1. The Great Depression

2. Causes Overproduction in industries and farms which lowered prices
Excessive use of credit
Uneven distribution of income: 70% living at/below standard of living
Stock Market Crash
High protective tariff: reduced trade w/ Europe
Bank failures

3. The Stock Market Buying on margin
Paying 10% up front and borrowing rest from broker
When stock prices fell people could not repay loans

4. President Herbert Hoover
Elected in 1928
Philosophy: We’ll make it!
What He Did: nothing at first
Reconstruction Finance Corporation ($ to big corporations- too little, too late)

5. Results of the Depression
Farmers
Prices of crops went down
Many farms foreclosed
Unemployment
Factories shut down
Businesses folded
Banks could not pay out money
People could not pay their taxes
Schools shut down due to a lack of funds
Many families became homeless and had to live in shanties

7. Many waited in unemployment lines hoping for a job.

8. People in cities would wait in line for bread to bring to their families

9. Some families were forced to relocate because they had no money.

10. Hoovervilles
A grouping of shacks and tents in vacant lots

11. The Bonus Army
World War Veterans had been promised a bonus to be paid in 1945
Demanded an early payment to survive depression
Hoover refused and veterans staged peaceful protest in front of White House
Hoover called out the Army to break it up (one fatality)

12. The Dust Bowl Crops turned to dust=No food to be sent out Homes buried
Fields blown away
South in state of emergency
Dust Bowl the #1 weather crisis of the 20th century

13. A drought in the South lead to dust storms that destroyed crops.
“The Dust Bowl”

16. Some families tried to make money by selling useful crafts like baskets.

17. Franklin D. Roosevelt Elected in 1932 Created the New Deal
3rs: Relief, Recovery, Reform
1st action: banking holiday

18. New Deal Programs Employment Programs (CCC,FERA, CWA)
Business Assistance Programs (FDIC, SEC)
Farm Relief (AAA)
Rural Development (TVA)
Housing (USHA)
Labor Relations (Wagner Act)
Retirement (Social Security Act)

19. What Ended the Depression?
World War II