the depression 1929-1940

Standard 11.6Created by L. Carreon

THE DEPRESSION1929-1940


STANDARD 11.6

Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government.


ECONOMIC ISSUES

PART I


THE POSTWAR ECONOMIC BOOM Prosperity of the 20’s- US had unlimited

growth, opportunity and achievement. Americans were earning more money. People could afford radios, cars, and

refrigerators. People had money to invest in the stock

market. 1929- unemployment and poverty increased.


REPUBLICAN ECONOMIC POLICIES Calvin Coolidge(1923-29) believed in pro-business & trickle-

down economics. Herbert Hoover(1929-33) believed that the trickle down

economics would benefit the rich and the poor. In the trickle down economics, big business would make the

wealthy more rich and then profits would trickle down to the middle and lower classes.

Herbert HooverCalvin Coolidge


REPUBLICAN ECONOMIC POLICIES Tax cuts would stimulate the economy

because the rich would reinvest into the economy.

Instead, the corporations, kept the money for themselves.

The rich didn’t share the money with the poor. The gap between the rich and poor

increased.


REAL ESTATE AND STOCK SPECULATION People wanted to make quick money and

profit. 1925, investors went from California to

Florida to buy land. In Florida, people bought cheap and

unusable land and sold for profit. People were buying and selling stocks at a

profit.


REAL ESTATE AND STOCK SPECULATION Some were borrowing money from banks to

buy stocks. Some inflated the stock and sold for a profit

but it really was not valuable. People speculated on the real value of the

stock. The value of the company wasn’t worth the

value of the stock.


THE STOCK MARKET CRASH AND THE BANKING INDUSTRY COLLAPSE

The stock market crashed on Tuesday, October 29, 1929.

Also known as Black Tuesday. People lost their fortunes and life savings. About 16 billion dollars was lost.


THE STOCK MARKET CRASH AND THE BANKING INDUSTRY COLLAPSE

Banks had over extended loans for stocks. The government didn’t regulate commerce or

the banks. Banks used stocks as collateral and the

stocks were worthless. Banks didn’t have any cash reserves and

went bankrupt & 6, 000 banks closed.


AMERICAN CLIMATE IN THE 1930’s This depression was worldwide. 75,000 banks collapsed 12 million or 25% of workers were

unemployed


CAUSES FOR THE DEPRESSION American Industry over expanded in its production

facilities Consumers were buying too much on credit. Farmers were not making very much money. New technology displaced many human workers Banks were loaning too much money and loans were

not being paid back. Too much speculation on stocks and real estate Europe was trying to recover from World War I.


THE EFFECTS OF THE DEPRESSION

PART II


THE CITIES

People lost their jobs and homes.

They lived on the streets People lived in shantytowns

which shacks made of metal. Soup Kitchens gave out food. Most people received food

from charities.


MINORITIES

African-Americans fought for jobs. There was lots of racial violence because

people were fighting over jobs. Whites demanded that Latinos in the

southwest be deported. Many Mexicans went back to Mexico they

either volunteered or were deported.


THE RURAL AREAS

Farmers could grow their food so their families weren’t starving.

The farmers couldn’t pay their mortgages.


THE RURAL AREAS

400,000 farms were foreclosed.

Foreclosure is when the bank takes back the property.


THE DEPRESSION FAMILY

The family was united and kept their traditional values.

Their strength kept them together.

Movies and radio kept people entertained.

Many men became hoboes who traveled on the trains looking for work.


THE CHILDREN OF THE DEPRESSION

Family lacked money for health care for children.

Children died of malnourishment

Schools shortened the school year or closed the schools because of falling tax revenues.

“Wild Children” or “Hoover Tourists” traveled by train around the country.


THE ROLE OF WOMEN

Women sewed and canned goods to support their families.

Women who worked were viewed with resentment because they took jobs from the men.


THE DUST BOWL

The farmers over used the prairie land. In the 1930’s, there was adrought. There was dust everywhere.


STATES AFFECTED BY THE DUST BOWL States hit hardest by

the Dust Bowl: Kansas Oklahoma Texas Colorado New Mexico


DUST BOWL MIGRANTS

Thousands of farmers left their farms

They took Route 66 to California looking for jobs and better farms.

Some of the migrants were known has Okies (a negative term for someone who comes from Oklahoma.


DUST BOWL TRAVELERS


DORTHEA LANGE PHOTOS


THE MORALE OF THE COUNTRY

People were demoralized by their poverty People committed suicide at an alarming rate. Many people were admitted to mental hospitals, After the depression, people constantly saved

their money Their goal was to have financial security.


CULTURAL INFLUENCES

Famous Literature of the time James Hilton-Lost Horizon William Faulkner-The Sound and The Fury Richard Wright-Native Son Zora Neale Hurston-Their Eyes Were

Watching John Steinbeck -Grapes of Wrath Lillian Hellman- Little Foxes Thorton Wilder – Our Town


CULTURAL INFLUENCES

Movies with gangster themes, musicals and survival themes helped people to forget their problems.

Mickey Mouse and Donald Duck were created by Walt Disney in the 1930’s.


CULTURAL INFLUENCES

Marian Anderson wasn’t allowed to sing in Constitution Hall but later performed at the Lincoln Memorial.

Mahalia Jackson sang gospel songs that inspire the people.

Marian Anderson

Mahalia Jackson


PRESIDENTS HERBERT HOOVER’S POLICIES

PART III


THE ROLE OF GOVERNMENT

The role of government is help big business in finding a solution to the economic problems

The government should cooperate with businesses and not control them

“Rugged Individualism”-people should succeed on their own and the government shouldn’t intervene.


HOOVER’S THOUGHTS ON THE ROLE OF GOVERNMENT The charities and local organizations should

take care of the poor and needy. The government should direct relief

measures, but not have a huge bureaucracy The bureaucracy was too expensive and hurt

liberties


HOOVER’S POLICIES

Federal money would help businesses Federal Home Loan Bank Act- lowered

mortgage rates and farmers could refinance their loans. They wouldn’t lose their farms.


HOOVER’S POLICIES

The Reconstruction Finance Corporation- Congress authorized 2 billion to help banks, life insurance companies, railroad companies and other companies.

The money would trickle down to the people. It didn’t reach the poor and the needy.

the depression 1929-1940

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