Stock Market Crash
What year did the Stock Market Crash happen?
1929
Why did banks fail after the crash?
People withdrew all their savings at once.
What does "overproduction" mean?
Making too many goods that people can’t afford to buy.
What was the Dust Bowl? (A series of dust storms that destroyed farmland.)
DROUGHT -A series of dust storms that destroyed farmland.
Killed crops
What is a tariff?
A tax on imported goods.
What was the nickname of the day the stock market crashed? (Black Tuesday)
Black Tuesday
What happened to people’s money when banks failed?
They lost their savings.
Why did factories have to lay off workers?
They made too many products, and people stopped buying.
How did the Dust Bowl make the Great Depression worse?
Farmers lost their land and couldn’t grow crops.
Why did the U.S. pass the Hawley-Smoot Tariff Act?
To protect American businesses.
How did the crash affect banks?
Banks lost money and started to fail.
Could people get their money back from the banks?
No, because bank deposits were not insured.
How did overproduction hurt farmers?
Too many crops lowered prices, making it hard for farmers to make money.
Where did many farmers go after losing their farms?
California, looking for work.
How did other countries react?
They raised their tariffs, making trade worse.
How did investors react when stock prices dropped?
They sold stocks quickly, causing panic.
How did bank failures affect businesses?
Businesses couldn’t get loans, so many closed.
What happens when people stop buying goods?
Businesses lose money and have to fire workers.
What caused the Dust Bowl?
Drought and poor farming practices.
What effect did the tariff have on the economy?
It made the depression worse by hurting trade.
True or False: The stock market crash was the only cause of the Great Depression.
False – many factors contributed!
What happened to farmers who needed loans?
They couldn’t get loans, and many lost their farms.
How does unemployment make a depression worse?
People don’t have money to spend, making businesses struggle more.
True or False: The Dust Bowl only affected farmers.
False – it also caused food shortages and migration.
True or False: The tariff helped businesses recover.
False – it hurt businesses because trade decreased.