1. the great depression

2. Great Depression in the U.S.
Steeper than in any industrialized country
Unemployment rate higher and longer than any western country
Greatly expanded the role of the federal government
Created the modern welfare state

3. New American Philosophy
The federal government should provide a safety net for:
The elderly
The jobless
The disabled
The poor
The federal government was responsible for:
Ensuring the health of the nation’s economy
Welfare of the citizens

5. Causes of the Great Depression
Insufficient purchasing power in the middle class
Falling crop prices (prior to the Depression)
Stock Market’s dependence on borrowed money

6. “Ponzi Scheme” – Get Rich Quick
Speculation – Engagement in business transactions involving considerable risk but offering the chance for large gains.
So what was happening?

7. Stock Market Crash October 1929

8. What it looked like for the people
Breadlines

9. What it looked like for the people
Soup Kitchens

10. What it looked like for the people
Hoovervi l
les
Tin Can Shanties

11. What it looked like for the people
Hoovervi l
les
Tar Paper Shacks

12. Unemployment in the United States

13. Struggles of the Common Family
Average income fell 40%
3-4 families lived in one room shacks
Vagrancy
Families neglected medical/dental care
Planting gardens, buying used bread, using cardboard for shoe soles

14. Heavy Psychological Toll
No wages – lost power as decision makers
Lost self-respect
Stopped looking for work
Many turned to alcohol and became abusive

15. Unemployment Hoover’s Response
“Nobody is actually starving. The hoboes are better fed than they
have ever been”
4.4%  23.6%
Unemployment

16. Roosevelt is Elected!