THE GREAT DEPRESSION BEGINS

HOOVER AND The Depression

Banks Begin to Fail Banks were the first thing hit by the stock market crash as numerous banks closed their doors When the stock prices fell, many banks lost money on their investments. People who had deposits in these banks lost all their savings. Others took their deposits out as quickly as possible, creating runs.

A Bank Run A bank run occurred when people, fearing the bank would go bankrupt, rushed to the bank to take out their money A bank run led to the closing of a bank because all of the banks money would be gone

Hoover Federalism Hoover believed that charities or state and local governments - not the federal government – provide food & shelter to people who were poor or out of work. Relief line waiting for commodities, San Antonio, Texas.

Life During the Depression

Effects of the Depression The Depression brought suffering & hardship to many Hard economic times ruined many people’s lives. Millions lost jobs, went hungry, or became homeless.

Depression leads to depression Other families broke apart under the strain of poverty & unemployment. Many men felt ashamed because they lost their jobs. Some men left their families & wandered the country looking for work.

Effects on the American Family The federal government did not give direct relief-cash, or food directly to the poor people. Charities and some city governments struggled to help. States collected less tax money. Programs like child welfare was cut. School days were shorten or closed all together. Children often went to work to help out their families; they often labored in sweatshops under horrendous conditions. Rates of suicide and mental illness increased. Young people were forced to give up their dreams of college.

EFFECTS OF DEPRESSION Suicide rate rose more than 30% between 1928-1932 Alcoholism rose sharply in urban areas Three times as many people were admitted to state mental hospitals as in normal times Many people showed great kindness to strangers

Children suffered terribly during the Depression

Many children had poor diets & no health care.

Many teenagers ran away from home in hopes of finding work.

Hobos Many homeless people began to wander around the country, walking, hitchhiking or, most often, “riding the rails” (hopped on trains). These men who wandered the country were called “hobos”

Turning to Charities Many people turned to charitable organizations in order to survive Many people resorted to soup kitchens and bread lines for their food Charities became an major source of assistance to many who were “down on their luck.”

“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.

Central Park, New York City

Many waited in unemployment lines hoping for a job.

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

Christmas Day Breadlines in New York City, 1931

The Hoover Dam Hoover used the Boulder Dam project as a model of how federal government could encourage cooperation b/w private groups

Man killing turtle to make soup, Minneapolis, Minnesota. Sept. 1939.

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

New York. Bread line beside the Brooklyn Bridge approach

Germany Worldwide Effect Germany's Weimar Republic was hit hard by the depression, as American loans to help rebuild the German economy stopped. Unemployment soared, especially in larger cities, and the political system veered toward extremism. Hitler's Nazi Party came to power in January 1933. In 1934 the economy was still not balanced enough for Germany to work on its own.

Canada Harshly impacted by both the global economic downturn and the Dust Bowl Canadian industrial production had fallen to only 58% of the 1929 level by 1932, the second lowest level in the world after the United States. Total national income fell to 55% of the 1929 level, again worse than any nation apart from the United States.

Latin America Because of high levels of United States investment in Latin American economies, they were severely damaged by the Depression Chile, Bolivia and Peru were particularly badly affected One result of the Depression in this area was the rise of fascist movements.

The End to the Great Depression Outbreak of World War II causes US factories flooded with orders for armaments and munitions Unemployment decreases and production increase Depression ends completely by the time the US enters the war in 1941

The End