The Great Depression

The Great Depression featuring Herbert Hoover

Election of 1928 Contest between… Hoover’s Career (summery) Al Smith Results Coming soon: “The Day when poverty would be banished…” Hoover’s prophesy…

The Depression 1920s a New Era? Optimism results in… Market Rises… 1927 1928 1929 Black Tuesday… Losses By end of Oct… By end of Nov… By next summer…

The Depression Bottoms out in… Hoover’s Warnings (since 1925) Need to raise interest rates to stop marginal… Hoover talks to bankers… “The problem with capitalists… Expectations…

Causes of Great Depression Problems with raw materials. Industrialization means… American Farm problem Too much production Lack of purchasing power Industrial wages… Over speculation in stock market. Collapse causes…

Causes of Great Depression Worldwide phenomenon. Time of adjustment after war Rapid Growth End of prosperity Need for international cooperation…(war reparations)… The blame game Consensus opinion… Cycles of capitalism… Adam Smith’s hidden hand…Supply and demand A chute instead of a cycle…

Causes of Great Depression Why is the US at fault for widespread? US is largest… Should have…

Causes of Great Depression Why is the US at fault for widespread? US is largest… Should have… Filled role as world financial stabilizer

Causes of Great Depression Why is the US at fault for widespread? US is largest… Should have… Been open to foreign goods.

Why did it last SO long? Governmental policies. A recurring theme… Smoot-Hawley Tariff (1930) Raised cost of living in era of deflation Hurts farmers Hampers international trade Other nations cannot pay debts. A recurring theme… More poor policies… The US needed to lend money, but…

Summary of Depression: Causes and Course. Americans should have taken the lead… Others to blame too… The US tried to help Europeans earlier…

Hoover: Progressive or Conservative? Believed in… Technical proficiency Civil liberties? Tool of Big Business? Racism? Prohibition? Public health and education?

Hoover’s Social Ideology Government as initiator Government as organizer But key was…

Farm problem American Farmers “too successful” Oversupply in food results in… Meager profits have massive repercussions: Hoover’s response: Agricultural Marketing Act (AMA).

AMA Purpose: Farm Board… Coops…

Problem with AMA Farmers still plant… July 1931 Only effective in the short term. July 1931 Hoover Prequels the New Deal….

Bonus Army Summer 1932 Unemployed WWI vets petition Washington DC to grant them early bonuses (promised in 1945). $1 a day for those who had served at home $1.25 for those overseas Congress voted “no” on the bill. Many went home 8,000 soldier stayed. Hoover had them forcibly removed.

Hoover’s Foreign Policy A New Departure in foreign policy… Redefining the Monroe Doctrine & Roosevelt Corollary… Clark Memorandum Manchurian Crisis. American Response: very weak Stimson Doctrine Effectiveness of response?

Hoover: Conclusion Failed to deal with Great Depression Hoover was unique mix of past and future of America He should be remembered as more than the president that failed to deal with depression… He was the Quintessential American! An ominous lesson

The Grapes of Wrath

Grapes of Wrath Based on book by John Steinbeck Released 1940 Directed by John Ford (famous for John Wayne Westerns) Also republican Stars Henry Fonda

The Film: Acclaimed Won best supporting actress - “Ma”

About farmers in Dust bowl

The Great Depression

Poverty in the 1930s

1930s: Depression

Poverty in the 1930s The Unemployment rates reached 25% in 1932

Poverty in the 1930s

1930s: Depression

Woody Guthrie American Folk singer Wrote “This Land is Your Land” Famous for singing about the Great Depression. Album: Dust Bowl Ballads The Great Dust Storm Disaster

The Great Dust Storm Disaster

On the 14th day of April of 1935, There struck the worst of dust storms that ever filled the sky. You could see that dust storm comin', the cloud looked deathlike black, And through our mighty nation, it left a dreadful track. From Oklahoma City to the Arizona line, Dakota and Nebraska to the lazy Rio Grande, It fell across our city like a curtain of black rolled down, We thought it was our judgment, we thought it was our doom. The radio reported, we listened with alarm, The wild and windy actions of this great mysterious storm; From Albuquerque and Clovis, and all New Mexico, They said it was the blackest that ever they had saw. From old Dodge City, Kansas, the dust had rung their knell, And a few more comrades sleeping on top of old Boot Hill. From Denver, Colorado, they said it blew so strong, They thought that they could hold out, but they didn't know how long. Our relatives were huddled into their oil boom shacks, And the children they was cryin' as it whistled through the cracks. And the family it was crowded into their little room, They thought the world had ended, and they thought it was their doom. The storm took place at sundown, it lasted through the night, When we looked out next morning, we saw a terrible sight. We saw outside our window where wheat fields they had grown Was now a rippling ocean of dust the wind had blown. It covered up our fences, it covered up our barns, It covered up our tractors in this wild and dusty storm. We loaded our jalopies and piled our families in, We rattled down that highway to never come back again.

Popular Films/entertainment Gone With the Wind Wizard of Oz Snow White and the Seven Dwarfs

Big Movie Stars Clark Gable Carry Grant Katherine Hepburn Laurel and Hardy Show “going bye bye”? Little Rascals Shirley Temple

The Grapes of Wrath

Grapes of Wrath Based on book by John Steinbeck Released 1940 Directed by John Ford (famous for John Wayne Westerns) Also republican Stars Henry Fonda

The Film: Acclaimed Won best supporting actress - “Ma”

About farmers in Dust bowl

On the 14th day of April of 1935, There struck the worst of dust storms that ever filled the sky. You could see that dust storm comin', the cloud looked deathlike black, And through our mighty nation, it left a dreadful track. From Oklahoma City to the Arizona line, Dakota and Nebraska to the lazy Rio Grande, It fell across our city like a curtain of black rolled down, We thought it was our judgement, we thought it was our doom. The radio reported, we listened with alarm, The wild and windy actions of this great mysterious storm; From Albuquerque and Clovis, and all New Mexico, They said it was the blackest that ever they had saw. From old Dodge City, Kansas, the dust had rung their knell, And a few more comrades sleeping on top of old Boot Hill. From Denver, Colorado, they said it blew so strong, They thought that they could hold out, but they didn't know how long. Our relatives were huddled into their oil boom shacks, And the children they was cryin' as it whistled through the cracks. And the family it was crowded into their little room, They thought the world had ended, and they thought it was their doom. The storm took place at sundown, it lasted through the night, When we looked out next morning, we saw a terrible sight. We saw outside our window where wheat fields they had grown Was now a rippling ocean of dust the wind had blown. It covered up our fences, it covered up our barns, It covered up our tractors in this wild and dusty storm. We loaded our jalopies and piled our families in, We rattled down that highway to never come back again.

Popular Films/entertainment Gone With the Wind Wizard of Oz Laurel and Hardy Snow White and the Seven Dwarfs Little Rascals Shirley Temple

Big Movie Stars Clark Gable Carry Grant Katherine Hepburn

Supply & Demand: A simple example

Supply & Demand: A simple example What happens to the price of items as the demand increases? What happens to the price if the demand decreases? Demand = Price Demand = Price

The Law of Supply and Demand The card is valuable because of its scarcity. In 2007, a mint copy was sold for $2.35 million. Only 50 – 60 Honus Wagner baseball cards exist in the world. + = Honus Wagner baseball card (1909 ) + = Demand Supply Price

The Law of Supply and Demand Valentine Heart Stickers Even though there is a large demand, there is a lack of scarcity. Sells for $1.00. Available almost everywhere. + = Valentine Heart Stickers + = Demand Supply Price

The Law of Supply and Demand No scarcity and no demand. Therefore, this pile of dirt is virtually worthless. Available almost everywhere. + = A small pile of dirt. + = Demand Supply Price

The Law of Supply and Demand A 1964 GI Joe in good condition is relatively scarce. This one is for sale on Ebay for $350.00 In “good” condition. + = GI Joe Action Figure (1964 ) + = Demand Supply Price

The Law of Supply and Demand U.S. farmers sold farm products to the European powers in large numbers. Due to an increase in scarcity, the price of U.S. farm goods increased. + = During WWI: Food shortage + = Demand Supply Price

The Other Half: Farmers During World War I: Europeans needed food. They bought U.S. farm products. U.S. farm prices increased. U.S. farmers borrowed money to buy more land and tractors.

The Other Half: Farmers After World War I: Europeans began to produce their own food again. The demand for U.S. farm products decreased. U.S. farm prices decreased. Farmers could not repay their debts.