Page 300 - G6.1_M1-5

DO NOT EDIT--Changes must be made through “File info”
CorrectionKey=NL-A
A Crisis in
A Cr
isis in
A Cr isis in
my Notes
Short
Read
History

The stock market crash of 1929 shocked the nation.

3 OVERPRODUCTION: In the years before the crash,
THE GREAT DEPRESSION farms and factories had been producing more goods than
WAS THE WORST ECONOMIC CRISIS IN people could buy. When the crash came, prices collapsed.
UNITED STATES HISTORY. IT BEGAN IN 1929 Many farms and businesses failed, putting Americans out
AND PERSISTED THROUGHOUT THE 1930s.
of work.

1 Black Tuesday The 1920s was an era of 4 BANK FAILURES: In the wake of the crash, fearful
invention and industry in the United States. Millions of customers lined up to withdraw their money from banks.
Americans invested in stocks—small ownership (Many banks had invested in the stock market). Banks
shares—in exciting new businesses. By 1929, the were unable to hand over so much money at once. About
investment craze had driven stock prices much higher 11,000—more than half of all U.S. banks—failed
than their actual value. Then, on Tuesday, October 29, nationwide. Millions of customers lost a total of one
1929, prices suddenly plummeted. They continued to billion dollars in savings.
drop as panicked investors raced to sell their stock. At its 5 DECREASED SPENDING: As broke and wary
lowest point, the stock market lost 90 percent of its value. consumers spent less money, businesses continued to fail.
That was in 1932. A share of U.S. Steel once sold for $262. DROUGHT: In addition to falling crop prices, farmers in
Now it sold for $22. Millions of investors lost everything 6
the Plains region were hit with a series of severe droughts.
they owned.
These droughts persisted throughout the 1930s. Combined
2 A Perfect Storm The Crash of 1929 was just with over-farming and poor soil management, they led to
one of several factors that combined to create the Great massive dust storms that destroyed 100 million acres of
Depression. Others included the following: farmland in southeastern Colorado, southwest Kansas, and

300