THE GREAT DEPRESSION, THE GREAT DEPRESSION,

SSUSH17 The student will analyze the causes SSUSH17 The student will analyze the causes and consequences of the Great Depression. and consequences of the Great Depression.

a. Describe the causes, including overproduction, a. Describe the causes, including overproduction, underconsumption, and stock market speculation underconsumption, and stock market speculation that led to the stock market crash of 1929 and the that led to the stock market crash of 1929 and the Great Depression. Great Depression.

b. Explain the impact of the drought in the creation b. Explain the impact of the drought in the creation of the Dust Bowl. of the Dust Bowl.

c. Explain the social and political impact of c. Explain the social and political impact of widespread unemployment that resulted in widespread unemployment that resulted in developments such as Hoovervilles. developments such as Hoovervilles.

GREAT DEPRESSIONGREAT DEPRESSION

The The Great DepressionGreat Depression was a worldwide economic was a worldwide economic downturndownturn starting in most places in 1929 and starting in most places in 1929 and ending at different times in the 1930s or early ending at different times in the 1930s or early 1940s for different countries. 1940s for different countries.

The Great Depression originated in the United The Great Depression originated in the United States.States.

Starting date, the Starting date, the stock market crashstock market crash, on October , on October 29, 1929, known as 29, 1929, known as Black TuesdayBlack Tuesday. .

The end of the depression in the U.S.A. is The end of the depression in the U.S.A. is associated with the onset of the associated with the onset of the war economywar economy of of World War IIWorld War II, beginning around 1939, 1940, beginning around 1939, 1940

CAUSES OF THE GREAT CAUSES OF THE GREAT DEPRESSION IN THE USADEPRESSION IN THE USA

*1. Unequal distribution of wealth*1. Unequal distribution of wealth *2. High Tariffs and war debts*2. High Tariffs and war debts *3. Superficial (“fake”) prosperity*3. Superficial (“fake”) prosperity *4. Stock market crash and financial *4. Stock market crash and financial

panicpanic

1. UNEQUAL DISTRIBUTION OF 1. UNEQUAL DISTRIBUTION OF WEALTHWEALTH

1.RICH RICHER, POOR, POORER1.RICH RICHER, POOR, POORER 2.NOT ALL PEOPLE ENJOYED THE 2.NOT ALL PEOPLE ENJOYED THE

PROSPERITY OF THE 1920S.PROSPERITY OF THE 1920S. 3.NOT ENOUGH MONEY TO BUY THE 3.NOT ENOUGH MONEY TO BUY THE

FLOOD OF GOODS PRODUCEDFLOOD OF GOODS PRODUCED

2. HIGH TARIFFS AND WAR 2. HIGH TARIFFS AND WAR DEBTSDEBTS

1.REDUCED FLOW OF GOODS INTO USA1.REDUCED FLOW OF GOODS INTO USA 2.DECREASE IN TRADE2.DECREASE IN TRADE 3.ECONOMIC RETALIATION ABROAD3.ECONOMIC RETALIATION ABROAD 4.NON-PAYMENT OF WAR DEBTS4.NON-PAYMENT OF WAR DEBTS

3. SUPERFICIAL (FAKE) 3. SUPERFICIAL (FAKE) PROSPERITYPROSPERITY

1.OVERPRODUCTION IN INDUSTRY AND 1.OVERPRODUCTION IN INDUSTRY AND AGRICULTUREAGRICULTURE

2.DECLINE IN DEMAND FOR GOODS2.DECLINE IN DEMAND FOR GOODS 3.DROUGHT CONDITIONS3.DROUGHT CONDITIONS

4. STOCK MARKET CRASH AND 4. STOCK MARKET CRASH AND FINANCIAL PANICFINANCIAL PANIC

1.FINANCIAL CRISIS1.FINANCIAL CRISIS 2.CONSUMER CREDIT AND DEBT2.CONSUMER CREDIT AND DEBT 3.LESS SPENDING3.LESS SPENDING 4.BANK FAILURES4.BANK FAILURES 5.BUYING STOCKS ON MARGIN (BUYING 5.BUYING STOCKS ON MARGIN (BUYING

% OF STOCK AS DOWN PAYMENT, THE % OF STOCK AS DOWN PAYMENT, THE REST ON CREDIT)REST ON CREDIT)

THE GREAT DEPRESSIONTHE GREAT DEPRESSION

International trade was deeply affected, as were International trade was deeply affected, as were personal personal incomesincomes, , tax revenuestax revenues, , pricesprices, and , and profitsprofits. . Cities all around the worldCities all around the world were hit hard, were hit hard, especially those dependent on especially those dependent on heavy industryheavy industry. . Construction was virtually halted in many Construction was virtually halted in many countries. countries. FarmingFarming and rural areas suffered as and rural areas suffered as crop prices fell by 40 to 60 percent. Facing crop prices fell by 40 to 60 percent. Facing plummeting demand with few alternate sources of plummeting demand with few alternate sources of jobs, areas dependent on jobs, areas dependent on primary sector industriesprimary sector industries such as farming, such as farming, miningmining and and logginglogging, suffered the , suffered the most .most .

GREAT DEPRESSIONGREAT DEPRESSION

The Great Depression ended at different The Great Depression ended at different times in different countries. The majority of times in different countries. The majority of countries set up relief programs, and most countries set up relief programs, and most underwent some sort of political upheaval underwent some sort of political upheaval (change), pushing them to the left or right. In (change), pushing them to the left or right. In some states, the desperate citizens turned some states, the desperate citizens turned toward nationalist toward nationalist demagoguesdemagogues - the most - the most infamous being infamous being Adolf HitlerAdolf Hitler - setting the - setting the stage for stage for World War IIWorld War II in 1939. in 1939.

IMPACT OF THE GREAT IMPACT OF THE GREAT DEPRESSIONDEPRESSION

1.HARDSHIP, SUFFERING ON FAMILY, MEN, WOMEN, 1.HARDSHIP, SUFFERING ON FAMILY, MEN, WOMEN, CHILDRENCHILDREN

2.SHANTYTOWNS, SOUP KITCHENS, BREAD LINES2.SHANTYTOWNS, SOUP KITCHENS, BREAD LINES 3.BEGINNING OF DUST BOWL, 1933-363.BEGINNING OF DUST BOWL, 1933-36 a.CAUSED BY SEVERE DROUGHTSa.CAUSED BY SEVERE DROUGHTS b.FARMERS PLOWED AND EXHAUSTED LAND.b.FARMERS PLOWED AND EXHAUSTED LAND. c.WIND REMOVED TOPSOIL, ESPECIALLY IN OK, KA, c.WIND REMOVED TOPSOIL, ESPECIALLY IN OK, KA,

TX, NM, COTX, NM, CO d.MANY MIGRATE TO PACIFIC COAST STATESd.MANY MIGRATE TO PACIFIC COAST STATES 4.PSYCHOLOGICAL IMPACT-SUICIDES4.PSYCHOLOGICAL IMPACT-SUICIDES

IMPACTIMPACT

5.WIDESPREAD UNEMPLOYMENT5.WIDESPREAD UNEMPLOYMENT a.MEN IN THE STREETS, a.MEN IN THE STREETS,

HOMELESSNESSHOMELESSNESS b.TRANSIENT (MOVING) POPULATIONb.TRANSIENT (MOVING) POPULATION c.NO DIRECT RELIEF (FOOD OR CASH c.NO DIRECT RELIEF (FOOD OR CASH

PAYMENTS) FROM GOVERNMENTPAYMENTS) FROM GOVERNMENT 6.HOOVERVILLES6.HOOVERVILLES

IMPACTIMPACT

HOOVERVILLES, popular name for a HOOVERVILLES, popular name for a shanty townshanty town built by homeless men in the built by homeless men in the depression years. The term was coined by depression years. The term was coined by Charles MichelsonCharles Michelson, publicity chief of the , publicity chief of the Democratic National Committee. Democratic National Committee.

HOOVERVILLESHOOVERVILLES

These settlements were often formed on These settlements were often formed on empty land and consisted of jerry-built empty land and consisted of jerry-built shacks and tents. Authorities did not shacks and tents. Authorities did not officially recognize these officially recognize these HoovervillesHoovervilles and and occasionally removed the occupants for occasionally removed the occupants for technically trespassing on private lands, but technically trespassing on private lands, but they were frequently tolerated out of they were frequently tolerated out of necessity. necessity.

HOOVERVILLESHOOVERVILLES

Most people to building their residences out of Most people to building their residences out of box woodbox wood, , cardboardcardboard, and any , and any scraps of metalscraps of metal they could find. Some individuals even lived in they could find. Some individuals even lived in sewer mains.sewer mains.

Most unemployed residents of the Hoovervilles Most unemployed residents of the Hoovervilles begged for food from those who had housing begged for food from those who had housing during this era. Democrats coined other terms, during this era. Democrats coined other terms, such as "Hoover blanket“, old newspaper used as such as "Hoover blanket“, old newspaper used as blanketing.blanketing.

HERBERT HOOVERHERBERT HOOVER

Herbert Clark HooverHerbert Clark Hoover ,1874 –1964, was the ,1874 –1964, was the thirty-first President of thirty-first President of the United the United States,1929–1933. States,1929–1933.

HERBER HOOVERHERBER HOOVER

By 1932, the Great Depression had spread across the By 1932, the Great Depression had spread across the globe. In the U.S., unemployment had reached 24.9%, a globe. In the U.S., unemployment had reached 24.9%, a drought persisted in the agricultural heartland, businesses drought persisted in the agricultural heartland, businesses and families defaulted on record numbers of loans, and and families defaulted on record numbers of loans, and more than 5,000 banks had failed. Tens-of-thousands of more than 5,000 banks had failed. Tens-of-thousands of Americans found themselves homeless and they began Americans found themselves homeless and they began congregating in the numerous Hoovervilles (also known as congregating in the numerous Hoovervilles (also known as shanty towns or tent cities) that had begun to appear shanty towns or tent cities) that had begun to appear across the country. The name 'Hooverville' was coined by across the country. The name 'Hooverville' was coined by their residents as a sign of their disappointment and their residents as a sign of their disappointment and frustration with the perceived lack of assistance from the frustration with the perceived lack of assistance from the federal government. federal government.

RESULTS OF THE GREAT RESULTS OF THE GREAT DEPRESSIONDEPRESSION

1.UNEMPLOYMENT1.UNEMPLOYMENT 2.RISE OF SHANTYTOWNS2.RISE OF SHANTYTOWNS 3.BANKS FAIL AND SCHOOLS CLOSE.3.BANKS FAIL AND SCHOOLS CLOSE. 4.WORLD ECONOMIC DOWNTURN4.WORLD ECONOMIC DOWNTURN 5.MORE GOVERNMENT INVOLVEMENT5.MORE GOVERNMENT INVOLVEMENT 6.PRESIDENCY OF FRANKLIN 6.PRESIDENCY OF FRANKLIN

ROOSEVELT, A DEMOCRAT, AND THE ROOSEVELT, A DEMOCRAT, AND THE NEW DEAL, 1932NEW DEAL, 1932