THE GREAT THE GREAT DEPRESSION DEPRESSION

Photos by photographer

Dorothea Lange

THE NATION’S THE NATION’S ECONOMYECONOMY

• AgricultureAgriculture• RailroadsRailroads• TextilesTextiles• SteelSteel• MiningMining• LumberLumber• AutomobilesAutomobiles• HousingHousing• Consumer goodsConsumer goods

Important industries struggled during the 1920’s, including:

FARMERS STRUGGLEFARMERS STRUGGLE

• No industry suffered as No industry suffered as much as agriculturemuch as agriculture

• During World War I During World War I European demand for European demand for American crops soaredAmerican crops soared

• After the war demand After the war demand plummetedplummeted

• Farmers increased Farmers increased production sending production sending prices further prices further downwarddownward

Photo by Dorothea Lange

CONSUMER CONSUMER SPENDING DOWNSPENDING DOWN

• By the late 1920s, By the late 1920s, American American consumers consumers were buying lesswere buying less

• Rising prices, Rising prices, stagnant wages and stagnant wages and overbuying on credit overbuying on credit were to blamewere to blame

• Most people did not Most people did not have the money to buy have the money to buy the many goods the many goods factories producedfactories produced

SEEDS OF TROUBLESEEDS OF TROUBLE• By the late 1920s,By the late 1920s,

problemsproblems with the with the economy economy emergedemerged

• Speculation:Speculation: Too many Too many Americans were Americans were engaged in engaged in speculation – buying speculation – buying stocks & bonds hoping stocks & bonds hoping for a quick profitfor a quick profit

• Margin:Margin: Americans Americans were buying “on were buying “on margin” – paying a margin” – paying a small percentage of a small percentage of a stock’s price as a downstock’s price as a down payment and payment and borrowing the restborrowing the restThe Stock Market’s bubble

was about to break

THE 1929 THE 1929 CRASHCRASH

• On October 24, the market On October 24, the market took a plunge . . .the worst took a plunge . . .the worst was yet to comewas yet to come

• On October 29, On October 29, now known asnow known as Black TuesdayBlack Tuesday, the bottom , the bottom fell outfell out

• 16.4 million shares were sold 16.4 million shares were sold that day – prices plummetedthat day – prices plummeted

• People who had bought on People who had bought on margin (credit) were stuck margin (credit) were stuck with with huge debtshuge debts

By mid-November, investors had lost about

$30 billion

THE GREAT THE GREAT DEPRESSIONDEPRESSION

• The Stock Market The Stock Market crash signaledcrash signaled the the beginning of the Great beginning of the Great DepressionDepression

• The Great Depression The Great Depression is generally defined as is generally defined as the period from 1929 – the period from 1929 – 1940 in which the 1940 in which the economy plummeted economy plummeted and unemployment and unemployment skyrocketedskyrocketed

• The crash alone did The crash alone did not cause the Great not cause the Great Depression, but it Depression, but it hastened its arrivalhastened its arrival

Alabama family, 1938 Photo by Walter Evans

FINANCIAL FINANCIAL COLLAPSECOLLAPSE

• After the crash, many After the crash, many Americans panicked Americans panicked and withdrew their and withdrew their moneymoney from banks from banks

• Banks had invested Banks had invested in the Stock Market in the Stock Market and lost moneyand lost money

• In 1929- 600 In 1929- 600 banks banks failfail

• By 1933 – 11,000 of By 1933 – 11,000 of the 25,000 banks the 25,000 banks nationwide had nationwide had collapsedcollapsed

Bank run 1929, Los Angeles

GNP DROPS, GNP DROPS, UNEMPLOYMENT UNEMPLOYMENT

SOARSSOARS• Between 1928-1932, Between 1928-1932,

the U.S. Gross the U.S. Gross National Product National Product (GNP)(GNP) – the total – the total output of a nation’s output of a nation’s goods & services – goods & services – fell fell nearly 50%nearly 50% from $104 from $104 billion to $59 billionbillion to $59 billion

• 90,000 90,000 businesses businesses went bankruptwent bankrupt

• Unemployment Unemployment leapedleaped from 3% in from 3% in 1929 to 25% in 19331929 to 25% in 1933

HAWLEY-HAWLEY-SMOOT SMOOT TARIFFTARIFF

• The U.S. was not the The U.S. was not the only country gripped by only country gripped by the Great Depressionthe Great Depression

• Much of Europe Much of Europe suffered throughout suffered throughout the 1920sthe 1920s

• In 1930, Congress In 1930, Congress passed the toughest passed the toughest tariff in U.S. history tariff in U.S. history called the called the Hawley- Hawley- Smoot TariffSmoot Tariff

• It was meant to protect It was meant to protect U.S. industry yet had U.S. industry yet had the opposite effectthe opposite effect

• Other countries Other countries enacted their own enacted their own tariffs and soon tariffs and soon world world trade fell 40%trade fell 40%

Dust BowlDust Bowl

• Impacted much of the Midwest, Impacted much of the Midwest, about 7 states.about 7 states.

• Kansas was impacted the most.Kansas was impacted the most.• Causes:Causes:

– Over-farmingOver-farming– DroughtDrought– High windsHigh winds

Dust storm approaching Stratford, Texas - 1934

Storm approaching Elkhart, Kansas in 1937

Dust buried cars and wagons in South Dakota in 1936

SECTION 2: SECTION 2: HARDSHIPS DURING HARDSHIPS DURING

DEPRESSIONDEPRESSION• The Great Depression The Great Depression

brought hardship, brought hardship, homelessnesshomelessness, and , and hunger to millionshunger to millions

• Across the country, Across the country, people lost their jobs, people lost their jobs, and their homesand their homes

• Some built Some built makeshifts shacks makeshifts shacks out of scrap materialout of scrap material

• Before long whole Before long whole shantytowns shantytowns (sometimes called (sometimes called HoovervillesHoovervilles in mock in mock reference to the reference to the president) sprung uppresident) sprung up

SOUP SOUP KITCHENSKITCHENS

• One of the common One of the common features of urban features of urban areas during the era areas during the era were were soup kitchens soup kitchens and bread linesand bread lines

• Soup kitchens and Soup kitchens and bread lines offered bread lines offered free or low-cost food free or low-cost food for peoplefor people

Unemployed men wait in line for food – this particular soup

kitchen was sponsored by Al Capone

CONDITIONS CONDITIONS FOR FOR

MINORITIESMINORITIES• Conditions for African Conditions for African

Americans and Latinos Americans and Latinos were especially difficultwere especially difficult

• UnemploymentUnemployment was the was the highest among highest among minorities and their minorities and their paypay was the was the lowestlowest

• Increased violenceIncreased violence (24 (24 lynchings in 1933 lynchings in 1933 alone)alone) marred the marred the 1930s1930s

• Many Mexicans were Many Mexicans were “encouraged” to return “encouraged” to return to their homelandto their homeland

As conditions deteriorated, violence

against blacks increased

RURAL LIFE DURING RURAL LIFE DURING THE DEPRESSIONTHE DEPRESSION

• While the Depression While the Depression was difficult for was difficult for everyone, farmers did everyone, farmers did have one advantage; have one advantage; they could grow food they could grow food for their familiesfor their families

• Thousands of farmers, Thousands of farmers, however, however, lost their lost their landland

• Many turned to tenant Many turned to tenant farming and barely farming and barely scraped out a livingscraped out a living

Between 1929-1932 almost ½ million farmers lost their land

HOBOES HOBOES TRAVEL TRAVEL

AMERICAAMERICA• The 1930s created the The 1930s created the term term “hoboes”“hoboes” to to describe describe poor drifterspoor drifters

• 300,000 transients – or 300,000 transients – or hoboes – hitched rides hoboes – hitched rides around the country on around the country on trains and slept under trains and slept under bridges (thousands bridges (thousands were teenagers)were teenagers)

• Injuries and death was Injuries and death was commoncommon on railroad on railroad property; over 50,000 property; over 50,000 people were hurt or people were hurt or killedkilled

HOOVER’S HOOVER’S SUCCESSFUL DAM SUCCESSFUL DAM

PROJECTPROJECT• Hoover successfully Hoover successfully

organized and organized and authorized the authorized the construction of the construction of the Boulder DamBoulder Dam (Now (Now called the Hoover called the Hoover Dam)Dam)

• The $700 million The $700 million project was the project was the world’s world’s tallest damtallest dam (726 feet) (726 feet) and the second largest and the second largest (1,244 feet long)(1,244 feet long)

• The dam currently The dam currently provides electricity, provides electricity, flood control and water flood control and water for 7 western statesfor 7 western states

Any dam questions?

HOOVER’S HOOVER’S PHILOSOPHYPHILOSOPHY

• Hoover was not quick to Hoover was not quick to reactreact to the depression to the depression

• He believed in He believed in “rugged “rugged individualism”individualism” – the idea – the idea that people succeed that people succeed through their own effortsthrough their own efforts

• People should take care People should take care of themselves, not of themselves, not depend on governmental depend on governmental hand-outs – direct reliefhand-outs – direct relief

• He said people should He said people should “pull themselves up by “pull themselves up by their bootstraps”their bootstraps”Hoover believed it was the individuals

job to take care of themselves, not the governments

HOOVER TAKES HOOVER TAKES ACTION: TOO LITTLE ACTION: TOO LITTLE

TOO LATETOO LATE• Hoover gradually softened Hoover gradually softened

his position on his position on government intervention government intervention in the economyin the economy

• He created the He created the Federal Federal Farm BoardFarm Board to help to help farmers farmers

• He also created the He also created the National Credit National Credit OrganizationOrganization that helped that helped smaller banks smaller banks

• His His Federal Home Loan Federal Home Loan Bank ActBank Act and and Reconstruction Finance Reconstruction Finance CorpCorp were two measures were two measures enacted to protect people’s enacted to protect people’s homes and businesseshomes and businesses

Hoover’s flurry of activity came too late to save the

economy or his job

BONUS BONUS ARMYARMY

• A 1932 incident further A 1932 incident further damaged Hoover’s damaged Hoover’s imageimage

• That spring about That spring about 15,000 World War I vets15,000 World War I vets arrived in Washington to arrived in Washington to support a proposed billsupport a proposed bill

• The The Putman BillPutman Bill would would have authorized have authorized Congress to pay a bonus Congress to pay a bonus to WWI vets to WWI vets immediatelyimmediately

• The bonus was The bonus was scheduled to be paid in scheduled to be paid in 1945 --- The Army 1945 --- The Army vets vets wanted it NOWwanted it NOW

BONUS ARMY BONUS ARMY TURNED DOWNTURNED DOWN

• Hoover called Hoover called the Bonus the Bonus marchers, marchers, “Communists “Communists and and criminals”criminals”

• On June 17, On June 17, 1932 the 1932 the Senate voted Senate voted down the down the Putnam BillPutnam Bill

Thousands of Bonus Army soldiers protest – Spring 1932

BONUS MARCHERS BONUS MARCHERS CLASH WITH CLASH WITH

SOLDIERSSOLDIERS• Hoover told the Hoover told the

Bonus marchers to go Bonus marchers to go home– most didhome– most did

• 2,000 refused to leave2,000 refused to leave• Hoover sent a force of Hoover sent a force of

1,000 soldiers under 1,000 soldiers under the command of the command of General General Douglas Douglas MacArthurMacArthur and his and his aide aide Dwight Dwight EisenhowerEisenhower

AMERICANS SHOCKED AMERICANS SHOCKED AT TREATMENT OF AT TREATMENT OF

WWI VETSWWI VETS

• MacArthur’s 12MacArthur’s 12thth infantry gassed more than infantry gassed more than 1,0001,000 marchers, including an 11-month old marchers, including an 11-month old baby, who diedbaby, who died

• Two vets were shot and scores injuredTwo vets were shot and scores injured• Americans were outraged and once again, Americans were outraged and once again,

Hoover’s image sufferedHoover’s image suffered