1. The effects of the depression LO – to understand the effects of the depression on the American people.

3. effects Share prices kept falling until November 1929 Banks suffered hugely – they had been investing their customers money in the stock market Meant panic – and people withdrawing their savings Banks ran out of money – in 1929, 700 banks collapsed. Banks recalled loans – business went bankrupt – 100,000 shut down

4. Business & industry Many American business depended on their export trade Foreign countries were also hit by this depression and stopped importing US exports fell from $10billion to $3billion (1930)

5. Other effects Production fell by 40% 1 out of every 3 farmer lost their farms Sales in shops fell 50% Wages fell 60% 10,000 banks went bankrupt Unemployment soared – 1.6m to 12.1 million (24% of workforce)

6. UNEMPLOYMENT. The financial crash effected EVERY American in some way. Unemployment rose 22 per cent in 4 years!! Some Americans took to the roads, travelling from place to place looking for work. est.They became tramps – or ‘Hobos’ – est. number was thousands.

7. Black People Especially hit hard by unemployment 1931 – Chicago – 50% of black workforce were unemployed 1931 – Memphis = 75% of black workforce

11. Homelessness. The depression made many Americans homeless – no dole or welfare to help the unemployed. Many sold possessions to pay back loans and credit – if they could not meet their debts their homes were repossessed/ evicted if could not pay the rent. In 1932 ¼ million American lost their homes. Homeless ended on the streets (park benches). Some were deliberately arrested. Many moved to the edge of towns/waste ground and built shelters with anything they could find – corrugated iron, scrap metal, old wood – called the se places ‘HOOVERVILLES’ – as an insult to the President.

14. Help from charities. The homeless needed help – but it did not come from the State. Some towns and cities ran their own public relief programme = temporary homes, food, clothes and even jobs. Example – the Salvation Army. Wealthy individuals also gave money – Al Capone gave food in Chicago. Breadlines were set up – long lines of people queuing for free bread and soup.

17. Farmers. Made farmers lives even more difficult. Unemployment meant farmers sold less produce – prices fell even further. Crops like wheat were left to rot in the fields. 1932 – 1/20 farmers was evicted for not paying their mortgages.

18. DUST BOWL Further problem for farmers – in states of the South and Midwest – Kansas, Oklahoma. In WW1 farmers had changed from cattle farming to growing crops. 1930’s – drought!! Strong winds and little rain turned the soil to dust – land like a desert. Many farms left abandoned – drift to California (fruit)

23. The Republican Govt & the Depression Rep Govt of Herbert Hoover believed in ‘rugged individualism’ –Govt should not be involved in peoples lives; sort out own problems. Millions of Americans blamed Hoover for the depression - “In Hoover we trusted, now we are busted”. Hoover leather – cardboard soles for shoes. Hoover blankets – newspaper that people slept in. Needed a new approach – found in F.D Roosevelt, who promised a “new deal” for the American people.

24. BONUS ARMY End of WW1 the Govt promised soldiers that in 1945 they would get a ‘bonus’ (pension) 1932 – as depression hit hard – the veterans asked for that money up front 20,000 marched in Washington to protest Congress voted against Hoover used the police & army to destroy their camp – 2 were killed Hoover became even less popular.

26. Limits to the depression Wrong to think everything was devastated 1931 – Empire state building opened 1936 – Hoover Dam built 1937 – Golden Gate bridge built 1939 – TV channels established 1930’s – air travel grew Bingo & sales of beer boomed!!!

27. Warren Harding 1921 -1923 Calvin Coolidge 1923 -1929 Herbert Hoover 1929 -1933 Franklin Roosevelt 1933 -1945

28. Did Hoover fail to act against the depression? YES 1.Hoover believed in Laissez Faire/Rugged individualism 2.Smoot-Hawley Tariff ruined US exports (tariffs at highest level) 3.Attacked Bonus Army 4.Just ‘hoped’ America would turn the corner 5.He was blamed by the US citizens NO He cut taxes $4 billion on building projects – like Hoover Dam Emergency relief Act – gave $300 to help unemployed) Reconstruction Finance Corp – gave $1.5 billion to businesses