1. The Great Depression

2. Causes of the Depression
Speculation
Buying on the Margin
Decrease in buying power of Americans
Growing gap between rich and average citizen
Inept monetary policy of US; not enough money in circulation
US served as a lender for foreign nations; their economies and could not buy our products
High tariffs – blocked international trade causing underconsumption
Causes of the Depression

3. Hoover’s Response Worked to promise a rapid recovery
Asked businesses not to cut wages or production, which they did for about 2 yrs
Suggested that city/states stimulate their economies with building projects for jobs
Gave aid to farmers but only as a cooperative group; thousands lost their home b/c they were not part of the co- op
Unemployment rose to 25% by 1932
Refused to support federal aid programs
Did create the RFC to provide aid to banks, ins. Companies, railroads hoping for a trickle down effect, didn’t happen
Bonus Army – marched to Washington asking for their military bonuses early - removed with force by order of Pres.
Fed up people elected FDR in 1932
Hoover’s Response

4. Way of life during the Depression
On top of the depression, farmers also had to deal with extreme drought and dust storms in the 1930s.
Could not pay their mortgages b/c of low crop prices
Caused thousands of foreclosures
Penny auctions – neighbors would come to the bank auction and buy equipment for pennies and then return it to the owner once the auction was over.
Way of life during the Depression

5. Many were forced to move westward and leave their possessions and farm
Migration of the Okies
Tenant farmers in the South were also hit hard.
Farmers left tenant lands fallow to allow crop prices to increase
Tenants lost their jobs due to machines or loss of land.
Con’t

6. Mexican Americans were discriminated against
Many were deported even though they were US citizens
Many sought repatriation in the Mexico
Joblessness was just as bad in cities – some as bad as 80% unemployed
With no factories working cities became quiet ghost towns
Many were evicted and forced to live with other family members or to “Hoovervilles”

7. Hooverville in Seattle, WA

8. Men – were depressed and looking for work, often resorting to drinking, or even leaving their family behind to find work
Women – kept the family together, living off meager food and sewing their own clothes and often held got money for laundry or sewing for others to help with rent. Many also worked outside the home.
The depression was as much psychological as it was economic.
Gender Roles

9. Discuss why the stock market eventually crashed in 1929. Name 2 reasons.
What did Hoover recommend in order to deal with the depression?
How did farmers attempt to keep their homes from being auctioned by the bank?
What does this statement mean? - “The depression was as much psychological as it was economic.”
Quiz