The Great Depression What would you do to feed your family?

Day of Wrath

Examine the Issues What groups of people will be most hurt by the economic crash? What can you do to find a paying job? What can unemployed and impoverished people do to help each other?

The Nation’s Sick Economy Main Idea As the prosperity of the 1920’s ended, severe economic problems gripped the nation. Why it Matters Today The Great Depression has had lasting effects on how Americans view themselves and their government

Economic Troubles on the Horizon As the 1920’s advanced, serious problems threatened economic prosperity. Farmers grew more crops and raised more livestock than they could sell. Economic Problems Industries Railroads Coal Mines Housing Farmers- prices fell and went into debt Solution- Price Supports Consumers spent Less money Living on Credit Uneven Distribution of Income McNary-Haugen Bill- take surplus off market and store it People had too much debt, no money to buy goods ½ of Americans earned less than the minimum needed to live

Election of 1928 Republicans nominate Herbert Hoover “We in America are nearer to the final triumph over poverty than ever before.” “We in America are nearer to the final triumph over poverty than ever before.” Democrats nominate Alfred E. Smith 1 st Roman Catholic to run for President 1 st Roman Catholic to run for President “Happy Warrior” “Happy Warrior” Hoover wins the election

Dream of Riches in the Stock Market Those who had money invested in the stock market. Dow Jones Industrial Average- Dow- was measured based on the stock prices of the 30 major firms on the NYSE. Dow- was measured based on the stock prices of the 30 major firms on the NYSE. 1920’s- Dow rose to 381 pts/ 300 pts higher than it had been. “Bull Market”- a period of rising stock. By mill,3% of Americans owned stock Speculation- bought stock for a chance of a quick profit. Buying on Margin- paid a small % and borrowed the rest. People couldn’t pay off the loans. People couldn’t pay off the loans. "The bull and bear, symbolic beasts of finance and market trend."

The Stock Market Crashes In September 1929, stock prices peaked and prices fell. Black Tuesday October 29, stock market crashed. October 29, stock market crashed.

Financial Collapse The stock market crash signaled the beginning of the Great Depression- the period between in which the economy plummeted and unemployment skyrocketed. Bank Business Failures 1929, 600 banks closed 1929, 600 banks closed 1933, 11,000 of the 25,000 banks failed 1933, 11,000 of the 25,000 banks failed 90,000 businesses went bankrupt 90,000 businesses went bankrupt Worldwide Shock Waves Europe suffered from war debts Europe suffered from war debts Hawley-Smoot Tariff Act- protective tariff. Hawley-Smoot Tariff Act- protective tariff.

Causes of the Great Depression Tariffs and war debt policies that cut down the foreign market for American goods A crisis in the farm sector The availability of easy credit An unequal distribution of income

The Nation’s Sick Economy Review How did what happened to farmers during the 1920’s fore-shadow events of the Great Depression? During the 1920’s, farmers faced decreased demand for their products and lower crop prices. Those who were in debt could not repay loans, and rural banks failed. This pattern repeated itself in other sectors of the economy during the Depression. During the 1920’s, farmers faced decreased demand for their products and lower crop prices. Those who were in debt could not repay loans, and rural banks failed. This pattern repeated itself in other sectors of the economy during the Depression. What were some of the effects of the stock market crash in October 1929? The stock market crash triggered bank and business failures, high unemployment, and worldwide depression. The stock market crash triggered bank and business failures, high unemployment, and worldwide depression.

Hardship & Suffering During the Depression Main Idea During the Great Depression Americans did what they had to do to survive. Why it Matters Today Since the Great Depression many Americans have been more cautious abut saving, investing, and borrowing.

Hardship and Suffering During the Great Depression Farmers -lost land -grew food -tenant farming City Dwellers -lost jobs -homeless -soup kitchens Both loss jobs, homes

The Depression Devastates People’s Lives The Depression brought hardship, homelessness, and hunger to millions. The Depression In the Cities Shanytowns Soup Kitchens Bread Lines In Rural Areas 400,000 farms lost Tenant farming Dust Bowl Severe Drought Midwest

Effects on the American Family In the face of the suffering caused by the Great Depression, the family stood as a source of strength for most Americans. At a time when money was tight, many families stayed at home and played board games, such as Monopoly(1913) & listen to the radio. Men in the streets Many men had difficulty coping with unemployment Many men had difficulty coping with unemployment As many as 300,000 transits or “hoboes” wandered the country As many as 300,000 transits or “hoboes” wandered the country Direct Relief- cash payments or food provided by the government to the poor. Direct Relief- cash payments or food provided by the government to the poor.

Family Hardships Children Suffer hardships Poor diets and a lack of money for health care led to serious health problems. Poor diets and a lack of money for health care led to serious health problems. Falling tax revenues also caused school boards to shorten the school year and even close schools. Falling tax revenues also caused school boards to shorten the school year and even close schools ,600 schools shut down ,600 schools shut down Teenagers hopped on freight trains in search for work. Teenagers hopped on freight trains in search for work. “Wild boys” “Wild boys”

Family Hardships-Cont’ Social and Psychological Effects Many people lost their will to survive Many people lost their will to survive Between suicide rate rose more than 30% Between suicide rate rose more than 30% People made sacrifices People made sacrifices During the Great Depression many people showed great kindness to strangers who were down on their luck During the Great Depression many people showed great kindness to strangers who were down on their luck

Hardship & Suffering During the Depression Review How were shanytowns, soup kitchens, and bread lines a response to the Depressions? They were places where charitable organizations handed out food to the hungry. They were places where charitable organizations handed out food to the hungry. What pressures did the American family experience during the Depression? Unemployment, reduced household income, some families lost homes. Many adults lost the ability to provide for their families. Unemployment, reduced household income, some families lost homes. Many adults lost the ability to provide for their families.

Hoover Struggles with the Depression Main Idea President Hoover’s conservative response to the Great Depression drew criticism from many Americans. Why it Matters Today Worsening conditions in the country caused the government to become more involved in the health and wealth of the people.

Philosophy Hoover’s Philosophy Gov. should facilitate and encourage cooperation Gov. should facilitate and encourage cooperation People should take care of themselves People should take care of themselves

Hoover’s Responses and Reactions Initial Reaction After the stock market crash of October 1929, President Herbert Hoover tried to reassure Americans that the nation’s economy was on a sound footing. After the stock market crash of October 1929, President Herbert Hoover tried to reassure Americans that the nation’s economy was on a sound footing. No layoffs or don’t cut wages No layoffs or don’t cut wages “Hoovervilles”’ “Hoover Flags” “Hoovervilles”’ “Hoover Flags” Economic Situation in the 1930’s Continue to worsen Continue to worsen Unemployment continued to rise Unemployment continued to rise Companies went out of business Companies went out of business Voters Response Democrats win control of House of Representatives Democrats win control of House of Representatives Hoover’s Economic Solution Construction of a dam on the Colorado River Construction of a dam on the Colorado River CA,NM, CO,UT,WY,NV/ 1929 $700 million (Hoover Dam) CA,NM, CO,UT,WY,NV/ 1929 $700 million (Hoover Dam) Federal Farm Board- tried to help raise crop prices Federal Farm Board- tried to help raise crop prices Federal Home Loan Bank Act- Lower Mortgages and refinance homes Federal Home Loan Bank Act- Lower Mortgages and refinance homes Reconstruction Finance Corps- $805 billion to banks Reconstruction Finance Corps- $805 billion to banks Economy Reponse Continued to worsen Continued to worsen

Hoover’s Reaction and Responses (Continued) Bonus Army In 1932, 10,000 to 20,000 WWI veterans and their families arrived in Washington, D.C., from various parts of the country. In 1932, 10,000 to 20,000 WWI veterans and their families arrived in Washington, D.C., from various parts of the country. Demanding compensation for service in WWI Demanding compensation for service in WWI The Patman Bill Denied The bill was to pay a bonus to WWI veterans who had not be compensated for their wartime service. The bill was to pay a bonus to WWI veterans who had not be compensated for their wartime service. Hoover’s Response Opposed immediate payment and ordered an infantry to shut down their shanytowns on the capitol. Opposed immediate payment and ordered an infantry to shut down their shanytowns on the capitol. Eventually led to 1,000 people being gassed and 1 baby death Eventually led to 1,000 people being gassed and 1 baby death Hoover’s political situation? Public was outraged Public was outraged Damaged his image Damaged his image

Hoover Struggles with the Depression Review How did Hoover’s treatment of the Bonus Army affect his standing with the public? The harshness of the attack on the veterans and their families damaged Hoover’s reputation. The harshness of the attack on the veterans and their families damaged Hoover’s reputation. In what ways did Hoover try to use the government to relieve the Depression? He started public-works programs and backed the Federal Farm Board, Federal Home Loan Bank Act, and the RFC. He started public-works programs and backed the Federal Farm Board, Federal Home Loan Bank Act, and the RFC.

Test Today! Great Depression Place the following notes in order: The Nation’s Sick Economy The Nation’s Sick Economy Hardship and Suffering During the Depression Hardship and Suffering During the Depression The Great Depression Takes Its Toll The Great Depression Takes Its Toll Hoover Struggles with the Depression Hoover Struggles with the Depression After the Test, pick up the Vocabulary for Ch.18