Warmup Read page 680

Americans Face Hard Times Chapter 21 section 2 Objective: How the Great Depression changes American life

Landscape

The Development of the Great Depression The crash brings an end to the economic boom This brings out all the flaws and issues within the U.S. This leads into the most severe economic downturn in U.S. history The Great Depression

Bank Failures Why did banks fail after the crash? Today – insurance policies Banks required to keep more percentage of assets in cash No such law in the 1920’s Rate of banks closing keeps increasing 350 in December 1930 By 1933 banks wiped out billions of savings

Farm Failures Widespread joblessness and poverty Food was too expensive Farmers produced more than they could sell Lower prices in all goods means lower income for families Farmers would typically borrow from banks to pay for land and equipment Many became unable to pay for loans 1933 – about 364,000 farms go bankrupt or suffered foreclosure

Unemployment Steep rise in unemployment GNP dropped over 40% Not uncommon during economic downturn Issue – this rate was not getting better GNP dropped over 40% Unemployment reached 25% Some places and groups the number is higher Ex: African Americans in Harlem = 50%

The Human Impact of the Great Depression Statistics were bad but do not tell of people’s struggles

Jobs Millions of workers out of jobs Few jobs left Competition “I’d get up at five in the morning and head for the waterfront. Outside the Speckles Sugar Refinery, outside the gates, there would be a thousands men. You know dang well there’s only three or four jobs. … ‘I need two guys for the bull gang. Two guys to go into the hole.’ A thousand men would fight like a pack of Alaskan dogs to get through there.” – Ed Paulson

Hooversvilles Some began to beg door to door Many relied on soup kitchens or bread lines No government programs - local charities Charities could not meet the need ¼ families needing relief received it No jobs – lost their homes Can’t pay rent or were foreclosed Shacks started to spring up outside of towns or in parks

Hooversvilles Shantytowns began to be called Hooversvilles Many blamed Hoover for the Great Depression People took to activities like selling apples Many took to the roads looking for work Hoboes – hopped trains to travel from town to town Railroads hired “bulls” (guards) to chase hoboes off the train Met lots of violence Developed a sign language to signal good opportunities or warn of danger

The Emotional Toll Millions of Americans shared the same fate Many saw it as a personal failure Many had difficulties bringing themselves to accept handouts “The only scar it [the Depression] left on my was my pride.” Suicide rates rose Many felt the government failed to protect the citizens Brother, Can You Spare a Dime?