Great DepressionAM Studies III

New technologies Hindered older ones Automobile industry hurt the railroads End of WWI hurt mining and lumber

business Hydro-electric, oil and Natural Gas hurt

Coal Farming

Farmers producing more than they could sell

Price of goods dropped as much as 40% Famers couldn’t pay off debt

Troubles on the Horizon

Uneven distribution of wealth Wealthiest 1% saw an income

increase of 75% while the rest of America saw a 9% increase

Many people could not afford the products that factories were producing

Credit Buying Arrangement in which you pay

later and get goods now Americans were living beyond

their means and could not afford their monthly installments

Troubles on the Horizon

Atmosphere was positive and it appeared like it would lead to an easy win for the Republicans

Republicans were in control during the 1920s where everything was wonderful

Hover was quoted, “We in America are nearer to the final triumph over poverty than ever before.” How wrong he was about to be

Overwhelming Republican victory for Hoover

Hoover – Smith Election of 1928

October 24 the market took a plunge Panicked investors began to pull out

their shares This is known as black Tuesday

Shareholders tried to sell before shares fell more

Millions of shares could not find buyers

People who bought on credit were stuck with huge debts and most lost their savings

Mid November investors lost $30 Billion

BOOOOOOOOM

Bank Failures People began to pull their

money out of the banks Problem was the banks were

investing their money and could not refund everybody's money

600 banks closed in 1929 and by 1933 11,000 of the nations 25,000 banks had failed

Government at the time did not protect or insure peoples bank accounts

Financial Collapse

Other businesses were hurt too

Between 1929 to 32 the gross national product dropped from $104 Billion to $59 billion

About 90,000 businesses went bankrupt

Unemployment leaped from 3% (1.6 mil) to 25% (13 mill)

Financial Collapse

Europe and the United States had complicated each others depression

Europe was trying to rebuild their economy America’s economy was hurting thus

limiting our ability to buy European goods This hurt Europe even more making it

more difficult to buy American goods Hawley-Smoot Tariff Act of 1930

Eliminated foreign competition thus reducing the amount that foreign competition could buy from us

Worldwide Shockwaves

Many Factory jobs were lost People lost their homes and ended up

in the streets Shantytowns

Little towns consisting of shacks sprung up everywhere

These were made of whatever they could get their hands on Orange crates, boxes and whatever

else they could get their hands on Mexican Americans and African

Americans were especially hard hit Whites were demanding the

deportation of Latin Americans because they were fighting for the same jobs

City Depression

One major advantage for rural people is they can make their own food

Many lost their farms and were forced to turn to tenant farming

400,000 farms were lost through foreclosure

Rural Depression

Many feared the depression would cause the collapse of the American family

Families would stay home now and play games like Monopoly 1933.

Men had difficulty dealing with unemployment since it was their role to provide for the family

300,000 wandered the country looking for work

Women were in charge of the family budget and some began to find work Paid less than men Became a source of resentment since they

were taking jobs away from men

Family Life

Malnutrition was very common At the same time cities and states were

cutting budgets on everything, including child welfare programs

Towns were forced to shorten the school year and some 2,600 schools shut down

Many teenagers left home looking for work Hoover tourists

Children Suffered

Took the idea that any economy that experienced periods of growth would naturally be followed by a depression

Didn’t believe people want to be given free handouts and that it would be disrespectful

Promoted Cooperation rather than direct government intervention

Democrats win congressional elections in 1930 People were frustrated with the

economy and decided to move away from the Republicans

Hoover struggles

Americans Wanted to get away from the Republicans Blamed them for not fixing the depression

Republicans figured they lost b/c they were blamed for not doing enough to get out of the depression

Franklin Delano Roosevelt (FDR) won nomination for the democrats

Democrats choose him because of his work as governor of NY and was a distant cousin of Teddy Roosevelt

Hoover Roosevelt Election

Roosevelt won the popular vote 23 million to 16 million for Hoover

Senate won 2/3 majority

House had ¾ of the seats

Landslide Victory for Dems

The New DealRoosevelt’s plan for dealing with the Great Depression

Focused on three general goalsRelief for the needyEconomic RecoveryFinancial Reform

New Deal

March 9 to June 16, 1933 Congress passed more than 15 major pieces

of Legislation These laws and regulations great increased

the power of the federal government Some opponents to the new deal argued that

Federal Government was becoming too large

Controlling business wasn’t going to help us Deficit Spending

Spending more than the government is taking in

The Hundred Days

Trying to help workers and farmers WPA is created

Job was to create as many jobs as possible. 850 airports were built 651,000 miles of roads 125,000 public buildings

Social Security Act in which is still in place today

Pushed to get electricity in rural areas

Second New Deal

No but it did largely two things Allowed people some temporary employment Showed Americans that the Federal

Government was willing to help them Roosevelt easily wins re-election in 1936 Enhanced the lives of Women and minorities Swings the votes of Labor unions and

African Americans for the 1st time

Did the New Deal end the Depression?

Adolf Hitler and Benito Mussolini agree to form a military alliance.

1st November, 1936

Germany and Japan sign an anti-Comintern pact.

25th November,

1936

Nazi’s find Friends

Austria is declared part of the German Reich.

13th March, 1938 German Army occupies the Sudetenland.

1st October, 1938 The German Army invades Czechoslovakia.

15th March, 1939 The German Army reach the city of Brest-

Litovsk on the Polish border with the Soviet Union. 17th September, 1939

Nazi’s take control of Europe

The German Army invades Denmark. 8th April, 1940

The German Army invades Norway. 8th April, 1940

Netherlands surrenders and Queen Wilhelmina flees to England. 14th May, 1940

Belgium surrender to the German Army and Leopold III is arrested. 28th May, 1940

Nazi’s take control of Europe

The German Army enters Paris. 14th June, 1940

Yugoslavia surrenders to the German Army.

17th April, 1941

Nazi’s take control of Europe