The Great Depression

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The Great Depression

• What would you do to feed your family?

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Day of Wrath
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Examine the Issues

• What groups of people will be most hurt by the
  economic crash?
• What can you do to find a paying job?
• What can unemployed and impoverished people do to
  help each other?

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The Nations Sick Economy

• Main Idea
• As the prosperity of the 1920s ended, severe
  economic problems gripped the nation.
• Why it Matters Today
• The Great Depression has had lasting effects on
  how Americans view themselves and their government

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Economic Troubles on the Horizon

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

½ of Americans earned less than the minimum
needed to live
McNary-Haugen Bill- take surplus off market and
store it
People had too much debt, no money to buy goods
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Election of 1928

• Republicans nominate Herbert Hoover
• We in America are nearer to the final triumph
  over poverty than ever before.
• Democrats nominate Alfred E. Smith
• 1st Roman Catholic to run for President
• Happy Warrior
• Hoover wins the election

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Dream of Riches in the Stock Market

• Those who had money invested in the stock market.
• Dow Jones Industrial Average-
• Dow- was measured based on the stock prices of
  the 30 major firms on the NYSE.
• 1920s- Dow rose to 381 pts/ 300 pts higher than
  it had been.
• Bull Market- a period of rising stock.
• By 1929- 4 mill,3 of Americans owned stock
• Speculation- bought stock for a chance of a quick
  profit.
• Buying on Margin- paid a small and borrowed the
  rest.
• People couldnt pay off the loans.

"The bull and bear, symbolic beasts of finance
and market trend."
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The Stock Market Crashes

• In September 1929, stock prices peaked and prices
  fell.
• Black Tuesday
• October 29, 1929- stock market crashed.

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Financial Collapse

• The stock market crash signaled the beginning of
  the Great Depression- the period between
  1929-1940 in which the economy plummeted and
  unemployment skyrocketed.
• Bank Business Failures
• 1929, 600 banks closed
• 1933, 11,000 of the 25,000 banks failed
• 90,000 businesses went bankrupt
• Worldwide Shock Waves
• Europe suffered from war debts
• Hawley-Smoot Tariff Act- protective tariff.

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Causes of the Great Depression

• Tariffs and war debt policies that cut down the
  foreign market for American goods
• A crisis in the farm sector
• The availability of easy credit
• An unequal distribution of income

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The Nations Sick EconomyReview

• How did what happened to farmers during the
  1920s fore-shadow events of the Great
  Depression?
• During the 1920s, farmers faced decreased demand
  for their products and lower crop prices. Those
  who were in debt could not repay loans, and rural
  banks failed. This pattern repeated itself in
  other sectors of the economy during the
  Depression.
• What were some of the effects of the stock market
  crash in October 1929?
• The stock market crash triggered bank and
  business failures, high unemployment, and
  worldwide depression.

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Hardship Suffering During the Depression

• Main Idea
• During the Great Depression Americans did what
  they had to do to survive.
• Why it Matters Today
• Since the Great Depression many Americans have
  been more cautious abut saving, investing, and
  borrowing.

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Hardship and Suffering During the Great Depression
Both loss jobs, homes
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The Depression Devastates Peoples Lives

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

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Effects on the American Family

• In the face of the suffering caused by the Great
  Depression, the family stood as a source of
  strength for most Americans.
• At a time when money was tight, many families
  stayed at home and played board games, such as
  Monopoly(1913) listen to the radio.
• Men in the streets
• Many men had difficulty coping with unemployment
• As many as 300,000 transits or hoboes wandered
  the country
• Direct Relief- cash payments or food provided by
  the government to the poor.

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Family Hardships

• Children Suffer hardships
• Poor diets and a lack of money for health care
  led to serious health problems.
• Falling tax revenues also caused school boards to
  shorten the school year and even close schools.
• 1933-2,600 schools shut down
• Teenagers hopped on freight trains in search for
  work.
• Wild boys

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Family Hardships-Cont

• Social and Psychological Effects
• Many people lost their will to survive
• Between 1928-1932- suicide rate rose more than
  30
• People made sacrifices
• During the Great Depression many people showed
  great kindness to strangers who were down on
  their luck

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Hardship Suffering During the Depression Review

• How were shanytowns, soup kitchens, and bread
  lines a response to the Depressions?
• They were places where charitable organizations
  handed out food to the hungry.
• What pressures did the American family experience
  during the Depression?
• Unemployment, reduced household income, some
  families lost homes. Many adults lost the
  ability to provide for their families.

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Hoover Struggles with the Depression

• Main Idea
• President Hoovers conservative response to the
  Great Depression drew criticism from many
  Americans.
• Why it Matters Today
• Worsening conditions in the country caused the
  government to become more involved in the health
  and wealth of the people.

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Philosophy

• Hoovers Philosophy
• Gov. should facilitate and encourage cooperation
• People should take care of themselves

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Hoovers Responses and Reactions

• Initial Reaction
• After the stock market crash of October 1929,
  President Herbert Hoover tried to reassure
  Americans that the nations economy was on a
  sound footing.
• No layoffs or dont cut wages
• Hoovervilles Hoover Flags
• Economic Situation in the 1930s
• Continue to worsen
• Unemployment continued to rise
• Companies went out of business
• Voters Response
• Democrats win control of House of Representatives
• Hoovers Economic Solution
• Construction of a dam on the Colorado River
• CA,NM, CO,UT,WY,NV/ 1929 700 million (Hoover
  Dam)
• Federal Farm Board- tried to help raise crop
  prices
• Federal Home Loan Bank Act- Lower Mortgages and
  refinance homes
• Reconstruction Finance Corps- 805 billion to
  banks
• Economy Reponse
• Continued to worsen

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Hoovers Reaction and Responses (Continued)

• Bonus Army
• In 1932, 10,000 to 20,000 WWI veterans and their
  families arrived in Washington, D.C., from
  various parts of the country.
• Demanding compensation for service in WWI
• The Patman Bill Denied
• The bill was to pay a bonus to WWI veterans who
  had not be compensated for their wartime service.
• Hoovers Response
• Opposed immediate payment and ordered an infantry
  to shut down their shanytowns on the capitol.
• Eventually led to 1,000 people being gassed and 1
  baby death
• Hoovers political situation?
• Public was outraged
• Damaged his image

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Hoover Struggles with the DepressionReview

• How did Hoovers treatment of the Bonus Army
  affect his standing with the public?
• The harshness of the attack on the veterans and
  their families damaged Hoovers reputation.
• In what ways did Hoover try to use the government
  to relieve the Depression?
• He started public-works programs and backed the
  Federal Farm Board, Federal Home Loan Bank Act,
  and the RFC.

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Test Today! Great Depression

• Place the following notes in order
• The Nations Sick Economy
• Hardship and Suffering During the Depression
• The Great Depression Takes Its Toll
• Hoover Struggles with the Depression
• After the Test, pick up the Vocabulary for Ch.18