GREAT DEPRESSION

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GREAT DEPRESSION

• in 1930 S.

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Sometimes people ARE depressed
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• Vincent Willem Van Gogh - DEPRESSION

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BUT THE WORST THING ISWHEN ALL PEOPLE
AND WHOLE COUNTRY IS UNDER DEPRESSION
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On Black Tuesday, October 29, 1929, the stock
market crashed, triggering the Great Depression,
the worst economic collapse in the history of the
modern industrial world
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It spread from the United States to the rest of
the world, lasting from the end of 1929 until the
early 1940s. With banks failing and businesses
closing, more than 15 million Americans
(one-quarter of the workforce) became unemployed.
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Total employment in the United States from 1920
to 1940, excluding farms and WPA
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• The unemployment rate under Hoover rose
  dramatically, to 24.1 percent in 1932 from 3.2
  percent in 1929.

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What did President Hoover do to fight the
Depression?Many people believe that President
Hoover did little or nothing in response to the
Great Depression. In fact, beginning immediately
after the stock market crash in October, 1929,
Hoover implemented many ideas to lessen the
effect of the Depression and to hasten the
recovery. He directed all Federal Departments to
speed up public works and other projects, in
order to create more jobs. He directed the
Federal Farm Board to support commodities prices
and asked Congress to decrease non-essential
government spending and use the money to start
new public works. President Hoover called many
conferences with industry and finance leaders to
encourage voluntary cooperation among businesses
to relieve the Depression. Hoover also created
the President's Organization on Unemployment
Relief to stimulate and coordinate employment and
relief efforts. After the collapse of the
European economy in April of 1931 caused the
Depression to become even worse, President Hoover
called for a temporary suspension of
international debt payments, which saved the
international banking system from complete
collapse. With foreign trade at a standstill,
prices for U.S. manufactured goods and farm
products fell, and American industries began
laying off even more workers. President Hoover
asked Congress to appropriate more money for farm
loans and to create the Reconstruction Finance
Corporation, which would be used to help
financially endangered building and loan
associations, agricultural cooperatives, banks
and railways. He proposed federally funded Home
Loan Discount Banks to help protect people from
losing their homes. He asked Congress to loan
300,000,000 to the states to aid their relief
programs, and to transfer agricultural surpluses
from the Farm Board to the Red Cross for
distribution to relief agencies.
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President Hoover and his dog, King Tut.
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By July, 1932 the Depression had begun to show
signs of improvement. But many people in the
United States were unhappy with the rate of
recovery, and blamed Hoover for all the problems
and suffering that had occurred. With the
Presidential election approaching, the Democratic
candidate, Franklin D. Roosevelt, promised the
people a "New Deal."

• The New Deal programs created a liberal political
  alliance of labor unions, blacks and other
  minorities, some farmers and others receiving
  government relief, and intellectuals, also
  reforming the financial system, especially the
  banks and Wall Street.

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The depression had devastating effects both in
the industrialized countries and in those which
exported raw materials. International trade
declined sharply, as did personal incomes, tax
revenues, prices, and profits. Cities all around
the world were hit hard, especially those
dependent on heavy industry. Construction was
virtually halted in many countries. Farming and
rural areas suffered as crop prices fell by 40 to
60 percent.
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The Great Depression and the New Deal changed
forever the relationship between Americans and
their government. Government involvement and
responsibility in caring for the needy and
regulating the economy came to be expected.
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GREAT DEPRESSION