The Great Depression

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					The Great Depression
What would you do to feed your
           family?
      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?
The Nation’s Sick Economy
              Main Idea
As the prosperity of the 1920’s 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
Economic Troubles on the Horizon
 As the 1920’s advanced, serious problems
 threatened economic prosperity.
 Farmers grew more crops and raised more
 livestock than they could sell.



              Industries
              Railroads
              Coal Mines
   Uneven                   Farmers
Distribution of        McNary-Haugen Bill
   Income       Economic Price Supports
                Problems


       Living on     Consumers
         Credit      Less money
    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.
1920’s- 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 couldn’t pay off the loans.
    The Stock Market Crashes
In September 1929, stock prices peaked
and prices fell.
Black Tuesday
   October 29, 1929- stock market crashed.
              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.
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
     The Nation’s Sick Economy
              Review
How did what happened to farmers during the
1920’s fore-shadow events of the Great
Depression?
   During the 1920’s, 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.
 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.
    The Depression Devastates
         People’s Lives
The Depression
brought hardship,
homelessness, and
hunger to millions.



                 The Depression

 In the Cities    In Rural Areas        Dust Bowl

 Shanytowns
                 400,000 farms lost   Severe Drought
Soup Kitchens
                  Tenant farming         Midwest
 Bread Lines
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.
             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”
         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
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.
     Hoover Struggles with the
           Depression
                 Main Idea
President Hoover’s 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.
     Hoover Tries to Reassure the
                Nation
After the stock market crash of October
1929, President Herbert Hoover tried to
reassure Americans that the nation’s
economy was on a sound footing.
Hoover’s Philosophy
    Gov. should facilitate and encourage
     cooperation
    People should take care of themselves
Hoover Takes Cautious Steps
    No layoffs or don’t cut wages
    “Hoovervilles”
Boulder Dam
    Construction of a dam on the Colorado River
    CA,NM, CO,UT,WY,NV
    1929-$700 million
    Later called the Hoover Dam
Democrats win in 1930 Congressional
Elections
        Hoover Takes Action
President Hoover gradually softened his position on
government intervention in the economy and took a
more activist approach to the nation’s economic troubles.

                    Hoover’s Actions


      Backs Cooperatives         Direct Intervention

                             Federal Home Loan Bank Act
     Federal Farm Board
                                  Glass-Steagall Act
     National Credit Corp.   Reconstruction Finance Corp.
       Gassing the 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.
The Patman Bill Denied
   The bill was to pay a bonus to
    WWI veterans who had not be
    compensated for their wartime
    service.
Hoover Disbands the
Bonus Army
   July 28, under the command
    of Gen. Douglas MacArthur
    and his aide, Maj. Dwight D.
    Eisenhower.
      Hoover Struggles with the
            Depression
              Review
How did Hoover’s treatment of the Bonus Army
affect his standing with the public?
   The harshness of the attack on the veterans and their
    families damaged Hoover’s 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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