their money from the banks, causing the ______

Great Depression:

•______economic depression that took place from 1929-1941 (beginning of World War ___)

•1933: lowest point of the Depression; over ____ million Americans were unemployed & over half of the nation’s banks had failed

SSUSH17b:

Dust Bowl:

•When farmers were unable to pay back their ______, many stopped planting ______

•In 1932 a ______hit the Great Plains, turning much of the top soil into dust-with the lack of rain and crops, wind blew the dried soil for hundreds of miles…this was called ______.

Farming & climate:

•New ______made drought conditions worse

•______originally held topsoil in place but due to over-farming, grass began to disappear & could not longer do the job

Migration:

•Families trapped in the Dust Bowl were forced to move out of the ______

•Dust Bowl refugees were known as “______” although many did not come from ______

•Most packed up old trucks & headed towards California, Oregon, or Washington to find ______.

SSUSH17c:

Herbert Hoover:

•31st President

•In office from 1929-1933

•Previous Presidents contributed to the stock market crash, yet Hoover was ______by Americans

•Did not recognize the ______of the situation & did little to help Americans

•Believed in ______governmental involvement to help

Hoovervilles:

•As more workers lost their jobs, they were unable to pay their _____ or ______and were evicted

• This new class of homeless began to build shacks on the outskirts of cities called shantytowns, or ______.