1. Roaring 20’s
U.S. prosperity in the 1920s had been based to a large extent on the sale of houses and automobiles.
Consumers for the first time could buy houses and cars on the installment plan, and they were eager to do so.
These purchases created jobs for workers:
Building homes, cars, furniture and appliances
The steel and other materials that were used to produce cars
Jobs were also created as business firms built new plants and bought new equipment to produce what consumers wanted.
Governments built paved roads for the new automobiles and electric plants and water and sewage facilities to service the new households.

3. The American economy went from unprecedented prosperity in the 1920s to unprecedented misery in the 1930s. It was an extraordinary reversal. Why did it occur???

4. The Beginning of the Great Depression for Georgia
Georgia began to suffer from a depression long before the rest of the United States.
WHY?

5. Boll Weevil Insect whose larva feeds on the cotton plant.
Originated in Central America and arrived in Georgia by 1915.
By 1923, it had cotton cut production nearly in half.
African Americans moved to northern cities, or urban areas in the South
(Sharecroppers and tenant farmers in Georgia moved to cities like Macon and Atlanta)
Forced Georgia to diversify its economy.
Cause
Effect
Effect
Effect

6. Drought
In and , Georgia experienced a major drought.
the Midwest experienced drought, dust storms and agricultural damage.
The drought ruined most of Georgia’s remaining crops.
Farm workers left Georgia and the number of working farms decreased greatly
Banks that had lent farmers money took huge losses and many farm related business closed.

7. The Great Depression Hits the Country
1929 – 1939

8. What caused the Great Depression?
It wasn’t just one factor, but many:
Stock market speculation
Over borrowing
Personal Debt
Bank failure
Reduction in purchasing
Laissez-faire attitude
Overproduction of agriculture
High Tariffs
Stock market crash

9. Over-borrowing
People borrowed more money than they could afford to pay back.
This hurt the banks that loaned the money.
Businesses that did not get repaid had to lay off workers.
Cause
Effect
Effect

10. Unemployment Rates Year Percent Unemployed 20’s 3.2% 1930 8.7% 1931
15.9%
1932
23.6%
1933
24.9%

11. Stock market Crash of 1929
According to your definitions, what is the stock market?
Stock prices began to decline in September and early October 1929,
Panic set in on Black Tuesday, October 24th.
A record number of shares were traded.
Stock holders lost over $40 billion dollars and businesses were never able to recover.
Cause
Effect
Effect

12. Bank Failures aka: The Bank Run
During the 1920’s and 1930’s, banks did not have insurance protecting deposits.
According to your definitions, what is a bank failure?
After the stock market crash, people rushed to the banks to withdraw their money.
Many people lost their life savings.
Banks were shut down in record numbers.
The banks that stayed open were hesitant to loan money decreasing purchase power.
Cause
Effect
Effect

13. Bank Closings during The Great Depression
Year
Number of Bank Closings
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
168
505
367
646
775
618
976
669
499
659
1,352
2,294
1,456
4,004

14. Reduction in Purchasing
Due to the stock market crash the average consumer stopped purchasing goods.
Companies lowered production rates causing many to lose their jobs.
Unemployment reached 25%, further reducing the purchasing power
Cause
Effect
Effect

15. Overproduction This limited the profit for farmers. Agriculture
In the 1920’s, many farmers produced record numbers of agriculture products leading to a dramatic drop in the price.
This limited the profit for farmers.
Then, the drought in 1930’s caused many farmers to have to leave their land
Industry
Industry soared before the Wall Street Crash with many purchasing on credit.
Production continued at fast pace, but the market quickly dried up
Too many products were being produced with too few people buying them.
Layoffs continues when people were unable to pay back loans
Cause
Effect
Effect
Cause
Effect
Effect

16. A Farm Foreclosures

17. Migrant Workers

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

19. Boxcar Hoboes
More than two million men and perhaps 8,000 women became hoboes.

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

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

22. Herbert Hoover
President Hoover bore much of the blame in the minds of the American people for The Great Depression.
The stock market crashed less than eight months into his presidency.
Most experts, including Hoover, thought the crash was part of a passing recession.
Hoover refused to involve the federal government in forcing fixed prices, controlling businesses, or manipulating the value of the currency, all of which he felt were steps towards socialism.
He gave indirect aid to banks and local public works projects, but he refused to use federal money for direct aid to citizens.
During his reelection campaign, Hoover tried to convince Americans that the measures they were calling for might seem to help in the short term, but would be damaging in the long run.

23. “Hooverville” Some families were forced to live in shanty towns
A grouping of shacks and tents in vacant lots
They were referred to as “Hooverville” because of President Hoover’s perceived lack of help during the depression.

24. Hoover was soundly defeated by Franklin D. Roosevelt in 1932
Would you re-elect Hoover? Why or why not?
As an American citizen living during the Great Depression, what would you be looking for in a new President?
Hoover was soundly defeated by Franklin D. Roosevelt in 1932