1. THE GREAT DEPRESSION BEGINS
Chapter 14
THE GREAT DEPRESSION BEGINS

2. Section 1 Economic troubles The Stock Market crashes
Bank and business failure

3. Economic Troubles
Late 1920s industries – railroads, textiles, steel, mining, lumbering – barley made a profit
“Boom industries” declined- automobiles, consumer goods, construction
Crop prices declined by 40 percent -> farmers defaulted on their loans -> banks seized farms as payment for debt -> many banks failed
Price support bills for wheat, corn, cotton, tobacco were vetoed by Pres. Coolidge

4. Economic Troubles
Installment plans were used to buy good on credit in the 1920s -> people accumulated debt
Mass production of goods, advertising, mass media pressured people into buying
Only 1/10 city homes had an electric refrigerator but the income of the rich went up by 75%

5. The Stock Market
By 1929 most Americans still believed the economy was strong
Many invested in the stock market
Dow Jones Industrial Average = stock prices of 30 representative large firms trading on the NY Stock Exchange
The Dow reached a high in the 1920s -> average Americans bought stocks
Speculation – bought stocks on the chance of a quick profit while ignoring the risks
Buying on margin – pay a small percentage of a stock and borrow money for the rest

6. The Stock Market Crashes
September 1929, stock prices peaked and then fell
Some panicked and sold their stocks
October 29 – Black Tuesday – shareholders quickly try to sell stocks has prices go even lower
16.4 million shares are sold
Millions of shares are not purchased
Huge debts for those who bought stock on credit
Investors lost $30 billion

7. The Great Depression 1929 – 1940 beginning with the stock market crash
People took money out of banks
Banks had invested in the stock
market and could not give people
their money
1,000s of banks closed
Govt. did not protect bank accounts
90,000 business went bankrupt (railroads + automobiles)
Unemployment went from 3% (1929) to 25% (1933)

8. Worldwide Effects U.S. imported fewer European goods
1930 – Hawley – Smoot Tariff Act
Raised tax on foreign goods
Other countries did not have enough money to buy American goods
Made unemployment worse

9. Causes of the Great Depression
Tariffs and war debt cut down the foreign market for American goods
Crisis in farming
Availability of easy credit
Unequal distribution of income

10. 1. What do you think the spirit of the farm auction was in the 1920s?

11. 2. How does the cartoonist show the sense of fear and shock?
1. What does the cartoonist suggest will happen to individuals because of the crash?
2. How does the cartoonist show the sense of fear and shock?
3. What do the looks on people’s faces indicate about the impact of the crash?
Day of Wrath

12. Create a Political Cartoon
Illustrate some aspect of the stock market crash
Its effects on business
business people
farmers
consumers
Cartoons should
Illustrate the effects of the crash
Convey (show) the sense of fear and shock inspired by the crash
Include a caption or title that captures the essential spirit of the illustration

13. Sample Slide with Image
1) Describe what you see in this picture.
2) When and where do you think this picture was taken?
Explain your answer.

14. The Dust Bowl

15. The Dust Bowl
The Dust Bowl refers to parts of the Great Plains that experienced the most intense soil erosion and dust storms of the 1930s.
This region included parts of Oklahoma, Texas, Kansas, Colorado, and smaller parts of New Mexico and Nebraska.
Image source:

16. The Dust Bowl
There were more than 300 dust storms, also known as “Black Blizzards,” between 1933 and 1938.
These storms often featured fast moving clouds of dust several miles wide that covered farms and homes, destroyed crops, and made people sick.
Image source:

17. The Dust Bowl
Many people left the region hit by the Dust Bowl. They abandoned their homes and looked for work in Western states, such as California.
However, many stayed behind and attempted to maintain their lives and farms.
Migrant family in San Francisco, 1935
Upper image source:
Lower image source:
Farmer leveling dust hills in Texas, 1938

18. Today’s Central Historical Question: What caused the Dust Bowl?

19. Discussion 1. What caused the Dust Bowl?
2. Whose hypotheses changed across rounds? How? Why?
3. Which documents and what evidence did you find most convincing? Why?

20. Journal
Write about three aspects of the Dust Bowl that you did know about before viewing the documentary.

21. Section 2
Hardship and suffering during the Depression

22. DUST BOWL DOCUMENTARY

23. The Depression in the Cities
Shantytowns – little towns consisting of shacks
Soup kitchens – offered low-cost or free food
Breadlines – charitable organizations gave away free bread
Latinos and African Americans had the lowest pay and were targets of racial violence

28. The Depression in Rural Areas
Most farmers could grow food for their families
1,000s of farmers lost their land

29. Women and Children Struggle to Survive
No direct relief – cash
or food provided by the govt.
Women who worked were looked down upon
Malnutrition leads to
children developing rickets

30. “Wild Boys” of the Great Depression

31. Psychological Effects
Suicide goes up by 30%
Fewer marriages
More people in mental institutions

32. Questions
1. How is what happened to men during the Great Depression different from what happened to women and children?
2. How did the Dust Bowl conditions in the Great Plains affect the entire country?
3. In what ways did the Great Depression affect people’s outlook?

33. Section 3: Hoover Struggles with the Depression

34. President Hoover’s 1928 campaign add
When the Depression begins in 1929 how do you think people respond to this idea?
….and a car in every garage.”

35. Hoover’s Philosophy of Govt.
Encourage voluntary cooperation between businesses and workers
Federal govt. should only guide relief
“rugged individualism” – people should look after themselves

36. Hoover’s Cautious Reaction
Brings leaders together from business, banking, labor
Work together to find solutions
Did not want wages to be cut or workers to go on strike

37. Economy in 1930
Unemployment continued to rise

38. Hoover Takes Action Federal funds used for public works programs
1929 – authorizes the construction of the Hoover Dam
Provides electricity,
flood control, regular
water supply to California,
Nevada, Arizona

39. Hoover Takes Action 1930-1932 Backed many federal programs
Federal Farm Board – raises crop prices
National Credit Corporation – loan money to smaller banks
Federal Home Loan Bank Act – lower mortgage rates
Reconstruction Finance Corporation - $2 billion for emergency financing for banks, insurance companies, large businesses

40. How did the economy respond?