1930’s: The Bad Times1930’s: The Bad Times

The Good Times EndThe Good Times End

The 1920s had been a boom time for The 1920s had been a boom time for many Americans. many Americans.

Americans had better jobs with good Americans had better jobs with good pay. pay.

However, the good times of the However, the good times of the 1920s hid some weaknesses in the 1920s hid some weaknesses in the United States economy.United States economy.

Farms struggledFarms struggled

To help feed soldiers during WWI, To help feed soldiers during WWI, farmers had borrowed money from farmers had borrowed money from banks to buy additional land and banks to buy additional land and tools to produce more food. tools to produce more food.

After the war, farmers had a surplus After the war, farmers had a surplus (an increased amount) of crops. (an increased amount) of crops.

As crop production increased, crop As crop production increased, crop prices decreased and farmers had prices decreased and farmers had trouble paying their loans.trouble paying their loans.

Industries struggled Industries struggled Factory workers faced problems too. Just like the Factory workers faced problems too. Just like the

farmers, factories were producing more goods farmers, factories were producing more goods than they could sell.than they could sell.

With not enough buyers for their products, many With not enough buyers for their products, many factories began to lay off workers by the late factories began to lay off workers by the late 1920s. 1920s.

Unemployment (the condition of being out of Unemployment (the condition of being out of work) began to grow. Rising unemployment work) began to grow. Rising unemployment meant that many people could not afford to buy meant that many people could not afford to buy new products.new products.

The mining industry struggled because oil The mining industry struggled because oil replaced coal for fuel.replaced coal for fuel.

The lumber industry lost customers who switched The lumber industry lost customers who switched to new building materials such as concrete.to new building materials such as concrete.

Line Graph of the UnemployedLine Graph of the Unemployed

The Stock MarketThe Stock Market

During the 1920’s many Americans believed they During the 1920’s many Americans believed they could get rich by investing money in the stock could get rich by investing money in the stock market.market.

The stock market is a place where people buy and The stock market is a place where people buy and sell shares of businesses called stocks.sell shares of businesses called stocks.

If more people want to buy than sell a certain If more people want to buy than sell a certain stock, the price of the shares goes up. If more stock, the price of the shares goes up. If more people want to sell than buy, the price of shares people want to sell than buy, the price of shares goes down.goes down.

The center of the stock market is the New York The center of the stock market is the New York Stock Exchange on Wall Street in New York, New Stock Exchange on Wall Street in New York, New York.York.

Stock Market CrashStock Market Crash

The economic good times of the 1920s ended for many The economic good times of the 1920s ended for many people with the stock market crash in 1929.people with the stock market crash in 1929.

In September of 1929, some people decided to take their In September of 1929, some people decided to take their money out of the stock market. Share prices started to fall.money out of the stock market. Share prices started to fall.

Many investors got nervous and decided to sell too -- causing Many investors got nervous and decided to sell too -- causing prices to fall further.prices to fall further.

On October 29, 1929, prices fell sharply or “crashed”. On October 29, 1929, prices fell sharply or “crashed”. Nearly everyone lost money. Nearly everyone lost money.

Some people lost everything they owned.Some people lost everything they owned. The crash of the stock market was the end of the Roaring The crash of the stock market was the end of the Roaring

Twenties and the beginning of a hard period called The Great Twenties and the beginning of a hard period called The Great Depression. Depression.

Line Graph of the CrashLine Graph of the Crash

CreditCredit One reason why the stock market crash had caused panic One reason why the stock market crash had caused panic

among investors was that many of them had bought their among investors was that many of them had bought their stocks on credit or borrowed money. They planned to pay stocks on credit or borrowed money. They planned to pay back their loans to the banks after the price of stocks rose, back their loans to the banks after the price of stocks rose, but when the stock prices fell sharply, many people owed but when the stock prices fell sharply, many people owed more money than their stocks were worth.more money than their stocks were worth.

The credit problem hurt many banks. When investors and The credit problem hurt many banks. When investors and consumers could not pay back their loans, banks went consumers could not pay back their loans, banks went broke and had to close.broke and had to close.

People became frightened and rushed to take all of their People became frightened and rushed to take all of their money out before their bank closed. The banks did not money out before their bank closed. The banks did not have enough cash for every customer, so even more banks have enough cash for every customer, so even more banks closed. Many people lost all their savings. Few people even closed. Many people lost all their savings. Few people even had savings but almost everyone had debt.had savings but almost everyone had debt.

The Great DepressionThe Great Depression Recession is a downturn in the economy. Depression is a Recession is a downturn in the economy. Depression is a

long and very bad recession.long and very bad recession. The Great Depression last almost 10 years. The financial The Great Depression last almost 10 years. The financial

recovery of the Great Depression did not happen until 1954.recovery of the Great Depression did not happen until 1954. During a During a depressiondepression, industries do not grow, and many , industries do not grow, and many

people are out of work.people are out of work. Many people were unemployed and many people had lost all Many people were unemployed and many people had lost all

of their money after the stock market crash and bank of their money after the stock market crash and bank closings.closings.

People cut back on their spending and factories and People cut back on their spending and factories and businesses closed.businesses closed.

Poverty and hardship affected many Americans. By 1932, Poverty and hardship affected many Americans. By 1932, one in every four Americans (25%) had lost their jobs.one in every four Americans (25%) had lost their jobs.

Many people could not afford house payments or rent, so Many people could not afford house payments or rent, so many people were homeless. They faced poverty and many people were homeless. They faced poverty and hunger.hunger.

Fewer working people meant less tax money for local Fewer working people meant less tax money for local governments, so some schools had to cut teachers’ pay or governments, so some schools had to cut teachers’ pay or close schools.close schools.

Unemployment LinesUnemployment Lines

Herbert HooverHerbert Hoover President Hoover tried to improve the economy President Hoover tried to improve the economy

by asking business leaders not to lay off workers by asking business leaders not to lay off workers or cut wages. He asked government leaders to or cut wages. He asked government leaders to create jobs by building roads and public buildings. create jobs by building roads and public buildings. He supported the Reconstruction Finance He supported the Reconstruction Finance Corporation (RFC) in 1932 to lend money to banks Corporation (RFC) in 1932 to lend money to banks and industries. However, the depression and industries. However, the depression continued.continued.

Many people blamed President Hoover. Many people blamed President Hoover. Shantytowns became known as “Hoovervilles.” Shantytowns became known as “Hoovervilles.” Empty pockets turned inside out were called Empty pockets turned inside out were called “Hoover flags.” Newspapers used by homeless “Hoover flags.” Newspapers used by homeless people to keep warm were called “Hoover people to keep warm were called “Hoover blankets.”blankets.”

Surviving the DepressionSurviving the Depression

Many people put off getting married Many people put off getting married or having children.or having children.

Charity groups struggled to help. Charity groups struggled to help. Hungry people stood in breadlines for Hungry people stood in breadlines for hours waiting for free soup and a hours waiting for free soup and a piece of bread. piece of bread.

Franklin RooseveltFranklin Roosevelt By the time of the Presidential Election of By the time of the Presidential Election of

1932, many people wanted a change in 1932, many people wanted a change in government.government.

In November 1932, Americans voted Hoover In November 1932, Americans voted Hoover out of office. Franklin Roosevelt became out of office. Franklin Roosevelt became President of the United States.President of the United States.

Roosevelt believed that to end the Great Roosevelt believed that to end the Great Depression, the federal government needed Depression, the federal government needed to take bold new action.to take bold new action.

RooseveltRoosevelt

Roosevelt was re-elected three more Roosevelt was re-elected three more times, becoming the only U.S. times, becoming the only U.S. president to serve 4 terms.president to serve 4 terms.

Many Americans did not know that Many Americans did not know that Roosevelt suffered from polio and Roosevelt suffered from polio and used a wheelchair or crutches.used a wheelchair or crutches.

Fireside ChatsFireside Chats

President Roosevelt used the radio to win the President Roosevelt used the radio to win the confidence of Americans. confidence of Americans.

He spoke to the nation regularly by radio, He spoke to the nation regularly by radio, explaining his goals and the actions he had taken explaining his goals and the actions he had taken to try to end the Great Depression.to try to end the Great Depression.

These radio broadcasts came to be known as These radio broadcasts came to be known as “fireside chats” because families across America “fireside chats” because families across America gathered in their living rooms (near their gathered in their living rooms (near their fireplace) to listen to the President Roosevelt on fireplace) to listen to the President Roosevelt on the radio.the radio.

Fireside ChatsFireside Chats

The New DealThe New Deal

During the early days of Roosevelt’s During the early days of Roosevelt’s presidency, Congress approved presidency, Congress approved many of Roosevelt’s plans.many of Roosevelt’s plans.

This time became known as This time became known as The 100 The 100 Days.Days.

Roosevelt’s plan to end the Great Roosevelt’s plan to end the Great Depression became known as The Depression became known as The New Deal.New Deal.

The New Deal ProgramsThe New Deal Programs

The goal of the New Deal was to get The goal of the New Deal was to get people back to work.people back to work.

To provide jobs, the government created programs To provide jobs, the government created programs (which came to be known as “Alphabet Soup”:(which came to be known as “Alphabet Soup”:• AAA – Agricultural Adjustment AdministrationAAA – Agricultural Adjustment Administration• CCC – Civilian Conservation CorpsCCC – Civilian Conservation Corps• WPA – Works Progress AdministrationWPA – Works Progress Administration• TVA – Tennessee Valley AuthorityTVA – Tennessee Valley Authority• SSB – Social Security BoardSSB – Social Security Board• FDIC – Federal Deposit Insurance CorporationFDIC – Federal Deposit Insurance Corporation

CCCCCC

Civilian Conservation Civilian Conservation Corps hired single, Corps hired single, unemployed men unemployed men between the ages of between the ages of 18-25. The men were 18-25. The men were paid $30 a month, paid $30 a month, lived in camps, and lived in camps, and worked in parks and worked in parks and forests. forests.

The CCC employed The CCC employed about 3 million about 3 million people.people.

TVATVA

The Tennessee Valley Authority was The Tennessee Valley Authority was established by the federal established by the federal government to supply electricity in government to supply electricity in the Tennessee River basin and the Tennessee River basin and nearby areas. It also oversaw control nearby areas. It also oversaw control of floods. It still operates today.of floods. It still operates today.

WPAWPA

The Works Progress Administration The Works Progress Administration built buildings, bridges, and roads.built buildings, bridges, and roads.

It also created theater, art, and It also created theater, art, and writing for the time period. writing for the time period.

It employed over 8 million people.It employed over 8 million people.

Social Security ActSocial Security Act

The Social Security Act was one of the most The Social Security Act was one of the most important programs of the New Deal. Social important programs of the New Deal. Social Security provides monthly payments to the Security provides monthly payments to the elderly, the disabled, and unemployed.elderly, the disabled, and unemployed.

Social Security is still in effect today.Social Security is still in effect today. Every citizen of the United States is issued a Every citizen of the United States is issued a

social security card with his or her own social security card with his or her own identification number. identification number.

The Dust BowlThe Dust Bowl Just as the New Deal Programs were beginning to Just as the New Deal Programs were beginning to

help some farmers, a severe drought came to the help some farmers, a severe drought came to the farmlands of the Great Plains.farmlands of the Great Plains.

A drought is a long time period of no rain. A drought is a long time period of no rain. Dust storms blew across the plains; the sun was Dust storms blew across the plains; the sun was

blocked out, the crops were torn out of the blocked out, the crops were torn out of the ground, and many animals and people died.ground, and many animals and people died.

Many families left Oklahoma to start new lives in Many families left Oklahoma to start new lives in California, but life was hard there too. Many lived California, but life was hard there too. Many lived in squatter camps made up of tents and shacks. in squatter camps made up of tents and shacks. Some became migrant workers, moving from Some became migrant workers, moving from place to place to harvest crops.place to place to harvest crops.

Making a DifferenceMaking a Difference

During the Great Depression, many people helped those in During the Great Depression, many people helped those in need.need.

Eleanor Roosevelt, wife of President Roosevelt, traveled Eleanor Roosevelt, wife of President Roosevelt, traveled across the country to see if New Deal programs were across the country to see if New Deal programs were improving conditions.improving conditions.

Dorothea Lange took photographs. The FSA used her Dorothea Lange took photographs. The FSA used her photos to bring the public’s attention to the conditions of photos to bring the public’s attention to the conditions of those people affected by the Depression.those people affected by the Depression.

Author John Steinbeck wrote about he hardships faced by Author John Steinbeck wrote about he hardships faced by migrant workers. (A migrant worker is a person who moves migrant workers. (A migrant worker is a person who moves from place to place to harvest crops.) Steinbeck’s novel, from place to place to harvest crops.) Steinbeck’s novel, The Grapes of Wrath, published in 1939, tells the story of a The Grapes of Wrath, published in 1939, tells the story of a family that leaves the Dust Bowl of Oklahoma to find work family that leaves the Dust Bowl of Oklahoma to find work in California.in California.

Artists of the Great Depression Artists of the Great Depression EraEra

New Entertainment New Entertainment Although New Deal programs helped many Although New Deal programs helped many

people, they did not end the Great Depression.people, they did not end the Great Depression. People looked for ways to forget their troubles People looked for ways to forget their troubles

and have fun without spending a lot of money.and have fun without spending a lot of money. The comic book with characters that included The comic book with characters that included

Superman and Batman were a new form of Superman and Batman were a new form of entertainment in the 1930s.entertainment in the 1930s.

People played board games at home such as People played board games at home such as Monopoly.Monopoly.

People also went to the movies, and a new kind of People also went to the movies, and a new kind of movie theater appeared – the drive-in.movie theater appeared – the drive-in.

At the World’s Fair in 1939, people got a look at a At the World’s Fair in 1939, people got a look at a new invention called television.new invention called television.

Success During the Great DepressionSuccess During the Great Depression

Margaret Mitchell Margaret Mitchell won the Pulitzer Prize won the Pulitzer Prize in 1937 for her novel in 1937 for her novel Gone With the Wind. Gone With the Wind.

Jesse Owens was an Jesse Owens was an African American African American Olympic runner who Olympic runner who won 4 gold medals in won 4 gold medals in the 1936 Summer the 1936 Summer Games held in Berlin, Games held in Berlin, Germany.Germany.

Global DepressionGlobal Depression The Great Depression started in the United The Great Depression started in the United

States, but it quickly spread to other parts of the States, but it quickly spread to other parts of the world.world.

Millions of people around the world were Millions of people around the world were unemployed. unemployed.

Germany had not experienced the good times of Germany had not experienced the good times of the Roaring Twenties. It had huge debts to repay the Roaring Twenties. It had huge debts to repay to other countries after losing WWI.to other countries after losing WWI.

Inflation – a rapid rise in prices – was out of Inflation – a rapid rise in prices – was out of control in Germany, and German money became control in Germany, and German money became worthless. worthless.

In the next unit you will learn that these In the next unit you will learn that these hardships led to another conflict in Europe – hardships led to another conflict in Europe – WWII.WWII.