1 / 25

The Great Depression

The Great Depression. Chapter 22. Dorothea Lange’s “Migrant Mother”. Economic Troubles. Basic Industry declining from competition: Railroads Textiles Steel Coal mining. Housing Construction Declining. 25% drop from 1925-1929 Drop in all related industry. Farmers.

miracle
Télécharger la présentation

The Great Depression

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Great Depression Chapter 22 Dorothea Lange’s “Migrant Mother”

  2. Economic Troubles • Basic Industry declining from competition: • Railroads • Textiles • Steel • Coal mining

  3. Housing Construction Declining • 25% drop from 1925-1929 • Drop in all related industry

  4. Farmers • Caught in vicious cycle of more crops and lower prices

  5. Buying on Credit • Large consumer debt

  6. Uneven Distribution of Wealth • 70% of nation’s families earned less than $2500

  7. Mechanization • Increase in production and lower prices • Many lack the funds to buy goods

  8. Buying on Margin • Pay only a percentage of stock price and borrow the rest • This caused stocks to be overvalued

  9. 1928 Election • Republicans: Herbert Hoover (wins easily) • Democrats: Alfred E. Smith (1st Catholic nominated by a major party)

  10. Stock Market Crash • October 29, 1929 • Prices Plunge • 16.4 million shares traded • By mid-November over $30 billion lost

  11. Great Depression • By 1933: • 44% of country’s banks failed • 90,000 businesses bankrupt • Gross National Product (GNP) drops from $104 billion to $59 billion • 25% unemployment (13 million workers)

  12. World Wide Depression • Hawley-Smoot Tariff (1930): • Caused world trade to drop 40% • Highest in US history

  13. Hardship & Suffering during the Depression • People lost money, jobs, houses • Shantytowns: make shift shacks spring up called “Hoovervilles” • Soup kitchens, bread lines begin • Minority groups suffer greatly economically • 400,000 farms lost • Families break under stress • 300,000 hoboes wandering the country • Increased malnutrition in children • Declining health of all Americans • Suicide rate increased 30% • More admitted to mental hospitals

  14. Dust Bowl • Caused by overproduction and drought • Lasts the decade of the 1930’s • Thousands fled the region • Terrible conditions for those who stay

  15. Hoover’s Response • Rugged individualism (people should help themselves) over direct relief (cash payments/food from the government) • Problem with Direct Relief: people losing the will to work • Depression part of natural business cycle. Economy would fix itself. Government helps out businesses. • Public Works Projects: Boulder/Hoover Dam ($700 million) • Reconstruction Finance Corporation (RFC): $2 billion for banks, insurance, railroads, and other big business • Federal Home Loan Bank Act: lowered interest rates so people could avoid foreclosure

  16. Hoover/Boulder Dam

  17. Bonus Army • 1924: WWI veterans promised a $500 bonus to be paid in 1945 • Depression starts and veterans want bonus paid now • Congress debates Patman Bill: pay bonus immediately • 20,000 veterans march on Washington D.C. • Patman Bill voted down by Congress • Bonus Army Driven from Washington D.C. • Douglas MacArthur, Dwight Eisenhower, & George Patton responsible for driving out Bonus Army • President Hoover takes the blame

More Related