major impacts of the stock market crash and great depression
TRANSCRIPT
Review: Causes of Crash• Stock Market
Crash–Overconfidence in
Markets–Speculation–Stock prices are
overvalued–Immediate cause
of the Great Depression
Review: Causes of Depression
• Long Term:–Overproduction of goods (industry and farmers)
–Low profits for major industries–Housing decline–Easy Credit–Unequal distribution of income–Tariff policies lower U.S. exports
Financial Collapse• Bank Failures
–Bank Runs–Loss of Savings
• Stock Market Collapse–$30 billion in investments lost through Nov. 1929.
• Lack of confidence in financial sector prolongs Depression
Increased Tariffs• Goal: protect American
business• Impact: reduced
foreign demand for American goods
• Hawley-Smoot Tariff—highest protective tariff in U.S. history; passed in 1930.
Unemployment• About 90 million
businesses fail.• Unemployment
–3% before Depression
–Reached 25% during the Depression
Poverty• Millions face hunger
and homelessness.
• City—can’t pay rent or mortgage
• Rural—400,000 farms lost to foreclosure.
Health Issues• Mental Health:
–Suicide Rate up 30%
• Physical Health:–Malnutrition
–No dentist/doctor