The Great Depression2

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					The Great Depression
         Jennifer Jensen
The Crash

• In October of 1929, the Great
  Depression began with the Stock
  Market Crash
• Thousands of investors lost almost
  everything
• It was triggered somewhat by the
  British, who raised their interest rates
  dramatically
“Black Tuesday”
• October 29, 1929
• Over 16 million
  stocks were sold
  by people trying to
  save themselves
• Suicides increased
  alarmingly
• Major bankers such
  as J.P. Morgan
  bought large
  amounts of stock
  to reassure the
  nation
Business Depression

• The collapse of the stock market not
  only harmed Americans, but also
  many countries abroad
• No other nation suffered such a
  severe blow
• The crash left more than 4 million
  Americans jobless and over 13
  million unemployed by 1933
• Corporate profits fell from $10 billion
  to $1 Billion
The Government

• The government’s first plan was to let
  the whole thing blow over
• There had been previous recessions
• They thought that when the prices
  would drop, some wealthy
  entrepreneur would step in and
  everything would be back to normal
American Life
                • Thousands of
                  foreclosures
                  occurred
                • Soup kitchens tried
                  to help the best
                  they could
                • Farms foreclosed
                • Home life was
                  extremely stressful
                  for husbands who
                  were expected to
                  bring home wages
American Life

• Diseases such as
  dysentery and
  malnutrition plagued
  the country
• Many people moved
  out West in search
  of jobs
• Homeless wanderers
  roamed the Western
  states
Women and the Depression

• Although the Great    • Surprisingly, the
  Depression was          women workforce
  harder on men,          increased during the
  women also had          depression to
  troubles                replace their
• Men thought that it     husbands’ pay
  was unfit for women     losses
  to have jobs if the   • Even after, the New
  men were                Deal increased the
  unemployed              amount of available
                          jobs for women
Children and the Depression

                  • Children took on
                    more responsibilities
                  • They got jobs
                  • Sometimes the
                    roles between
                    parents and their
                    children were
                    reversed
Minorities and the Depression

• The Great Depression was less painful
  for the minorities living in America
• “Last hired and first fired”
• They were often thrown out of their
  jobs to give the unemployed whites an
  opportunity
• Mexican Americans and Native
  Americans saw similar treatment
“Plague of Plenty”

• The depression was actually caused
  by overproduction
  • Farm
  • Factory
• The ability of America to produce
  materials had flown too fast for the
  Americans to keep up with
• In other words, the American
  consumption of goods was low while
  the production was high.
Hoover and the Depression

• “Hoovervilles”
  popped up
  • These were small
    slums which people
    named after the
    president due to
    their bitterness
    towards him
• He refused to
  provide government
  aid to the
  unemployed
Farm Life
• The farmers were        • People all over America
  already in a              were going hungry, yet
  depression since the      they could not afford to
  early 1920’s              buy any of the surplus
• It was getting worse      crops.
  for the farmers since   • Then, in 1930, the
  the stock market          Great Plains were hit
  crash                     with another blow- the
• Prices for goods were     Dust Bowl destroyed
  lowered by nearly         what little the farmers
  50% between 1929-         had left
  1932                    • The Grapes of Wrath is
                            based on this
Too Little, Too Late

• Hoover, seeing the economy crumbling
  finally decided to help
• He provided emergency loans
  • Banks
  • Industries
• Expanded public works
• Helped states offer relief
“Mutual Self-Help Through
    Voluntary Giving”

             • Hoover’s new motto
             • Urged people to help
               each other out
             • Private giving increased
             • Too many people in
               need
             • Hoover was convinced
               that giving government
               money would weaken
               his idea of self-reliance
Tariffs

• Hoover thought that by enacting tariffs,
  imports would decrease and American-made
  products would sell more
• In 1930, the Hawley-Smoot Tariff was
  passed
  • This was the highest tariff ever at nearly 60%
• This tariff required other countries, who
  were falling into depression as well, to raise
  their tariffs, too
The World and Depression

• With the tariffs raising     • About 40% of the
  all around the world,          German working men
  international trade was        became unemployed
  declining                      during the depression
   • Trade would decrease by     • They began to listen to
     half during the               the words of Hitler
     depression                • Great Britain was not
• Germany was hard-hit           as bad off, due to the
  due to the many debts          fact that they had
  they still had after WWI       government welfare
                                 payments
The World and Depression
• France took a while to     • With this violation of
  feel the effects of the      the League of Nations,
  depression                   the American public
   • They were less            was shocked
     industrialized as the
     other nations           • America sent written
• The Japanese, sensing        notes from the
  the effects the              Secretary of State,
  depression had on the        Henry Stimson at the
  world, decided to take       Japanese, yet they
  advantage of it.             would not withdraw
• The Japanese went          • Americans boycotted
  into Chinese                 Japanese-made goods
  Manchuria and took
  over
The Election of 1932

• In the election of
  1932, two main
  candidates
  emerged:
  • Franklin Delano
    Roosevelt (FDR)
     • Democrat
     • Preached a New Deal
  • Herbert Hoover
     • Republican
     • “Pledged to maintain a
       balance budget.”
Franklin D. Roosevelt

• Roosevelt was elected in 1932
• He had the 3 R’s:
  • Relief
  • Recovery
  • Reform
• “Let me assert my firm belief that the only
  thing we have to fear is fear itself.”
  • FDR (Inauguration Day)
The Three R’s

• Relief:
  • One of the short-range goals
  • Needed relief for the first two years
• Recovery:
  • Needed immediate recovery and long-term
    permanent recovery after
• Reform:
  • Reform of current abuses such as the ones that
    had produced the boom-or-bust disaster
FDR: The New President

                 • He immediately called
                   in a session of Congress
                   after his inauguration
                 • He organized new bank
                   holidays
                 • Afterward, he assured
                   the nations that banks
                   would be safe
                 • Known as the
                   Emergency Banking
                   Relief Act of 1933
The New Deal

• A group of programs that would:
  • Reduce unemployment
  • Assist businesses and agriculture
  • Regulate banking
  • Regulate the Stock Market
  • And provide security for the needy,
    elderly, and disabled
Public Works

• Roosevelt’s plan was to
  create public works
  systems
• This:
   • Provided jobs
   • Built roads, schools, and
     dams
• Even the Tennessee
  Valley Authority
  provided electricity to
  the southeastern US
                                 Men labor on an Arkansas River
                                       public-works project
Limiting Crop Surpluses

• In 1933, the Agriculture Adjustment
  Administration (AAA) was formed
• This organization would pay growers
  to use less acreage when growing
  crops
• It was done to prevent crop
  surpluses in America at the time
The Depression Comes to an End

• By 1939, the unemployment rate was
  still at 15%
• With the outbreak of WWII, the
  demand for materials increased and
  industries began to gain momentum
• Industry expanded
• The demand for laborers increased and
  the unemployment rate declined
A Depression Legacy

• The New Deal changed the economy
• The government expanded and became
  more powerful
• American values changed
• The Social Security Act came into play
• Literature and art was shaped by the
  Depression
  •   Mr. Smith Goes to Washington (Film)
  •   Norman Rockwell (Painter)
  •   Woody Guthrie (Folk Singer)
  •   The Grapes of Wrath by John Steinbeck
Works Cited

• http://www.multied.com/elections/Conventio
  ns/1932Rep.html
• http://encarta.msn.com/encyclopedia_7615
  84403_2/Great_Depression_in_the_United_
  States.html
• http://www.j-bradford-
  delong.net/TCEH/Slouch_Crash14.html
• http://www.english.uiuc.edu/maps/depressi
  on/about.htm
• http://home.earthlink.net/~gfeldmeth/USHis
  tory.html

				
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posted:10/28/2011
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