The Great depression Chapters 14-15

Great depression 1929-1941 Does not end until start of World War II Causes: Uneven distribution of wealth Debt of 1920’s U.S. industry not competitive Unsuccessful economic policies Stock Market Crash Industry and agriculture overproduction (WW I) Absence of cash

Election of 1928 Al Smith (Democrat) vs. Herbert Hoover (Republican) Hoover won due to prosperity of the 1920’s Rugged individualism “Lassez-faire” economics Hoover would eventually be personally blamed for the Depression

Stock market conditions Late 1920’s, stock prices continued to rise In the 1920’s, many were risk-takers and wanted to “gamble” with the Stock Market “Buying on Margin” allowed investors to use credit to purchase stock “Black Tuesday”-October 29, 1929….the day the market “crashed” 16 million shares of stock sold that day Many people lost their life savings in the stock market

Run on banks Some people wanted to safely save money and put their money in banks People panicked and ran to the banks to withdraw all their money Money in banks was not insured at the time Once the bank gave all money out, there was no more! People that did get some money from the bank often hoarded their money (buried it, stuffed it in a mattress, etc.)-They were afraid to spend any money because they feared it could not be replaced

Conditions decline Many companies suffered once the stock values continued to decrease More and more people lost jobs-by 1933, the unemployment rate was 25% Hoover promised that there would be prosperous times around the corner and there would be a “chicken in every pot”, but that did not come to pass

Continued Many lost jobs, were homeless, and hungry Many children malnourished Many stood in bread lines or went to soup kitchens to get food There was no government assistance….no food stamps, monthly checks, unemployment, etc. Charities/churches did provide some support, but the government did nothing at this point See clip of “Cinderella Man”

Bonus army World War I veterans Promised a bonus for their service payable in 1945 Because of desperate conditions, many asked for their bonus early in 1932 Thousands made the trip to Washington, D.C. to attempt to sway Congress to provide the money early- set up a tent city Congress denied their request, and those that did not leave voluntarily were forced out with tear gas and tanks Last straw for Hoover “Bonus Army” video

Hoover blamed Although Hoover promised that prosperity was “right around the corner”, that did not happen for most Make-shift homes made of scrap wood, metal and cardboard were referred to as “Hoovervilles” “Hoover-flags” “Hoover-blankets” “Hoover-hogs”

Depression effects rural areas Lower demand for food after World War I Many years of drought in area of Great Plains called the Dust Bowl Caused by: High winds Little or no rain Lack of crop rotation

Okies Farmers from the Great Plains (mostly Oklahoma at first) that moved West to find work picking fruit in California Too many went and there were not enough jobs available Okies were often not welcomed out West

Effects of the Great Depression People suffered widespread unemployment, hunger, hopelessness, and homelessness Industrial and farm production failed World economic crisis developed Roosevelt won victory in 1932 President Franklin D. Roosevelt initiated the New Deal for all Americans Clara Video