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Great Depression

Great Depression. The Election of 1928 . The Republican Herbert Hoover vs. Democrat Alfred E. Smith . Hoover was elected by a large margin of 444 to 87 electoral votes. Hoover promised such things as “a chicken in every pot and two cars in every garage .”

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Great Depression

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  1. Great Depression

  2. The Election of 1928 • The Republican Herbert Hoover vs. Democrat Alfred E. Smith. • Hoover was elected by a large margin of 444 to 87 electoral votes. • Hoover promised such things as “a chicken in every pot and two cars in every garage.” • "We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us."

  3. Stock Market Increase A Bull Market is when stock steadily rises. Many people used this time of progress in the 1920s to invest in the stock market. People began to sell their stock and make lots of money since the market was doing so well. So people sold…and bought…and sold..and bought The Stock Market boom was based on confidence….in the same way the Crash would be based in fear

  4. Stock Market Crash Prices falling since September, but doing ok…Monday the 21st they fell at a large rate…investors started calling stocks in on margin October 24th 1929 is known as Black Thursday. Prices of stocks plummeted People started getting nervous and began selling their stock. October 29th 1929 is known as Black Tuesday. Prices dropped $10-$15 billion. This drop in prices weakened the nations banks. People then could not borrow money. Many people began to withdraw money from banks which forced the banks to close.

  5. “Bank Run” at beginning of panic

  6. Great Crash Great Crash Great Crash Great Crash Great Crash World Payments World Payments World Payments Investors Investors Investors Investors Investors Businesses and Workers Businesses and Workers Businesses and Workers Businesses and Workers Overall U.S. production plummets. Overall U.S. production plummets. Overall U.S. production plummets. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Banks Banks Banks Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Consumer spending drops. Consumer spending drops. Consumer spending drops. U.S. investors have little or no money to invest. U.S. investors have little or no money to invest. U.S. investors have little or no money to invest. Consumer spending drops. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses cut investment and production Some fail. Businesses cut investment and production. Some fail. Businesses cut investment and production Some fail. Savings accounts are wiped out. Savings accounts are wiped out. Savings accounts are wiped out. Businesses cut investment and production Some fail. Banks run out of money and fail. Banks run out of money and fail. Banks run out of money and fail. Workers are laid off. Workers are laid off. Workers are laid off. Workers are laid off. Europeans cannot afford American goods. Europeans cannot afford American goods. Europeans cannot afford American goods. U.S. investments in Germany decline. U.S. investments in Germany decline. U.S. investments in Germany decline. Bank runs occur. Bank runs occur. Bank runs occur. German war payments to Allies fall off. German war payments to Allies fall off. German war payments to Allies fall off. Effects of the Great Crash, 1929

  7. Effects on Economy From 1930-1939 the prices of stock fell 40%. BY 1933: 9,000 banks went out of business and 9 million savings accounts were wiped out. 86,00 businesses failed, and wages were decreased by an average of 60%. The unemployment rate went from 9% all the way to 25%, about 15 million jobless people.

  8. Charities Help Private charities and millionaires provided soup kitchens and bread lines. The poor and homeless lined up to receive a free meal.

  9. Shantytowns and Hoovervilles Families that could not pay rent or mortgage were forced to live on the street. Many people built homes of cardboard, scrap metal, and lumber pieces. Shantytowns and Hoovervilles were nicknames of “neighborhoods for homeless.” Many people who did not want to live in a cardboard home became hobos—people who would wander from city to city jumping boxcars for rides.

  10. The Dust Bowl To make matters worse, the Midwest experienced the worst drought in history in 1932. Without water for crops, many farmers could not pay their rent, and thus became hobos. Dust Bowl -- sun dried earth from Texas to the Dakotas Many people from Oklahoma moved west to California to work picking fruit. These people were known as Okies—migrant workers who traveled to California during the Dust Bowl era

  11. GLOBAL EVENT Unemployed men in Canada and Germany

  12. Government Aid Hoover was very much opposed to federal relief to poor families…thought it was the job of state and local gov’s The National Credit Corporation (NCC) – helped banks continue to make loans to individuals….was created to help banks continue making loans to people. The Reconstruction Finance Corporation (RFC) loans to railroads and agriculture. By 1932, the RFC had given away $238 million. The Emergency Relief and Construction Act gave $1.5 billion for public works and $300 million to states for loans.

  13. Hunger Marches The American Communist Party was eager to take advantage of the crisis. January 1931, 500 men and women looted a grocery store in Oklahoma City. December 5th 1,200 people held a hunger march in Washington DC. they were chanting “feed the hungry, tax the rich.” Many more hunger marches were held in the U.S.

  14. Farmers Revolt Between 1930 and 1934 nearly 1 million farms were foreclosed on and the people were evicted Farmers began destroying crops to cut supply and drive up the prices Farmers in Nebraska heated their homes by burning corn Georgia dairy farmers would block the highway, stop dairy trucks, and dump the milk into ditches

  15. Bonus Army In May of 1932, about 1,000 WWI veterans began to march toward Washington DC. to try and pass legislation to have their bonuses paid early They were supposed to receive $1,000 in 1945, they needed it now As they passed towns more veterans joined in. They wore their old military uniforms and sang war songs. Their numbers grew to about 17,000. This was known as the Bonus Army. Totaled 43,000 marchers including their families and supporters They found places to stay in shantytowns or abandoned buildings.

  16. Bonus Marchers continued • House passed the vote to give them $, Senate rejected it, and things grew more tense • President Hoover ordered them to leave. • The police were first responsible for making them leave…two protesters are killed… • Federal Army called in to restore order… two veterans were shot and killed... • MacArthur leads the Calvary on horses, Patton leads the tanks, Eisenhower is liaison with the police • They began to tear gas the crowd until everything calmed down. A women and her two babies die. • The mishandling of these WWI veterans would tarnish Hoover’s image forever.

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