1. The Great depression Chapter 14

2. Great depression 1929-19411929-1941 Does not end until start of World War IIDoes not end until start of World War II Causes:Causes: Uneven distribution of wealthUneven distribution of wealth Debt of 1920’sDebt of 1920’s U.S. industry not competitiveU.S. industry not competitive Unsuccessful economic policiesUnsuccessful economic policies Stock Market CrashStock Market Crash Industry and agriculture overproduction (WW I)Industry and agriculture overproduction (WW I) Absence of cashAbsence of cash

4. Election of 1928 Al Smith (Democrat) vs. Herbert Hoover (Republican)Al Smith (Democrat) vs. Herbert Hoover (Republican) Hoover won due to prosperity of the 1920’sHoover won due to prosperity of the 1920’s Rugged individualismRugged individualism “Lassez-faire” economics“Lassez-faire” economics Hoover would eventually be personally blamed for the Depression

7. Stock market conditions Late 1920’s, stock prices continued to riseLate 1920’s, stock prices continued to rise In the 1920’s, many were risk-takers and wanted to “gamble” with the Stock MarketIn the 1920’s, many were risk-takers and wanted to “gamble” with the Stock Market “Buying on Margin” allowed investors to use credit to purchase stock“Buying on Margin” allowed investors to use credit to purchase stock “Black Tuesday”-October 29, 1929….the day the market “crashed”“Black Tuesday”-October 29, 1929….the day the market “crashed” 16 million shares of stock sold that day16 million shares of stock sold that day Many people lost their life savings in the stock marketMany people lost their life savings in the stock market

9. Run on banks Some people wanted to safely save money and put their money in banksSome people wanted to safely save money and put their money in banks People panicked and ran to the banks to withdraw all their moneyPeople panicked and ran to the banks to withdraw all their money Money in banks was not insured at the timeMoney in banks was not insured at the time Once the bank gave all money out, there was no more!Once the bank gave all money out, there was no more! People that did get some money from the bank often hoarded their money (buried it, stuffed it in a mattress, etc.)-They were afraid to spend any money because they feared it could not be replacedPeople that did get some money from the bank often hoarded their money (buried it, stuffed it in a mattress, etc.)-They were afraid to spend any money because they feared it could not be replaced

12. Conditions decline Many companies suffered once the stock values continued to decreaseMany companies suffered once the stock values continued to decrease More and more people lost jobs-by 1933, the unemployment rate was 25%More and more people lost jobs-by 1933, the unemployment rate was 25% Hoover promised that there would be prosperous times around the corner and there would be a “chicken in every pot”, but that did not come to passHoover promised that there would be prosperous times around the corner and there would be a “chicken in every pot”, but that did not come to pass

14. Continued Many lost jobs, were homeless, and hungryMany lost jobs, were homeless, and hungry Many children malnourishedMany children malnourished Many stood in bread lines or went to soup kitchens to get foodMany stood in bread lines or went to soup kitchens to get food There was no government assistance….no food stamps, monthly checks, unemployment, etc.There was no government assistance….no food stamps, monthly checks, unemployment, etc. Charities/churches did provide some support, but the government did nothing at this pointCharities/churches did provide some support, but the government did nothing at this point See clip of “Cinderella Man” See clip of “Cinderella Man”

17. Bonus army World War I veteransWorld War I veterans Promised a bonus for their service payable in 1945Promised a bonus for their service payable in 1945 Because of desperate conditions, many asked for their bonus early in 1932Because of desperate conditions, many asked for their bonus early in 1932 Thousands made the trip to Washington, D.C. to attempt to sway Congress to provide the money early- set up a tent cityThousands made the trip to Washington, D.C. to attempt to sway Congress to provide the money early- set up a tent city Congress denied their request, and those that did not leave voluntarily were forced out with tear gas and tanksCongress denied their request, and those that did not leave voluntarily were forced out with tear gas and tanks Last straw for Hoover “Bonus Army” videoLast straw for Hoover “Bonus Army” video

21. Hoover blamed Although Hoover promised that prosperity was “right around the corner”, that did not happen for mostAlthough Hoover promised that prosperity was “right around the corner”, that did not happen for most Make-shift homes made of scrap wood, metal and cardboard were referred to as “Hoovervilles”Make-shift homes made of scrap wood, metal and cardboard were referred to as “Hoovervilles” “Hoover-flags”“Hoover-flags” “Hoover-blankets”“Hoover-blankets” “Hoover-hogs”“Hoover-hogs”

26. Depression effects rural areas Lower demand for food after World War ILower demand for food after World War I Many years of drought in area of Great Plains called the Dust BowlMany years of drought in area of Great Plains called the Dust Bowl Caused by:Caused by: High windsHigh winds Little or no rainLittle or no rain Lack of crop rotationLack of crop rotation

32. Okies Farmers from the Great Plains (mostly Oklahoma at first) that moved West to find work picking fruit in CaliforniaFarmers from the Great Plains (mostly Oklahoma at first) that moved West to find work picking fruit in California Too many went and there were not enough jobs availableToo many went and there were not enough jobs available Okies were often not welcomed out WestOkies were often not welcomed out West

39. Effects of the Great Depression People suffered widespread unemployment, hunger, hopelessness, and homelessnessPeople suffered widespread unemployment, hunger, hopelessness, and homelessness Industrial and farm production failedIndustrial and farm production failed World economic crisis developedWorld economic crisis developed Roosevelt won victory in 1932Roosevelt won victory in 1932 President Franklin D. Roosevelt initiated the New Deal for all AmericansPresident Franklin D. Roosevelt initiated the New Deal for all Americans Clara Video Clara Video