Post on 12-Jun-2015
Music: Brother can you spare a dime
The Great Depression
1929-1940
Single worst economic disaster in the United States
Unemployment rose to 25% Those who had jobs took a wage
cut or worked less hours
Over Production High demand and
prices during the war caused farmers to plant more
Demand and prices fall after the war
Farmers could not pay back loans and foreclosed
Decrease in consumer spending Rising prices, low wages Overbuying on credit, large debts that
had to be paid off Uneven distribution of income – Rich
got richer and poor got poorer – many Americans could not afford to buy goods produced
Over speculation Stocks and bonds bought on the
chance of quick profit Buying on Margin – paying a small %
of stock’s price and borrowing the rest
October 29, 1929 – Black Tuesday Stock market fell
to all time low Those who bought
stocks on credit stuck with huge debts
Banks fail – people withdrew funds Banks invested in stock market –
could not repay loans 1933 – 11,000 of nation’s 25,000
banks had failed Account not insured – millions lost
their savings
People lose jobs
Businesses close down or lay off
More people lose jobs (higher unemployment)
People lose jobs
Businesses close down or lay off
More people lose jobs(higher unemployment)
Shantytowns sprang up – little towns consisting of shacks made out of crates and boxes
Children were malnourished and suffered from disease.
Thousands stood in breadlines or soup kitchens for free food.
Higher unemployment, lowest pay Laid off to make room for white
workers Last hired, first fired Many Latinos immigrated or were
deported back to Mexico
Transients who wandered the country looking for work or better life
Rode in railroad boxcars, slept under bridges
Area of the country from Kansas to Texas hit hard by over-farming and drought
Plowing that removed top layer of grass
Soil is exposed and blown away by wind storms, dust travels hundreds of miles
Families affected by dust bowl that migrated to California looking for work
WWI veterans and their families marched on Washington D.C.
Demanded bonus that had been promised to war veterans be paid early
Hoover opposed paying bonus early Bonus Army erects Shantytown
near capitol Senate votes down bill to pay out
bonuses
Hoover demands Bonus Army leave however many stay
Sends General Douglas MacArthur and army to remove them
Violence breaks out and shantytown burns to the ground
Stunned and outragedHoover’s image suffers
Voluntary cooperation from businesses and charities to help needy
Rugged Individualism – people should succeed through their own efforts
Opposed any form of direct relief
The Depression became worse and Hoover became unpopular
Hoover Dam (Boulder Dam) – provide electricity and flood control along Colorado River
Create jobs
Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure
Direct intervention
$2 Billion in emergency financing for banks
Money would trickle down to American citizens through job growth and higher wages
Criticized for benefiting only corporations
Presidential Election 1932 Hoover vs. Franklin D. Roosevelt
(Democrat) FDR wins overwhelmingly – 23
million votes vs. 16 million for Hoover
Democrats also capture 2/3rd majority in Senate and ¾ majority in House
People lose jobs
Businesses close down or lay off
More people lose jobs (higher unemployment)
Copy the following on the 11R, Answer each question, you may ask your
classmates for help
1. The stock market crashed in the year2. One cause of the Depression was3. The unemployment rate was4. A problem faced by families was5. If my family had to get by with less money the
first thing we would cut back on would be6. The last thing would be7. Using the hobo symbols write a message on
your paper. If you would like you may write your message on the board as well. (if appropriate)
World War I Civil War Spanish American War Prohibition Jamestown is settled