1. Chapter 23 Section 1
Hoover and
the Crash
The Great Depression

2. 1928 – “final triumph over poverty”
Herbert Hoover
1928 – “final triumph over poverty”

3. Objective: To examine the causes of the Great Depression

4. Signs of Weakness Older industries in decline Agriculture struggling
Even though this was happening stock prices continued to skyrocket, and people bought on margin!

5. I. Stock Market Crash
On Tuesday, October 29, 1929, stock prices plummeted.
This became known as Black Tuesday.

7. The Philanthropist by, Herb Block (Dec. 5, 1930)
During the Great Depression approximately 25% of the workforce was unemployed. People who lost their jobs began selling five-cent apples on the streets of American cities, providing a symbol of the economic hardships of the era.
* People that had invested their savings in stocks had little or nothing left.
* People that bought stocks on margin (credit) could not repay their debts.

8. The Great Depression Begins

9. Causes of the Great Depression
II. Overproduction
Farms and factories overproduced beyond the demand.
Wages did not rise as fast as prices.
Therefore, people couldn’t afford to buy many goods.
Businesses suffered and laid off workers.

10. “Cycle of Disaster” – many businesses went bankrupt
Businesses cut
production
Workers suffered
from wage cuts
and lay offs.
Demand for
goods fell.
People had
little or no
money to spend.

11. A foreclosure sale in Iowa in the early 1930s when "the bottom fell out of everything." Military police were on hand to keep farmers from disrupting the auction. ca

13. III . Banking System
When the stock market crashed, people could not repay their loans to the bank.
Therefore, banks couldn’t give depositors their money and banks closed.
Many people lost their life savings.

15. The Human Cost Unemployment from 3% to 25% - 13 million w/o a job
If you had a job your hours were cut
Soup kitchens, Hoovervilles, and Hoover blankets

16. Employment Many people found themselves out of a jobs for years
African American men, and other minorities were discriminated against in the workplace and became targets of hostility

17. Housing Many unemployed people lost their homes
Many homeless living in the streets or in shanty towns
Many farmers lost their farms

18. Physical Health
Poor and homeless people scavenged or begged for food or turned to soup kitchens and bread lines
Poor diet and lack of health care increased rates of serious health problems
Malnutrition and starvation grew more common

19. Racial Relations
Intense competition for jobs sparked existing racial resentments into open hostility and violence
In 1933, 24 African Americans lynched
Thousands of MA left the US voluntarily or were deported

20. Farming
Farmland already exhausted through overproduction was hit with draught and winds, turning the plains into the Dust Bowl
Dramatic decreases in farm prices and income
Many farmers lost ownership of their farms and were forced to become tenant farms or farm laborers

21. Family Life
The Depression strengthened family ties, but also increased family tensions
Some men abandoned their families, discouraged by their inability to provide for them they were ashamed

22. Impact on Families
Women also faced greater pressure to provide for themselves and their families
Very difficult on children – lack of food and dental care

23. Emotional Health Many people became demoralized
Suicides and admissions to mental hospitals increased dramatically
People were forced to accept compromises that would affect the rest of their lives
Some people came to want financial security more than anything else in life