WATCHING THE ECONOMY CRUMBLE

The Stock Market and the Great Depression

Stock Market and Great Depression

The 1930s were dominated by the Great Depression which affected every aspect of life

The Great Depression was triggered by the stock market crash of 1929

Stock Market and Great Depression

Why did the stock market crash?

People bought stock on the margin and only owned a small portion of their stocks (Speculation)

Stock Market and Great Depression

Many people couldn’t find money to cover their loans so everyone sold their stock

Great Crash: The day that the stock market started to plunge

Stock Market and Great Depression

October 29th 1929: Black Tuesday

Stocks fell by $16 million dollars

This day started the Great Depression

Stock Market and Great Depression

Causes:

Weakness in the economy

Unequal Distribution of Income

Excessive Buying on Credit

Overproduction by American businesses

Buying stocks on the margin (Speculation)

Stock Market and Great Depression

What happened to America?

Farm prices dropped

Unemployment hit the railroads, coal, and textile factories

Automobile sales virtually stopped

Stock Market and Great Depression

Some 6,000 banks failed and closed up in the early 1930s

Stock Market and Great Depression

The Gov’t and President Hoover did all of the wrong things to try and end the Depression

Hoover rejected giving gov’t money to the unemployed and instead said volunteers and charities should provide relief.

The lowest point occurred in 1932 at the end of Hoover’s term

Stock Market and Great Depression

Stock Market and Great Depression

Stock Market and Great Depression

Great Depression video