The Great Depression Mr. Mancuso Terre Haute South

Economic Troubles 1920’s were good economic times (roaring 20’s) 1920’s were good economic times (roaring 20’s) Many Americans purchased new products on credit ( billion dollars) Many Americans purchased new products on credit ( billion dollars) People were buying things on margin buying People were buying things on margin buyingmargin buyingmargin buying

Black Thursday Black Thursday October 24, 1929-stock market crashes October 24, 1929-stock market crashes Investors who were nervous about interest rates began to sell stock shares. Investors who were nervous about interest rates began to sell stock shares. Dow Jones Industrials lost 12 percent. Stock market would not get to 1929 values for 25 years. Dow Jones Industrials lost 12 percent. Stock market would not get to 1929 values for 25 years. Black Tuesday-October 29, 1929-prices went lower. $30 billion was lost by mid November. Black Tuesday-October 29, 1929-prices went lower. $30 billion was lost by mid November.

Bank Crisis Only a small percentage of Americans were involved in the stock market crash. Only a small percentage of Americans were involved in the stock market crash. People defaulted on their loans People defaulted on their loans This forced banks to close. This forced banks to close. Depositors lost confidence in banks and tried to withdraw money from the bank. This caused bank panics and bank closings. Depositors lost confidence in banks and tried to withdraw money from the bank. This caused bank panics and bank closings.

Stats Gross Domestic Product (what we produce as a nation) fell from $103 billion in 1929 to $53 billion in Gross Domestic Product (what we produce as a nation) fell from $103 billion in 1929 to $53 billion in Click here to see a link to more statistics. Click here to see a link to more statistics. Click here to see a link to more statistics. Click here to see a link to more statistics.

Other Causes Europe was in a depression (war debts and reparations against Germany caused this) Europe was in a depression (war debts and reparations against Germany caused this) Because the rest of the world was at war, they could not buy American goods. Because the rest of the world was at war, they could not buy American goods. Income gap between rich and poor. Income gap between rich and poor. Natural business cycle (what goes up must come down) Natural business cycle (what goes up must come down)

Unemployment million people were unemployed million people were unemployed million people were unemployed million people were unemployed. Surplus of labor caused wage cuts. Surplus of labor caused wage cuts. Some people didn’t get to work the number of hours that they wanted to work (underemployment) Some people didn’t get to work the number of hours that they wanted to work (underemployment)

Teenagers in the Depression (railroad) Teenagers had different roles. Teenagers had different roles. Riding the bulls. Riding the bulls. Riding the bulls. Riding the bulls. A Sad Christmas.  A Sad Christmas.  A Sad Christmas.  A Sad Christmas.  Losing a brother Losing a brother Losing a brother Losing a brother

Pictures from the Depression

City Life Suicide rate went up. Suicide rate went up. Federal government did little to assist people (rugged individualism) Federal government did little to assist people (rugged individualism)rugged individualismrugged individualism Neighbors tried to help one another with problems. Neighbors tried to help one another with problems. Breadlines Breadlines Breadlines Soup Kitchens Soup Kitchens Soup Kitchens Soup Kitchens Songs Songs Songs Shantytowns/Hoovervilles Shantytowns/Hoovervilles Shantytowns/Hoovervilles

Life on the Farm Increased poverty made it harder for people to buy farm products Increased poverty made it harder for people to buy farm products Farmers lost their land to foreclosure Farmers lost their land to foreclosure Picture 1Picture 2 Picture 1Picture 2 Picture 1Picture 2 Picture 1Picture 2 Dust Bowl (led to insanity and suicide) Dust Bowl (led to insanity and suicide) Dust Bowl Dust Bowl Picture 1Picture 2 Picture 1Picture 2 Picture 1Picture 2 Picture 1Picture 2 People were forced to move, like the Joads in The Grapes of Wrath People were forced to move, like the Joads in The Grapes of Wrath Anti-immigration movement because immigrants were taking up jobs (jobs that others did not want) Anti-immigration movement because immigrants were taking up jobs (jobs that others did not want)

What people did for fun Family life Family life Board games Board games Movies Movies Staring Donald Duck and Mickey Mouse Staring Donald Duck and Mickey MouseDonald Duck Mickey MouseDonald Duck Mickey Mouse Literature Literature Lost Horizon by James Hilton Lost Horizon by James Hilton The Sound of the Fury by William Faulkner The Sound of the Fury by William Faulkner Miss Lonelyhearts by Nathaniel West Miss Lonelyhearts by Nathaniel West

Herbert Hoover Herbert Hoover Thought Great Depression would be a temporary problem. Thought Great Depression would be a temporary problem. Opposed direct relief Opposed direct relief Opposed direct relief Opposed direct relief Rugged individualism Rugged individualism Encouraged volunteerism Encouraged volunteerism In his defense, nobody had ever had to deal with this type of situation. In his defense, nobody had ever had to deal with this type of situation. How would this type of situation be handled today? How would this type of situation be handled today?

More Hoover Did establish Federal Farm Board in Did establish Federal Farm Board in Group had a budget of $500 million. Group had a budget of $500 million. Goal was to find ways for farmers to help themselves (rugged individualism) Goal was to find ways for farmers to help themselves (rugged individualism) Hoover instructed Farm Board to buy up surplus crops. Also instructed farmers to produce fewer crops. This would cause prices to rise. Hoover instructed Farm Board to buy up surplus crops. Also instructed farmers to produce fewer crops. This would cause prices to rise. Farmers did not do this and prices continued to fall. Farmers did not do this and prices continued to fall. Helped banks through Reconstruction Finance Corporation. Helped banks through Reconstruction Finance Corporation.

John Maynard Keynes John Maynard Keynes Economist. Economist. Policies are known as Keynesian Economic Theory Policies are known as Keynesian Economic Theory Policies are known as Keynesian Economic Theory Policies are known as Keynesian Economic Theory Thought that if you increased government spending, you could jump start the economy. Thought that if you increased government spending, you could jump start the economy.

Reactions Protests began to rise by Protests began to rise by Communist Party and Socialist Party gained momentum. Communist Party and Socialist Party gained momentum. The Bonus Army The Bonus Army The Bonus Army The Bonus Army

1932 Election Despite all of the problems, Republicans re-nominate Herbert Hoover out of respect. Despite all of the problems, Republicans re-nominate Herbert Hoover out of respect. Everybody knows Hoover will lose, as people hold Hoover, and the Republican Party responsible for the Great Depression. Everybody knows Hoover will lose, as people hold Hoover, and the Republican Party responsible for the Great Depression. Democrats nominate Franklin D. Roosevelt, Teddy Roosevelt’s cousin. Democrats nominate Franklin D. Roosevelt, Teddy Roosevelt’s cousin.Franklin D. RooseveltFranklin D. Roosevelt

1932 Election Hoover versus Roosevelt

Franklin D. Roosevelt Simply known as FDR Simply known as FDR Attacked Hoover’s record, did not mention specific policies. Attacked Hoover’s record, did not mention specific policies. Optimistic Optimistic America blamed Republicans for the Great Depression America blamed Republicans for the Great Depression