The Great Depression

The Great Depression

• The Great Depression was a severe economic downturn that lasted from the late 1920’s until World War II.

• It was a worldwide depression that lasted longer and deeper than any other depression in the 20th century.

The Great Depression

• Because of the unemployment rate (25%), and the impact it had on the economy, it is often seen as a time when the government intervened in the economy and society.

• This government intervention became more prominent as the depression lasted.

Your opinion

• Should the government intervene in the economy of the United States and provide social programs for its people?

What caused the Great Depression?

• Stock market crash on October 29, 1929• This was also known as Black Tuesday• From the United States, stock prices

plummeted in other countries worldwide as well.

• As the prices of stocks fell, panic struck– Masses amount of people tried selling, but

no one was buying

What caused the Great Depression?

• Bank closings-banks invested their money into the stock market, which forced many of them to close their doors.

• Seeing the banks close their doors, people scrambled to withdraw their money.

• This cash withdrawal forced even more banks to close.• Thousands of people were left without access to their

own money.

What caused the Great Depression?

• Businesses began cutting back production because they lost their assets in the crash of the market.

• Consumer spending then dropped.• It was a viscous cycle

Effects of the Great Depression

• Effected every country and person worldwide• Incomes dropped, unemployment increased• Jobs were lost

Class Question

• With what you know now, what social class do you think was hit the hardest by the Great Depression?

The Dust Bowl

• In previous economically hard times through American history, farmers usually were successful because they could feed themselves.

• During the Great Depression the Midwest was hit hard by a drought and sand storms. This was known as the Dust Bowl.

The Dust Bowl

• Overgrazing and the severe drought brought dry soil for the farmers.

• High winds would lift the dirt, carrying it for miles

• These dust storms would destroy everything within their paths, even the farmers crops.

The Dust Bowl

• Small farmers were hit the hardest.• Most owed the banks money for their new

machinery, and now could no longer make payments on them due to the drought.

• Banks were often times forced to foreclose on people’s houses and farms.

The Dust Bowl

• Many of the farmers were told of agricultural jobs in California. These families often packed all of their belongings and headed west.

• Turns out these jobs were scarce and seasonal, much to the disappointment of the “Okies”.

• The Grapes of Wrath by John Steinbeck was written to portray these people.

Relief from the Great Depression

• The Great Depression was during the years of Herbert Hoover as the President of the United States.

• Hoover thought the state and local governments should help its people, not the federal government. He also believed charities should step in to provide relief.

• Many people blamed Hoover for the Depression

Relief from the Great Depression

• In the 1932 presidential election, Hoover lost to Franklin D. Roosevelt by a landslide vote.

• The American people put their trust into FDR

• During FDR’s first “100 days”, he created a bank holiday create a new beginning for the banks. He then established New Deal programs to provide jobs and create a stable economy for the American people

New Deal

• The New Deal programs were known as the FDR’s “alphabet soup”.– AAA (Agricultural Adjustment Act)– FDIC( Federal Deposit Insured Corporation)– CCC (Civilian Conservation Corps)– WPA (Works Progress Administration)– TVA ( Tennessee Valley Authority)

New Deal

• FDR supported the federal government’s involvement and intervention in tough times to help the stabilization process

What brought the world out of the Great Depression?

• Even with the New Deal programs created by FDR, the economic hardship was still prevalent within the United States and the rest of the world.

• The major change happened after the bombing of Pearl Harbor by Japan.

• This led for the entry of the United States into WWII.

Entry into WWII

• Once the United Stated entered into the war, production of war-time materials quickly provided an economic boost for the U.S.

• Ships, tanks, airplanes, weapons, and artillery were needed to be to made.

• Women took over many of these jobs while the men left to fight in the war

• With the United States entrance into WWII, the Great Depression was finally over.