Great Depression Begins “Mellon pulled the whistle, Hoover rang the bell, Wall Street gave the signal, and the country went to hell.”

Election of 1928 Herbert Hoover v. Alfred Smith Hoover wins with his campaign: “closer to triumph over poverty than ever” (Hoover predicts the end of poverty) 20’s marked the reign of prosperity (although it was on a shaky foundation) Quite and reserved “Two cars in every garage”

Herbert Hoover

Warning signs of Economic Downturn: speculation (buying on chance of quick profit), buying on margin (paying a small % down and borrowing the rest), inflation of stock prices

Stock Market Crashes Oct. 1929: prices begin to fall = confidence in stock market waivers Oct 29, 1929: BLACK TUESDAY, bottom falls out of the market

What were the causes?

Causes of Depression Overproduction of goods Too much available credit Less consumption of goods (prices rise, widening of gap between rich and poor) Farm surplus (increase during WWI, then decreased demand afterward but production remained the same) High tariff (to protect American industry, but hurts worldwide trade) No banking regulations Hawley Smoot Tariff: 1930, highest tariff ever, designed to protect but does the exact opposite

Hard Times Hit Home Rural Areas: can grown own food, but many lose land Cities: jobs lost and evictions People lost life savings in stock markets and bank closures

Soup kitchen: low cost or free food Many people can’t afford to buy food or feed their families.

Breadlines Wait in line for hours to receive food, often bread, from charities

Hard Times Hit Home Family Life Changes men on the move in search of jobs family as source of strength some families break apart Social effects: increased suicide (30%), increased mental illness, ethics change, dreams are forsaken, decrease in overall health and nutrition

due to people losing their homes and being evicted shantytowns emerge. Hard Times Hit Home: due to people losing their homes and being evicted shantytowns emerge. They were made out of anything you could find.

Shantytowns aka Hoovervilles sprang up all across the country. “Here were all these people living in old, rusted out car bodies…There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box…People living in whatever they could junk together.” Shantytown visitor outside Oklahoma City

Men on the move in search of jobs, some abandon families altogether

Children suffer—malnutrition and poor health during the Great Depression

Dust Bowl—severe drought in mid-west mostly caused by disregard for the land, few trees, and lack of soil erosion techniques Hard to grow food, land unusable, dust storms, etc. Farms destroyed Many will leave and head west in search of jobs

wrote “Grapes of Wrath” a novel about the Dust Bowl and a John Steinbeck wrote “Grapes of Wrath” a novel about the Dust Bowl and a group of migrants or “Okies” that left to go west to California Picture yourself standing in a field, not an ordinary field of grass and flowers, but a barren field of dust. You fix your eyes toward the horizon and a sigh comes over you as a dust storm rolls your way. This was life during the dust bowl of the 1930's.

Bonus Army Marches on Washington Bonus Army is WWI veterans and their families seeking help Came to Washington to support a bill under debate in Congress to compensate WWI veterans for their service When the bill failed, Hoover called them squatters and order them to be removed Eventually they are disbanned violently (over 1000 gased and 2 shot with many others injured) and their Hooverville is burned and destroyed

Bonus Army (WWI veterans and families) march on Washington and set up a Hooverville in the nation’s capital.

Hooverville being destroyed in Washington, D. C Hooverville being destroyed in Washington, D.C. after Hoover calls for the Bonus Army to be disbanned by Federal Troops

Hoover’s Resolve Rugged Individualism: people should succeed through their own efforts and shouldn’t depend on government Gave no direct relief (cash payments or food provided by gov’t) Created gov’t agency to help business recover: RFC (Reconstruction Finance Corporation) provides emergency financing to business to prevent failure All across the country Hoovervilles shantytowns emerge as people are disgraced at Hoover

Rugged individualism: people should succeed through their own efforts, without government help

Hooverville (Seattle): shantytowns are coined “Hoovervilles” b/c the American people are frustrated and disappointed in Hoover’s effort to relieve the Great Depression

Election of 1932 Franklin D. Roosevelt (distant cousin of Teddy Roosevelt), NY governor, pledged a “new deal” for the American people and help for the common man Democrats win majority in Congress Hoover remains a lame duck for several months until FDR takes office Banking system is in crisis and the Great Depression drags on

Franklin Delano Roosevelt runs for office in 1932 against Hoover promising a “New Deal”

Hoover remains a lame duck after the November 1932 election in which FDR won. The 20th amendment is passed changing the inaugural date for the President and Congress from March to January 20th.

Roosevelt must deal with a crisis in banking, the nation's sick economy, and the other effects of the Great Depression when he takes office.