The Great DepressionThe Great Depression

Mr. MancusoMr. Mancuso

Terre Haute SouthTerre Haute South

Economic TroublesEconomic Troubles

1920’s were good economic times (roaring 1920’s were good economic times (roaring 20’s)20’s)

Many Americans purchased new products Many Americans purchased new products on credit (1929-7 billion dollars)on credit (1929-7 billion dollars)

People were buying things on People were buying things on margin buyingmargin buying

Black ThursdayBlack Thursday

October 24, 1929-stock market crashesOctober 24, 1929-stock market crashes Investors who were nervous about interest Investors who were nervous about interest

rates began to sell stock shares.rates began to sell stock shares.Dow Jones Industrials lost 12 percent. Dow Jones Industrials lost 12 percent.

Stock market would not get to 1929 values Stock market would not get to 1929 values for 25 years.for 25 years.

Black Tuesday-October 29, 1929-prices Black Tuesday-October 29, 1929-prices went lower. $30 billion was lost by mid went lower. $30 billion was lost by mid November.November.

Bank CrisisBank Crisis

Only a small percentage of Americans Only a small percentage of Americans were involved in the stock market crash.were involved in the stock market crash.

People defaulted on their loansPeople defaulted on their loansThis forced banks to close.This forced banks to close.Depositors lost confidence in banks and Depositors lost confidence in banks and

tried to withdraw money from the bank. tried to withdraw money from the bank. This caused bank panics and bank This caused bank panics and bank closings.closings.

StatsStats

Gross Domestic Product (what we Gross Domestic Product (what we produce as a nation) fell from $103 billion produce as a nation) fell from $103 billion in 1929 to $53 billion in 1933.in 1929 to $53 billion in 1933.

Click here to see a link to more statistics.Click here to see a link to more statistics.

Other CausesOther Causes

Europe was in a depression (war debts Europe was in a depression (war debts and reparations against Germany caused and reparations against Germany caused this)this)

Because the rest of the world was at war, Because the rest of the world was at war, they could not buy American goods.they could not buy American goods.

Income gap between rich and poor.Income gap between rich and poor.Natural business cycle (what goes up Natural business cycle (what goes up

must come down)must come down)

UnemploymentUnemployment

1929-1.5 million people were unemployed. 1929-1.5 million people were unemployed. 1933-15 million people were unemployed.1933-15 million people were unemployed.Surplus of labor caused wage cuts.Surplus of labor caused wage cuts.Some people didn’t get to work the Some people didn’t get to work the

number of hours that they wanted to work number of hours that they wanted to work (underemployment)(underemployment)

Teenagers in the Depression Teenagers in the Depression (railroad)(railroad)

Teenagers had different roles.Teenagers had different roles. Riding the bulls.Riding the bulls. A Sad Christmas. A Sad Christmas. Losing a brotherLosing a brother

Pictures from the DepressionPictures from the Depression

City LifeCity Life

Suicide rate went up.Suicide rate went up. Federal government did little to assist people (Federal government did little to assist people (

rugged individualismrugged individualism)) Neighbors tried to help one another with Neighbors tried to help one another with

problems.problems. BreadlinesBreadlines Soup KitchensSoup Kitchens SongsSongs Shantytowns/Shantytowns/HoovervillesHoovervilles

Life on the FarmLife on the Farm Increased poverty made it harder for people to buy farm Increased poverty made it harder for people to buy farm

productsproducts Farmers lost their land to foreclosureFarmers lost their land to foreclosure

Picture 1Picture 1 Picture 2Picture 2 Dust BowlDust Bowl (led to insanity and suicide) (led to insanity and suicide)

Picture 1Picture 1 Picture 2Picture 2 People were forced to move, like the Joads in People were forced to move, like the Joads in The The

Grapes of WrathGrapes of Wrath Anti-immigration movement because immigrants were Anti-immigration movement because immigrants were

taking up jobs (jobs that others did not want)taking up jobs (jobs that others did not want)

What people did for funWhat people did for fun

Family lifeFamily lifeBoard gamesBoard gamesMovies Movies

Staring Staring Donald Duck Donald Duck and and Mickey MouseMickey MouseLiteratureLiterature

Lost HorizonLost Horizon by James Hilton by James HiltonThe Sound of the FuryThe Sound of the Fury by William Faulkner by William FaulknerMiss LonelyheartsMiss Lonelyhearts by Nathaniel West by Nathaniel West

Herbert HooverHerbert Hoover Thought Great Thought Great

Depression would be a Depression would be a temporary problem.temporary problem.

Opposed direct reliefOpposed direct relief Rugged individualismRugged individualism Encouraged volunteerismEncouraged volunteerism In his defense, nobody In his defense, nobody

had ever had to deal with had ever had to deal with this type of situation.this type of situation.

How would this type of How would this type of situation be handled situation be handled today?today?

More HooverMore Hoover Did establish Federal Farm Board in 1929.Did establish Federal Farm Board in 1929. Group had a budget of $500 million.Group had a budget of $500 million. Goal was to find ways for farmers to help Goal was to find ways for farmers to help

themselves (rugged individualism)themselves (rugged individualism) Hoover instructed Farm Board to buy up surplus Hoover instructed Farm Board to buy up surplus

crops. Also instructed farmers to produce fewer crops. Also instructed farmers to produce fewer crops. This would cause prices to rise.crops. This would cause prices to rise.

Farmers did not do this and prices continued to Farmers did not do this and prices continued to fall.fall.

Helped banks through Reconstruction Finance Helped banks through Reconstruction Finance Corporation.Corporation.

John Maynard KeynesJohn Maynard Keynes

Economist.Economist. Policies are known as Policies are known as

Keynesian Economic Keynesian Economic TheoryTheory

Thought that if you Thought that if you increased increased government government spending, you could spending, you could jump start the jump start the economy.economy.

ReactionsReactions

Protests began to rise by 1932.Protests began to rise by 1932.Communist Party and Socialist Party Communist Party and Socialist Party

gained momentum.gained momentum.The Bonus ArmyThe Bonus Army

1932 Election1932 Election

Despite all of the problems, Republicans Despite all of the problems, Republicans re-nominate Herbert Hoover out of re-nominate Herbert Hoover out of respect.respect.

Everybody knows Hoover will lose, as Everybody knows Hoover will lose, as people hold Hoover, and the Republican people hold Hoover, and the Republican Party responsible for the Great Party responsible for the Great Depression.Depression.

Democrats nominate Franklin D. Democrats nominate Franklin D. Roosevelt, Teddy Roosevelt’s cousin.Roosevelt, Teddy Roosevelt’s cousin.

1932 Election1932 ElectionHoover versus RooseveltHoover versus Roosevelt

Franklin D. RooseveltFranklin D. Roosevelt

Simply known as FDRSimply known as FDRAttacked Hoover’s record, did not mention Attacked Hoover’s record, did not mention

specific policies.specific policies.OptimisticOptimisticAmerica blamed Republicans for the Great America blamed Republicans for the Great

DepressionDepression