The Great Depression

Many found being broke humiliating. 1929-1939 Stock market crash Didn’t realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.

The Roaring 20’s The new concept of “credit” People were buying: Automobiles Appliances Clothes Fun times reigned Dancing Flappers Drinking

Uneven Distribution of Wealth In 1929, the wealthiest 1% of Americans, made more money than the bottom 42% of Americans!

Why was this bad? Credit system WWI People didn’t really have the money they were spending WWI The U.S. was a major credit loaner to other nations in need Many of these nations could not pay US back

The Stock Market People bought stocks on margins Stocks fall If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall Now the person has less than $100 and no money to pay back

With people panicking about their money investors tried to sell their stocks This leads to a huge decline in stocks Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke And then….

President Hoover Herbert Hoover was president at the start Philosophy: We’ll make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

What about the people… Farmers were already feeling the effects Prices of crops went down Many farms foreclosed People could not afford luxuries Factories shut down Businesses went out Banks could not pay out money People could not pay their taxes Schools shut down due to lack of funds Many families became homeless and had to live in shanties (“Hoovervilles”)

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

Bonus Army assemblage of some 43,000 marchers—including 17,000 World War I veterans, their families, and affiliated groups gathered in Washington, D.C., in the spring and summer of 1932 demand cash payment redemption of their service certificates were not supposed to be paid until 1945

Bonus Army Many wanted their bonuses early Hoover said NO WAY! The government called in the US Army to remove the veterans. The US Army, under Douglas MacArthur, used extreme measures and violent tactics to remove the veterans The Bonus Army was disbanded.