1. NOTES on the Great Depression

2. Causes of the Depression
1. Overproduction
Factories produced too much
Too much supply
Europe couldn’t buy our stuff
2. Under-consumption
Economic struggles led to people not buying goods they used to
Only bought necessities
Business fire employees not needing their work

3. 3. Stock Market Speculation
Speculation: buying cheap stocks hoping they will improve
Stock Market Crash: Speculators try to sell off stuck all at once to hold on to some profit, too many sold at once….CRASH!
Black Tuesday
16.4 million shares SOLD (Oct 29th, 1929)…Loss of $30 billion

4. 4. Disparity in Wealth Farmers in debt couldn’t make profit
Oil replaces coal as fuel
Workers wages do not increase
Only 1% of population owned 40% of wealth

6. What are problems caused by a cycle of poverty?
Economic Inequality
A scholar argues, “Widely unequal societies don't function effectively or have stable economies and even the rich will pay a steep price if economic inequalities continue to worsen.
Income levels have dropped and less people are moving up the corporate ladder to higher tax brackets.
What are problems caused by a cycle of poverty?
Are access to opportunities fair?

8. 5. Banking Panic Everyone withdraws their $ from banks
Banks don’t have enough to cover everyone’s cash
People lose all their savings and there is nothing insuring that loss
9,000 banks failed during 1930’s

11. 6. Dust bowl Overproduction dried out soil Drought
Dust clouds formed that were thousands of feet high and miles wide.
The dust storms and drought lasted nearly ten years
Farmers head to cities where jobs are already scarce

13. Farms Foreclosed

15. Depression Life
Okies: Farm migrants became known as "Okies" and were the subject of John Steinbeck's popular book, The Grapes of Wrath

17. Depression Life Unemployed: 25% (pop. Around 89 mill)
Homeless: 2 million
Women & Minorities: 1st to be fired

18. Welcome to Hoovervilles

19. “Prosperity cannot be restored by raids upon the public treasury”

20. Herbert Hoover’s response (Republican President)
Helps businesses … not PEOPLE
Opposes welfare for poor
Reluctant to have government help
Hoovervilles – Shantytowns (improvised settlement by homeless) named after Hoover
Bonus Army - 20,000 unemployed veterans marched on Washington
Want war pensions that were promised
Set up camp and refuse to leave
Army burns their camps
Smoot Hawley Tariff –tax on foreign goods
Intended to help American companies
Europe responds by not buying American goods

21. Prohibition repealed (industry & jobs)