THE GREAT DEPRESSION,

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THE GREAT DEPRESSION,

• SSUSH17 The student will analyze the causes and
  consequences of the Great Depression.
• a. Describe the causes, including overproduction,
  underconsumption, and stock market speculation
  that led to the stock market crash of 1929 and
  the Great Depression.
• b. Explain the impact of the drought in the
  creation of the Dust Bowl.
• c. Explain the social and political impact of
  widespread unemployment that resulted in
  developments such as Hoovervilles.

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GREAT DEPRESSION

• The Great Depression was a worldwide economic
  downturn starting in most places in 1929 and
  ending at different times in the 1930s or early
  1940s for different countries.
• The Great Depression originated in the United
  States.
• Starting date, the stock market crash, on October
  29, 1929, known as Black Tuesday.
• The end of the depression in the U.S.A. is
  associated with the onset of the war economy of
  World War II, beginning around 1939, 1940

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CAUSES OF THE GREAT DEPRESSION IN THE USA

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

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1. UNEQUAL DISTRIBUTION OF WEALTH

• 1.RICH RICHER, POOR, POORER
• 2.NOT ALL PEOPLE ENJOYED THE PROSPERITY OF THE
  1920S.
• 3.NOT ENOUGH MONEY TO BUY THE FLOOD OF GOODS
  PRODUCED

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2. HIGH TARIFFS AND WAR DEBTS

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

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3. SUPERFICIAL (FAKE) PROSPERITY

• 1.OVERPRODUCTION IN INDUSTRY AND AGRICULTURE
• 2.DECLINE IN DEMAND FOR GOODS
• 3.DROUGHT CONDITIONS

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4. STOCK MARKET CRASH AND FINANCIAL PANIC

• 1.FINANCIAL CRISIS
• 2.CONSUMER CREDIT AND DEBT
• 3.LESS SPENDING
• 4.BANK FAILURES
• 5.BUYING STOCKS ON MARGIN (BUYING OF STOCK AS
  DOWN PAYMENT, THE REST ON CREDIT)

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THE GREAT DEPRESSION

• International trade was deeply affected, as were
  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. Facing
  plummeting demand with few alternate sources of
  jobs, areas dependent on primary sector
  industries such as farming, mining and logging,
  suffered the most .

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GREAT DEPRESSION

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

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IMPACT OF THE GREAT DEPRESSION

• 1.HARDSHIP, SUFFERING ON FAMILY, MEN, WOMEN,
  CHILDREN
• 2.SHANTYTOWNS, SOUP KITCHENS, BREAD LINES
• 3.BEGINNING OF DUST BOWL, 1933-36
• a.CAUSED BY SEVERE DROUGHTS
• b.FARMERS PLOWED AND EXHAUSTED LAND.
• c.WIND REMOVED TOPSOIL, ESPECIALLY IN OK, KA, TX,
  NM, CO
• d.MANY MIGRATE TO PACIFIC COAST STATES
• 4.PSYCHOLOGICAL IMPACT-SUICIDES

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IMPACT

• 5.WIDESPREAD UNEMPLOYMENT
• a.MEN IN THE STREETS, HOMELESSNESS
• b.TRANSIENT (MOVING) POPULATION
• c.NO DIRECT RELIEF (FOOD OR CASH PAYMENTS) FROM
  GOVERNMENT
• 6.HOOVERVILLES

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IMPACT

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

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HOOVERVILLES

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

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HOOVERVILLES

• Most people to building their residences out of
  box wood, cardboard, and any scraps of metal they
  could find. Some individuals even lived in sewer
  mains.
• Most unemployed residents of the Hoovervilles
  begged for food from those who had housing during
  this era. Democrats coined other terms, such as
  "Hoover blanket, old newspaper used as
  blanketing.

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HERBERT HOOVER

• Herbert Clark Hoover ,1874 1964, was the
  thirty-first President of the United
  States,19291933.

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HERBER HOOVER

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

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RESULTS OF THE GREAT DEPRESSION

• 1.UNEMPLOYMENT
• 2.RISE OF SHANTYTOWNS
• 3.BANKS FAIL AND SCHOOLS CLOSE.
• 4.WORLD ECONOMIC DOWNTURN
• 5.MORE GOVERNMENT INVOLVEMENT
• 6.PRESIDENCY OF FRANKLIN ROOSEVELT, A DEMOCRAT,
  AND THE NEW DEAL, 1932

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