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The Great Depression
How did the Great Depression begin, and what did the United States do to
fight against it?
Key Vocabulary
• Credit: ______________________________________________________________________• Buying on margin: ____________________________________________________________• Stock Market: A particular market where
stocks and bonds are traded.• Hoovervilles: _________________________________________________________________
Stock Market Crash of 1929
• ____________________________________– ______________________________________.– Some who could not afford the stocks’ full price
began buying on margin
• Stock prices peaked in the summer of 1929.– Prices started to drop.– ___________________________________________________________________________________
Black Tuesday
• ________________________________________________________________________________________
• On Thursday, October 24, panic hit the stock market.– Within three hours the market lost $11 billion in value.
• On Monday, October 28, prices dropped again.• __________________________________________– ______________________________________________________________________________________________
• ___________________________________
How did Stock Market Crash?
BANK
Lends out $100 to Person 2
Stock Market, with everyone’s money, crashes-banks close
$100$100
Person deposits $100 into bank
Person 2 takes the $100 and invests into the stock market
The Economy Follows the Stock Market
• _____________________________________– Customers unable to pay back bank loans– _________________________________________
__________________________________________________________________________________
• ____________________________– Customers rushed to banks to withdraw their
money.– ______________________________
President Hoover’s Reaction
• _______________________________________________________________________________________________________________– Resisted giving direct assistance to individuals
• __________________________________________________________________________
• Hoovervilles, or groups of tin and cardboard shacks, were built.
Roosevelt’s New Deal
• _______________________________________________• Said that economic recovery was possible• _________________________________________________
A New President
• Roosevelt called special session of Congress that became known as the Hundred Days.
• ______________________________________________________________________________________________________________________________
• ______________________________________________
The Hundred Days
Roosevelt Restores Confidence
• Roosevelt worked to restore confidence in American banks.– ________________________________________
– ________________________________________
– Government inspected finances of a bank before it was allowed to reopen.
• ______________________________________________– _____________________________________________________
– Gave many chats over the course of his administration