The Great Depression

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The Great Depression
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The Great Depression

• In the 1930s the United States went into a severe
  economic state.

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Causes of the Great Depression

• People over speculated on stock and the market
  crashed people bought lots of stocks using
  borrowed money that they could not repay when the
  market crashed
• The Federal Reserve System failed to prevent the
  collapse of the banking system
• World-wide depression which lead to high tariffs
  (tax on goods coming from other countries).High
  tariffs discouraged international trade.
• Surplus of goods (too many products available and
  not enough buyers)

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1920s American Spending

• Between 1925 and 1929, Americans borrowed money
  and purchased more stock.

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Stock Market
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October 29, 1929Black Tuesday
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What is the immediate effect of Black Tuesday?
Banks close!
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Banks Close

• There was a run on banks because people tried to
  get their money out.
• Banks closed because there was no money to give
  to people because money was uninsured and banks
  were not regulated well.

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Value of Stocks

• The stock market crash hurt many Americans
  because their stocks became worthless.

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What is life like during the Great Depression?

• High unemployment One quarter or 25 of people
  lose their jobs
• A large number of people become homeless and
  hungry
• A large number of banks and businesses failed
• Farmers incomes fell to low levels

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Businesses

• Businesses failed during the Depression because
• Banks asked for repayment of loans
• Customers became unemployed and could not
  purchase consumer goods
• Banks foreclosed on many businesses

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Farmers

• Even before the Great Depression farmers faced
  economic hard times.
• Farmers would face the hardest economic times
  during the Depression.

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Dust Bowl

• The southern Great Plains suffered an
  environmental disaster and became known as the
  Dust Bowl
• Causes were drought, overgrazing, and
  overplowing.
• As a result, massive dust storms called black
  blizzards continued for years.
• Thousands of Dust Bowl farmers went bankrupt and
  lost their farms. Many migrated to California.

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President Herbert Hoover
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Where could a person or family get aid during the
Great Depression?
soup kitchens bread lines Salvation Army
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President Hoovers Response

• President Hoover believed that the Great
  Depression was only temporary and that prosperity
  was just around the corner.
• Hoovers refusal to provide funds for the
  unemployed during the Depression was based on the
  belief that private companies and volunteers
  should provide for the unemployed.
• Shacks were called Hoovervilles to show Hoovers
  failure.

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Where did people live during the Great
Depression?
Hoovervilles
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President Franklin Delano Roosevelt
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The New Deal

• Alphabet Soup

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AAA
Agriculture Adjustment Administration

• paid farmers not to grow crops

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Farmers

• Roosevelt encouraged farmers to produce less and
  gave them money.
• Dust Bowl Relief
• New Deal reforms provided farmers with low-cost
  loans to help them keep their farms.

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Social Security Act

• Money given to people over 65 and the disabled

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CCC
Civilian Conservation Corp

• provided jobs to young men, planted trees, built
  bridges and parks, set up food control

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TVA
Tennessee Valley Authority

• built dams to provide cheap electricity in
  southern states

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FDIC
Federal Deposit Insurance Corporation

• insured the savings accounts in banks approved by
  the governmentyou will always be able to get
  your money out of the bank you put it in

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FERA
Federal Emergency Relief Administration

• gave relief to needy and unemployed

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PWA
Public Works Administration

• built ports, schools and aircraft carriers

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Major Features

• Farm assistance programs
• Social Security
• Federal work programs
• Environmental improvement programs
• Increased rights for labor

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Depression Ends

• True prosperity did not return to America until
  factories geared up production for World War II.