The Great Depression Begins Chapter 14 The Great Depression Begins

Section One The Nation’s Sick Economy Economic Troubles the Horizon Industries in Trouble Railroads, Textiles, Steel, Coal Mining Farmers Struggle Supply rises and Demand falls Prices drop, less profit for farmers McNary-Haugen Bill Price-supports Consumers Have Less Money to Spend Buying less hurts more industries, leads to more unemployment Similar to current recession

Uneven Distribution of Income Living on Credit Installment Plans Easy availability of credit People had difficulty paying off debt Uneven Distribution of Income Rich get richer, poor get poorer Much of the nation lived below the poverty line Most just barely got by

Hoover Takes the Nation The Election of 1928 Alfred E. Smith vs. Herbert Hoover Hoover and Republicans win Dreams of Riches in the Stock Market Why would you invest? Dow Jones Industrial Average Speculation - Buying on margin -

The Stock Market Crashes Black Tuesday October 29, 1929 Massive Sell Off Makes the problem worse $30 Billion lost Many people lost all that they had

Financial Collapse Great Depression: 1929-1940 Bank and Business Failures Withdrawing money Banks close Unemployment up Reduced hours and pay for people that maintain jobs Worldwide Shock Waves Depression spreads to Europe International trade suffers Hawley-Smoot Tariff Act- protective tariff Buy American! Overall Causes of the Great Depression Tariffs and war debts Crisis in farming Easy credit Unequal distribution of income

Section Two Hardship and Suffering During the Depression The Depression Devastates People’s Lives The Depression in the Cities Shantytowns Soup kitchens Bread lines The Depression in Rural Areas Advantage over urban life - Dust Bowl devastates Midwest Causes - Impact on farmers -

Effects on the American Family Men in the Streets Difficulty dealing with unemployment Hoboes and drifters Women Struggle to Survive Women worked when possible Children Suffering Hardships Malnutrition and health problems Dropping out of school Many children separated from families Social and Psychological Effects Suicide rate rises Many offer helping hand to strangers

Section Three Hoover Struggles with the Depression Hoover Tries to Reassure the Nation Herbert Hoover Hoover’s Philosophy “Rugged Individualism” No federal welfare or direct relief What is direct relief? Examples? Hoover Takes Cautious Steps Meeting with business leaders Effects

Democrats Win in 1930 Congressional Elections Boulder Dam “Hoover” Dam Effect on economy Democrats Win in 1930 Congressional Elections Shows nations frustration with Hoover “Hoovervilles”, “Hoover Blankets”, and “Hoover Flags”

Hoover Takes Action Direct Intervention Federal Home Loan Bank Act, 1932 Lowers mortgage rates Provides opportunity to refinance Reconstruction Finance Corporation, 1932 Emergency financing for banks “Trickle Down Effect” Business failures still continued

Gassing the Bonus Army The Patman Bill Denied Patman Bill – back pay for WWI veterans, approximately $500 each, to be paid immediately instead of in 1945. Bonus Army march in D.C. Senate votes down Bill Hoover Disbands The Bonus Army Violence ensues, protesters gassed MacArthur and Eisenhower Hoover’s legacy tarnished