The Great The Great DepressionDepression

Hard TimesHard TimesThe year is 1929. The U.S. The year is 1929. The U.S. economy haseconomy has collapsed collapsed. . Farms, businesses, and Farms, businesses, and banks nationwide are banks nationwide are

failing, causing massive failing, causing massive unemployment and unemployment and

povertypoverty..

You are out of work with You are out of work with little prospect of finding a little prospect of finding a

job.job.

The Nation’s Sick The Nation’s Sick EconomyEconomy

Late 1920’s Industries Struggled:Late 1920’s Industries Struggled:

Railroad, Textiles, Steel, Mining, and Railroad, Textiles, Steel, Mining, and Lumber.Lumber.

Auto sales and new housing starts Auto sales and new housing starts declined.declined.

Demand for crops dropped after WWI Demand for crops dropped after WWI

Price- SupportsPrice- Supports for key crops such as for key crops such as wheat, corn, cotton, and tobacco wheat, corn, cotton, and tobacco were vetoed.were vetoed.

Late 1920’s EconomyLate 1920’s Economy Danger Signs Persist – 1928-29Danger Signs Persist – 1928-29 Americans were buying lessAmericans were buying less Rising Prices $, not in FarmingRising Prices $, not in Farming OverproductionOverproduction, Stagnant Wages, Stagnant Wages Uneven distribution of WealthUneven distribution of Wealth Buying goods on Buying goods on creditcredit SpeculationSpeculation in the stock market in the stock market Buying Stocks on MarginBuying Stocks on Margin

The Dust BowlThe Dust Bowl

Farmers overproduced and destroyed Farmers overproduced and destroyed soilsoil

Dust Bowl brought drought and high Dust Bowl brought drought and high winds to the Midwestwinds to the Midwest

BULL MarketBULL Market

The Dow Jones The Dow Jones Industrial AverageIndustrial Average

The CrashThe Crash In Sept. 1929 stock prices In Sept. 1929 stock prices peaked then began to fall.peaked then began to fall.

Investors became weary, Investors became weary, and sold their stocks and and sold their stocks and pulled out.pulled out.

Oct. 24, 1929 – Oct. 24, 1929 – Black Black ThursdayThursday – The market – The market begins to plunge.begins to plunge.

Crash Part IICrash Part IIThe Big Crash- The Big Crash- Oct.29Oct.29thth, , 1929-Black 1929-Black TuesdayTuesday

Massive selling 16.4 Massive selling 16.4 million shares, no million shares, no buyers.buyers.

By mid Nov. investors By mid Nov. investors lost $30 billionlost $30 billion..

The Crash of ‘29The Crash of ‘29

““The Big Bull Market is The Big Bull Market is Dead”Dead”

The Great The Great DepressionDepression

Financial Collapse – Financial Collapse – After the CrashAfter the Crash

**Bank FailuresBank Failures – 1929, – 1929, 600 banks failed, by 600 banks failed, by 1933 (11,000 out of 1933 (11,000 out of 25,000 failed.)25,000 failed.)

Run on the BankRun on the Bank

Great Depression IIGreat Depression II**1929-32 – 1929-32 – GNP fell from GNP fell from $104 billion to $59 billion$104 billion to $59 billion. . 90,000 businesses went 90,000 businesses went bankrupt.bankrupt.

**Unemployment leaped Unemployment leaped from 3% (1.6 million from 3% (1.6 million workers) in 1929 to 25% workers) in 1929 to 25% (13 million workers in (13 million workers in 1933.1933. (1out of4) (1out of4)

How did Hoover respond?How did Hoover respond?

Hoover opposed direct relief, cash Hoover opposed direct relief, cash payments or food providedpayments or food provided

He asked businesses not to lay off He asked businesses not to lay off workersworkers

Hoovervilles captures disgust with Hoovervilles captures disgust with himhim

HoovervillesHoovervilles

Soup kitchens and Soup kitchens and BreadlinesBreadlines

African-Americans and African-Americans and LatinosLatinos … …

Highest Highest UnemploymentUnemployment

Lowest paidLowest paidRacial ViolenceRacial ViolenceLynchingsLynchingsDeportationsDeportations

FamilyFamily LifeLifeEmphasis on Family Emphasis on Family Stayed at homeStayed at homePlayed Board GamesPlayed Board GamesMonopoly ( 1933)Monopoly ( 1933)RadioRadioNeighborhood helpNeighborhood help

Men in the StreetsMen in the StreetsMen could not support Men could not support their familiestheir families

Some even abandoned Some even abandoned themthem

300,000 became 300,000 became “Hoboes”“Hoboes”

Women StruggleWomen Struggle Many Women Many Women canned food or canned food or

sewed clothes to make moneysewed clothes to make money.. Faced resentment that they Faced resentment that they

had it easier than men.had it easier than men. Many thought married women Many thought married women

should not hold jobs with men should not hold jobs with men out of work.out of work.

Received Received less money than menless money than men..

Children SufferChildren Suffer Poor Diets =MalnutritionPoor Diets =Malnutrition RicketsRickets, other diseases, other diseases 2,600 schools closed2,600 schools closed 300,000 out of school300,000 out of school ““If I leave my mother, it If I leave my mother, it will mean one less mouth will mean one less mouth to feed.” Eugene Williams to feed.” Eugene Williams 1313

SoldiersSoldiers Soldiers wanted their bonuses from WWI Soldiers wanted their bonuses from WWI

that were not payable until 1945. that were not payable until 1945. $500/soldier$500/soldier

They and their families (10,000-20,000) They and their families (10,000-20,000) formed a formed a Bonus Army Bonus Army and marched on and marched on Washington Washington

Hoover thought they were communists, Hoover thought they were communists, but he supported their right to protest but he supported their right to protest and provided food and supplies so they and provided food and supplies so they could build a shantytown. could build a shantytown.

SoldiersSoldiers

Eventually most leave except for Eventually most leave except for 2,0002,000

Hoover sent in the infantry. They Hoover sent in the infantry. They gassed 1,000 people. An 11-month gassed 1,000 people. An 11-month old baby died and an 8 year-old boy old baby died and an 8 year-old boy was partially blinded. Two were shot was partially blinded. Two were shot and many were injured. Americans and many were injured. Americans were stunned. were stunned.

Social and Psychological Social and Psychological EffectsEffects 1928-1932 1928-1932 Suicide rateSuicide rate rose by rose by

30%. 30%. 3x admittance to mental 3x admittance to mental

hospitalshospitals No doctors or dentistsNo doctors or dentists No college for young peopleNo college for young people No marriage, or childrenNo marriage, or children Distrust of banks and the marketDistrust of banks and the market Habits of Savings and ThriftinessHabits of Savings and Thriftiness

World Wide Shock World Wide Shock WavesWaves

Europe had suffered during Europe had suffered during the 1920’sthe 1920’s

Germany had to pay Germany had to pay reparations to the Allies from reparations to the Allies from WWI.WWI.

World Wide Effects IIWorld Wide Effects II 1930 1930 Hawley – Smoot TariffHawley – Smoot Tariff established the highest established the highest protective tariff in US protective tariff in US history.history.

European nations raised European nations raised their tariffs. their tariffs. World Trade fell World Trade fell 40%40%

US goods were difficult to US goods were difficult to sell in Europe due to sell in Europe due to Hawley-Smoot tariffs leading Hawley-Smoot tariffs leading to a drop in world tradeto a drop in world trade

Causes of the Causes of the DepressionDepression

Tariff and war debt policiesTariff and war debt policies that cut down the foreign that cut down the foreign market for American goods.market for American goods.

Crisis in the FarmingCrisis in the Farming Sector SectorThe availability of The availability of easy easy creditcredit ( Installment Plans) ( Installment Plans)

Uneven distribution of $$$Uneven distribution of $$$

Causes Part IICauses Part IIFederal Reserve raising Federal Reserve raising interests rates and interests rates and constricting the money constricting the money supply after the crash.supply after the crash.

Laissez-faireLaissez-faire policies policiesSpeculationSpeculation/Crash/CrashOverproductionOverproduction of of GoodsGoods