Great Depression

1. Great Depression Photographs

2. Homeless People on the Road

3. Eating in a Breadline

4. Life in the Depression

5. 10th American HistoryUnit IV- U.S. Economic History to 1945 The Great Depression

6. Reading Quiz 1) What is a run on the bank? 2) Give two causes of the depression. 3) What was a “Hooverville”? 4) What was the Dust Bowl? 5) What are Okies? 6) Why did farmers and other businesses fail?

7. What did Hoover do? • Traditional Approach to a depression- Cut Government Spending and let the Depression burn it self out- this will get rid of the rottenness in the system. • Hoover did not sit still • He called on states, cities, and all private charities to feed the hungry. • Brought business and labor leaders together. • Cut his own salary by 1/5th • Cut taxes- did little good • Public works jobs.

8. 3:24 min. The Great Depression Begins in America

9. Causes of the Great Depression 1) The Stock Market Crash of 1929- a trigger. 2) Unequal distribution of Wealth. False prosperity (A maldistribution of purchasing power). 3) Overproduction and over dependence on mass production. 4) Unemployment 5) Speculation in Stock Market- buying on margin and cheap money 6) Banking crisis. 7) Trade collapse 8) Republican Party 9) Federal Reserve and Money system 10) Lack of diversification. 11) Post war deflationary procedures. 12) The Credit structure.

10. Development of the Great Depression • Bank Failures • Not all Americans invested but most all had money in savings. • Banks had no deposit insurance and little cash on hand. • Runs on banks. • Hundreds of banks failed. • By 1933- bank failures wiped out billions of dollars of savings, add this to the crash and things got worse.

11. Development of the Great Depression • Farm Failures • Unemployment reduced American’s ability to buy food and people went hungry • Farmers overproduced, surpluses went up and prices went down. • Lower prices means lower income for farmers. • Farmers borrowed for land and equipment, now were unable to repay loans. • 1933- over 364,000 foreclosures

12. Development of the Great Depression • Unemployment • 1929-1930 steep rise in unemployment which would last a long time. • 1933- GNP dropped more than 40% • 1933- unemployment was at 25%. • Black areas were higher- Harlem up to 50%

13. The Human Impact of the Great Depression • Hoovervilles • Thousands applying for every job. • People begged from door to door. • Soup kitchens and Bread lines. • 1930’s- no federal programs to provide food or money to the poor. • Local Charities, municipal and state gov’t provided relief. • 1932 on 1 in 4 families needing unemployment relief got any. • People lost their homes- eviction and foreclosure. • Hoovervilles- Shantytowns for the homeless.- Ramshackle, leaky and drafty • No running water or electricity • Unemployed males were idle and desperate. • Emotional Toll- personal failure, pride, anger

14. The Human Impact of the Great Depression • Hoboes • Mostly men- unskilled migratory laborer, an itinerant and seasonal worker. • Mostly white, American born, and able bodied. • Hopped trains to travel from town to town- Illegal, dangerous and hired “Bulls”. • Beg or stole food. • System of sign language. • Families sometimes broke under the strain of poverty and homelessness. Many left their families behind.

15. The Great Depression 4:30 min.

16. Devastation of the Dust Bowl • Great Plains Drought- 1931 • Dust storms • brought on by years of careless agriculture practices. • Wind storms stripped away topsoil and blew it for hundreds of miles. • Drifts choked crops, buried farms and blew into homes. • Dust Bowl

17. Devastation of the Dust Bowl • Migration • Fleeing the Plains- “Okies” • People quit, packed up and moved. • End of 1930’s- 2.5 million left. • Headed west on Route 66 to California and migrant farm camps. • Met by resistance and discrimination. • Grapes of Wrath- book

18. Devastation of the Dust Bowl 0:36 min. 1:02 min.

19. Migration the Dust Bowl 2:50 min. 4:17 min.

20. Hoover’s Reaction to the Depression • Rugged individualism • Unnecessary gov’t threatens prosperity and dims the spirit of the people • Some gov’t oversight and regulation is needed, but people need their own responsibility and power. • Associative state • Voluntary business associations- for fairness and efficiency. • Voluntary partnership with businesses and government. • Hoover Dam-government funded it, but six companies designed and built it.

21. Hoover’s Reaction to the Depression • Voluntary cooperation • Gov’t should not provide direct aid but find ways to help people help themselves. • Farm cooperatives-organization owned and controlled by its members. • Help farmers buy materials cheaper, and help raise crop price and farmer income. • Hoover urged business leaders not to lay off workers or cut wages. • Direct action- cooperation was not working. • Businesses cut jobs and wages • States and locals stopped building programs • Consumers stopped spending • 1932 Hoover created with Congress the Reconstruction Finance Corporation- $2 billion in direct government loans to struggling banks, insurance companies and other institutions. • 1932- Federal Home Loan Bank- to encourage home building and stop foreclosures. • The Smoot-Hawley Tariff- High and disastrous

22. Nation’s Response to Hoover • Losing favor • Hoover was optimistic- but the worst was yet to come. • He still refused direct aid. • But he did give aid to banks and businesses but not individuals. • Bonus Army- 15,000 set up camp • 1932- WWI Veterans march on Washington to demand their bonus $1.25 for each day overseas- to be paid in 1945 • They need the money now • Hoover sent out the troops to clear them out- Violence • Voter Reaction- 1930 Republicans began to lose seats in Congress.