The Great Depression 1929 - 1941

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The Great Depression 1929 - 1941
It came from nowhere, blazed up like a brush
fire, pulled us together at the bottom of the
depression, held us together through a war,
galloped up to the brink of television, and fell
over dead
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The Economy

• President Herbert Hoover
• Americans in debt
• Unable to pay credit back to banks
• Stock Market Crash of 1929
• Black Tuesday
• Failure of Federal Banks
• Unemployment rates reached 16-40 in most states
• The Dust Bowl
• A series of dust storms that raged through the
  Midwest
• Destroyed crops
• Left 500,000 Americans homeless

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The Dust Bowl
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The Dust Bowl
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How the Stock Market can crash

• When people buy stock in Coca-Cola, they are
  buying a percentage of the company.
• The more people buy Coca-Cola stock, the more
  value () Coca-Cola has.
• The more people sell their Coca-Cola stock back
  to the company, the less value () Coca-Cola
  has.
• If stockholders (people who own stock) see the
  value of a company drop, they are more likely to
  sell their stock.
• If stockholders panic and everyone sells at the
  same time, the stock market can crash, causing a
  depression.

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The Stock Market Crash of 1929
Stockholders panicked and sold their stock
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Timeline

• September 23, 1929 Stocks reach an all time high
• October 23, 1929 Stock prices drop sharply
• October 24, 1929 People panic and sell their
  stocks to avoid bankruptcy
• October 29, 1929 Stock market crashes
• Those who didnt sell their stock, lost all they
  had invested

• Americans panic and withdraw life savings from
  banks
• Banks run out of money and are forced to close
• Cash becomes scarce and people stop buying goods
• Without people buying their products, businesses
  close or lay off workers
• Unemployment and homelessness sky rockets
• 1930 The Dust Bowl begins and families are
  forced to flee their farms

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The Domino Effect
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Did it really come from nowhere?

• Banks loaned out too much money and began running
  out of it
• Aug. 22, 1921 We are living in hopes that
  something will come up to relieve present
  conditions and can assure you that at any time
  circumstances will permit we will inform you and
  will give you all the money we possibly can
• Oct. 5, 1922 I am very sorry indeed that we can
  not give you the money you have deposited with
  us, but this is a physical impossibility at this
  time.

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Did it really come from nowhere?

• Sept. 24, 1925 Had a meeting of the Directors
  of the bank Saturday evening and they are very
  anxious and agree to do all they possibly can to
  keep the bank running for another year, and we
  believe you can readily see that if this is
  accomplished it will take the cooperation of all
  of our customers We have been wondering Mr.
  Jacobs if you did not know of someone who would
  like to invest in a proposition in the bank line
  that is bound to be a money maker in the future

Banks were asking for MORE money from their
customers
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Did it really come from nowhere?

• Sept. 23, 1929 Have read your last letter over
  carefully and after doing so wish to say that
  just at this time I am not prepared to answer it
  as you want it
• Oct. 29, 1929 The stock market crashedthe Great
  Depression began

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Rushing to the Banks
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The Great Depression

• The worst economic disaster the U.S. has ever
  seen
• Effected the majority of the world because of
  international trade
• Homeless formed Hoovervilles
• Small communities of homeless people
• Most people blamed President Hoover
• Hoover, a Republican, refused to provide aid
  because he wanted to restrict government
  involvement

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What is an economic Depression?

• Depression a long-lasting economic downturn.

Stock Market crash
Hoovers presidency ends
It took 13 years for the economy to fully recover
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Hooverville
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Hooverville
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Hooverville
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Hooverville
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Hooverville
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Hooverville
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Who did they blame?
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Life During the Depression

• 9.5 of all Americans were unemployed
• In order to help support their families, children
  as young as 10 went to work in factories
• Inexpensive entertainment in the form of movies
  (25 cents) and radio still thrived
• Opportunities for women
• Eleanor Roosevelts influence
• Frances Perkins became the first female cabinet
  officer

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Life During the Depression

• "My family relied on themselves to sew their own
  clothes, grow their own vegetables, and raise
  their own chickens."
• "The only entertainment my family had during the
  Depression was church and visiting relatives. 
  They also listened to the radio, of course, and
  played cards and other games.  At Christmas, the
  only thing they received was fruit."
• "Steve committed suicide by taking 'rough on
  rats,' (I'm not certain what this actually is,
  but I assume some type of rat poisoning). 
  Steve's brother John also committed suicide, but
  my aunt wasn't sure why or how."

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Life During the Great Depression

• We had a coal stove, and we had to each take
  turns, the three of us kids, to warm our legs. It
  was awfully cold when you opened those garage
  doors. In the morning, wed get out and get some
  snow and put it on the stove and melt it and wash
  around our faces.

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Food
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The Great Depression
People lived in makeshift homes and tents
People couldnt afford transportation
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The Great Depression
Soup kitchens gave out free soup Gangster Al
Capone increased his popularity by opening his
own soup kitchen.
People couldnt afford to live in homes
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The Great Depression
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The Great Depression
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Making Matters Worse

• A group of WWI Veterans known as the Bonus Army
  sought early payment of their war bonuses
• Marched on Washington
• Hoover forced them out one veteran was shot and
  killed

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A Slow Recovery

• Public Works projects Government funded programs
  to assist individuals, families, and communities
  in need
• The election of Franklin Delano Roosevelt

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The New Deal
Roosevelt spent more money and expanded the size
of our government more than any president had
before him

• Roosevelt created numerous programs on relief,
  recovery, and reform in America
• Social Security Act Money is set aside for
  retirement for anyone who works
• Though the New Deal created jobs and provided
  relief, it did away with limited government
• With no money for funding, Roosevelt ended the
  New Deal in 1937
• Thousands were out of jobs and the economy
  plummeted again
• Fireside chats
• Radio shows where Roosevelt broadcasted
  explanations of his policies in a warm and
  friendly manner over the radio

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Recovery

• With FDRs failed New Deal, the United States
  was in for an extended depression until December
  7, 1941

The New Deal Ended
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Recovery