What was life like during What was life like during

The 1920’sThe 1920’s Following the Great War(1914-1918), Following the Great War(1914-1918),

the 1920’s were a time of peace and the 1920’s were a time of peace and great prosperity. After World War I, great prosperity. After World War I, the “Roaring Twenties” were fueled the “Roaring Twenties” were fueled by increased industrialization and by increased industrialization and new technologies, such as the radio new technologies, such as the radio and the automobile. Air flight was and the automobile. Air flight was also becoming widespread, as well. also becoming widespread, as well. The economy benefited greatly from The economy benefited greatly from the new life changing technologies..the new life changing technologies..

Easy money…Easy money…

As the Dow Jones As the Dow Jones Industrial Average Industrial Average soared, many soared, many investors quickly investors quickly snapped up shares. snapped up shares. Stocks were seen Stocks were seen as extremely safe as extremely safe by most by most economists, due to economists, due to the powerful the powerful economic boom. economic boom.

Life during this time?Life during this time?

Many people saw Many people saw their lifestyle their lifestyle improve greatly. improve greatly. They had access to They had access to cars and other cars and other luxuries.luxuries.

Many borrowed Many borrowed and credit cards and credit cards became common.became common.

Life was good…Life was good…

Who invested? Everyone…Who invested? Everyone…

Investors soon purchased stock on Investors soon purchased stock on marginmargin. Margin is the borrowing of . Margin is the borrowing of stock for the purpose of getting more stock for the purpose of getting more leverage. For every dollar invested, a leverage. For every dollar invested, a margin user would borrow 9 dollars margin user would borrow 9 dollars worth of stock. Because of this worth of stock. Because of this leverage, if a stock went up 1%, the leverage, if a stock went up 1%, the investor would make 10%! investor would make 10%!

The Dow Jones skyrocketed…The Dow Jones skyrocketed…

From 1921 to 1929, the Dow Jones From 1921 to 1929, the Dow Jones rose from 60 to 400! Millionaires rose from 60 to 400! Millionaires were created instantly. Soon, stock were created instantly. Soon, stock market trading became America’s market trading became America’s favorite pastime as investors favorite pastime as investors jockeyed to make a quick killing. jockeyed to make a quick killing. Investors mortgaged their homes, and Investors mortgaged their homes, and foolishly invested their life savings in foolishly invested their life savings in hot stocks, such as Ford and RCA. hot stocks, such as Ford and RCA.

Did anyone fear that the bubble Did anyone fear that the bubble would burst? would burst?

Most investors never even thought a Most investors never even thought a crash was possible. To them, the crash was possible. To them, the stock market “always went up”. stock market “always went up”.

  Greed and a powerful optimism Greed and a powerful optimism fueled the market and everyone fueled the market and everyone believed that this was the road to the believed that this was the road to the American Dream.American Dream.

Beginning of the end…Beginning of the end…

By 1929, the Federal Government By 1929, the Federal Government raised interest rates several times to raised interest rates several times to cool the overheated stock market. By cool the overheated stock market. By October, the fall of the market had October, the fall of the market had commenced. commenced.

On Thursday, October 24 1929, panic On Thursday, October 24 1929, panic selling occurred as investors realized selling occurred as investors realized the stock boom had been an over the stock boom had been an over inflated inflated bubblebubble. .

Millionaire margin Millionaire margin investors became investors became bankrupt instantly, as the bankrupt instantly, as the stock market crashed on stock market crashed on October 28th and 29th. October 28th and 29th.

By November of 1929, the By November of 1929, the Dow Jones sank from 400 Dow Jones sank from 400 to 145. In three days, the to 145. In three days, the New York Stock Exchange New York Stock Exchange erased over 5 billion erased over 5 billion dollars worth of share dollars worth of share values! By the end of the values! By the end of the 1929 stock market crash, 1929 stock market crash, 16 billion dollars had been 16 billion dollars had been shaved off stock shaved off stock capitalization. capitalization.

The banks collapsedThe banks collapsed To make matters worse, banks had To make matters worse, banks had

invested their deposits in the stock invested their deposits in the stock market. Now that stocks were market. Now that stocks were obliterated, the banks had lost their obliterated, the banks had lost their depositors money! Bank runs started, depositors money! Bank runs started, where bank patrons tried to withdraw where bank patrons tried to withdraw their savings all at once. their savings all at once.

Many bankrupt speculators, who Many bankrupt speculators, who were once aristocracy, committed were once aristocracy, committed suicide by jumping out of buildings. suicide by jumping out of buildings. Even bank patrons who had not Even bank patrons who had not invested in shares became broke as invested in shares became broke as $140 billion of depositor money $140 billion of depositor money disappeared and 10,000 banks failed. disappeared and 10,000 banks failed. Some desperate men walked into the Some desperate men walked into the banks and killed their stock traders.banks and killed their stock traders.

DESPERATE TIMES…

Who didn’t go bankruptWho didn’t go bankrupt

Jesse Livermore (world’s greatest Jesse Livermore (world’s greatest stock trader) correctly forecasted the stock trader) correctly forecasted the economic crisis and shorted. He economic crisis and shorted. He made over 100 million dollars! made over 100 million dollars!

Joseph Kennedy, John F. Kennedy’s Joseph Kennedy, John F. Kennedy’s father, sold before the 1929 stock father, sold before the 1929 stock market crash and kept millions in market crash and kept millions in profit. profit.

Did everyone suffer during the Did everyone suffer during the depression?depression?

Of course not…Of course not…

The stock market crash of 1929 The stock market crash of 1929 and the ensuing economic and the ensuing economic depression turned the country depression turned the country into a nation of "into a nation of "haveshaves" and " and ""have-notshave-nots." ."

Life went on for the rich and famous…and Life went on for the rich and famous…and some of the working class whose jobs some of the working class whose jobs were spared.were spared.

Movies continued to be made and shown Movies continued to be made and shown in the big cities… in the big cities… Those who could afford to go to the new talking movies, and enjoy stars such as Jean Harlow, Greta Garbo, Fred Astaire, and the Marx Brothers who provided a respite from the dreariness of daily life.

It's human nature to wish for things It's human nature to wish for things we don't have, and the 1930s were a we don't have, and the 1930s were a time of enormous wishing. The harsh time of enormous wishing. The harsh reality of day-to-day life during the reality of day-to-day life during the Depression was juxtaposed with the Depression was juxtaposed with the silver-screen elegance of the movies silver-screen elegance of the movies and by those wealthy enough to and by those wealthy enough to afford lavish lifestyles. afford lavish lifestyles.

Sex appeal jumped bravely from the Sex appeal jumped bravely from the screen and glamour into mainstream screen and glamour into mainstream consciousness. consciousness.

Shopping…Shopping…

What was the Great What was the Great Depression?Depression?

The worst economic crisis of the The worst economic crisis of the centurycentury

In the U.S.A. over 13 million In the U.S.A. over 13 million people became unemployed. In people became unemployed. In Canada the unemployment rate Canada the unemployment rate was 26.5 %.was 26.5 %.

““Dust bowl” as a result of Dust bowl” as a result of drought drought

Farmers lost cropsFarmers lost crops Many lost their homesMany lost their homes

What caused the Great What caused the Great Depression? Depression?

Unequal distribution of wealthUnequal distribution of wealth Stock market crash of 1929Stock market crash of 1929

Stock Market CrashStock Market Crash

Many stocks purchased Many stocks purchased Stock prices fellStock prices fell Huge sums of money lostHuge sums of money lost

Thursday, October 24, 1929

Unequal Distribution of WealthUnequal Distribution of Wealth

No middle classNo middle class Supply not equal to demandSupply not equal to demand Credit cards created false demandCredit cards created false demand

The ResultsThe Results Bank FailureBank Failure

UnemploymentUnemployment

Loss of homesLoss of homes ““Hoovervilles”Hoovervilles”

Here were all these people living in old rusted-out car bodies. ... One family ... [was] living in a piano box. This wasn't just a little section, this was maybe 10 miles wide and 10 miles long. People living in whatever theycould junk together. ..."

DustbowlsDustbowls

A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up. Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out, the traveler asked if he wanted a ride into town. "No, I'll get there myself," the man replied, "I'm on a horse." (Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.)

DepressionDepression

Social outcomes…Social outcomes… The depression produced lasting effects in North The depression produced lasting effects in North

America that are still apparent more than half a America that are still apparent more than half a century after it ended.century after it ended.

In the United States, it led to the election of In the United States, it led to the election of President President Franklin Delano RooseveltFranklin Delano Roosevelt who who created the programs known as the created the programs known as the New DealNew Deal to to overcome the effects of the Great Depression. overcome the effects of the Great Depression.

These programs expanded government These programs expanded government intervention into new areas of social and intervention into new areas of social and economic concerns and created social-assistance economic concerns and created social-assistance measures on the national level. The Great measures on the national level. The Great Depression fundamentally changed the Depression fundamentally changed the relationship between the government and the relationship between the government and the people, who came to expect and accept a larger people, who came to expect and accept a larger federal role in their lives and the economy.federal role in their lives and the economy.

““The only thing we have to fear The only thing we have to fear is fear itself”is fear itself”

“Our greatest primary task is to put people to work”

Franklin D. Roosevelt

FDR’s New DealFDR’s New Deal Relief for the needyRelief for the needy Jobs providedJobs provided Business and government reformedBusiness and government reformed

In Canada…In Canada…

Social Assistance programs were started…Social Assistance programs were started… Healthcare programs for welfare recipients Healthcare programs for welfare recipients

in 5 provinces…in 5 provinces… 1927, the Old Age Pension Act was passed…1927, the Old Age Pension Act was passed… 1930, the Unemployment Relief Assistance 1930, the Unemployment Relief Assistance

Act was passed to allow the Federal Act was passed to allow the Federal Government to make payments to provinces Government to make payments to provinces to help them provide relief for the to help them provide relief for the unemployed. This became Unemployment unemployed. This became Unemployment Insurance in 1940.Insurance in 1940.

Thomas Clement Douglas arrived in Thomas Clement Douglas arrived in Weyburn 1930 as the minister for Weyburn 1930 as the minister for Calvary Baptist Church at the Calvary Baptist Church at the beginning of the Great Depression. beginning of the Great Depression. He set up a job and food distribution He set up a job and food distribution centre at the church, and moved centre at the church, and moved into political involvement. He ran into political involvement. He ran and lost under the Co-operative and lost under the Co-operative Commonwealth Federation (CCF) in Commonwealth Federation (CCF) in 1934, but was successful in the 1935 1934, but was successful in the 1935 federal election.federal election.

Tommy DouglasCanadians ponder the Welfare State - The Birth of Medicare - CBC Archives.url

The great depression would finally The great depression would finally end in 1939 with the beginning of end in 1939 with the beginning of

WWII in Europe.WWII in Europe.