THE GREAT DEPRESSION, • SSUSH17 The student will analyze the causes and consequences of the Great Depression. • a. Describe the causes, including overproduction, underconsumption, and stock market speculation that led to the stock market crash of 1929 and the Great Depression. • b. Explain the impact of the drought in the creation of the Dust Bowl. • c. Explain the social and political impact of widespread unemployment that resulted in developments such as Hoovervilles.
GREAT DEPRESSION • The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. • The Great Depression originated in the United States. • Starting date, the stock market crash, on October 29, 1929, known as Black Tuesday. • The end of the depression in the U.S.A. is associated with the onset of the war economy of World War II, beginning around 1939, 1940
CAUSES OF THE GREAT DEPRESSION IN THE USA • *1. Unequal distribution of wealth • *2. High Tariffs and war debts • *3. Superficial (“fake”) prosperity • *4. Stock market crash and financial panic
1. UNEQUAL DISTRIBUTION OF WEALTH • 1.RICH RICHER, POOR, POORER • 2.NOT ALL PEOPLE ENJOYED THE PROSPERITY OF THE 1920S. • 3.NOT ENOUGH MONEY TO BUY THE FLOOD OF GOODS PRODUCED
2. HIGH TARIFFS AND WAR DEBTS • 1.REDUCED FLOW OF GOODS INTO USA • 2.DECREASE IN TRADE • 3.ECONOMIC RETALIATION ABROAD • 4.NON-PAYMENT OF WAR DEBTS
3. SUPERFICIAL (FAKE) PROSPERITY • 1.OVERPRODUCTION IN INDUSTRY AND AGRICULTURE • 2.DECLINE IN DEMAND FOR GOODS • 3.DROUGHT CONDITIONS
4. STOCK MARKET CRASH AND FINANCIAL PANIC • 1.FINANCIAL CRISIS • 2.CONSUMER CREDIT AND DEBT • 3.LESS SPENDING • 4.BANK FAILURES • 5.BUYING STOCKS ON MARGIN (BUYING % OF STOCK AS DOWN PAYMENT, THE REST ON CREDIT)
THE GREAT DEPRESSION • International trade was deeply affected, as were personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by 40 to 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging, suffered the most .
GREAT DEPRESSION • The Great Depression ended at different times in different countries. The majority of countries set up relief programs, and most underwent some sort of political upheaval (change), pushing them to the left or right. In some states, the desperate citizens turned toward nationalist demagogues - the most infamous being Adolf Hitler - setting the stage for World War II in 1939.
IMPACT OF THE GREAT DEPRESSION • 1.HARDSHIP, SUFFERING ON FAMILY, MEN, WOMEN, CHILDREN • 2.SHANTYTOWNS, SOUP KITCHENS, BREAD LINES • 3.BEGINNING OF DUST BOWL, 1933-36 • a.CAUSED BY SEVERE DROUGHTS • b.FARMERS PLOWED AND EXHAUSTED LAND. • c.WIND REMOVED TOPSOIL, ESPECIALLY IN OK, KA, TX, NM, CO • d.MANY MIGRATE TO PACIFIC COAST STATES • 4.PSYCHOLOGICAL IMPACT-SUICIDES
IMPACT • 5.WIDESPREAD UNEMPLOYMENT • a.MEN IN THE STREETS, HOMELESSNESS • b.TRANSIENT (MOVING) POPULATION • c.NO DIRECT RELIEF (FOOD OR CASH PAYMENTS) FROM GOVERNMENT • 6.HOOVERVILLES
IMPACT • HOOVERVILLES, popular name for a shanty town built by homeless men in the depression years. The term was coined by Charles Michelson, publicity chief of the Democratic National Committee.
HOOVERVILLES • These settlements were often formed on empty land and consisted of jerry-built shacks and tents. Authorities did not officially recognize these Hoovervilles and occasionally removed the occupants for technically trespassing on private lands, but they were frequently tolerated out of necessity.
HOOVERVILLES • Most people to building their residences out of box wood, cardboard, and any scraps of metal they could find. Some individuals even lived in sewer mains. • Most unemployed residents of the Hoovervilles begged for food from those who had housing during this era. Democrats coined other terms, such as "Hoover blanket“, old newspaper used as blanketing.
Herbert Clark Hoover ,1874 –1964, was the thirty-first President of the United States,1929–1933. HERBERT HOOVER
HERBER HOOVER • By 1932, the Great Depression had spread across the globe. In the U.S., unemployment had reached 24.9%, a drought persisted in the agricultural heartland, businesses and families defaulted on record numbers of loans, and more than 5,000 banks had failed. Tens-of-thousands of Americans found themselves homeless and they began congregating in the numerous Hoovervilles (also known as shanty towns or tent cities) that had begun to appear across the country. The name 'Hooverville' was coined by their residents as a sign of their disappointment and frustration with the perceived lack of assistance from the federal government.
RESULTS OF THE GREAT DEPRESSION • 1.UNEMPLOYMENT • 2.RISE OF SHANTYTOWNS • 3.BANKS FAIL AND SCHOOLS CLOSE. • 4.WORLD ECONOMIC DOWNTURN • 5.MORE GOVERNMENT INVOLVEMENT • 6.PRESIDENCY OF FRANKLIN ROOSEVELT, A DEMOCRAT, AND THE NEW DEAL, 1932