Great Depression

Photographs

Homeless People on the Road

Eating in a Breadline

Life in the DepressionLife in the Depression

1010thth American History American HistoryUnit IV- U.S. Economic Unit IV- U.S. Economic

History to 1945History to 1945

The Great DepressionThe Great Depression

Reading QuizReading Quiz1) What is a run on the bank?

2) Give two causes of the depression.

3) What was a “Hooverville”?

4) What was the Dust Bowl?

5) What are Okies?

6) Why did farmers and other businesses fail?

What did Hoover do?What did Hoover do?

Traditional Approach to a Traditional Approach to a depressiondepression- Cut Government - Cut Government Spending and let the Depression Spending and let the Depression burn it self out- this will get rid of burn it self out- this will get rid of the rottenness in the system.the rottenness in the system.

Hoover did not sit stillHoover did not sit still He called on states, cities, and all He called on states, cities, and all

private charities to feed the hungry.private charities to feed the hungry. Brought business and labor leaders Brought business and labor leaders

together.together. Cut his own salary by 1/5thCut his own salary by 1/5th Cut taxes- did little goodCut taxes- did little good Public works jobs.Public works jobs.

The Great Depression Begins in AmericaThe Great Depression Begins in America3:24 min.

Causes of the Great DepressionCauses of the Great Depression1) The Stock Market Crash of 1929- a trigger.1) The Stock Market Crash of 1929- a trigger.

2) Unequal distribution of Wealth. False 2) Unequal distribution of Wealth. False prosperity (A maldistribution of prosperity (A maldistribution of purchasing power).purchasing power).

3) Overproduction and over dependence on 3) Overproduction and over dependence on mass production.mass production.

4) Unemployment4) Unemployment

5) Speculation in Stock Market- buying on 5) Speculation in Stock Market- buying on margin and cheap moneymargin and cheap money

6) Banking crisis.6) Banking crisis.

7) Trade collapse7) Trade collapse

8) Republican Party8) Republican Party

9) Federal Reserve and Money system9) Federal Reserve and Money system

10) Lack of diversification.10) Lack of diversification.

11) Post war deflationary procedures.11) Post war deflationary procedures.

12) The Credit structure.12) The Credit structure.

Development of the Great DepressionDevelopment of the Great Depression

Bank FailuresBank FailuresNot all Americans invested but most all had Not all Americans invested but most all had

money in savings.money in savings.Banks had no deposit insurance and little Banks had no deposit insurance and little

cash on hand.cash on hand.Runs on banks.Runs on banks.Hundreds of banks failed.Hundreds of banks failed.By 1933- bank failures wiped out billions of By 1933- bank failures wiped out billions of

dollars of savings, add this to the crash and dollars of savings, add this to the crash and things got worse.things got worse.

Development of the Great DepressionDevelopment of the Great Depression

Farm FailuresFarm FailuresUnemployment reduced American’s ability to Unemployment reduced American’s ability to

buy food and people went hungrybuy food and people went hungryFarmers overproduced, surpluses went up and Farmers overproduced, surpluses went up and

prices went down.prices went down.Lower prices means lower income for farmers.Lower prices means lower income for farmers.Farmers borrowed for land and equipment, Farmers borrowed for land and equipment,

now were unable to repay loans.now were unable to repay loans.1933- over 364,000 1933- over 364,000 foreclosuresforeclosures

Development of the Great DepressionDevelopment of the Great Depression

UnemploymentUnemployment1929-1930 steep rise in unemployment 1929-1930 steep rise in unemployment

which would last a long time.which would last a long time.1933- GNP dropped more than 40%1933- GNP dropped more than 40%1933- unemployment was at 25%.1933- unemployment was at 25%.Black areas were higher- Harlem up to Black areas were higher- Harlem up to

50%50%

The Human Impact of the Great DepressionThe Human Impact of the Great Depression HoovervillesHoovervilles

Thousands applying for every job.Thousands applying for every job. People begged from door to door.People begged from door to door. Soup kitchens and Bread lines.Soup kitchens and Bread lines. 1930’s- no federal programs to provide food or money to 1930’s- no federal programs to provide food or money to

the poor.the poor. Local Charities, municipal and state gov’t provided relief.Local Charities, municipal and state gov’t provided relief. 1932 on 1 in 4 families needing unemployment relief got 1932 on 1 in 4 families needing unemployment relief got

any.any. People lost their homes- eviction and foreclosure.People lost their homes- eviction and foreclosure. Hoovervilles- Shantytowns for the homeless.- Hoovervilles- Shantytowns for the homeless.-

Ramshackle, leaky and draftyRamshackle, leaky and drafty No running water or electricityNo running water or electricity Unemployed males were idle and desperate. Unemployed males were idle and desperate. Emotional Toll- personal failure, pride, angerEmotional Toll- personal failure, pride, anger

The Human Impact of the Great DepressionThe Human Impact of the Great Depression HoboesHoboes

Mostly men- unskilled migratory Mostly men- unskilled migratory laborer, an itinerant and seasonal laborer, an itinerant and seasonal worker.worker.

Mostly white, American born, and Mostly white, American born, and able bodied. able bodied.

Hopped trains to travel from town to Hopped trains to travel from town to town- Illegal, dangerous and hired town- Illegal, dangerous and hired “Bulls”.“Bulls”.

Beg or stole food.Beg or stole food. System of sign language.System of sign language. Families sometimes broke under the Families sometimes broke under the

strain of poverty and homelessness. strain of poverty and homelessness. Many left their families behind.Many left their families behind.

The Great DepressionThe Great Depression 4:30 min.

Devastation of the Dust BowlDevastation of the Dust Bowl Great Plains Drought- Great Plains Drought-

19311931 Dust storms Dust storms

brought on by years of brought on by years of careless agriculture careless agriculture practices.practices.

Wind storms stripped away Wind storms stripped away topsoil and blew it for topsoil and blew it for hundreds of miles.hundreds of miles.

Drifts choked crops, buried Drifts choked crops, buried farms and blew into homes.farms and blew into homes.

Dust BowlDust Bowl

Devastation of the Dust BowlDevastation of the Dust Bowl MigrationMigration

Fleeing the Plains- Fleeing the Plains- “Okies”“Okies” People quit, packed up and People quit, packed up and

moved.moved. End of 1930’s- 2.5 million End of 1930’s- 2.5 million

left.left. Headed west on Route 66 to Headed west on Route 66 to

California and migrant California and migrant farm camps.farm camps.

Met by resistance and Met by resistance and discrimination.discrimination.

Grapes of WrathGrapes of Wrath- book- book

Devastation of the Dust BowlDevastation of the Dust Bowl

1:02 min.

0:36 min.

Migration the Dust BowlMigration the Dust Bowl

4:17 min.

2:50 min.

Hoover’s Reaction to the DepressionHoover’s Reaction to the Depression

Rugged individualismRugged individualism Unnecessary gov’t threatens prosperity and dims the spirit Unnecessary gov’t threatens prosperity and dims the spirit

of the peopleof the people Some gov’t oversight and regulation is needed, but people Some gov’t oversight and regulation is needed, but people

need their own responsibility and power.need their own responsibility and power.

Associative stateAssociative state Voluntary business associations- for fairness and efficiency.Voluntary business associations- for fairness and efficiency. Voluntary partnership with businesses and government.Voluntary partnership with businesses and government. Hoover Dam-government funded it, but six companies Hoover Dam-government funded it, but six companies

designed and built it.designed and built it.

Hoover’s Reaction to the DepressionHoover’s Reaction to the Depression Voluntary cooperationVoluntary cooperation

Gov’t should not provide direct aid but find ways to help people help Gov’t should not provide direct aid but find ways to help people help themselves.themselves.

Farm cooperatives-organization owned and controlled by its members.Farm cooperatives-organization owned and controlled by its members. Help farmers buy materials cheaper, and help raise crop price and farmer Help farmers buy materials cheaper, and help raise crop price and farmer

income.income. Hoover urged business leaders not to lay off workers or cut wages.Hoover urged business leaders not to lay off workers or cut wages.

Direct action- cooperation was not working.Direct action- cooperation was not working. Businesses cut jobs and wagesBusinesses cut jobs and wages States and locals stopped building programsStates and locals stopped building programs Consumers stopped spendingConsumers stopped spending 1932 Hoover created with Congress the Reconstruction Finance Corporation- 1932 Hoover created with Congress the Reconstruction Finance Corporation-

$2 billion in direct government loans to struggling banks, insurance $2 billion in direct government loans to struggling banks, insurance companies and other institutions.companies and other institutions.

1932- Federal Home Loan Bank- to encourage home building and stop 1932- Federal Home Loan Bank- to encourage home building and stop foreclosures.foreclosures.

The Smoot-Hawley Tariff- High and disastrousThe Smoot-Hawley Tariff- High and disastrous

Nation’s Response to HooverNation’s Response to Hoover Losing favorLosing favor

Hoover was optimistic- but the worst was yet Hoover was optimistic- but the worst was yet to come.to come.

He still refused direct aid.He still refused direct aid. But he did give aid to banks and businesses But he did give aid to banks and businesses

but not individuals.but not individuals.

Bonus Army- 15,000 set up campBonus Army- 15,000 set up camp 1932- WWI Veterans march on Washington 1932- WWI Veterans march on Washington

to demand their bonus $1.25 for each day to demand their bonus $1.25 for each day overseas- to be paid in 1945overseas- to be paid in 1945

They need the money nowThey need the money now Hoover sent out the troops to clear them Hoover sent out the troops to clear them

out- Violenceout- Violence

Voter Reaction- 1930 Republicans Voter Reaction- 1930 Republicans began to lose seats in Congress.began to lose seats in Congress.