The Great The Great DepressionDepression

The Roaring TwentiesThe Roaring Twenties Following the end of WWI , Following the end of WWI ,

Americans were ready for Americans were ready for life to go back to normal.life to go back to normal.

The 1920’s was a decade The 1920’s was a decade of enjoyment and leisure of enjoyment and leisure for many Americans.for many Americans.

Most Americans focused Most Americans focused their attention on the their attention on the present, with little concern present, with little concern for the future.for the future.

The decade of the 1920’s The decade of the 1920’s brought many brought many technological, social, and technological, social, and economic changes. economic changes.

Life definitely seemed Life definitely seemed easier for most Americans.easier for most Americans.

Economic Troubles on the Economic Troubles on the HorizonHorizon

Unfortunately, the carefree lifestyle of the 1920’s Unfortunately, the carefree lifestyle of the 1920’s was short lived. was short lived.

As the 1920’s advanced, it grew increasingly clear As the 1920’s advanced, it grew increasingly clear that serious problems threatened economic that serious problems threatened economic prosperity.prosperity.

Though some Americans were becoming wealthy, Though some Americans were becoming wealthy, many more could not earn a decent living.many more could not earn a decent living.

Important industries were in trouble.Important industries were in trouble. Farmers produced more food than they could sell at Farmers produced more food than they could sell at

a profit.a profit. In hopes of finding wealth, Americans gambled on In hopes of finding wealth, Americans gambled on

the stock market.the stock market. When the decade drew to a close, slippages in the When the decade drew to a close, slippages in the

economy signaled the end of an era.economy signaled the end of an era.

Black TuesdayBlack Tuesday On October 29On October 29thth, 1929 the , 1929 the

stock market crashed as a stock market crashed as a result of people and result of people and corporations collectively corporations collectively unloading all of their unloading all of their shares. shares.

This caused many This caused many American investors to lose American investors to lose much of their savings in much of their savings in the market. the market.

Some investors who had Some investors who had bought stocks on credit bought stocks on credit acquired huge debts when acquired huge debts when the market crashed.the market crashed.

This day in history is This day in history is referred to as “Black referred to as “Black Tuesday”Tuesday”

The Great Depression The Great Depression BeginsBegins

The stock market crash The stock market crash signaled the beginning of signaled the beginning of the Great Depression- the the Great Depression- the period from 1929 to period from 1929 to 1941, in which the 1941, in which the economy was in severe economy was in severe decline and millions of decline and millions of people were out of work. people were out of work.

The crash alone did not The crash alone did not cause the Great cause the Great Depression, but it Depression, but it hastened the collapse of hastened the collapse of the economy and made the economy and made the depression more the depression more severe.severe.

Causes of the Great Causes of the Great DepressionDepression

There were 4 main causes of the Great There were 4 main causes of the Great Depression:Depression:

1)1) An old and decaying industrial base-An old and decaying industrial base- old old equipment made some industries less equipment made some industries less competitivecompetitive

2)2) A crisis in the farm sector-A crisis in the farm sector- farmers produced farmers produced more than they were able to sell, especially more than they were able to sell, especially with the end of WWI and the disappearance with the end of WWI and the disappearance of markets that the war had opened to themof markets that the war had opened to them

3)3) The availability of easy credit-The availability of easy credit- many people many people went into debt buying goods on the went into debt buying goods on the installment planinstallment plan

4)4) Unequal distribution of income-Unequal distribution of income- there was too there was too little money in the hands of working people, little money in the hands of working people, who were the vast majority of consumerswho were the vast majority of consumers

ShantytownsShantytowns In cities across the country, In cities across the country,

people who lost their jobs people who lost their jobs found that they could no found that they could no longer pay their rent or longer pay their rent or mortgage.mortgage.

Many were evicted from their Many were evicted from their homes and ended up living in homes and ended up living in the streets.the streets.

Some slept in parks or sewer Some slept in parks or sewer pipes, wrapped in newspapers pipes, wrapped in newspapers to fend off the cold.to fend off the cold.

Others built makeshift shacks Others built makeshift shacks out of scrap materials. out of scrap materials.

Before long, little towns Before long, little towns consisting largely of shacks, consisting largely of shacks, called called shantytownsshantytowns, sprang , sprang up on the outskirts of cities.up on the outskirts of cities.

Desperate for FoodDesperate for Food Everyday the urban Everyday the urban

poor could be seen poor could be seen scrounging for food, scrounging for food, digging in garbage cans digging in garbage cans or begging on street or begging on street corners.corners.

Soup kitchensSoup kitchens and and bread linesbread lines opened up opened up in many cities to feed in many cities to feed the homeless.the homeless.

These were run by These were run by charitable organizations charitable organizations or public agencies and or public agencies and provided food for free. provided food for free.

The Dust BowlThe Dust Bowl To make matters worse, severe To make matters worse, severe

drought and dust storms during drought and dust storms during 1930-1936 caused damage to 1930-1936 caused damage to the Great Plains and made the Great Plains and made farming very difficult.farming very difficult.

Kansas, Oklahoma, and Texas Kansas, Oklahoma, and Texas were hardest hit.were hardest hit.

Millions of acres of farmland Millions of acres of farmland became useless and hundreds of became useless and hundreds of thousands of people were forced thousands of people were forced to leave their homes.to leave their homes.

Many of these families headed Many of these families headed west towards California, where west towards California, where they found economic conditions they found economic conditions to be just as bad.to be just as bad.

Many became migrant workers Many became migrant workers where they traveled from farm where they traveled from farm to farm to pick fruit and other to farm to pick fruit and other crops at starvation wagescrops at starvation wages..

Franklin Roosevelt is Franklin Roosevelt is ElectedElected

Many Americans blamed Many Americans blamed president Hoover for doing too president Hoover for doing too little about the Depression and little about the Depression and wanted a new president in the wanted a new president in the White House.White House.

In 1932, the presidential In 1932, the presidential election showed that Americans election showed that Americans were clearly ready for a change were clearly ready for a change when they elected Franklin when they elected Franklin Delano Roosevelt (FDR) as Delano Roosevelt (FDR) as president.president.

The New DealThe New Deal As soon as FDR entered As soon as FDR entered

office, he implemented a office, he implemented a series of economic series of economic programs designed to programs designed to alleviate the problems of alleviate the problems of the Great Depression.the Great Depression.

These programs became These programs became known as known as The New The New DealDeal..

New Deal programs New Deal programs focused on focused on 33 general general goals:goals:

1)1) ReliefRelief for the needy for the needy2)2) Economic Economic recoveryrecovery 3)3) Financial Financial reformreform