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The Great Depression

Learn about the impacts and causes of the Great Depression from stock market crashes to the Dust Bowl, and how it brought widespread suffering, unemployment, and economic challenges to millions in the 1930s.

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The Great Depression

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  1. The Great Depression 1929-1939

  2. Impacts of Depression • Prices of stock dropped 40% • 86,000 businesses failed • 9,000 banks went out of business • 9 million saving accounts • Wages were decreased by at least 60% • Unemployment from 9% to 25% • 15 million people unemployed

  3. The 6 Causes 1. Unequal distribution of Wealth - 2% owned 3/5 (60%) of wealth… - … 98% shared the remaining 2/5 (40%) - ½ population living below poverty level - unequal balance between production and consumption

  4. The 6 Causes 2. Unequal distribution of corporate power - mergers reduced competition - when company fell = loss of jobs & stock - 200 corporations controlled 50% of all products being made

  5. The 6 Causes 3. Poor banking structure - no regulations - small banks “owed” to larger banks - unequal loan to deposit ratio (esp. small towns) .

  6. http://www.youtube.com/watch?v=qu2uJWSZkck

  7. The 6 Causes 4. High Tariffs and War Debts - Hawley-Smoot Tariff = tax on imports - What was the goal? - Led to unbalanced foreign trade & … - economic warfare = other countries did same - war debt: U.S. as creditor; E. couldn’t repay

  8. The 6 Causes 5. Overproduction in Industry & Agriculture - farmers bought machinery on credit…to increase production - >> overproduction - >> no jobs = no $ to buy - >> couldn’t pay off debt... - … foreclosures on farms

  9. The 6 Causes 6. Stock Market Crash - Reasons for investing in market - had $ already to invest - Buying on margin - Stock Speculation - October 24th: Black Thursday -Bunk Runs - October 29th: Black Tuesday ($16 mil)

  10. BUYING ON MARGIN • Who did they need to attract? • HOW? • Investors only had to pay for 10% of the stock's actual value at time of purchase • If a stock is $100 you can pay $10 now and the rest later when the stock rose • balance was paid at a later date

  11. Buying on margin The good The bad • High interest rates • Demand payment anytime • If stocks fall then don’t have money to pay back • Stocks go up • Borrowers sell at high price • Pay off • Loan • Interest • + make extra $$$

  12. STOCK SPECULATION • people would buy and sell stocks quickly to make a quick buck • b/c of all this buying & selling, stock value increased • Ex: G.E stock $130  $396/share

  13. THE CRASH • BLACK TUESDAY, Oct. 29th, 1929 - NYC Stock market crashed, causing a depression that would last until 1942

  14. STOCK MARKETCRASH • Loss of confidence • Uneven wealth • Rising debt • Stock speculation • Overproduction • Hardships of farmers and factory workers

  15. The Effects Widespread unemployment > poverty > hunger - What led to this???? - national income: 1929 = $81 billion 1932 = $41 billion - 15 million jobless

  16. The Effects Breakdown of Families 1. personal suffering >> suicide 2. high school drop out rate >> - kids working in sweatshops 3. runaways (Hobos riding the rails)

  17. The Effects Organized Protests - farmers marching on banks with pitchforks and gun - tried to prevent foreclosures - Dairy farmers frustrated w/low price of milk refuse to sell so they dump it - Bonus Army

  18. The Bonus Army Who were they? What did they want? What did they do? What happened to them?

  19. The Effects The Bonus Army - WWI soldiers promised $1 per day extra served - To be paid in 1945 - Allowed to borrow against it in 1931 - 1932 asked for full amount = denied

  20. Thousands from all over U.S. marched with their families • on Capitol Building in D.C. to protest

  21. Calvary, tanks • Used tear gas and bayonets • - Sent home with money from their bonus pay

  22. http://www.youtube.com/watch?v=dWvCCxOUsM8

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

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

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

  26. “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.

  27. Hooverville

  28. Out of the Dust: The South and the Dust Bowl 1931-1940

  29. A drought in the Central and Southern Great Plains led to dust storms that destroyed crops. “The Dust Bowl”

  30. Central and SouthernGreat Plains

  31. The South Was Buried • Crops turned to dust=No food to be sent out • Homes buried • 60% lost their farms • Many moved • South in state of emergency • Dust Bowl the #1 weather crisis of the 20th century

  32. Two Families During the Depression

  33. A Farm Foreclosure

  34. Some families tried to make money by selling useful crafts like baskets.

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