1. THE GREAT DEPRESSION BEGINS
Photos by photographer Dorothea Lange

2. Causes: Farmers’ Struggle
No industry suffered as much as agriculture
After WWI demand dropped
Farmers increased production to make profits, but this sent prices lower
Photo by Dorothea Lange

3. Causes: American Finances
During the 1920’s “installment plans” caused consumers to buy more than they could afford on credit.
But, by the late 1920s, American consumers were buying less
Wealthiest 1% saw income rise 75%, rest of population saw increase of 9%
Photo by Dorothea Lange

4. Causes: Speculation and Margin
During 1920’s stock prices rising, by million Americans owned stocks.
By late 1920s, problems with economy emerged
Speculation: buying stocks & bonds expecting to sell quickly to make a profit
Margin: paying small percentage of stock’s price as down payment, and borrowing the rest
The Stock Market’s bubble was about to break

5. THE 1929 CRASH On October 24, the market took a plunge
On October 29, now known as Black Tuesday, the bottom fell out
16.4 million shares were sold that day – prices plummeted
People who bought on margin (credit) stuck with huge debts

6. Effects: Hawley-Smoot Tariff of 1930
Traditionally, tariffs are passed to encourage people to buy domestic goods, instead of foreign goods, and boost the economy.
However, this tariff was so high it had the negative effect of drastically reducing European trade with the U.S.

7. Effects: The Great Depression
Stock Market crash signaled beginning of Great Depression
Great Depression, from 1929 – 1940, when economy plummeted and unemployment skyrocketed.
Alabama family, 1938 Photo by Walter Evans

8. Effects: Financial Collapse
After crash, many panicked and withdrew money from banks
Banks had invested in the Stock Market and lost money
By 1933 – 11,000 of the 25,000 banks nationwide had collapsed
Bank run 1929, Los Angeles

9. Effects: Unemployment How much did unemployment increase between 1929-1932?

10. Effects: Housing Hardship
People lost their jobs, and their homes
Makeshifts shacks out of scrap material were called Hoovervilles

11. Effects: City Living
One of common features of urban areas during Depression were soup kitchens and bread lines
Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone

12. Effects: Country Living
Depression difficult for everyone, farmers had one advantage: grow their own food But between almost ½ million farmers lost their farms due to forclosure
FORCLOSURE

13. Effect: Difficult for Minorities
Unemployment was the highest among minorities and their pay was the lowest
Increased violence (24 lynchings in 1933 alone) marred 1930s
Many Mexicans were “encouraged” to return to their homeland.
As conditions deteriorated, violence against blacks increased

14. Effects: America’s Psyche
Suicide rate rose more than 30% between
But many people showed great kindness to strangers
Additionally, many people developed habits of savings & thriftiness

15. The Dust Bowl: Intro
Severe drought gripped Great Plains in early 1930s
Wind scattered topsoil, exposing sand and grit
The resulting dust traveled hundreds of miles
Kansas Farmer, 1933

16. Dust storm approaching Stratford, Texas - 1934

17. Dust buried cars and wagons in South Dakota in 1936

18. Photographer Dorothea Lange captures a family headed west to California to escape the dust storms

20. Actions: Hoover Struggles
After stock market crash, said, “Any lack of confidence in the economic future Is foolish”
Herbert Hoover

21. Action: Philosophy Hoover reacts slowly to Depression
Believed in “rugged individualism”
People take care of selves, not depend on governmental “hand-outs”
Hoover believed it was the individuals job to take care of themselves, not the governments

22. Actions: Fought WWI Vets
Veterans wanted to collect their bonus early.
MacArthur’s 12th infantry gassed more than 1,000 marchers
Two vets shot and scores injured
Americans outraged and once again, Hoover’s image suffered

23. Hoover had little chance to be re-elected in 1932