The Great DepressionThe Great Depression

What would you do to feed your What would you do to feed your family?family?

Examine the IssuesExamine the Issues

What groups of people will be most hurt by What groups of people will be most hurt by the economic crash?the economic crash?

What can you do to find a paying job?What can you do to find a paying job?

What can unemployed and impoverished What can unemployed and impoverished people do to help each other?people do to help each other?

Day of WrathDay of Wrath

The Nation’s Sick EconomyThe Nation’s Sick Economy

Main IdeaMain Idea

As the prosperity of the 1920’s ended, As the prosperity of the 1920’s ended, severe economic problems gripped the severe economic problems gripped the

nation.nation.

Why it Matters TodayWhy it Matters Today

The Great Depression has had lasting The Great Depression has had lasting effects on how Americans view effects on how Americans view

themselves and their governmentthemselves and their government

Economic Troubles on the HorizonEconomic Troubles on the Horizon

As the 1920’s advanced, serious problems As the 1920’s advanced, serious problems threatened economic prosperity.threatened economic prosperity.Farmers grew more crops and raised more Farmers grew more crops and raised more livestock than they could sell.livestock than they could sell.

UnevenDistribution of

Income

Living onCredit

ConsumersLess money

FarmersMcNary-Haugen Bill

Price Supports

IndustriesRailroads

Coal Mines

EconomicProblems

Dream of Riches in the Stock Dream of Riches in the Stock MarketMarket

Those who had money invested in the stock market.Those who had money invested in the stock market.Dow Jones Industrial Average-Dow Jones Industrial Average-

Dow-Dow- was measured based on the stock prices of the 30 major was measured based on the stock prices of the 30 major firms on the NYSE.firms on the NYSE.

1920’s- Dow rose to 381 pts/ 300 pts higher than it had 1920’s- Dow rose to 381 pts/ 300 pts higher than it had been.been.““Bull Market”-Bull Market”- a period of rising stock. a period of rising stock.By 1929- 4 mill,3% of Americans owned stockBy 1929- 4 mill,3% of Americans owned stockSpeculation- Speculation- bought stock for a chance of a quick profit.bought stock for a chance of a quick profit.Buying on Margin- Buying on Margin- paid a small % and borrowed the paid a small % and borrowed the rest.rest.

People couldn’t pay off the loans.People couldn’t pay off the loans.

The Stock Market CrashesThe Stock Market Crashes

In September 1929, stock prices peaked In September 1929, stock prices peaked and prices fell.and prices fell.

Black TuesdayBlack Tuesday October 29, 1929- stock market crashed.October 29, 1929- stock market crashed.

Financial CollapseFinancial CollapseThe stock market crash The stock market crash signaled the beginning of the signaled the beginning of the Great Depression- the period Great Depression- the period between 1929-1940 in which between 1929-1940 in which the economy plummeted and the economy plummeted and unemployment skyrocketed.unemployment skyrocketed.Bank Business FailuresBank Business Failures

1929, 600 banks closed1929, 600 banks closed 1933, 11,000 of the 25,000 1933, 11,000 of the 25,000

banks failedbanks failed 90,000 businesses went 90,000 businesses went

bankruptbankrupt

Worldwide Shock WavesWorldwide Shock Waves Europe suffered from war Europe suffered from war

debtsdebts Hawley-Smoot Tariff Act-Hawley-Smoot Tariff Act-

protective tariff.protective tariff.

Causes of the Great DepressionCauses of the Great Depression

Tariffs and war debt policies that cut down Tariffs and war debt policies that cut down the foreign market for American goodsthe foreign market for American goods

A crisis in the farm sectorA crisis in the farm sector

The availability of easy creditThe availability of easy credit

An unequal distribution of incomeAn unequal distribution of income

The Nation’s Sick EconomyThe Nation’s Sick EconomyReviewReview

How did what happened to farmers during the How did what happened to farmers during the 1920’s fore-shadow events of the Great 1920’s fore-shadow events of the Great Depression?Depression? During the 1920’s, farmers faced decreased demand During the 1920’s, farmers faced decreased demand

for their products and lower crop prices. Those who for their products and lower crop prices. Those who were in debt could not repay loans, and rural banks were in debt could not repay loans, and rural banks failed. This pattern repeated itself in other sectors of failed. This pattern repeated itself in other sectors of the economy during the Depression.the economy during the Depression.

What were some of the effects of the stock What were some of the effects of the stock market crash in October 1929?market crash in October 1929? The stock market crash triggered bank and business The stock market crash triggered bank and business

failures, high unemployment, and worldwide failures, high unemployment, and worldwide depression.depression.

Hardship & Suffering During the Hardship & Suffering During the DepressionDepression

Main IdeaMain Idea

During the Great Depression Americans did During the Great Depression Americans did what they had to do to survive.what they had to do to survive.

Why it Matters TodayWhy it Matters Today

Since the Great Depression many Since the Great Depression many Americans have been more cautious abut Americans have been more cautious abut

saving, investing, and borrowing.saving, investing, and borrowing.

Hardship and Suffering During Hardship and Suffering During the Great Depressionthe Great Depression

Bothloss jobs, homes

The Depression Devastates The Depression Devastates People’s LivesPeople’s Lives

The Depression The Depression brought hardship, brought hardship, homelessness, and homelessness, and hunger to millions.hunger to millions.

The Depression

In the Cities In Rural Areas Dust Bowl

ShanytownsSoup Kitchens

Bread Lines

400,000 farms lostTenant farming

Severe DroughtMidwest

Effects on the American FamilyEffects on the American Family

In the face of the suffering caused by In the face of the suffering caused by the Great Depression, the family stood the Great Depression, the family stood as a source of strength for most as a source of strength for most Americans.Americans.At a time when money was tight, At a time when money was tight, many families stayed at home and many families stayed at home and played board games, such as played board games, such as Monopoly(1913) & listen to the radio.Monopoly(1913) & listen to the radio.Men in the streetsMen in the streets

Many men had difficulty coping with Many men had difficulty coping with unemploymentunemployment

As many as 300,000 transits or As many as 300,000 transits or “hoboes” wandered the country“hoboes” wandered the country

Direct Relief-Direct Relief- cash payments or food cash payments or food provided by the government to the provided by the government to the poor.poor.

Family HardshipsFamily HardshipsChildren Suffer hardshipsChildren Suffer hardships

Poor diets and a lack of Poor diets and a lack of money for health care led money for health care led to serious health problems.to serious health problems.

Falling tax revenues also Falling tax revenues also caused school boards to caused school boards to shorten the school year shorten the school year and even close schools.and even close schools.

1933-2,600 schools shut 1933-2,600 schools shut downdown

Teenagers hopped on Teenagers hopped on freight trains in search for freight trains in search for work.work.

““Wild boys”Wild boys”

Family Hardships-Cont’Family Hardships-Cont’

Social and Social and Psychological EffectsPsychological Effects

Many people lost their will Many people lost their will to surviveto survive

Between 1928-1932- Between 1928-1932- suicide rate rose more suicide rate rose more than 30%than 30%

People made sacrificesPeople made sacrifices During the Great During the Great

Depression many people Depression many people showed great kindness to showed great kindness to strangers who were down strangers who were down on their luckon their luck

Hardship & Suffering During the Hardship & Suffering During the Depression Depression

ReviewReviewHow were shanytowns, soup kitchens, and How were shanytowns, soup kitchens, and bread lines a response to the Depressions?bread lines a response to the Depressions? They were places where charitable organizations They were places where charitable organizations

handed out food to the hungry.handed out food to the hungry.

What pressures did the American family What pressures did the American family experience during the Depression?experience during the Depression? Unemployment, reduced household income, some Unemployment, reduced household income, some

families lost homes. Many adults lost the ability to families lost homes. Many adults lost the ability to provide for their families.provide for their families.

Hoover Struggles with the Hoover Struggles with the DepressionDepression

Main IdeaMain Idea

President Hoover’s conservative response President Hoover’s conservative response to the Great Depression drew criticism to the Great Depression drew criticism

from many Americans.from many Americans.

Why it Matters TodayWhy it Matters Today

Worsening conditions in the country caused Worsening conditions in the country caused the government to become more involved the government to become more involved

in the health and wealth of the people.in the health and wealth of the people.

Hoover Tries to Reassure the Hoover Tries to Reassure the NationNation

After the stock market crash of October After the stock market crash of October 1929, President Herbert Hoover tried to 1929, President Herbert Hoover tried to reassure Americans that the nation’s reassure Americans that the nation’s economy was on a sound footing.economy was on a sound footing.Hoover’s PhilosophyHoover’s Philosophy

Gov. should facilitate and encourage Gov. should facilitate and encourage cooperationcooperation

People should take care of themselvesPeople should take care of themselvesHoover Takes Cautious StepsHoover Takes Cautious Steps

No layoffs or don’t cut wagesNo layoffs or don’t cut wages ““Hoovervilles”Hoovervilles”

Boulder DamBoulder Dam Construction of a dam on the Colorado RiverConstruction of a dam on the Colorado River CA,NM, CO,UT,WY,NVCA,NM, CO,UT,WY,NV 1929-$700 million1929-$700 million Later called the Hoover DamLater called the Hoover Dam

Democrats win in 1930 Congressional Democrats win in 1930 Congressional ElectionsElections

Hoover Takes ActionHoover Takes Action

Hoover Takes ActionHoover Takes Action

President Hoover gradually softened his position on President Hoover gradually softened his position on government intervention in the economy and took a government intervention in the economy and took a more activist approach to the nation’s economic troubles.more activist approach to the nation’s economic troubles.

Hoover’s Actions

Backs Cooperatives Direct Intervention

Federal Farm BoardNational Credit Corp.

Federal Home Loan Bank ActGlass-Steagall Act

Reconstruction Finance Corp.

Gassing the Bonus ArmyGassing the Bonus Army

In 1932, 10,000 to 20,000 In 1932, 10,000 to 20,000 WWI veterans and their WWI veterans and their families arrived in families arrived in Washington, D.C., from Washington, D.C., from various parts of the country.various parts of the country.The Patman Bill DeniedThe Patman Bill Denied

The bill was to pay a bonus to The bill was to pay a bonus to WWI veterans who had not be WWI veterans who had not be compensated for their compensated for their wartime service.wartime service.

Hoover Disbands the Hoover Disbands the Bonus ArmyBonus Army

July 28, under the command July 28, under the command of Gen. Douglas MacArthur of Gen. Douglas MacArthur and his aide, Maj. Dwight D. and his aide, Maj. Dwight D. Eisenhower.Eisenhower.

Hoover Struggles with the Hoover Struggles with the DepressionDepression

ReviewReview

How did Hoover’s treatment of the Bonus Army How did Hoover’s treatment of the Bonus Army affect his standing with the public?affect his standing with the public? The harshness of the attack on the veterans and their The harshness of the attack on the veterans and their

families damaged Hoover’s reputation.families damaged Hoover’s reputation.

In what ways did Hoover try to use the In what ways did Hoover try to use the government to relieve the Depression?government to relieve the Depression? He started public-works programs and backed the He started public-works programs and backed the

Federal Farm Board, Federal Home Loan Bank Act, Federal Farm Board, Federal Home Loan Bank Act, and the RFC.and the RFC.