The Great DepressionThe Great Depression

Problems Leading to Problems Leading to the Depressionthe Depression

Superficial Prosperity of 20’sSuperficial Prosperity of 20’s– BusinessesBusinesses Produce More Than They Could Sell Produce More Than They Could Sell– Investors Investors Get More Deeply Invested and In Debt Get More Deeply Invested and In Debt

Key Basic Industries Began to FailKey Basic Industries Began to Fail– Railroads, Steel, Textiles Began to Lose ProfitsRailroads, Steel, Textiles Began to Lose Profits

Problems for FarmersProblems for Farmers– Farmers Continued to Suffer Financially After WWIFarmers Continued to Suffer Financially After WWI– McNary – Haugen BillMcNary – Haugen Bill

Proposed by Congress to Help Farmers Sell ProductsProposed by Congress to Help Farmers Sell Products– Price Supports: Price Supports: Government would buy surplus crops at guaranteed Government would buy surplus crops at guaranteed

prices and then sell them on the world marketprices and then sell them on the world market Coolidge Vetoes Coolidge Vetoes TwiceTwice – “Farmers have never made money. – “Farmers have never made money.

I don’t believe we can do much about it” I don’t believe we can do much about it”

Problems Leading to Problems Leading to the Depressionthe Depression

Consumers Can Purchase Fewer GoodsConsumers Can Purchase Fewer Goods– Rising Prices & Stagnant Wages Caused Fewer Rising Prices & Stagnant Wages Caused Fewer

Goods to Be Sold in AmericaGoods to Be Sold in America– Production Expanded Much Faster Than WagesProduction Expanded Much Faster Than Wages

Living on Living on CreditCredit– Americans Built Up a Huge Independent Debt Americans Built Up a Huge Independent Debt

That Could Not Be Paid OffThat Could Not Be Paid Off Uneven Distribution of IncomeUneven Distribution of Income

– The Rich Got Richer and the Poor Got PoorerThe Rich Got Richer and the Poor Got Poorer

American Income American Income Distribution in 1929Distribution in 1929

$1,999 andUnder$2,000 -$4,999$5,000 -$9,999$10,000 andOver

The Election of 1928The Election of 1928

Republican Candidate

Herbert Hoover

•Secretary of Commerce for Coolidge

•Advantage: Successes of America Under Republican President

Democratic Candidate

Al Smith

•Career Politician & Governor of New York

•Al(Cohol) Smith Was Wet

•Catholic

Election Results

Herbert Hoover 444 Electoral Votes

83.6% Pop. Vote

Al Smith 87 Electoral Votes

16.4% Pop. Vote

•The Election of 1828 Was the First Election Where the Radio Played a Large Part of the Campaign – Helped Hoover Greatly

Hoover’s First Actions Hoover’s First Actions as Presidentas President

Attempted to Make Two Major Changes When Arriving in Attempted to Make Two Major Changes When Arriving in Office Office – To Help FarmersTo Help Farmers– To Deal With the TariffTo Deal With the Tariff

Helping the FarmersHelping the Farmers– Agricultural Marketing ActAgricultural Marketing Act

Helped Farmers Help Themselves Thru Establishment of CooperativesHelped Farmers Help Themselves Thru Establishment of Cooperatives Established Federal Farm Board: Funded $1/2 Billion to Lend to Farmers Established Federal Farm Board: Funded $1/2 Billion to Lend to Farmers

to Buy, Sell, and Store Surplusesto Buy, Sell, and Store Surpluses– Grain Stabilization CorporationGrain Stabilization Corporation

Attempted to Help Staggering Prices by Purchasing Farmers’ Surpluses Attempted to Help Staggering Prices by Purchasing Farmers’ Surpluses Was Basically Ineffective Due to Huge Amounts of ProductWas Basically Ineffective Due to Huge Amounts of Product

Dealing With the TariffDealing With the Tariff– Hoover Promised to Make ‘Limited Changes’ to Fordney – McCumber Hoover Promised to Make ‘Limited Changes’ to Fordney – McCumber

Tariff of 1922Tariff of 1922– Passed Passed Hawley – Smoot Tariff (1930)Hawley – Smoot Tariff (1930)

Increased Tariffs by as Much as 50%-100% on certain goods Increased Tariffs by as Much as 50%-100% on certain goods – Looked Like a Declaration of Economic Warfare on the Outside Looked Like a Declaration of Economic Warfare on the Outside

WorldWorld

The Shock that Started The Shock that Started the Great Depressionthe Great Depression

The Advances of the ‘Bull Market’ and The Advances of the ‘Bull Market’ and Unsteady Stock Market Stood Extremely Unsteady Stock Market Stood Extremely Close to Tumbling by Summer, 1929Close to Tumbling by Summer, 1929

‘‘Black Tuesday’ – Black Tuesday’ – October 29, 1929October 29, 1929– The Stock Market Took an Initial Hit and The Stock Market Took an Initial Hit and

Panicked Investors Hurried to Sell StocksPanicked Investors Hurried to Sell Stocks– 16.4 Million Shares Were Sold That Day Alone16.4 Million Shares Were Sold That Day Alone

Investors in the Stock Market Went From Investors in the Stock Market Went From Millionaires to Bankrupt in Just a Few Millionaires to Bankrupt in Just a Few Days/Weeks/MonthsDays/Weeks/Months

The Main Causes of The Main Causes of the Great Depressionthe Great Depression

Overproduction of Farm and FactoryOverproduction of Farm and Factory

Uneven Distribution of WealthUneven Distribution of Wealth

Overspeculation of the Stock MarketOverspeculation of the Stock Market

Tariffs and War Debt PoliciesTariffs and War Debt Policies

Short Term Results of Short Term Results of the Stock Market the Stock Market

CrashCrash Banking Problems and FailuresBanking Problems and Failures

– Many Banks Went Bankrupt b/c People Rushed to Take Many Banks Went Bankrupt b/c People Rushed to Take Out Savings and Banks Could Not Meet Cash DemandsOut Savings and Banks Could Not Meet Cash Demands

Business FailuresBusiness Failures– Thousands of Businesses Shut Down b/c of Diminishing Thousands of Businesses Shut Down b/c of Diminishing

ProfitsProfits– Workers Had No Jobs / Money So Could Not Purchase Workers Had No Jobs / Money So Could Not Purchase

Goods From BusinessesGoods From Businesses Worldwide RepercussionsWorldwide Repercussions

– Other Countries Were Also Dealing w/ Post WWI Other Countries Were Also Dealing w/ Post WWI Economic Issues = The U.S. Could Not Export Goods Economic Issues = The U.S. Could Not Export Goods WorldwideWorldwide

U.S. Bank Failures: 1928 - 1933

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How Americans Were How Americans Were Affected by the Affected by the

DepressionDepression

The Depression in the The Depression in the CitiesCities

The Depression Brought Hardship, Homelessness, The Depression Brought Hardship, Homelessness, and Hunger to Millions in Citiesand Hunger to Millions in Cities

UnemploymentUnemployment– A Drastic Increase in Unemployment Left Millions A Drastic Increase in Unemployment Left Millions

Jobless and Eventually HomelessJobless and Eventually Homeless– Shantytowns Called “Hoovervilles” Popped Up in Most Shantytowns Called “Hoovervilles” Popped Up in Most

Major CitiesMajor Cities– Soup Kitchens and Bread Lines Were the Only Available Soup Kitchens and Bread Lines Were the Only Available

For Some to Get FoodFor Some to Get Food Minorities Such as African Americans and Latinos Minorities Such as African Americans and Latinos

Were Suffered Worse Than White City - DwellersWere Suffered Worse Than White City - Dwellers

Unemployment: 1928 - 1933

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The Depression For The Depression For the Farmersthe Farmers

Farmers Were Struggling Throughout the 20’s, Farmers Were Struggling Throughout the 20’s, But the Depression Just Made it WorseBut the Depression Just Made it Worse– One Advantage: Most Farmers Could Grow Food For One Advantage: Most Farmers Could Grow Food For

Their FamiliesTheir Families Many Farmers Lost Their Land and Had to Turn Many Farmers Lost Their Land and Had to Turn

to Tenant Farming to Surviveto Tenant Farming to Survive The Dust BowlThe Dust Bowl

– Farmers Had Used Technology to Break Up and Farmers Had Used Technology to Break Up and Overuse the Topsoil on the Midwestern PlainsOveruse the Topsoil on the Midwestern Plains

– A Terrible Drought Combined w/ High Winds to A Terrible Drought Combined w/ High Winds to Create the Dust BowlCreate the Dust Bowl

– Many Farms Literally Were ‘Blown Away’Many Farms Literally Were ‘Blown Away’

Photo of a Dust Storm in Kansas

Families Struggle to Families Struggle to SurviveSurvive

The Family Unit Was Often the Only Thing That Kept People The Family Unit Was Often the Only Thing That Kept People Sane and Living During the DepressionSane and Living During the Depression

MenMen– High Unemployment Rates = Couldn’t Provide For FamiliesHigh Unemployment Rates = Couldn’t Provide For Families– No Direct Relief (i.e. – Welfare System)No Direct Relief (i.e. – Welfare System)

WomenWomen– Also Looked For JobsAlso Looked For Jobs

Less Paying Than MenLess Paying Than Men Discriminated b/c Why Should Women Get Jobs When Men Are Discriminated b/c Why Should Women Get Jobs When Men Are

UnemployedUnemployed ChildrenChildren

– Were Often a Burden to Families – Some Even Told to LeaveWere Often a Burden to Families – Some Even Told to Leave Many Boys Turned to ‘Riding the Rails’Many Boys Turned to ‘Riding the Rails’

– Schools Shut Down & Kids Had to Find Work to Provide For FamiliesSchools Shut Down & Kids Had to Find Work to Provide For Families– Sickness & Disease Rampant Due to Poor DietSickness & Disease Rampant Due to Poor Diet

Hoover Dealing With Hoover Dealing With the Depressionthe Depression

Hoover’s First Steps at Hoover’s First Steps at Dealing With the Dealing With the

DepressionDepression His Message to the Nation…His Message to the Nation…

– America’s Economy Was on Sound Footing and People America’s Economy Was on Sound Footing and People Should Go About Normal LifeShould Go About Normal Life

Hoover’s Belief…Hoover’s Belief…– America Was Built on Individuality and People Shouldn’t America Was Built on Individuality and People Shouldn’t

Depend on the Government to Bail Them Out of TroubleDepend on the Government to Bail Them Out of Trouble His Basic Philosophy…His Basic Philosophy…

– Outside Forces Were Mostly Responsible for the Outside Forces Were Mostly Responsible for the DepressionDepression

– American’s Didn’t Really Have to Change Anything – American’s Didn’t Really Have to Change Anything – Just “Wait it Out”Just “Wait it Out”

– If Americans Worked Together, They Could Beat the If Americans Worked Together, They Could Beat the Depression (Volunteerism, No Lay – Offs, No Strikes)Depression (Volunteerism, No Lay – Offs, No Strikes)

Hoover’s Earliest Hoover’s Earliest ActionAction

As Secretary of Commerce, Hoover Proposed As Secretary of Commerce, Hoover Proposed Construction of Dam on the Colorado RiverConstruction of Dam on the Colorado River– Had the Power to Authorize Governmental Funding Had the Power to Authorize Governmental Funding

as President to Get Construction Startedas President to Get Construction Started Construction of the Dam Started in Fall of 1929Construction of the Dam Started in Fall of 1929

– Cost: $700 MillionCost: $700 Million Purpose:Purpose:

– Generate ElectricityGenerate Electricity– Supply Water to AreaSupply Water to Area– Jobs for Many MenJobs for Many Men

•Hoover Dam Is 726 Feet High and 1,244 Feet Long

•At the Time It Was the World’s Highest and 2nd Longest Dam

Hoover’s First Actions to Hoover’s First Actions to Battle the DepressionBattle the Depression

As the Depression Got Worse After One Year, As the Depression Got Worse After One Year, Hoover Finally Realized that Something Had to Hoover Finally Realized that Something Had to Be DoneBe Done

Private Business and EnterprisePrivate Business and Enterprise Federal Farm BoardFederal Farm Board

– Bought Surplus of Crops to Keep Supply Down and Prices UpBought Surplus of Crops to Keep Supply Down and Prices Up National Credit CorporationNational Credit Corporation

– Big Banks Loaned Money to Smaller Ones to Help Them From Big Banks Loaned Money to Smaller Ones to Help Them From Going BankruptGoing Bankrupt

All of These Measures Basically Failed and By All of These Measures Basically Failed and By 1931 (With Election on Way) Hoover Realized 1931 (With Election on Way) Hoover Realized that He Needed to Enact More Drastic Measuresthat He Needed to Enact More Drastic Measures

The Reconstruction The Reconstruction Finance Corporation Finance Corporation

(RFC)(RFC) Made $2 Billion Available to Struggling Made $2 Billion Available to Struggling

Businesses and CompaniesBusinesses and Companies– Railroad Companies, Banks, Insurance CompaniesRailroad Companies, Banks, Insurance Companies– Hopefully This Money Would Also ‘Trickle Down’ to Hopefully This Money Would Also ‘Trickle Down’ to

Ordinary CitizensOrdinary Citizens It Made NO Loans to IndividualsIt Made NO Loans to Individuals

– Hoover Believed Individual Loans Would Be Bad Hoover Believed Individual Loans Would Be Bad and Make Americans Lazy and Looking for and Make Americans Lazy and Looking for HandoutsHandouts

Was Also Called ‘The Millionaires Dole’Was Also Called ‘The Millionaires Dole’

The Next Blow to Hoover’s The Next Blow to Hoover’s Presidency – The Bonus Presidency – The Bonus

ArmyArmy Bonus Expeditionary Force Arrived in Bonus Expeditionary Force Arrived in

Washington D.C. in Summer of 1932Washington D.C. in Summer of 1932– Supported the Patman Bill Which Would Pay WWI Supported the Patman Bill Which Would Pay WWI

Veterans Their ‘Bonus’ From Service in 1932 Instead Veterans Their ‘Bonus’ From Service in 1932 Instead of the Intended 1945of the Intended 1945

– Averaged About $500/SoldierAveraged About $500/Soldier Patman Bill Was Voted Down and Many LeftPatman Bill Was Voted Down and Many Left

– About 2,000 Remained in Washington D.C. to Speak About 2,000 Remained in Washington D.C. to Speak w/ Presidentw/ President

Hoover Used U.S. Military Troops to Disperse Hoover Used U.S. Military Troops to Disperse Veterans Which Enraged Many Americans and Veterans Which Enraged Many Americans and VeteransVeterans– Two Deaths and Many Injuries in the IncidentTwo Deaths and Many Injuries in the Incident

The Men Responsible for Dispersing the Bonus Army:

•General Douglas MacArthur

•Major Dwight D. Eisenhower

The Election of 1932The Election of 1932

Republican Candidate

Herbert Hoover•Believed His Administration Was Not at Fault for Depression

•Republicans Didn’t Have Anyone Better to Nominate

Democratic Candidate

Franklin D. Roosevelt•Supported Repeal of Prohibition

•Government Had Duty to Help Citizens

•Proposed a ‘New Deal’ for Americans

Election Results

Franklin D. Roosevelt 472 Electoral Votes

88.9% Popular Vote

Herbert Hoover 59 Electoral Votes

11.1% Popular Vote