Americans Face Hard Times

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Americans Face Hard Times Chapter 21 section 2 notes

The Development of the Great Depression Most severe economic downturn in the history of the U.S.

Bank Failures Banks failed Most had their savings in banks There was no deposit insurance Today there is FDIC insurance Banks were vulnerable to runs- people would withdraw their savings leaving no money at the bank forcing it to close

Farm Failures Joblessness and poverty reduced people’s ability to buy food Farmers prices were down 50% Lower prices meant lower income for farmers

Farms cont. Farmers had to borrow money for land and equipment They were unable to make their payments 1933-364,000 farms went bankrupt

Unemployment By 1933 unemployment was 25% In Harlem, it was 50%

Hoovervilles and Hoboes Millions were out of work Some begged door to door for food Others relied on soup kitchens or bread lines There was no federal government programs that provided food or money for the poor

Hoovervilles and Hoboes cont. People lost their homes because they couldn’t make the payments Neighborhoods of shacks sprang up These shantytowns became known as Hoovervilles They were named after Hoover who many blamed for the depression

Hoboes Hopped trains to travel to find work This was dangerous and illegal They would beg or steal They came up with a system of sign language to alert each other to good opportunities Most hoboes were men They left their families because they couldn’t take care of them anymore

Emotional Toll Millions shared the same fate They felt like it was a personal failure There was a rise in suicide rates in the 1930’s

Dust Bowl Much of the Great Plains suffered a drought Millions left the area There was no vegetation to hold the dirt down When the windstorms came, it blew dirt for hundreds of miles This became known as the dust bowl It hit Oklahoma, Kansas, Colorado, New Mexico and Texas the hardest

Dust Bowl

Fleeing the Plains 2.5 million left the Great Plains Many headed west on Route 66 to California