The Great Depression

Leading up to the Crash  Leading up to 1929 things looked good to the average investor. Banks were loaning money faster and in larger quantities than ever to businesses that could never realistically have any hopes of paying it back. People we ’ re paying more money for stock than it was actually worth in speculation of a soon booming market. The stock market saw an amazing increase in the sale of stocks during the previous five years.

Black Thursday?  The stock market bottom cracked on Wednesday, October 23 rd when the Dow Jones fell 21 points in one hour. On Thursday (Black Thursday), nervous investors began to sell their stock. Some workers who bought stocks at $400 a share eagerly sold them at $200 a share. President Hoover, as well as many banks however, continued to tell the worried public that things would even out. Things began to look better again for a few days.

Black Tuesday?  In order to quell the panic caused on Thursday, a group of investors pooled their money to buy stock. By the following Monday however, the stocks began to again, fall rapidly. Investors panicked and fought to sell as many stocks as possible. On Tuesday (Black Tuesday), a record 16.4 million shares were sold. This was known as the Great Crash

Farmer  I was a farmer in Oklahoma when the Great Crash occurred. When I heard the news, I felt bad for those who had stocks and lost so much money, but I was not worried since neither I, nor anyone I knew had bought stock. Besides, we lived hundreds of miles away. I had no idea that my life would soon change forever.

The Dust Bowl  Soon, the prices we were used to getting for our crops was cut by 3/4. We could barely afford to buy our families necessities, and then the bank came knocking at the door. They demanded that we payoff our mortgage and other farm loans immediately. Just as we thought things couldn’t get worse, the storms began. Huge dust storms choked the Midwest, and soon our crops were dead. Before we knew what had hit us, the bank had foreclosed on our farm, and we were looking for a place to live. For a short time we found an abandoned chicken coop and made it home until other arrangements could be made. We eventually made it to a family farm in California and worked as laborers. This was our lot until Roosevelt’s New Deal legislation and World War 2 production reached California. I later learned that over 440,000 people left Oklahoma in the early 1930’s and over 300,00 left Kansas. 100,000 of us migrated to the West Coast. Over 60% of us farmers lost our farms.

Other effects  Farmers were not the only ones affected.  Everyone in the United States was effected by this Great Depression.  Other Nations also experienced it’s effects

Unemployment

National Production

Other’s affected  When the US fell into depression, so did much of the world, since most nations have interdependent economies. When the strongest of those falls into depression, so do the rest.  Thousands of banks closed (over 5,500), and life savings disappeared with them. Everyone was affected by the great depression. Professionals as well as white collar workers were suddenly laid off with no prospects of future employment.  The hardest hit however, were those who were already poverty stricken. New York City alone had over 15,000 homeless people. These poor individuals and families built shanty towns out of whatever they could find. These makeshift homes and towns became known as “hoovervilles” after the president whom many thought responsible for the depression.  One woman who visited one of these locations said: “Here were all these people living in old, rusted-out car bodies. There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box.”  When the US fell into depression, so did much of the world, since most nations have interdependent economies. When the strongest of those falls into depression, so do the rest.  Thousands of banks closed (over 5,500), and life savings disappeared with them. Everyone was affected by the great depression. Professionals as well as white collar workers were suddenly laid off with no prospects of future employment.  The hardest hit however, were those who were already poverty stricken. New York City alone had over 15,000 homeless people. These poor individuals and families built shanty towns out of whatever they could find. These makeshift homes and towns became known as “hoovervilles” after the president whom many thought responsible for the depression.  One woman who visited one of these locations said: “Here were all these people living in old, rusted-out car bodies. There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box.”

Home Sweet Home

New Deal

Creating Jobs  Franklin Roosevelt purposed a “New Deal” for America while running for the presidency in  Roosevelt was not afraid to experiment with governmental power, and after becoming president, started a massive production campaign, creating as many jobs as possible. This New Deal policy along with World War 2, successfully ended the Great Depression and began an economic boom.  Franklin Roosevelt purposed a “New Deal” for America while running for the presidency in  Roosevelt was not afraid to experiment with governmental power, and after becoming president, started a massive production campaign, creating as many jobs as possible. This New Deal policy along with World War 2, successfully ended the Great Depression and began an economic boom.

Depression takes it’s toll  Between over 6,000 Banks went out of business  Over 9,000,000 savings accounts vanished  85,000 businesses went bankrupt  13,000,000 people were unemployed  400,000 family farms were repossessed by the bank  2,600 schools were closed  Admissions to state mental hospitals went up 300%  Suicides went up by 30%  2,000,000 men were homeless and wandering the country  Between over 6,000 Banks went out of business  Over 9,000,000 savings accounts vanished  85,000 businesses went bankrupt  13,000,000 people were unemployed  400,000 family farms were repossessed by the bank  2,600 schools were closed  Admissions to state mental hospitals went up 300%  Suicides went up by 30%  2,000,000 men were homeless and wandering the country

What 2 factors contributed to over 400,000 farmers loosing their family farms in the Midwest (Dust Bowl)?