Chapter 15 Project Julia Stephenson

Vocab

Dow Jones Industrial Average- measure of average of stock prices of major industries

Black Tuesday- October 29, 1929, the day on which the Great Crash of the stock market began

Great Crash- The collapse of the American stock market in 1929

business cycle- Periods in which a nation's economy grows, then contracts

Great Depression- The most severe economic downturn in the nation's history, which lasted from 1929 to 1941

Hooverville- Term used to describe a makeshift homeless shelter during the early years of the Great Depression

Dust Bowl- Term used to describe the central and southern Great Plains in the 1930s, when the region sustained a period of drought and dust storms.

Penny Auction- Farm auctions during the Great Depression at which neighbors saved eat other's property from foreclosure by bidding low

Twenty-first Amendment- Constitutional amendment ratified in 1933 to repeal Prohibiton

Hawley-Smoot tariff- The highest import tax in history, passed by Congress in 1930

Reconstruction Finance Corporation (RFC)- Corporation set up by President Hoover in 1932 to give government credit to a number of institutions, such as large industries and insurance companies

Bonus Army- A group of World War I veterans and their families who protested in Washington, D.C., in 1932, demanding immediate payment of a pension bonus that had been promised for 1945

The Stock Market Crash of 1928

On October 29, Black Tuesday, a record of 16.4 million stocks were sold.

The overall losses of this crash totaled over $30 billion.

Millions of people who had never owned any stock were indirectly affected since nearly all banks went bankrupt.

Impact on Workers and Farmers

Factories throughout the country closed due to the fact that they went bankrupt.

Smaller local businesses suffered as well.

In 1929, a bushel of wheat sold for $1.18, but by 1932 in had dropped to a mere $0.49.

Hoovervilles

Those who took the hardest hit during the Great Depression were those already at the bottom of the ladder.

In 1931, census takers estimated the homeless population in New York alone to be around 15,000 people.

Hoovervilles were a makeshift homeless shelter made up of a collection of cardboard, tar paper, and scrap metal shacks.

Hoover Dam

The construction was began in 1931, and it was officially opened in 1936.

The dam is 726 feet tall.

It is an arch-gravity, concrete dam that was once referred to as Bolder dam.

The Dust Bowl

Between 1931 and 1940, so much soil blew out of the central and southern Great Plains that the region became known as the Dust Bowl.

Farmers said that the dust storms were the result of a severe drought.

However, it was because the farmers had stripped the land of its thick prairie grasses that once held down the soil, that it began to blow.

Underlying Causes of the Great Depression

The "prosperous" economy of the 1920's lacked a firm base, and most of the money ended up in the hands of a few fortunate families, who tended to save and invest rather than buy goods.

During the 1920's, speculators bought stocks with borrowed money and then pledged those stocks as collateral to buy more stocks.

There was too little money in circulation to help recover from the Great Stock Market Crash.

Sources

America Pathways to the Present Textbook

Created By
Julia Stephenson
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Credits:

Created with images by mandalariangirl - "Herbert Hoover 1929-1933" • IMLS DCC - "Hooverville on the Seattle waterfront, ca. 1930" • USDAgov - "NRCSDC01008" • Phillip Pessar - "Downtown MIami Flagler Street And Miami Ave 1929" • jarmoluk - "village field view" • tpsdave - "hoover dam nevada" • USDAgov - "Dust Bowl" • WikiImages - "woman children florence thompson"

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