The Great Depression

1. the poor suffered

1.1. Unemployment Rose

1.2. a lot of factories closed

2. Stock Market Crashed - Oct. 29th 1929

2.1. Panic selling. Everyone sells at once.

2.1.1. Banks were forced to get loans

2.2. banks weren't able to pay for the loans or investments that they offered this caused panic

3. what was the stock market

3.1. People bought stock in hope of getting money

3.2. there was a fake idea that if you bought socks you would automatically get rich

4. Problem One

4.1. technology reduced jobs

4.2. No new jobs were made however, and this leaded to overproduction.

5. Problem Two

5.1. Uneven distribution of wealth

5.2. Middle class depended on jobs

5.3. When jobs got cut, middle class had low savings

5.4. this caused bad economy because they had no money to consume

6. Hoover

6.1. Pulled Government out of economy

6.2. Had France buy American goods instead of being in war debt.

6.3. This action helped U.S. economy

6.4. Was to late for make emergency banks and loans

7. taxes and exports

7.1. higher taxes on imports & exports

7.2. Caused people to stick to their own countries goods

8. panic

8.1. Soviet Union sold wheat 1/2 price of U.S.

8.2. Hoped to pay back banks but price was too low

8.3. they couldn't pay back debts

9. until when

9.1. this period lasted about ten years and was the worst economic crisis seen in history