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THE GREAT DEPRESSION BEGINS

THE GREAT DEPRESSION BEGINS. Photos by photographer Dorothea Lange. Causes: Farmers’ Struggle. No industry suffered as much as agriculture After WWI demand plummeted Farmers increased production, sent prices lower. Photo by Dorothea Lange. Causes: American Finances.

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THE GREAT DEPRESSION BEGINS

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  1. THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange

  2. Causes: Farmers’ Struggle • No industry suffered as much as agriculture • After WWI demand plummeted • Farmers increased production, sent prices lower Photo by Dorothea Lange

  3. Causes: American Finances • By the late 1920s, American consumers were buying less • Wealthiest 1% saw income rise 75%, rest of population saw increase of 9% • During 1920’s stock prices rising, by 1929 4 million Americans owned stocks. Photo by Dorothea Lange

  4. Causes: Speculation and Margin • By late 1920s, problems with economy emerged • Speculation:buying stocks & bonds hoping for a quick profit • Margin:paying small percentage of stock’s price as downpayment, and borrowing the rest The Stock Market’s bubble was about to break

  5. THE 1929 CRASH • On October 24, the market took a plunge • On October 29, now known as Black Tuesday, the bottom fell out • 16.4 million shares were sold that day – prices plummeted • People who bought on margin (credit) stuck with huge debts

  6. Effects: The Great Depression • Stock Market crash signaled beginning of Great Depression • Great Depression, from 1929 – 1940, when economy plummeted and unemployment skyrocketed. Alabama family, 1938 Photo by Walter Evans

  7. Effects: Financial Collapse • After crash, many panicked and withdrew money from banks • Banks had invested in the Stock Market and lost money • By 1933 – 11,000 of the 25,000 banks nationwide had collapsed Bank run 1929, Los Angeles

  8. Effects: Housing Hardship • People lost their jobs, and their homes • Makeshifts shacks out of scrap material were called Hoovervilles

  9. Effects: City Living • One of common features of urban areas during Depression were soup kitchens and bread lines Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone

  10. Effects: Country Living • Depression difficult for everyone, farmers had one advantage: grow food for own families • But between 1929-1932 almost ½ million farmers lost their land FORCLOSURE

  11. Effect: Difficult for Minorities • Unemployment was the highest among minorities and their pay was the lowest • Increased violence (24 lynchings in 1933 alone)marred 1930s • Many Mexicans were “encouraged” to return to their homeland. As conditions deteriorated, violence against blacks increased

  12. Effects: America’s Psyche • Suicide rate rose more than 30% between 1928-1932 • But many people showed great kindness to strangers • Additionally, many people developed habits of savings & thriftiness

  13. The Dust Bowl: Intro • Severe drought gripped Great Plains in early 1930s • Wind scattered topsoil, exposing sand and grit • The resulting dust traveled hundreds of miles Kansas Farmer, 1933

  14. Dust storm approaching Stratford, Texas - 1934

  15. Dust buried cars and wagons in South Dakota in 1936

  16. Photographer Dorothea Lange captures a family headed west to escape the dust storms

  17. Actions: Hoover Struggles • After stock market crash, said, “Any lack of confidence in the economic future . . . Is foolish” Herbert Hoover

  18. Action: Philosophy • Hoover reacts slowly to Depression • Believed in “rugged individualism” • People take care of selves, not depend on governmental hand-outs Hoover believed it was the individuals job to take care of themselves, not the governments

  19. Actions: Fought WWI Vets • MacArthur’s 12th infantry gassed more than 1,000 marchers • Two vets shot and scores injured • Americans outraged and once again, Hoover’s image suffered

  20. Hoover had little chance to be re-elected in 1932

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