The great depression.

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Presentation transcript:

the great depression

Great Depression in the U.S. Steeper than in any industrialized country Unemployment rate higher and longer than any western country Greatly expanded the role of the federal government Created the modern welfare state

New American Philosophy The federal government should provide a safety net for: The elderly The jobless The disabled The poor The federal government was responsible for: Ensuring the health of the nation’s economy Welfare of the citizens

Causes of the Great Depression Insufficient purchasing power in the middle class Falling crop prices (prior to the Depression) Stock Market’s dependence on borrowed money

“Ponzi Scheme” – Get Rich Quick Speculation – Engagement in business transactions involving considerable risk but offering the chance for large gains. So what was happening?

Stock Market Crash October 1929 http://www.history.com/topics/1929-stock-market-crash

What it looked like for the people Breadlines

What it looked like for the people Soup Kitchens

What it looked like for the people Hoovervi l les Tin Can Shanties

What it looked like for the people Hoovervi l les Tar Paper Shacks

Unemployment in the United States

Struggles of the Common Family Average income fell 40% 3-4 families lived in one room shacks Vagrancy Families neglected medical/dental care Planting gardens, buying used bread, using cardboard for shoe soles

Heavy Psychological Toll No wages – lost power as decision makers Lost self-respect Stopped looking for work Many turned to alcohol and became abusive

Unemployment Hoover’s Response “Nobody is actually starving. The hoboes are better fed than they have ever been” 4.4%  23.6% Unemployment

Roosevelt is Elected!