1. The Great Depression

2. Many found being broke humiliating.
Stock market crash
Didn’t realize the effect it would have
No money to replenish what was borrowed
Many found being broke humiliating.

3. The Roaring 20’s The new concept of “credit” People were buying:
Automobiles
Appliances
Clothes
Fun times reigned
Dancing
Flappers
Drinking

4. Uneven Distribution of Wealth
In 1929, the wealthiest 1% of Americans, made more money than the bottom 42% of Americans!

5. Why was this bad? Credit system WWI
People didn’t really have the money they were spending
WWI
The U.S. was a major credit loaner to other nations in need
Many of these nations could not pay US back

6. The Stock Market People bought stocks on margins Stocks fall
If a stock is $100 you can pay $10 now and the rest later when the stock rose
Stocks fall
Now the person has less than $100 and no money to pay back

7. With people panicking about their money investors tried to sell their stocks
This leads to a huge decline in stocks
Stocks were worthless now
People who bought on “margins” now could not pay
Investors were average people that were now broke
And then….

8. President Hoover Herbert Hoover was president at the start
Philosophy: We’ll make it!
What He Did: Nothing
The poor were looking for help and no ideas on how to correct or help were coming

9. What about the people… Farmers were already feeling the effects
Prices of crops went down
Many farms foreclosed
People could not afford luxuries
Factories shut down
Businesses went out
Banks could not pay out money
People could not pay their taxes
Schools shut down due to lack of funds
Many families became homeless and had to live in shanties (“Hoovervilles”)

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

12. People in cities would wait in line for bread to bring to their family.

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

14. Bonus Army
assemblage of some 43,000 marchers—including 17,000 World War I veterans, their families, and affiliated groups
gathered in Washington, D.C., in the spring and summer of 1932
demand cash payment redemption of their service certificates
were not supposed to be paid until 1945

15. Bonus Army Many wanted their bonuses early Hoover said NO WAY!
The government called in the US Army to remove the veterans.
The US Army, under Douglas MacArthur, used extreme measures and violent tactics to remove the veterans
The Bonus Army was disbanded.