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3 Causes of The Great Depression
3 Causes of The Great Depression
Distribution of
Wealth in the
1920s
* An income of
$2,500 per year
was considered
the minimum
amount needed
for a decent
standard of living
Causes of the Great Depression: B
Causes of the Great Depression: C
Year the
depression
began
Causes of the Great Depression: D
Year the
depression
began
Causes of the Great Depression: E
Benefits and risks of Stock sold after
buying a $1,000 stock increase in value
“on margin” from a broker
Year the
depression
began
Over-production and under-consumption
By the end of the 1920s, factories
produced too many durable goods
(known as over-production)
People did not need as many
appliances and cars by the end of
the decade (under-consumption)
End of WWI
Increasing American debts
Many Americans used credit to live
beyond their means, generate large
debts, and had to cut back on
spending by the end of the decade
How does consumer debt
in the 1920s compare to today?
Uneven distribution of wealth
The decade was not as wealthy
as it appeared; Despite rising wages,
the gap between the rich and poor
grew wider in the 1920s
70% of Americans were considered
“poor” so most of the spending was
done by 30% of the population
Americans lost
confidence in banks as The lack of spending
25,000 banks failed; and stock market
The lack of banking crash led to failure of
meant there was no 90,000 businesses
money for investment
Rudy Vallee
“Brother Can You
Spare a Dime?”
Song plays for next 4 slides
Mortgage Foreclosures
Poverty in America
What was the Dust Bowl?
“Hooverville”
By the election of 1932, Americans were
looking for new leadership and a president who
could save them from the Great Depression
1932 Presidential Election
■Herbert Hoover (R) was defeated
by Franklin D. Roosevelt (D)
■Resources
■The Story of Us
“Bust”
■1. Great Depression –(Intro)
■2. Bank runs
■3. Hoover Dam
■4. Dust Bowl 19:30-29:15