The Great Depression

1. The Dust Bowl

1.1. Dust storms were often referred to as Black Blizzards. They damaged the parries and agriculture in the U.S.

1.2. The cause of the Black Blizzards was due to a severe drought and over farming of the area.

2. Before the Crash

2.1. Lot of people invested in stocks

2.1.1. Banks were quick to give out loans to investors

2.2. Buying on margin

2.2.1. Investors only paid a fraction of what the stock was worth at the initial payment

2.2.2. The rest was paid back at a later time

3. The Crash

3.1. Began in late October in 1929

3.1.1. Referred to as black Tuesday

3.2. Investors tried to sell all of their stocks, but failed.

3.3. Many few people could actually trade on the stock market

4. Unemployment

4.1. Unemployment had skyrocketed

4.1.1. The government did not help the people

4.2. With more people being unemployed many could not buy items which caused more unemployment.

5. The Poor

5.1. The poor became even poorer

5.1.1. Moved into towns called Hooverviles

5.2. $2% of Americans were under the poverty line.

6. Middle Class

6.1. Many had to cut back on purchases because of a loss of jobs

6.1.1. Caused a decrease of consumption.

6.2. 58% of Americans were considered Middle Class

7. Presedent Herbert Hoover

7.1. Used the theory of laissez-faire or as he called it Rugged Individualism

7.1.1. Didn't want to interfere with economics

7.2. Was disliked by many Americans

7.2.1. To Mock him they started calling news papers Hoover blankets and little poverty stricken towns hooverviles.

8. President Theodore Roosevelt

8.1. The New Deal

8.1.1. Programs that were created to give people jobs and money.

8.1.2. Reopened only the healthy banks that could preform well

8.1.3. Lasted between 1933 and 1938