What would you do to feed your family?

What groups of people will be most hurt by the economic crash?
What can you do to find a paying job?
What can unemployed and impoverished people do to help each other?

Main Idea
As the prosperity of the 1920’s ended, severe economic problems gripped the nation.
Why it Matters Today
The Great Depression has had lasting effects on how Americans view themselves and their government

Economic Troubles on the Horizon
As the 1920’s advanced, serious problems threatened economic prosperity.
Farmers grew more crops and raised more livestock than they could sell.
Industries
Railroads
Coal Mines
Uneven
Distribution of
Income Economic
Farmers
McNary-Haugen Bill
Price Supports
Problems
Living on
Credit
Consumers
Less money

Dream of Riches in the Stock
Market
Those who had money invested in the stock market.
Dow Jones Industrial Average-

Dowwas measured based on the stock prices of the 30 major firms on the NYSE.
1920’s- Dow rose to 381 pts/ 300 pts higher than it had been.
“Bull Market”a period of rising stock.
By 1929- 4 mill,3% of Americans owned stock
Speculationbought stock for a chance of a quick profit.
Buying on Marginpaid a small % and borrowed the rest.

People couldn’t pay off the loans.

In September 1929, stock prices peaked and prices fell.
Black Tuesday

October 29, 1929- stock market crashed.

The stock market crash signaled the beginning of the Great Depression- the period between 1929-
1940 in which the economy plummeted and unemployment skyrocketed.
Bank Business Failures



1929, 600 banks closed
1933, 11,000 of the 25,000 banks failed
90,000 businesses went bankrupt
Worldwide Shock Waves


Europe suffered from war debts
Hawley-Smoot Tariff Actprotective tariff.

Tariffs and war debt policies that cut down the foreign market for American goods
A crisis in the farm sector
The availability of easy credit
An unequal distribution of income

The Nation’s Sick Economy
Review
How did what happened to farmers during the
1920’s fore-shadow events of the Great
Depression?

During the 1920’s, farmers faced decreased demand for their products and lower crop prices. Those who were in debt could not repay loans, and rural banks failed. This pattern repeated itself in other sectors of the economy during the Depression.
What were some of the effects of the stock market crash in October 1929?

The stock market crash triggered bank and business failures, high unemployment, and worldwide depression.

Hardship & Suffering During the
Depression
Main Idea
During the Great Depression Americans did what they had to do to survive.
Why it Matters Today
Since the Great Depression many
Americans have been more cautious abut saving, investing, and borrowing.

Farmers
-lost land
-grew food
-tenant farming
Both loss jobs, homes
City
Dwellers
-lost jobs
-homeless
-soup kitchens

The Depression Devastates
People’s Lives
The Depression brought hardship, homelessness, and hunger to millions.
The Depression
In Rural Areas In the Cities
Shanytowns
Soup Kitchens
Bread Lines
Dust Bowl
400,000 farms lost
Tenant farming
Severe Drought
Midwest

In the face of the suffering caused by the Great Depression, the family stood as a source of strength for most
Americans.
At a time when money was tight, many families stayed at home and played board games, such as
Monopoly(1913) & listen to the radio.
Men in the streets


Many men had difficulty coping with unemployment
As many as 300,000 transits or
“hoboes” wandered the country

Direct Reliefcash payments or food provided by the government to the poor.

Children Suffer hardships

Poor diets and a lack of money for health care led to serious health problems.




Falling tax revenues also caused school boards to shorten the school year and even close schools.
1933-2,600 schools shut down
Teenagers hopped on freight trains in search for work.
“Wild boys”

Social and
Psychological Effects




Many people lost their will to survive
Between 1928-1932suicide rate rose more than 30%
People made sacrifices
During the Great
Depression many people showed great kindness to strangers who were down on their luck

Hardship & Suffering During the
Depression
Review
How were shanytowns, soup kitchens, and bread lines a response to the Depressions?

They were places where charitable organizations handed out food to the hungry.
What pressures did the American family experience during the Depression?

Unemployment, reduced household income, some families lost homes. Many adults lost the ability to provide for their families.

Hoover Struggles with the
Depression
Main Idea
President Hoover’s conservative response to the Great Depression drew criticism from many Americans.
Why it Matters Today
Worsening conditions in the country caused the government to become more involved in the health and wealth of the people.

Hoover Tries to Reassure the
Nation
After the stock market crash of October
1929, President Herbert Hoover tried to reassure Americans that the nation’s economy was on a sound footing.
Hoover’s Philosophy


Gov. should facilitate and encourage cooperation
People should take care of themselves
Hoover Takes Cautious Steps


No layoffs or don’t cut wages
“Hoovervilles”
Boulder Dam




Construction of a dam on the Colorado River
CA,NM, CO,UT,WY,NV
1929-$700 million
Later called the Hoover Dam
Democrats win in 1930 Congressional
Elections

Boulder Dam
Gassing
Bonus
Army
Hoover’s
Response
Federal Farm
Board
Reconstructi on
Finance
Corp.
Federal
Home Loan
Bank Act

President Hoover gradually softened his position on government intervention in the economy and took a more activist approach to the nation’s economic troubles.
Hoover’s Actions
Backs Cooperatives Direct Intervention
Federal Farm Board
National Credit Corp .
Federal Home Loan Bank Act
Glass-Steagall Act
Reconstruction Finance Corp .

In 1932, 10,000 to 20,000
WWI veterans and their families arrived in
Washington, D.C., from various parts of the country.
The Patman Bill Denied

The bill was to pay a bonus to
WWI veterans who had not be compensated for their wartime service.
Hoover Disbands the
Bonus Army

July 28, under the command of Gen. Douglas MacArthur and his aide, Maj. Dwight D.
Eisenhower.

Hoover Struggles with the
Depression
Review
How did Hoover’s treatment of the Bonus Army affect his standing with the public?

The harshness of the attack on the veterans and their families damaged Hoover’s reputation.
In what ways did Hoover try to use the government to relieve the Depression?

He started public-works programs and backed the
Federal Farm Board, Federal Home Loan Bank Act, and the RFC.