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The Great Depression

The Great Depression. Mr. Mancuso Terre Haute South. Economic Troubles. 1920’s were good economic times (roaring 20’s) Many Americans purchased new products on credit (1929-7 billion dollars) People were buying things on margin buying. Black Thursday. October 24, 1929-stock market crashes

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The Great Depression

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  1. The Great Depression Mr. Mancuso Terre Haute South

  2. Economic Troubles • 1920’s were good economic times (roaring 20’s) • Many Americans purchased new products on credit (1929-7 billion dollars) • People were buying things on margin buying

  3. Black Thursday • October 24, 1929-stock market crashes • Investors who were nervous about interest rates began to sell stock shares. • Dow Jones Industrials lost 12 percent. Stock market would not get to 1929 values for 25 years. • Black Tuesday-October 29, 1929-prices went lower. $30 billion was lost by mid November.

  4. Bank Crisis • Only a small percentage of Americans were involved in the stock market crash. • People defaulted on their loans • This forced banks to close. • Depositors lost confidence in banks and tried to withdraw money from the bank. This caused bank panics and bank closings.

  5. Stats • Gross Domestic Product (what we produce as a nation) fell from $103 billion in 1929 to $53 billion in 1933. • Click here to see a link to more statistics.

  6. Other Causes • Europe was in a depression (war debts and reparations against Germany caused this) • Because the rest of the world was at war, they could not buy American goods. • Income gap between rich and poor. • Natural business cycle (what goes up must come down)

  7. Unemployment • 1929-1.5 million people were unemployed. • 1933-15 million people were unemployed. • Surplus of labor caused wage cuts. • Some people didn’t get to work the number of hours that they wanted to work (underemployment)

  8. Teenagers in the Depression (railroad) • Teenagers had different roles. • Riding the bulls. • A Sad Christmas.  • Losing a brother

  9. Pictures from the Depression

  10. City Life • Suicide rate went up. • Federal government did little to assist people (rugged individualism) • Neighbors tried to help one another with problems. • Breadlines • Soup Kitchens • Songs • Shantytowns/Hoovervilles

  11. Life on the Farm • Increased poverty made it harder for people to buy farm products • Farmers lost their land to foreclosure • Picture 1Picture 2 • Dust Bowl (led to insanity and suicide) • Picture 1Picture 2 • People were forced to move, like the Joads in The Grapes of Wrath • Anti-immigration movement because immigrants were taking up jobs (jobs that others did not want)

  12. What people did for fun • Family life • Board games • Movies • Staring Donald Duck and Mickey Mouse • Literature • Lost Horizon by James Hilton • The Sound of the Fury by William Faulkner • Miss Lonelyhearts by Nathaniel West

  13. Herbert Hoover • Thought Great Depression would be a temporary problem. • Opposed direct relief • Rugged individualism • Encouraged volunteerism • In his defense, nobody had ever had to deal with this type of situation. • How would this type of situation be handled today?

  14. More Hoover • Did establish Federal Farm Board in 1929. • Group had a budget of $500 million. • Goal was to find ways for farmers to help themselves (rugged individualism) • Hoover instructed Farm Board to buy up surplus crops. Also instructed farmers to produce fewer crops. This would cause prices to rise. • Farmers did not do this and prices continued to fall. • Helped banks through Reconstruction Finance Corporation.

  15. John Maynard Keynes • Economist. • Policies are known as Keynesian Economic Theory • Thought that if you increased government spending, you could jump start the economy.

  16. Reactions • Protests began to rise by 1932. • Communist Party and Socialist Party gained momentum. • The Bonus Army

  17. 1932 Election • Despite all of the problems, Republicans re-nominate Herbert Hoover out of respect. • Everybody knows Hoover will lose, as people hold Hoover, and the Republican Party responsible for the Great Depression. • Democrats nominate Franklin D. Roosevelt, Teddy Roosevelt’s cousin.

  18. 1932 ElectionHoover versus Roosevelt

  19. Franklin D. Roosevelt • Simply known as FDR • Attacked Hoover’s record, did not mention specific policies. • Optimistic • America blamed Republicans for the Great Depression

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