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THE GREAT DEPRESSION OF THE 1930’S Brother can you spare a dime?”

“Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929 “Black Thursday”, October 24, 1929 “Black Tuesday”, October 29, 1929

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Page 1: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

THE GREAT DEPRESSION OF THE 1930’S

“Brother can youspare a dime?”

Page 2: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

STOCK MARKET CRASH OF 1929

“Black Thursday”,

October 24, 1929

“Black Tuesday”,

October 29, 1929

Page 3: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

STRUCTURE OF AMERICAN SOCIETY DISINTEGRATES

Factories and mines close

Banks are worthless

Consumer buying comes to a standstill

Page 4: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

1932 – AMERICAN DREAMS ARE SHATTERED

14 million Americans are jobless (almost 1/3 the workforce)

Banks foreclose on houses and farms

No food, no clothes, no jobs

Recycled lifestyle

Page 5: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929
Page 6: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929
Page 7: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Causes of the Great Depression Buying on Credit American factories were putting out

too many products When the stock market crashed and

everyone lost money, no one had money to buy goods

Prices fell Agricultural surpluses soared

Page 8: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Stock Market problems

Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit

Margin: Americans were buying “on margin” – paying a small percentage of a stock’s price as a down payment and borrowing the rest

Page 9: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Bank Failure

After the crash, many Americans panicked and withdrew their money from banks

Banks had invested in the Stock Market and lost money

In 1929- 600 banks fail By 1933 – 11,000 of the 25,000

banks nationwide had collapsed

Page 10: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Unemployment and bankruptcy Between 1928-1932, the U.S.

Gross National Product (GNP) – the total output of a nation’s goods & services – fell nearly 50% from $104 billion to $59 billion

90,000 businesses went bankrupt

Unemployment leaped from 3% in 1929 to 25% in 1933

Page 11: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Hoovervilles

The Great Depression brought hardship, homelessness, and hunger to millions

Across the country, people lost their jobs, and their homes

Some built makeshifts shacks out of scrap material

Before long whole shantytowns (sometimes called Hoovervilles in mock reference to the president) sprung up

Page 12: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

One of the common features of urban areas during the era were soup kitchens and bread lines

Soup kitchens and bread lines offered free or low-cost food for people

Page 13: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Dustbowl Approaching Stratford, Texas, 1934

Page 14: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Dust Storm Approaching Kansas

Page 15: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Aftermath of a Dust Storm

Page 16: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

DUST BOWL (DUST STORMS) OF THE SOUTHERN PLAINS 1934-1935

Page 17: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Black SundayApril 14, 1935

24 hours of a blinding dust storm

Dreaded black-blizzard covers entire disaster area

Drought adds further devastation

Page 18: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929
Page 19: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

THE VICTIMS OF THE DUST BOWL

Colorado Kansas Oklahoma New Mexico Texas

Devastation of their cropland

Respiratory health issues

Unsanitary living

Rampant crime

Debt-ridden families

Page 20: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Dustbowl Affects

Kansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust Bowl

Many farmers migrated to California and other Pacific Coast states

Page 21: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

DUST BOWL ORPHANS

Mass exodus to California

Opportunities in Russia

Migrant workers become source of cheap labor

Page 22: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Great Depression

The 1930s created the term “hoboes” to describe poor drifters

300,000 transients – or hoboes – hitched rides around the country on trains and slept under bridges (thousands were teenagers)

Injuries and death was common on railroad property; over 50,000 people were hurt or killed

Page 23: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Hoover Blamed for Depression Hoover was not quick to react to the

depression He believed in “rugged

individualism” – the idea that people succeed through their own efforts

People should take care of themselves, not depend on governmental hand-outs

He said people should “pull themselves up by their bootstraps”

Page 24: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Franklin Roosevelt Elected Franklin Roosevelt ran for the residency in

1932 Hoover didn’t have a chance of winning,

too many people blamed him for the depression

FDR’s platform for the election was known as the THREE R’s: Relief, Recovery, Reform

First Hundred Days: a whirlwind of reform was taken during this period

Roosevelt’s recovery plan was named New Deal

Page 25: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

New Deal

Short range goals: relief and immediate recovery-next two years

Long range goals: permanent recovery and reform of abuses

Page 26: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Bank Reform

Glass Steagall Banking Reform Act- Created the Federal Deposit Insurance

Corporation Peoples deposits were insured up to $5000

Money was taken off the gold standard Gold was purchased at increased rates,

getting more paper money into circulation, causing inflation and relieving some debtors problems

Page 27: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Creating Jobs and Improving Economy Civilian Conservation Corps

Reforestation Firefighting Flood control Swamp drainage

Federal Emergency Relief Act Short term relief

Agricultural Adjustment Act Money to farmers to meet their mortgages

Home Owners’ Loan Corporation Refinance mortgages of nonfarm homes

Page 28: “Brother can you spare a dime?”. STOCK MARKET CRASH OF 1929  “Black Thursday”, October 24, 1929  “Black Tuesday”, October 29, 1929

Creating Jobs and Improving Economy Federal Housing Administration

Loans given to improve old houses or complete new ones

Social Security Act Money that can be collected by older

generation not working Passed primarily as a help to World War I

Vets National Recovery Administration

Hours of labor reduced allowing more people to work during the day