The Great Depression:America During the 1930’s

By: Kalea HooverRachel HooverHien Nguyen

Causes Intro

The Great Depression is considered to be one of the worst economic slumps ever

to hit America. What could possibly have caused it? It can’t be chalked up to one

specific cause, but several.

An Uneven Distribution of Wealth

The “roaring twenties” was a time in American History of prosperity and success. Unfortunately the wealth was not shared evenly. “In 1929, the top 0.1% of Americans had a combined income equal to the bottom 42%……while 80% of Americans had no savings at all.” (http://www.gusmorino.com) Farmers especially were hit hard. During World War 1, farmers sold their crops to other countries, but after the war was over, countries went back to growing their own food. This caused a good portion of the Agricultural industry to go broke.

Reduction of Purchasing and Inflation

After the economy crashed on “Black Tuesday”, there was a decrease of purchases across the board. Since banks were so unreliable, and failing left and right, this caused people to hoard their money and not spend it. This caused the money supply and the exchange rate for gold to drop drastically.

Economy

“The Great Depression, like most other periods

of severe unemployment, was

produced by government

mismanagement rather than by any

inherent instability of the private economy.

~Milton Friedman, American

Economist during Great Depression

PANIC!, With the Economy…

Like said before, the Stock Market Crash on Black Thursday, gave the United States a long and severe downfall. Over a quarter of people were unemployed, and no products were demanded. Government did not know how to handle policies. Many people lost property and were left to live in old crates making squalid towns referred to as “Hoovervilles”. Some if lucky could find work at reduced wages, or find simple jobs, like apple sellers and shoe-shiners.

The New Deal

Many banks were in trouble and had to shut down because they loaned money to those that were now unable to repay them, and they invested in the stock market. Some banks now did not have the money to distribute to those that request it. So, President Roosevelt issued a bank holiday, that closed all banks, to keep the money being withdrawn. In addition to that, he established the New Deal. This helped production to revive, increase demand, more jobs, issuing more money, and much more. The New Deal was the first step in getting our country together, and inspired us to keep continuing.

Reactions

“No one can possibly have lived through the Great Depression without being scarred by it. No amount of experience since the depression can convince someone who has lived through it that the world is safe economically.”

~Isaac Asimov, Russian born American

science-fiction Writer and Biochemist during the

Great Depression

Reactions of people on Black Tuesday

Feelings of hopelessness that led to suicide-Kenneth MacDonald tells of telegraph operators in Boston. “‘They were the ones who were jumping out windows’” (www.seacoastonline.com)

Panic- With stocks falling, people wanted to make sure that they were not part of the group of people who lost their savings. Mobs of people gathered at the banks to withdraw all their savings. The banks ran out of money to give and people lost their life’s savings.

Reactions (cont.)

Not everyone was devastated by stock crash.Betty Powell speaks of her childhood in rural

Maine, “If you were poor, you didn’t know it at the time,” (www.seacoastonline.com)

Beth Pope was one of lucky few who were comfortable. Now she realizes how lucky she

was that, “she and her sister didn’t even have to give up her weekly piano lessons,” (

www.seacoastonline.com)

Crimes and Criminals

It is almost to be expected that crime would spike during a time of such widespread

suffering and loss, but exactly how much so is surprising. Crime was not just big name

gangsters like Al Capone and Dutch Shultz, it was also the local neighborhood gangs robbing houses and convince stores.

The “Big Time” Criminals

Gangsters and famous criminals rose to fame through bribery and bloody violence, yet many were skilled at

evading officials. One of the most well known gangsters of all time is Al

Capone. He earned an estimated one hundred million dollars annually through illegal drugs, smuggling in alcohol from other countries and prostitution. He was

only ever jailed once for tax evasion.

Local Crimes and “Speakeasies” Many people resorted to criminal activity to make

ends meet. In rural areas stealing crops was the most common occurrence.

Since many people felt so hopeless and with no means of reliving that, there was a boom in the number of alcoholics in America. Because of the Prohibition, most people went to “Speakeasies”, illegal bars that served alcohol at about ten times the normal price. “ At its height, it is estimated that there was about 100,000 Speakeasies in New York City alone.” (http://nfo.net/usa/niteclub.htm)

Literature

The writer and the audience went through changes during the Great Depression era. The writers changed themes and audiences accepted this change.

Themes that were previously unexplored were now being used. Themes such as hopelessness, despair, and the strength of family. Previously hidden suffering was now being incorporated into the repertoire of themes authors chose from.

Literature (cont.)

The audience changed their expectations. As writers changed their themes and subjects, the audience changed as well.

The audience began to accept more stories that focused on the hard times at hand, such as no jobs, no income, no stability, rampant crime, and no end in sight.

Literature (cont.) How people viewed groups of people

changed drastically. For example, the black race was previously portrayed as ‘inconsequential’ (Facts on File) and now were being portrayed as resolute laborers struggling just like everyone else.

Large businesses with wealth were portrayed as the evil people who took everyone's money and was the cause of the Great Depression.

Popular Culture-Media

Due to unemployment and lack of money, people stopped buying luxuries they could not afford. Having losing their jobs, people were bored and needed something to do. Many started digging out loose change to go see movies coming out. Others were listening to the radio, reading, or playing some sort of board game.

The Depression of the 1930’s: “Golden Age of Hollywood”

The 1930’s was considered to be the “Golden Age of Hollywood”, as more people stayed home and went to see a good movie with some loose pocket change. Many well-known movies we know to today as “oldies” were made during the depression. Movies like The Wizard of Oz, Gone With the Wind, and Mr. Smith Goes to Washington were made then. Most of these movies reflected and was influenced by the actual depression and what people were actually going through during those times. The song, “Somewhere Over the Rainbow” from The Wizard of Oz, was about finding hope if you just believe.

Radio

The radio also contributed as a main source of entertainment for the people during the depression. The radio was inexpensive and people were able to stay au courant with the news. President Roosevelt gave “Fireside Chats” over the radio informing people about the progress. Other shows like “Amos ‘n’ Andy, “Our Miss Brooks”, and “Easy Aces” were popular shows, too.

Books and Games!

BOOKS: During the Depression many new authors emerged. Theodor Seuss Geisel, also known as Dr. Seuss, came out with his first book called, And to Think I Saw it on Mulberry Street. Margaret Mitchell also wrote Gone with the Wind, her first and only novel.GAMES: Charles B. Darrow debuted Monopoly in 1933, and people enjoyed the concept of making money fast, while making your enemy bankrupt. Another popular game Scrabble made its debut, also.

Inspiration with the Great Depression

Through the Great Depression, much was learned from it. From the stock market crash to the bankruptcies, the United States was able to make it through. President Roosevelt planned out a way that with time, the economy could get out of distress. Although, those were rough times and people had many horrible reactions to say about it, people could have some light in their lives from the movies, games, and literature debuting and was inspired during the Depression. So, the Great Depression was a remarkable mark of history.

Bibliography

• http://encarta.msn.com/encyclopedia_761584403/great_depression_in_the_united_states.html

• http://findarticles.com/p/articles/mi_g1epc/is_tov/ai_2419100535• http://images.google.com/ • http://nfo.net/usa/niteclub.htm• http://thinkexist.com/quotes/with/keyword/the_great _depression • http://www.britannica.com/EBchecked/topic/243118/Great-Depression• http://www.english.illinois.edu/maps/depression/depression.htm• http://www.fofweb.com/activelink2.asp • http://www.gusmorino.com/pag3/greatdepression/index.html• http://www.livinghistoryfarm.org/farminginthe30s/life_20.html • http://www.museum.siu.edu/museum_classroom_grant/Museum_Explorers/

school_pages/bourbonnais/page5.htm• http://www.seacoastline.com/articles/10090308-NEWS-903080344• http://www.shmoop.com/did-you-know/history/us/the-great-depression