The Great Depression Chapter 13

Prosperity Shattered “…nearer to the final triumph over poverty than ever before in the history of any land.” – Herbert Hoover Bull Market / Bear Market –Urging to invest – Margin buying “Money is king – but there is something else. It is a high, wild time, a time of riotous spirits and belief in magic rather than cold calculation.”

The Stock Market Crashes October 24, 1929 –Black Thursday – investor confidence is crushed, stocks are dumped on the market October 29, 1929 –Black Tuesday – Prices shrank to a shocking new low – 16 Million shares dumped Stock losses exceeded the total cost of the US involvement in World War I by the end of the year

The Depression Begins “We have now passed the worst and…shall rapidly recover.” – Herbert Hoover The US economy sank steadily until 1933 –GNP in 1929 – 103 Billion –GNP in 1933 – 56 Billion »Average income for Americans was cut in half »Many companies and factories closed »Railroad production was cut to a fraction as were automobiles »The banking system collapsed and many banks failed »400,000 depositors and roughly 180 million in savings lost

What Caused the Depression? The Crash of 1929 did not cause the depression alone: –World economy after World War I –Sick industries in the US –Dependence on credit –Gap between rich and poor »No money for largest part of population to pump into the economy –Business Cycle and income distribution »Recession / Depression It was in fact a combination of these six things that caused the Depression

“Work Is What I Want” In Million Americans were unemployed –Three years later that number was 12 million »Wages fell dramatically (10 cents an hour) »“If you’d have told me…” »Racial discrimination (Mississippi) »Slave Markets –Selling apples in the street »More profitable than their old jobs

Life in the City City government and charitable organizations (Red Cross) –Neighbors helped each other, especially in ethnic communities –Mutualistas Open Barrels (Chinese) / Rent Parties –Breadlines –Shantytowns (Hoovervilles, Hoover Flags, Hoover Blankets)

Life on the Farm Demand for farm products shrank –Let crops rot in the fields; had to let livestock starve to death –Bank foreclosures –Cotton Farmers went bust with no crops, the Midwest had too many crops

Family Life in the 1930’s Families shared food and money Divorce rate rose –Marriage and birthrates declined Revival of old crafts to save money Psychological Impact Education System

Popular Culture in the 1930’s Inexpensive pastimes – reading, board games (Monopoly) Radio and movies – Escapism –Sound Explosion – Talkies »Gangster flicks (Rags to Riches) »Upbeat Musicals (Gold Digger) »Mickey Mouse / Donald Duck –Golden Age of Radio »Lone Ranger, Little Orphan Annie, Shadow

Literature in the 1930’s Magazines and Comic Books –Superman / Tarzan –Reader’s Digest James Hilton “Lost Horizon” William Faulkner