1. THE GREAT DEPRESSION 1929-1940S

2.  Election of 1928-Hoover elected-won in a landslide  Enters in during a time of prosperity: 1920s experienced a strong bull market (stock prices are rising)  Consumer culture of the 20s=credit/debt  Highly popular in the beginning PRESIDENT HOOVER

3.  What factors contribute to an economic downswing in an economy?  How might you represent this downswing in a visual diagram? CAUSES OF THE DEPRESSION

4. 1.Overproduction-WWI, mechanization of industry 2.Under-consumption 3.Uneven distribution of wealth-wages rose little; top 5% received 33% of the income (2007: Top 1% 42.7%, next 19% 50.3%, Bottom 80% 7%) CAUSES OF THE DEPRESSION

5. 4.Rising debt/lending issues 5.Govt. policies-Hawley-Smoot tariff-raised prices on foreign goods (Reason? Negative consequence?) 6.Global economic problems-had become more interdependent with one another; debts, reparations, etc. leads to further troubles and loss of overseas trade with the U.S. CAUSES OF THE DEPRESSION-CONT.

6. 7. Stock market speculation investment (promises satisfactory returns) vs. speculation (unsure of return) 8. “Buying stocks on margin”-many contributed as little as 10% down; 1/3 did 9.Stock Market Crash-Oct. 29, 1929-”Black Tuesday”-16 million shares sold, over $30 billion lost CAUSES OF THE DEPRESSION-CONT.

8.  Between 1929-1933 -85,000 businesses close -400,000 farms foreclosed on -6,000 banks fail (1/4 of all banks) -GDP fell almost 50% (1929- 1932: $81 billion to $41 billion) -Unemployment: 16 million (1/3 of pop.)  Hardest hit -Minorities (Unemployment often 60%) -Women (3/4 ban women from teaching) -Teenagers EFFECTS

9.  Hoovervilles-dev. Outside cities; communities of tents and shacks  Civil unrest-Bonus Army (1932) Group of WWI veterans march on D.C., demanding early payment of a war bonus to be paid in 1945; Vets camped out and demanded they would stay until paid; Hoover sent in troops under Douglas MacArthur; they used tear gas and tanks, removed the protesters and burnt the camps; 1 dead; outraged the people  Breadlines EFFECTS

13.  Dust Bowl: over-farming and climate  Took loose soil and spread it across the nation; took topsoil away  Huge dust storms  Farms were abandoned by the thousands  Okies left the south and mid-west to settle in the West, such as in California OTHER MAJOR EVENTS

17.  Some govt. action was needed to pull the U.S. econ. out  “rugged individualism”-self-reliance; individuals can succeed on their own with some govt. assistance  Some tax breaks; asked churches to deal with charity  $800 million pushed toward public works -Boulder/Hoover Dam later named to honor him  Tries to stabilize prices by holding surplus farm products in storage=not enough for continued overproduction  Emergency loans to stabilize key businesses (ex. rr’s, banks) trickle-down economics-could “trickle down” to smaller businesses and bring recovery  “lame duck” president-powerless to cope with the Dep. HOOVER’S RESPONSE

18.  1932-worst year of the Depression  FDR elected in election of 1932  3 R’s: relief, recovery, and reform  Created a series of federal programs known as the New Deal (govt. role in the economy increased) FDR

19.  It’s a Wonderful Life  Annie  Grapes of Wrath  Bonnie and Clyde  Of Mice and Men  O’ Brother, Where Art Thou?  The Color Purple  Cinderella Man MOVIES FEATURING G. DEPRESSION