The Great Depression

The Roaring Twenties Following the end of WWI, Americans were ready for life to go back to normal. Following the end of WWI, Americans were ready for life to go back to normal. The 1920’s was a decade of enjoyment and leisure for many Americans. The 1920’s was a decade of enjoyment and leisure for many Americans. Most Americans focused their attention on the present, with little concern for the future. Most Americans focused their attention on the present, with little concern for the future. The decade of the 1920’s brought many technological, social, and economic changes. The decade of the 1920’s brought many technological, social, and economic changes. Life definitely seemed easier for most Americans. Life definitely seemed easier for most Americans.

Economic Troubles on the Horizon Unfortunately, the carefree lifestyle of the 1920’s was short lived. Unfortunately, the carefree lifestyle of the 1920’s was short lived. As the 1920’s advanced, it grew increasingly clear that serious problems threatened economic prosperity. As the 1920’s advanced, it grew increasingly clear that serious problems threatened economic prosperity. Though some Americans were becoming wealthy, many more could not earn a decent living. Though some Americans were becoming wealthy, many more could not earn a decent living. Important industries were in trouble. Important industries were in trouble. Farmers produced more food than they could sell at a profit. Farmers produced more food than they could sell at a profit. In hopes of finding wealth, Americans gambled on the stock market. In hopes of finding wealth, Americans gambled on the stock market. When the decade drew to a close, slippages in the economy signaled the end of an era. When the decade drew to a close, slippages in the economy signaled the end of an era.

Black Tuesday On October 29 th, 1929 the stock market crashed as a result of people and corporations collectively unloading all of their shares. On October 29 th, 1929 the stock market crashed as a result of people and corporations collectively unloading all of their shares. This caused many American investors to lose much of their savings in the market. This caused many American investors to lose much of their savings in the market. Some investors who had bought stocks on credit acquired huge debts when the market crashed. Some investors who had bought stocks on credit acquired huge debts when the market crashed. This day in history is referred to as “Black Tuesday” This day in history is referred to as “Black Tuesday”

The Great Depression Begins The stock market crash signaled the beginning of the Great Depression- the period from 1929 to 1941, in which the economy was in severe decline and millions of people were out of work. The stock market crash signaled the beginning of the Great Depression- the period from 1929 to 1941, in which the economy was in severe decline and millions of people were out of work. The crash alone did not cause the Great Depression, but it hastened the collapse of the economy and made the depression more severe. The crash alone did not cause the Great Depression, but it hastened the collapse of the economy and made the depression more severe.

Causes of the Great Depression There were 4 main causes of the Great Depression: 1) An old and decaying industrial base- old equipment made some industries less competitive 2) A crisis in the farm sector- farmers produced more than they were able to sell, especially with the end of WWI and the disappearance of markets that the war had opened to them 3) The availability of easy credit- many people went into debt buying goods on the installment plan 4) Unequal distribution of income- there was too little money in the hands of working people, who were the vast majority of consumers

Shantytowns In cities across the country, people who lost their jobs found that they could no longer pay their rent or mortgage. In cities across the country, people who lost their jobs found that they could no longer pay their rent or mortgage. Many were evicted from their homes and ended up living in the streets. Many were evicted from their homes and ended up living in the streets. Some slept in parks or sewer pipes, wrapped in newspapers to fend off the cold. Some slept in parks or sewer pipes, wrapped in newspapers to fend off the cold. Others built makeshift shacks out of scrap materials. Others built makeshift shacks out of scrap materials. Before long, little towns consisting largely of shacks, called shantytowns, sprang up on the outskirts of cities. Before long, little towns consisting largely of shacks, called shantytowns, sprang up on the outskirts of cities.

Desperate for Food Everyday the urban poor could be seen scrounging for food, digging in garbage cans or begging on street corners. Everyday the urban poor could be seen scrounging for food, digging in garbage cans or begging on street corners. Soup kitchens and bread lines opened up in many cities to feed the homeless. Soup kitchens and bread lines opened up in many cities to feed the homeless. These were run by charitable organizations or public agencies and provided food for free. These were run by charitable organizations or public agencies and provided food for free.

The Dust Bowl To make matters worse, severe drought and dust storms during caused damage to the Great Plains and made farming very difficult. To make matters worse, severe drought and dust storms during caused damage to the Great Plains and made farming very difficult. Kansas, Oklahoma, and Texas were hardest hit. Kansas, Oklahoma, and Texas were hardest hit. Millions of acres of farmland became useless and hundreds of thousands of people were forced to leave their homes. Millions of acres of farmland became useless and hundreds of thousands of people were forced to leave their homes. Many of these families headed west towards California, where they found economic conditions to be just as bad. Many of these families headed west towards California, where they found economic conditions to be just as bad. Many became migrant workers where they traveled from farm to farm to pick fruit and other crops at starvation wages. Many became migrant workers where they traveled from farm to farm to pick fruit and other crops at starvation wages.

Franklin Roosevelt is Elected Many Americans blamed president Hoover for doing too little about the Depression and wanted a new president in the White House. Many Americans blamed president Hoover for doing too little about the Depression and wanted a new president in the White House. In 1932, the presidential election showed that Americans were clearly ready for a change when they elected Franklin Delano Roosevelt (FDR) as president. In 1932, the presidential election showed that Americans were clearly ready for a change when they elected Franklin Delano Roosevelt (FDR) as president.

The New Deal As soon as FDR entered office, he implemented a series of economic programs designed to alleviate the problems of the Great Depression. As soon as FDR entered office, he implemented a series of economic programs designed to alleviate the problems of the Great Depression. These programs became known as The New Deal. These programs became known as The New Deal. New Deal programs focused on 3 general goals: New Deal programs focused on 3 general goals: 1) Relief for the needy 2) Economic recovery 3) Financial reform