The Great Depression

Business Failures

The Crash

Dept and the fear of bank failures brought an end to consumer's habit of buying new goods on credit. Many companies were forced to trim inventoried, scale back production, and lay off employees. Unemployment soon reached staggering levels. One out of every four workers was unemployed

What about the people?

Dust Bowl

A large number of investors became nervous about the stock market and certain factors such as rising interest rates in early September 1929. Smart investors began to sell their shares which caused a chain reaction. This led to Black Tuesday (October 29 1929) where stock prices fell to an all time low. A record 16.4 million shares were dumped that day.

Life in the City during the Depression

The federal government did little to help people hit hard by the Depression living in the city. City governments, religious groups , and and charitable organizations tried to provide relief to the needy. Breadlines and soup kitchens were seen in many American cities in which people could receive a free handout of food.

Life on the Farm in the Depression

1932, terrible drought conditions hit the Great Plains. Due to declining prices, many farmers had left their fields uncultivated which exacerbated the conditions. There was no grass or wheat to hold the scant amount of rainfall and the soil dried to dust. Strong prairie winds blew the dust about which caused dust storms. Topsoil was blown off fields and carried in storm clouds for 100s of miles.

Farmers found themselves with more goods than they could sell due to new farm technology and fertilizers which increased crop production. In some areas, farmers were forced to let their crops rot in the fields and slaughter excess cattle that they could not continue to feed.

Overpopulation

Overpopulation was a issue during the Great Depression because with so many people it made it even harder to find jobs. This made more people file for unemployment, taking even more money from the government and weakening still the economy.

Health and Social Issues

Underconsumption

Consumers have less to spend - prices were rising ans wages were stagnant; the gap between the rich and the poor was widening

Between 1928 and 1932 the suicide rate rose more than 30%. Three times as many people were admitted to state mental hospitals as in normal times.

Adults stopped going to the doctor and dentist because they couldn't afford it. Needless to say, the results were that serious illnesses went undetected which led to many untimely deaths.

Hoover

FDR's new deal

Herbert Hoover- Republican, incumbent; his programs to solve the Depression crisis failed.

He believed that one of the government's chief functions was to encourage cooperation between competing groups and interests, such as business and labor. Also, Hoover opposed any form of federal welfare. He believed that hanoouts would weaken peoples self-respect and "moral fiber." He felt that individuals, charities, and local organizations should help care for the needy.

Hoovervilles

FDR's new deal programs included Agricultural Adjustments Act, Civil Works Administration, Civilian Conservation Corps, Federal Emergency Relief Act, Glass-Steagall Act, National Industrial Recovery Act, National youth Administration, Public Works Administration, Securities and Exchange Commissions, Social Security Act, Tennessee Valley Authority, Wagner Act, Works Progress Administration

Name given to shantytowns by 1930, homeless called the newspaper they wrapped themselves in "Hoover blankets"; empty pockets turned inside out were "Hoover flags"

FDRs New Deal

These New Deal programs were most commonly known by their initials, which reminded some people of alphabet soup. Some of these programs were aimed at helping farmers, like the AAA (Agricultural Adjustment Administration). While other programs, such as the CCC (Civilian Conservation Corps) and the WPA (Works Progress Administration), attempted to help curb unemployment by hiring people for various projects.

The end of the Great Depression

Franklin Roosevelt is elected to his third term as president. FDR's victory is seen as proof of the nation's support of his war policies. Roosevelt lobbies Congress to pass the Lend-Lease Act, which will aid Britain in its struggle to fend off Germany.

In little over a year, following Japan's December 1941 bombing of Pearl Harbor, the U.S. will enter the war in the Pacific and in Europe. The war effort will jump-start U.S. industry and effectively end the Great Depression.

The Great Depression