The Great Depression
This is an introductory lesson about the Great Depression, its causes, and Roosevelt?s New Deal.
• to explain and discuss some of the causes of the Great Depression;
to identify when the stock market crashed and note what this day is called;
to list some of the organizations that Roosevelt developed to assist workers;
to describe the benefits of the Social Security Act of 1935.
The Roaring Twenties came to an abrupt halt when the stock market crashed on October 29, 1929. This day became known as Black Friday. The value of stocks tumbled, and many people lost all of their savings. Some people lost so much money that they were unable to pay their debts. The crash of the stock market is seen as the beginning of the Great Depression. During this period, over 5000 banks failed, and thousands of other businesses closed, putting millions of Americans out of work.
The crash of the stock market was not the only cause of the Great Depression. Farmers were also having difficulties. They were having a hard time making any money because the pricing of their crops was so low. As a result, many farmers were unable to make their mortgage payments. They lost their farms because they could not afford to pay the bank that they borrowed from.