1. The Great Depression
The Causes

3. Background By the late 20’s, there were signs of economic trouble
Workers’ wages stopped rising
Demand for goods began to drop
workers were being laid off

4. Cause #1 - Farmers & Consumers Hit Hard First
Demand for US food goes down
Farmers increase production to sell more, further decreases prices
Farmers can’t pay loans, rural banks fail
During the Depression farmers suffered more than any group.
People around the country buy less to save money

5. Cause #2 - Living on Credit
In the 1920s too many people bought goods on credit
Remember “Buy now pay later?”
Many consumers begin to have difficulty trouble paying off existing debt.
A huge wealth gap grew between the rich and the poor.

6. Cause #3 - Stock Market Crash of 1929
In the 1920s many believed that buying stocks was a quick way to get rich
Speculation was popular
By Sept. 1929, average stock prices were 4 times higher than in 1924
In Oct. 1929, stock prices crashed as everyone by happenstance tried to sell at once
Known as “Black Tuesday”
This triggered the main start of the Depression in the US

7. Cause #3 (cont.) - Fallout from the Crash
After the crash, people panic and withdraw money from banks and close accounts
Called a “run on the banks”
By 1933, 11,000 banks failed
90,000 businesses went bankrupt
Unemployment: % %

8. STOP – Mini Summary
What were the 3 main causes of the Great Depression?

9. …Continued “Life and Times in the Depression”
The Great Depression…
…Continued
“Life and Times in the Depression”

10. Depression in the Cities
Many people became homeless
Shantytowns- settlements made of shacks, nicknamed “Hoovervilles”
Soup Kitchens & Bread Lines- offer free or low cost food; usually from charities

13. The Dust Bowl
Many farmers exhaust nutrients from land through overproduction
“Dust Bowl” - Starting in the 1930s, climate change brought drought and windstorms to the Midwest
Scattered dust, sand for miles
From N. Dakota to Texas hit hardest
Many agricultural families migrate to California, became known as “Oakies” & “Arkies”

16. Dust Bowl Video Clip

19. Families Suffer Many men simply left their families
Women took up double role of provider and caregiver.
Poor diets and lack of health care lead to serious problems for children
Many couples put off marriage and having children

21. Psychological Effects
Suicide rate and admissions to mental hospitals skyrockets
Financial security becomes the goal for many people
Americans develop habits of saving everything.

23. STOP – Mini Summary Choose one….Man, woman, or child
Answer this: What were the psychological effects for this person?

24. …Continued Hoover & the Depression
The Great Depression
…Continued
Hoover & the Depression

27. Hoover’s Philosophy Hoover believes the economy will fix itself.
Thought people should take care of own families, not the gov’ts job.
Boulder Dam- (Hoover Dam)
Created to try and help economy
Provided electricity and water to 7 states
Despite criticism, Hoover refused to support direct relief or welfare.

29. Hoover Tries Action
With the 1932 Pres. Election coming up Hoover decides to try action
Reconstruction Finance Corp. (RFC)
Emergency funds for businesses
Was the first time the gov’t got involved in the economy
Was too little too late for Hoover

31. Bonus Army
= WWI veterans go to D.C. to support the Patman Bill: would give vets bonus
Bill doesn’t pass, Hoover didn’t support it
About 2,000 WWI vets stay in D.C. to speak to Hoover
Violence breaks out, US Army tear gases the Bonus Army
Many injured, including one infant killed
Public outrage over the actions of their gov’t

32. Full Summary … In a short paragraph, address the following.
Why did it start?
How did Americans feel during this time period?
What role did Herbert Hoover play during this time in history?

33. Great Depression Group Project
In teams of 4, research and describe 4 aspects about the Great Depression. 3 of you will focus on the causes, one of you will focus on life and times during it.
Paragraph response for each.
Decorate it with pictures symbolizing the cause.
The 3 causes should be placed on the downward paths of the arrow. The 1 life/times should be written in or around the arrow tip.
Use the book or notes for help.