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The Great Depression

The Great Depression. Chapter 13. Prosperity Shattered. “…nearer to the final triumph over poverty than ever before in the history of any land.” – Herbert Hoover Bull Market / Bear Market Urging to invest – Margin buying

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The Great Depression

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  1. The Great Depression Chapter 13

  2. Prosperity Shattered • “…nearer to the final triumph over poverty than ever before in the history of any land.” – Herbert Hoover • Bull Market / Bear Market • Urging to invest – Margin buying • “Money is king – but there is something else. It is a high, wild time, a time of riotous spirits and belief in magic rather than cold calculation.”

  3. The Stock Market Crashes • October 24, 1929 • Black Thursday – investor confidence is crushed, stocks are dumped on the market • October 29, 1929 • Black Tuesday – Prices shrank to a shocking new low – 16 Million shares dumped • Stock losses exceeded the total cost of the US involvement in World War I by the end of the year

  4. The Depression Begins • “We have now passed the worst and…shall rapidly recover.” – Herbert Hoover • The US economy sank steadily until 1933 • GNP in 1929 – 103 Billion • GNP in 1933 – 56 Billion • Average income for Americans was cut in half • Many companies and factories closed • Railroad production was cut to a fraction as were automobiles • The banking system collapsed and many banks failed • 400,000 depositors and roughly 180 million in savings lost

  5. What Caused the Depression? • The Crash of 1929 did not cause the depression alone: • World economy after World War I • Sick industries in the US • Dependence on credit • Gap between rich and poor • No money for largest part of population to pump into the economy • Business Cycle and income distribution • Recession / Depression • It was in fact a combination of these six things that caused the Depression

  6. “Work Is What I Want” • In 1929 1.5 Million Americans were unemployed • Three years later that number was 12 million • Wages fell dramatically (10 cents an hour) • “If you’d have told me…” • Racial discrimination (Mississippi) • Slave Markets • Selling apples in the street • More profitable than their old jobs

  7. Life in the City • City government and charitable organizations (Red Cross) • Neighbors helped each other, especially in ethnic communities • Mutualistas • Open Barrels (Chinese) / Rent Parties • Breadlines • Shantytowns (Hoovervilles, Hoover Flags, Hoover Blankets)

  8. Life on the Farm • Demand for farm products shrank • Let crops rot in the fields; had to let livestock starve to death • Bank foreclosures • Cotton Farmers went bust with no crops, the Midwest had too many crops

  9. Family Life in the 1930’s • Families shared food and money • Divorce rate rose • Marriage and birthrates declined • Revival of old crafts to save money • Psychological Impact • Education System

  10. Popular Culture in the 1930’s • Inexpensive pastimes – reading, board games (Monopoly) • Radio and movies – Escapism • Sound Explosion – Talkies • Gangster flicks (Rags to Riches) • Upbeat Musicals (Gold Digger) • Mickey Mouse / Donald Duck • Golden Age of Radio • Lone Ranger, Little Orphan Annie, Shadow

  11. Literature in the 1930’s • Magazines and Comic Books • Superman / Tarzan • Reader’s Digest • James Hilton “Lost Horizon” • William Faulkner

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