What set in motion The Great DepressionOctober 29, 1929- The Stock Market CrashedLeading up to the crash- Expanding economy (1927-1929)o New technologieso Increased productiono Building/ demand- Relaxed bank credit- Overconfidence in marketThe Crash (1929)- Black Thursday (10/24)- market dippedo Panico 12.9 million shares sold (avg. 4 million)- Friday (10/25)- market reboundedo Created confidence over weekend- Monday (10/28)- market dipped 13%o 9.25 million shares sold- Black Tuesday (10/29)o 16.4 million shares sold, market dipped 12%Why?- Supply and Demand- Companies anticipated demand- created shares and produced more product- People weren’t buying- Panic selling of stocks by investors devalued the stocks and grounded the marketWhen in History have we panicked?- WWII- resettling of Japanese Americans in “relocation camps” in the United States- After 9/11- After Columbine- January 1, 2000- H1N1 Outbreaks- Bird Flu- Radiation Exposure after Japan earthquakeWhat caused the Great Depression?- False sense of prosperity- Global crisis following WW1- Poor stock management- The stock market crash 1929- Bank failures Lack of Available Credit- Lack of Consumer Spending- High Unemployment Rates- Dust BowlFalse Sense of Prosperity- “The Golden Age of Agriculture”- Uneven wealth distribution…wealthiest 1 % accounted for 40% of nation’s wealth- New technologies= increased spending- False sense of prosperity from war salesGlobal Crisis- While the US prospered after the war, other countries were in crisis- U.S loaned money to other countries- Counties lacking funds, simply stopped buying U.S importsPoor stock management- Poor stock regulations allowed for greater spending- Purchase of stock for fraction of its value - People indulged in stock purchase without fully paying for it- Made it difficult to sell off when the market crashedBank Failures- People feared the crash would close their banks- withdrew money- This caused banks to fail- By 1933, 11,000 of the 25,000 banks in the U.S. had failed Delays- Couples delayed getting married- Divorce rate dropped- couples remained married because they couldn’t afford legal feesGender Roles Changed- Unemployed men had to rely on the wife and children to help makes ends meet- Many men deserted their families because they couldn’t support themo By 1940, 1.5 million women had been deserted- Others gave up looking for jobs- loss of identity as the breadwinner Breakthrough for women - Married women worked outside the home despite societyEffects of Minorities - Majority of government aid and programs targeted unemployed white males- Immigrants (especially Mexicans) were illegally deported to make more jobs for white menHomelessness- People lost their homes from lack of money- Families would live together in caves, sewers, shacks to survive- Some larger cities provided places for the homeless to sleep- 250,000 children homelessness Quality of Life- Families neglected medical and dental care- Families were starving often forgoing milk and meat- Children left school for worko 2.25 million boys and girls (10-18) worked for substandard wages Flint. Michigan Today- 10.6 unemployment rate- Homicide rate 59.5 (highest in U.S)o Laid off 46 police officers in 2010o #4 Most Dangerous city in the country- Median Household Income $28.385o 46,441 (MI) $50,761 (IL) $49,445 (U.S)o $22,314 (Family poverty income)o 34.9% Poverty Rateo 15.2 U.S poverty rate Can effect who’s going to work, who’s staying together, where and how we live, if we have