What set in motion The Great Depression?October 29th, 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 dipped o Panic o 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 demanded- created shares and produced more product People weren’t buying  Panic selling of stocks by investors devalued the stock and grounded the market What caused to Great Depression? False sense of prosperity Global crisis following WWI Poor stock management The stock market crash of 1929 Bank failures Lack of available credit 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 Countries 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 when the market crashed Bank Failures People feared the crash would close their banks-withdrew money This causes banks to fail By 1933, 11,00 of the 25,00 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 By1940, 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 men Homelessness 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 homelessnessQuality 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 unemplyment 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) 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