2. The Great Depression

3. Hard Times The year is 1929. The U.S. economy has collapsed. Farms, businesses, and banks nationwide are failing, causing massive unemployment and poverty. You are out of work with little prospect of finding a job.

4. The Nation’s Sick Economy Late 1920’s Industries Struggled: Late 1920’s Industries Struggled: Railroad, Textiles, Steel, Mining, and Lumber. Auto sales and new housing starts declined. Demand for crops dropped after WWI Price- Supports for key crops such as wheat, corn, cotton, and tobacco were vetoed.

5. Late 1920’s Economy Danger Signs Persist – 1928-29 Danger Signs Persist – 1928-29 Americans were buying less Americans were buying less Rising Prices $, not in Farming Rising Prices $, not in Farming Overproduction, Stagnant Wages Overproduction, Stagnant Wages Uneven distribution of Wealth Uneven distribution of Wealth Buying goods on credit Buying goods on credit Speculation in the stock market Speculation in the stock market Buying Stocks on Margin Buying Stocks on Margin

6. The Dust Bowl Farmers overproduced and destroyed soil Farmers overproduced and destroyed soil Dust Bowl brought drought and high winds to the Midwest Dust Bowl brought drought and high winds to the Midwest

7. BULL Market

8. The Dow Jones Industrial Average

9. The Crash In Sept. 1929 stock prices peaked then began to fall. In Sept. 1929 stock prices peaked then began to fall. Investors became weary, and sold their stocks and pulled out. Investors became weary, and sold their stocks and pulled out. Oct. 24, 1929 – Black Thursday – The market begins to plunge. Oct. 24, 1929 – Black Thursday – The market begins to plunge.

10. Crash Part II The Big Crash- Oct.29 th, 1929-Black Tuesday The Big Crash- Oct.29 th, 1929-Black Tuesday Massive selling 16.4 million shares, no buyers. Massive selling 16.4 million shares, no buyers. By mid Nov. investors lost $30 billion. By mid Nov. investors lost $30 billion.

11. The Crash of ‘29

12. “The Big Bull Market is Dead”

13. The Great Depression Financial Collapse – After the Crash Financial Collapse – After the Crash *Bank Failures – 1929, 600 banks failed, by 1933 (11,000 out of 25,000 failed.)

14. Run on the Bank

15. Great Depression II * 1929-32 – GNP fell from $104 billion to $59 billion. 90,000 businesses went bankrupt. *Unemployment leaped from 3% (1.6 million workers) in 1929 to 25% (13 million workers in 1933. (1out of4)

16. How did Hoover respond? Hoover opposed direct relief, cash payments or food provided Hoover opposed direct relief, cash payments or food provided He asked businesses not to lay off workers He asked businesses not to lay off workers Hoovervilles captures disgust with him Hoovervilles captures disgust with him

17. Hoovervilles

18. Soup kitchens and Breadlines

19. African-Americans and Latinos … Highest Unemployment Highest Unemployment Lowest paid Lowest paid Racial Violence Racial Violence Lynchings Lynchings Deportations Deportations

20. Family Life Emphasis on Family Emphasis on Family Stayed at home Stayed at home Played Board Games Played Board Games Monopoly ( 1933) Monopoly ( 1933) Radio Radio Neighborhood help Neighborhood help

22. Men in the Streets Men could not support their families Men could not support their families Some even abandoned them Some even abandoned them 300,000 became “Hoboes” 300,000 became “Hoboes”

25. Women Struggle Many Women canned food or sewed clothes to make money. Many Women canned food or sewed clothes to make money. Faced resentment that they had it easier than men. Faced resentment that they had it easier than men. Many thought married women should not hold jobs with men out of work. Many thought married women should not hold jobs with men out of work. Received less money than men. Received less money than men.

27. Children Suffer Poor Diets =Malnutrition Poor Diets =Malnutrition Rickets, other diseases Rickets, other diseases 2,600 schools closed 2,600 schools closed 300,000 out of school 300,000 out of school “If I leave my mother, it will mean one less mouth to feed.” Eugene Williams 13 “If I leave my mother, it will mean one less mouth to feed.” Eugene Williams 13

30. Soldiers Soldiers wanted their bonuses from WWI that were not payable until 1945. $500/soldier Soldiers wanted their bonuses from WWI that were not payable until 1945. $500/soldier They and their families (10,000-20,000) formed a Bonus Army and marched on Washington They and their families (10,000-20,000) formed a Bonus Army and marched on Washington Hoover thought they were communists, but he supported their right to protest and provided food and supplies so they could build a shantytown. Hoover thought they were communists, but he supported their right to protest and provided food and supplies so they could build a shantytown.

31. Soldiers Eventually most leave except for 2,000 Eventually most leave except for 2,000 Hoover sent in the infantry. They gassed 1,000 people. An 11-month old baby died and an 8 year-old boy was partially blinded. Two were shot and many were injured. Americans were stunned. Hoover sent in the infantry. They gassed 1,000 people. An 11-month old baby died and an 8 year-old boy was partially blinded. Two were shot and many were injured. Americans were stunned.

32. Social and Psychological Effects 1928-1932 Suicide rate rose by 30%. 1928-1932 Suicide rate rose by 30%. 3x admittance to mental hospitals 3x admittance to mental hospitals No doctors or dentists No doctors or dentists No college for young people No college for young people No marriage, or children No marriage, or children Distrust of banks and the market Distrust of banks and the market Habits of Savings and Thriftiness Habits of Savings and Thriftiness

36. World Wide Shock Waves Europe had suffered during the 1920’s Europe had suffered during the 1920’s Germany had to pay reparations to the Allies from WWI. Germany had to pay reparations to the Allies from WWI.

37. World Wide Effects II 1930 Hawley – Smoot Tariff established the highest protective tariff in US history. 1930 Hawley – Smoot Tariff established the highest protective tariff in US history. European nations raised their tariffs. World Trade fell 40% European nations raised their tariffs. World Trade fell 40% US goods were difficult to sell in Europe due to Hawley- Smoot tariffs leading to a drop in world trade US goods were difficult to sell in Europe due to Hawley- Smoot tariffs leading to a drop in world trade

38. Causes of the Depression Tariff and war debt policies that cut down the foreign market for American goods. Tariff and war debt policies that cut down the foreign market for American goods. Crisis in the Farming Sector Crisis in the Farming Sector The availability of easy credit ( Installment Plans) The availability of easy credit ( Installment Plans) Uneven distribution of $$$ Uneven distribution of $$$

39. Causes Part II Federal Reserve raising interests rates and constricting the money supply after the crash. Federal Reserve raising interests rates and constricting the money supply after the crash. Laissez-faire policies Laissez-faire policies Speculation/Crash Speculation/Crash Overproduction of Goods Overproduction of Goods