The Roaring 20’s The new concept of “credit” People were buying: –Automobiles –Appliances –Clothes Fun times reigned –Dancing –Flappers –Drinking

Stock market crash Didn’t realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.

Why was this bad? Credit system –People didn’t really have the money they were spending WWI –The U.S. was a major credit loaner to other nations in need –Many of these nations could not pay us back

The Stock Market People bought stocks on margins –If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall –Now the person has less than $100 and no money to pay back

And then…. With people panicking about their money investors tried to sell their stocks –This leads to a huge decline in stocks –Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke

Herbert Hoover was president at the start Philosophy: We’ll make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

Farmers were already feeling the effects –Prices of crops went down –Many farms foreclosed People could not afford luxuries –Factories shut down –Businesses went out Banks could not pay out money People could not pay their taxes –Schools shut down due to lack of funds Many families became homeless and had to live in shanties

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

“Hooverville” Some families were forced to live in shanty towns –A grouping of shacks and tents in vacant lots They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

*FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instituted the “New Deal” 1 st nd 35 Fireside Chats

People everywhere were effected by the depression It wasn’t until President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

Entertainment Movies and radio popular because they provided an escape from reality Art, literature, music = sober and serious

New Deal’s Lasting Impact FDR’s administration expanded power of Federal Govt. –Infused economy with jobs –Attempted to regulate supply and demand –Increased involvement in labor disputes –Est. Federal Deposit Insurance Company and Securities and Exchange Commission. –Didn’t end depression but helped many.

Lasting Impact Social Security Act-still exists –1. Old Age Insurance –2. Unemployment –3. Aid to families with dependants and disabled children.

Seabiscuit Originally a book Released July 25, 2003-some were skeptical Stars: Jeff Bridges, Tobey Maguire, and Elizabeth Banks Setting: Depression Over 40 horses used in filiming-10 of which were used for Seabiscuit-no horse ran for more than 3 furlongs-or 3/8ths of a mile