BC: American History
FC: The Great Depression
1: Created by: Danielle
2: In the 1920's playing the stock market was something many people liked to do especially since the 1920's seemed to be a decade of unlimited economic prosperity. Americans were convinced that the economy would continue to grow. Many Americans purchased new consumer products by credit. Investors put millions of dollars in the stock market, and stock sales increased for many years.
3: When demand got higher the stock price did as well. Nobody thought there would be an end to the bull market. Investors and analysts knew that the market was in danger of becoming a bear market. Buying and selling in the market was widespread and it created many problems. Many stocks were selling for much more than they were worth which was fine as long as demand was high and investors confidence. Everything got much worse when people starting borrowing money for their stock and only spent 10% of their own money. Black Thursday, October 24, 1929 was when everything went downhill.
4: Prices dropped week by week and investors continued to sell their stocks. Black Tuesday, October 29 prices were at the lowest point. Many people were unable to raise funds and had no other choice but to sell their stocks. By mid-November the leading stocks were cut in half and stockholders lost $30 billion. By the end of the year, the stock losses were the total cost of U.S. involvement in World War 1.
5: "We have now passed the worst and...shall rapidly recover." Words from Herbert Hoover were not enough to reassure many Americans not to panic. Although only a small percent of Americans played the stocks, the entire country was in jeopardy. Investors couldn't repay loans, banks were getting little income, and many people were being left in debt. These troubles last for 10 years and many people lost everything they had.
6: It's truly unbelievable the way many Americans were living during the Great Depression. In 1929 1.5 million Americans were left jobless and by 1933 it rose to about 15 million. "Everybody in America was looking for work," says poet Langston Hughes. Even people that were able to keep their jobs only made 10 cents an hour which was not close to enough to supply for a family. Immigration quickly decreased because of this crisis. In cities many people faced unemployment and poverty. There were people fighting for food.
7: Mexican American communities formed mutual aid to help each other. Chinese American communities put barrels of rice out for people to draw from for free. Harlem residents had "rent parties" for a small fee to help neighbors pay their monthly rent.
8: Many people faced hunger and homelessness. The homeless made shelters out of boxes, scrap lumber, iron, and other items they could find. They called these "towns" Shantytowns or Hoovervilles mocking President Hoover. Farmers had more goods than they could sell and most of the goods just rot while people are left hungry. Many families broke apart because of the stress. Marriage and birth rates went down. Everyone was too busy looking for work. It was a very horrible time for everyone.
10: It seems as if everyone suffered from the Great Depression, but that's not the truth. The people that suffered the most were those that spent and borrowed a great amount of money on stocks and were unable to pay back the money. Also, the people with not much money before the depression suffered as well.
11: The people that were wealthy and saved money didn't suffer as bad as others did. It all depended on who spent and saved their money wisely. Many people were careless with their money and didn't think of consequences if something were to happen.
12: In Summer 1932 Herbert Hoover was re-elected. No other member of the party wanted the nomination because of the huge mess we were in. Although Democrats chose Franklin D. Roosevelt as their candidate.
13: FDR was determined and a skillful politician. He was born into a wealthy and famous family. The campaign in 1932 revolved around the depression and Hoover realized he would have little chance of victory. Roosevelt was ready to step in with a "new deal" and help America get out of this depression, and that's just what he did.