Reduction in Purchasing

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Presentation transcript:

Reduction in Purchasing Between 1928-1932, the U.S. Gross National Product (GNP) – the total output of a nation’s goods & services – fell nearly 50% from $104 billion to $59 billion

Reduction in Purchasing In 1930, Congress tried to protect American businesses by passing the Hawley-Smoot Tariff Act Largest tariff in history Tried to protect Americans from foreign competition Had opposite effect Other countries wouldn’t buy our goods Our businesses couldn’t buy materials from other countries Many countries retaliated Within a few years – world trade falls 40%

No Work By 1933 thousands of banks and closed and millions of Americans were unemployed 90,000 businesses went bankrupt Unemployment leaped from 3% in 1929 to 25% in 1933 14 million are jobless- 1933 Unemployed workers often stood at bread lines to receive free food or at soup kitchens where private charities gave a free meal to the poor.

4 1 5 2 3 6 New Ways to Make a Living With the loss of our job we need to find new ways to save & make money. Choose one of the #s & write the # on your Travel Log 1 2 5 3 6

New Ways to Make a Living 1- Take in tenants 4- sell all of your furniture On your Travel Log note what new ways your family resorted to, to make extra money 2- Put your child up for adoption 5- Beg on the corner Depression Era: when they realized women were using their sacks to make clothes for their children, the mills started using flowered fabric for their sacks. The label was designed to wash out. 3- Make your clothing out of flour sacks 6- Sell Apples

It wasn’t enough to save your house! Your Home It wasn’t enough to save your house!

With no home, you move to a Hooverville in Washington DC

HOOVERVILLES A "Hooverville" or shanty town was a community of houses or “shantys” made from scraps they could find By calling them “Hoovervilles” people conveyed their disgust and disappointment with Hoover.

Life Has Changed A lot

In addition to the term “Hooverville,” President Hoover’s name was used mockingly in other ways during the Great Depression. When soles wore out of shoes, the cardboard used to replace them was dubbed “Hoover Leather” “Hoover Flags” “Hoover Wagon” “Hoover Blankets”

Part of the reason you came to DC to set up your Shanty was to show your support for the passage of the PATMAN BILL. If Congress passes the PATMAN BILL it would be VERY beneficial for WWI Veterans like yourself.

Bonus Army Spring of 1932 about 15,000 World War I vets arrived in Washington to support the passage of the proposed Patman Bill If the bill passed WWI Vets would be issued a $1000 bonus immediately instead of waiting until its scheduled date of 1945

Putnam Bill Rejected On June 17, 1932 the Senate voted down the Putnam Bill Hoover called the Bonus marchers, “Communists and criminals”

Marchers Clash with Soldiers Hoover told the Bonus marchers to go home– most did 2,000 refused to leave Hoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower MacArthur’s 12th infantry gassed more than 1,000 marchers, including an 11-month old baby, who died Burned down Shantys Two vets were shot and scores injured Americans were outraged with Hoover

BONUS MARCHERS On your sheet note what happened to you or your family 1- Your baby died as a result of the gas 4- Your Shanty & belongings burned down On your sheet note what happened to you or your family 2- You were hospitalized & now have medical bills 5- You left crying before the troops came 3- Arrested for rioting