THE GREAT DEPRESSION

What is the Great Depression?

• The great depression had taken place from 1929-1939
• It was the deepest and longest- lasting economic down turn in the history of the Western industralization world
• In the USA, the Great Depression began soon after the stock market crash of October 1929
• This sent Wall street into a panic and wiped out millions of investors

Effects

Farmers

• The Great Depression was particularly fierce in agruiculture and many things were worse due to the "Dust Bowl" which was due to over farming
• This resulted in low income for farmers and they could not repay their mortgage
• Therefore they abandoned their farms

Of

Great

the

Welfare and Despair

• Many unemployed Americans were reduced to picking over rubbish dumps or begging
• Some towns set up soupkitchens and groups like Salvation Army organised charity hand-outs
• In the land of opportunities known as America this was seen as terrible failure and 23 000 people commited suicide in 1932

Depression

Hobos and Hoovervilles

• Homeless people live in shanty towns called "Hoovervilles"
• "Hobos" travelled around looking for jobs, usually riding illegally on foreign trucks

Hatred and Hoover

• Most people blamed president Hoover for the Great Depression
• Shanty towns were called Hoovervilles, there was Hoover leather (cardboard soles for shoes) and Hoover blankets (newspaper)

Violence

• There were many marches and riots when banks repassed citizens assets
• Resulting farmers getting together to protest
• When people came out of banks, citizens drove them away with pitch-forks

Hoover's Actions during the Depression

• The Smoot-Hawley Tarrif was to protect US, however become one of the causes of the Great Depression

• Eight months after his recruitment as president, the Wall street crash of 1929 occurred ruining his career as a president

• Began to work on constructing the Hoover Dam to fight the great depression

• Economists like Murray Rothbard state that Hoover was the initiator of the New Deal

• Hoover passed a regulation law called the Bacon-Davis Act, allowing workers to work for 8 hours with suitable wages

• Hoover established a program called Reconstruction Finance Corporation (RFC) that gave banks loans yet the wait was too long for the people

Biography

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• Born on August 10 1874 West Branch, Iowa, U.S
• He was raised as a Quaker
• He was 31 president of United States from 1929-1933
• Pursued many careers which were becoming a president, mining and civil engineer and a humanitarian
• Died on October 20 1964, New York City, New York, U.S

HERBERT

Hoover's Careers

Mining Engineer:

• Worked in many countries like Australia, China, London, etc
• earned $5000 ($100 000) as salary

President:

• Started his career in 1929, however it went downhill after the crash
• Tried to save his position and help his nation but couldn't because of the hatred he received from his people for being a "liar" and "filthy rich"
• Lost the re-election to Roosevelt ending his career

Humanitarian:

• established many relief programs to help with WWI in Europe and other continents
• Was the head of US food administration during the depression

HOOVER

Recovery after the Great Depression

Some of the things to help recover the economy were:

• Programs and institutions of the New Deal
• Dams and hydroelectric projects done by the Tennessee Valley Authority
• These projects helped to control flooding also to provide electric power to the impoverished in Tennesee Valley
• The Works Project Adminstration created programs which permanently employed 8.5 million people from 1935-1943
• People then started buying and selling items
• This circulated money and improved the economy

Causes of the Great Depression

American Economic Policy with Europe

• As businesses began failing, the government created Smoot-Hawley Tariff in 1930 to help protect American companies
• This resulted on a high charge on taxes for imports from foreign countries
• The consequences of this tariff was that less trade occurred between America and other countries

Bank Failures

• Throughout the 1930s, over 9000 banks failed
• Survivng banks were unsure about economical situations and concerred for their own survival, stopped being willing to create loans
• This excelerated the situation leading to less and less expenditures

Drought Conditions

Reduction in Purchasing across the Board

Stock Market Crash

There were five main courses of the great depression in America.

• Many people believe that the stock market crash that had occurred on October 29 1929 is the main cause of the Great Depression
• Two months after the original crash in October, stock holders had lost more than $40 billion
• Stock markets began to regain some of it's losses by the end of 1930, however there wasn't enough money and that's when the Great Depression began

• With the stock market crash and fears of further losses, people stopped purchasing items
• This resulted in reduction of items produced and therefore reduction in the work force
• As people lost their jobs, they were unable to keep up with paying installments for the items they bought, resulting them to get repossed
• The unemployment rose above 25% which resulted in people spending less money to fix the economic conditions

• It was not a direct cause of the great depression, the drought that occurred in Mississippi Valley in 1930 was to such extent that many had to sell all assets with no profit
• This area was later known as "The Dust Bowl"

THE GREAT DEPRESSION

By: Megan, Humaira, Simran, Shalom

& Brahmleen