The Great depression Chapters 14 15 Great depression

The Great depression Chapters 14 -15

Great depression • 1929 -1941 • Does not end until start of World War II • Causes: • • Uneven distribution of wealth Debt of 1920’s U. S. industry not competitive Unsuccessful economic policies Stock Market Crash Industry and agriculture overproduction (WW I) Absence of cash

Election of 1928 • Al Smith (Democrat) vs. Herbert Hoover (Republican) • Hoover won due to prosperity of the 1920’s • Rugged individualism • “Lassez-faire” economics Hoover would eventually be personally blamed for the Depression

Stock market conditions • Late 1920’s, stock prices continued to rise • In the 1920’s, many were risk-takers and wanted to “gamble” with the Stock Market • “Buying on Margin” allowed investors to use credit to purchase stock • “Black Tuesday”-October 29, 1929…. the day the market “crashed” • 16 million shares of stock sold that day • Many people lost their life savings in the stock market

Run on banks • Some people wanted to safely save money and put their money in banks • People panicked and ran to the banks to withdraw all their money • Money in banks was not insured at the time • Once the bank gave all money out, there was no more! • People that did get some money from the bank often hoarded their money (buried it, stuffed it in a mattress, etc. )-They were afraid to spend any money because they feared it could not be replaced

Conditions decline • Many companies suffered once the stock values continued to decrease • More and more people lost jobs-by 1933, the unemployment rate was 25% • Hoover promised that there would be prosperous times around the corner and there would be a “chicken in every pot”, but that did not come to pass

Continued • Many lost jobs, were homeless, and hungry • Many children malnourished • Many stood in bread lines or went to soup kitchens to get food • There was no government assistance…. no food stamps, monthly checks, unemployment, etc. • Charities/churches did provide some support, but the government did nothing at this point • See clip of “Cinderella Man”

Bonus army • World War I veterans • Promised a bonus for their service payable in 1945 • Because of desperate conditions, many asked for their bonus early in 1932 • Thousands made the trip to Washington, D. C. to attempt to sway Congress to provide the money early-set up a tent city • Congress denied their request, and those that did not leave voluntarily were forced out with tear gas and tanks • Last straw for Hoover “Bonus Army” video

Hoover blamed • Although Hoover promised that prosperity was “right around the corner”, that did not happen for most • Make-shift homes made of scrap wood, metal and cardboard were referred to as “Hoovervilles” • “Hoover-flags” • “Hoover-blankets” • “Hoover-hogs”

Depression effects rural areas • Lower demand for food after World War I • Many years of drought in area of Great Plains called the Dust Bowl • Caused by: • High winds • Little or no rain • Lack of crop rotation

Okies • Farmers from the Great Plains (mostly Oklahoma at first) that moved West to find work picking fruit in California • Too many went and there were not enough jobs available • Okies were often not welcomed out West

Effects of the Great Depression • People suffered widespread unemployment, hunger, hopelessness, and homelessness • Industrial and farm production failed • World economic crisis developed • Roosevelt won victory in 1932 • President Franklin D. Roosevelt initiated the New Deal for all Americans • Clara Video