The Great Depression

1. The Great Depression

2. The Roaring 20’s • The new concept of “credit” • People were buying: • Automobiles • Appliances • Clothes • Fun times reigned • Dancing • Flappers • Drinking

3. 1929-1939 • Stock market crash • Didn’t realize the effect it would have • No money to replenish what was borrowed Many found being broke humiliating.

4. Why was this bad? • Credit system • People didn’t really have the money they were spending • WWI • The U.S. was a major credit loaner to other nations in need • Many of these nations could not pay us back

5. The Stock Market • People bought stocks on margins • If a stock is $100 you can pay $10 now and the rest later when the stock rose • Stocks fall • Now the person has less than $100 and no money to pay back

6. And then…. • With people panicking about their money investors tried to sell their stocks • This leads to a huge decline in stocks • Stocks were worthless now • People who bought on “margins” now could not pay • Investors were average people that were now broke

7. President Hoover • Herbert Hoover was president at the start • Philosophy: We’ll make it! • What He Did: Nothing • The poor were looking for help and no ideas on how to correct or help were coming

8. What about the people? • Farmers were already feeling the effects • Prices of crops went down • Many farms foreclosed • People could not afford luxuries • Factories shut down • Businesses went out • Banks could not pay out money • People could not pay their taxes • Schools shut down due to lack of funds • Many families became homeless and had to live in shanties

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

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

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

13. “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 lack of help during the depression.

14. Hooverville

15. *FDR* • When he was inaugurated unemployment had increased by 7 million. • Poor sections (like Harlem) had 50% of the pop. unemployed • Instituted the “New Deal” 1st-33 2nd 35 • Fireside Chats

16. People everywhere were effected by the depression • It wasn’t until President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

17. Entertainment • Movies and radio popular because they provided an escape from reality • Art, literature, music = sober and serious

18. New Deal’s Lasting Impact • FDR’s administration expanded power of Federal Govt. • Infused economy with jobs • Attempted to regulate supply and demand • Increased involvement in labor disputes • Est. Federal Deposit Insurance Company and Securities and Exchange Commission. • Didn’t end depression but helped many.

19. Lasting Impact • Social Security Act-still exists • 1. Old Age Insurance • 2. Unemployment • 3. Aid to families with dependants and disabled children.

20. Seabiscuit • Originally a book • Released July 25, 2003-some were skeptical • Stars: Jeff Bridges, Tobey Maguire, and Elizabeth Banks • Setting: Depression • Over 40 horses used in filiming-10 of which were used for Seabiscuit-no horse ran for more than 3 furlongs-or 3/8ths of a mile