The Great Depression

1. The Great Depression

2. Hoover’s winning platform was based on continued prosperity “We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us.” 1928

3. Historians disagree as to the causes of the Great Depression. Most scholars would include: • Lack of Diversification • Unequal Distribution of Wealth • Overproduction in Industry and Agriculture • Decline in Exports • International Debt Structure • Monetary Policy – credit structure • Stock Market Crash and Financial Panic

4. The 1920s was known as a prosperous time, but not for everyone Installment buying allowed people to buy cars, radios and other new products of the 1920s. Farmers, however, were in a depression throughout the whole decade.

5. RURAL POVERTY IN THE 1920’S

6. UNEQUAL DISTRIBUTION OF WEALTH Nation's wealth grew by billions in 1920s but not distributed evenly Top 1% received a 75% increase in their disposable income Other 99% saw an average 9% increase in their disposable income. 80% of Americans had no savings at all.

7. The chart shows that 99% of the population received a 9% increase in their income, while the top 1% saw their income rise by 75%. 1,230,000 Americans 121,770,000 Americans

8. The economy grew by billions throughout the 1920s. Total realized income rose from $74.3 billion in 1923 to $89 billion in 1929

9. Chart showing wages of unskilled workers. Notice how little the wages changed during the supposed prosperity of the 1920’s.

10. HIGH TARIFFS AND WAR DEBTS • European nations owed over $10 billion ($109 billion in 2010 dollars based on CPI) to US • The U.S. insisted former allies pay (forces the allies to demand Germany pay reparations – will later lead to financial crisis when Europe could not purchase goods from the U.S) • Fordney-Mc Cumber Act,1922 - high tariffs on industrial products. Other nations soon retaliated and world trade declined helping bring on the great depression.

11. Overproduction & Lack of Diversity in Industry • Wages not rising enough for workers to buy all goods being made • The surplus products could not be sold overseas due to high tariffs and lack of money in Europe

12. FARM OVERPRODUCTION • Due to surpluses and overproduction, farm incomes dropped throughout the 1920’s • The price of farm land fell from $69 per acre (1920) to $31 (1930) • Agriculture in depression from 1920 until the outbreak of WWII in 1939. • Average annual income for an American family $750 -for farm families was $273 (1929) • 30% of Americans still lived on farms. Surplus ears of corn

13. STOCK MARKET CRASH AND FINANCIAL PANIC WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929

14. Major reasons for the stock market crash in October 1929 • Stocks overpriced due to speculation • Fraud & illegal activity occurred due to lack of regulation • Margin buying • Federal reserve policy

15. Federal Reserve Monetary Policy • 9,000 banks bankrupt or closed 1930-1933 • More than $2.5 billion in deposits lost • Fed worsens situation by raising interest rates (contracting money supply even more) • Failing business layoff workers – 25% unemployment rate (1932) • Those working worked for less

16. President Hoover’s belief in self-reliance would later affect his ideas about how to best solve the upcoming depression "I do not believe that the power and duty of the General Government ought to be extended to the relief of individual suffering. . . . The lesson should be constantly enforced that though the people support the Government the Government should not support the people." (1930) President and Mrs. Hoover

17. Belief excessive welfare undermines moral fiber of citizenry • Red Cross & Salvation Army lines around the block • Humiliation & self blame • Many to resort to wandering

18. Dust Bowl • Farmers suffering increases • Natural disaster & overuse – “black blizzards” • “Okies” on way to CA • Join bands of the “just wandering”

19. Table shows the sharp decline in the prices of various products from American farms

20. U.S. Department of Agriculture’s yearbook from 1934 shows the unstable prices of foodstuff

21. Table shows the extreme drop in profits for farmers. This explains why they were unable to afford new equipment, and in many cases their mortgages, which led to the hundreds of thousands of foreclosures on farms.

22. Great Depression & Minority Groups African Americans • many tried to find better situation in North(not) • bumped out of jobs by social downshift of whites • Scottsboro case (noteworthy ex. of racism) • NAACP succeeded in getting a place in labor movement Mexican Americans • Chicanos similar job & social status as African Americans • Many forced to leave country – especially since excluded from relief programs • Efforts to organize labor thwarted • Found same poverty in cities as urban blacks

23. Asian Americans • Long standing discrimination trends continued & worsened • Primarily forced to stay w/in own community for low paying service work even if college educated Women • Popular belief jobs should go to men only- men taking “women’s” jobs (teachers, social workers) • 20% more women working than before • National Women’s Party pretty much gone – feminism at a significant low point

24. Prosperous 1920s middle class families now homeless or poor • Doing a lot own sewing, canning, food preserving • Family members move in together to pool resources • Decrease in divorce rates, marriage rates and birth rates • Families break apart because of economic/ psychological strains

25. Depression Values • “Success Ethic” still major influence in Americans’ understanding of how things work • Self blame major factor in “hiding” the realities of the era (so ashamed didn’t want to be seen) • How to Win Friends & Influence People (1936) – belief in adapting to become successful no matter what the situation

26. Depression Era Literature • Waiting for Lefty- labor struggles • U.S.A – pessimistic political & social commentary • Native Son – struggles of racism in urban setting

27. The Radio • Route to escapism (comedy, adventure, soap operas, music) • Access to public events (Hindenburg crash, War of the Worlds broadcast) • Centered life around home & created common social/ cultural experiences

28. The Movies • Attendance dropped & then came back up • Examined political & social themes (morality & virtues of the “little” guy • Escapism

29. "Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931) • They used to tell me I was building a dream, and so I followed the mob, • When there was earth to plow, or guns to bear, I was always there right on the job. • They used to tell me I was building a dream, with peace and glory ahead, • Why should I be standing in line, just waiting for bread? • Once I built a railroad, I made it run, made it race against time. • Once I built a railroad; now it's done. Brother, can you spare a dime? • Once I built a tower, up to the sun, brick, and rivet, and lime; • Once I built a tower, now it's done. Brother, can you spare a dime? • Once in khaki suits, gee we looked swell, • Full of that Yankee Doodly Dum, • Half a million boots went slogging through Hell, • And I was the kid with the drum! • Say, don't you remember, they called me Al; it was Al all the time. • Why don't you remember, I'm your pal? Buddy, can you spare a dime? • Once in khaki suits, gee we looked swell, • Full of that Yankee Doodly Dum, • Half a million boots went slogging through Hell, • And I was the kid with the drum! • Say, don't you remember, they called me Al; it was Al all the time. • Say, don't you remember, I'm your pal? Buddy, can you spare a dime?

30. The Popular Front • Social critics with a more optimistic attitude • Solidifies during mid 1930s • Linked with promoting Communist Party in US • Helped create Lincoln Brigade • Unemployment protest in DC • Loses support when Moscow calls for a return to anti-liberal stance The New Left • Important “acceptable” outlet for writers, workers, intellectuals • New Deal sponsored literature often critical of social condition w/leftist slant (Grapes of Wrath)

31. President Hoover • Voluntary economic cooperation fails • Actions too weak or too limited • Agricultural Marketing Act • Hawley-Smoot Tariff • Reconstruction Finance Corp • Discontent: Farmers’ Holiday, Hoovervilles, Bonus Army

32. Election of 1932 • With no specificity of program landslide win for FDR • Tense interregnum – no cooperation or connection bwtnadmins