America in the 1930s Part one The Great Depression

Background 1920s boom – built on credit – eventually going to go bust Speculation – people buying shares with other peoples money Overproduction and lack of demand 24 th October 1929 – Wall Street Crash People lost their money and life savings Banks went bust – USA went into depression

Unemployment Industrial north hardest hit Chicago – 50% unemployed People moved to other parts of the USA to find work Hobos – got harder to get the work the longer you were unemployed Lost hope 1929 – 1.6m unemployed 1933 – 14m unemployeed

Homelessness 1932 alone – people lost their homes Could not repay their mortgages – banks repossessed them People in rented homes kicked out because they could not pay the rent Lives in shanty towns on the edge of cities Hoovervilles

Help from charities USA did not have a welfare system – no once to help out Charities Wealthy people helped out – even Al Capone Some local government organisations Most set up soup kitchens Help never enough due to the numbers

Farmers Had not had a good time of it in the 1920s The depression made a bad situation worse Food prices fell sharply - many farmers went bankrupt 1932 – 1 in 10 farmers evicted because they could not pay their mortgages Many farmers had changed from cattle to crop farming – over farmed and sucked out the nutrients out of the soil Soil turned to dust – “Dust bowl”

The government reaction Herbert Hoover – President – Republican Rugged individualism Thought it would sort itself out without govt help When it did try to help it did so half heartedly 1930 – cut taxes to encourage spending

Republicans and the depression Provided $4000m on public works – Hoover High Dam 1932 Emergency Relief Act – provided $300m for poor relief in the states 1932 – set up the Reconstruction Finance Corporation – lent businesses $1500m People blamed Hoover for the depression