1. The Great Depression Depression & the New Deal – Chapter 25

2. The Great Depression The stock market crash of 1929 was a shock to President Hoover Before 1929, less than 4% of American workers did not have jobs One year later, 9% of the workforce was unemployed

3. The Great Depression Sales decreased – American businesses laid off workers ◦Letting workers go because a company cannot afford to pay them ◦Ex: Ford cut its workforce by 44% By 1931 unemployment equaled 16% Hoover encourages people to be patient & believed the depression would end with time

4. THINKING SLIDE Think back to the Roaring Twenties Unit ◦What did Hoover feel the role of government in business was? ◦Knowing this, how do you think he reacts to the depression originally?

5. The Great Depression Hoover’s plan: ◦Let state and local governments help people ◦Let charities and private groups help people Hoover believes America is strong because Americans take responsibility for their own lives People blame Hoover for the depression

6. The Great Depression Unable to make loan payments to banks, people lose their homes Hoovervilles ◦People build cardboard homes or tar paper shacks with no lights, heat, water

7. What Caused the Great Depression? Stock Market Crash Overproduction ◦Companies produce goods faster than consumers could buy them ◦As production slows, workers are laid off Purchases on credit ◦When people lost their jobs they could not repay loans ◦Banks go out of business

8. What Caused the Great Depression? Many countries were still in debt to the U.S. from WWI ◦High tariffs were placed on American goods

9. The Dust Bowl Farmers struggle financially after WWI Prices keep going down To grow more crops, farmers plow up the Great Plains This area is hit by drought in the 1930’s Wind swept over the dry ground creating huge dust storms It is an economic and environmental disaster

10. Dust Bowl

11. Americans Lost Confidence People lived in fear of the future Businesses were afraid to make new investments Bread Lines – people stand in line for free food People slept in subways, parks, empty warehouses People took whatever job they could get

12. Impact on African Americans and Women Black workers lose their jobs to unemployed white workers ◦“Last hired first fired” Sharecroppers lose their jobs as white farm owners income declines Northern factories close and women and blacks lose their jobs Married women are fired so that unemployed married men could work