1. Warmup
Read page 680

2. Americans Face Hard Times
Chapter 21 section 2
Objective: How the Great Depression changes American life

3. Landscape

4. The Development of the Great Depression
The crash brings an end to the economic boom
This brings out all the flaws and issues within the U.S.
This leads into the most severe economic downturn in U.S. history
The Great Depression

5. Bank Failures Why did banks fail after the crash?
Today – insurance policies
Banks required to keep more percentage of assets in cash
No such law in the 1920’s
Rate of banks closing keeps increasing
350 in December 1930
By 1933 banks wiped out billions of savings

6. Farm Failures Widespread joblessness and poverty
Food was too expensive
Farmers produced more than they could sell
Lower prices in all goods means lower income for families
Farmers would typically borrow from banks to pay for land and equipment
Many became unable to pay for loans
1933 – about 364,000 farms go bankrupt or suffered foreclosure

7. Unemployment Steep rise in unemployment GNP dropped over 40%
Not uncommon during economic downturn
Issue – this rate was not getting better
GNP dropped over 40%
Unemployment reached 25%
Some places and groups the number is higher
Ex: African Americans in Harlem = 50%

8. The Human Impact of the Great Depression
Statistics were bad but do not tell of people’s struggles

9. Jobs Millions of workers out of jobs Few jobs left Competition
“I’d get up at five in the morning and head for the waterfront. Outside the Speckles Sugar Refinery, outside the gates, there would be a thousands men. You know dang well there’s only three or four jobs. … ‘I need two guys for the bull gang. Two guys to go into the hole.’ A thousand men would fight like a pack of Alaskan dogs to get through there.” – Ed Paulson

10. Hooversvilles Some began to beg door to door
Many relied on soup kitchens or bread lines
No government programs - local charities
Charities could not meet the need
¼ families needing relief received it
No jobs – lost their homes
Can’t pay rent or were foreclosed
Shacks started to spring up outside of towns or in parks

11. Hooversvilles Shantytowns began to be called Hooversvilles
Many blamed Hoover for the Great Depression
People took to activities like selling apples
Many took to the roads looking for work
Hoboes – hopped trains to travel from town to town
Railroads hired “bulls” (guards) to chase hoboes off the train
Met lots of violence
Developed a sign language to signal good opportunities or warn of danger

18. The Emotional Toll Millions of Americans shared the same fate
Many saw it as a personal failure
Many had difficulties bringing themselves to accept handouts
“The only scar it [the Depression] left on my was my pride.”
Suicide rates rose
Many felt the government failed to protect the citizens
Brother, Can You Spare a Dime?