Chapter 25 APUSH Mrs. Price “No one can make you feel inferior without your consent.” - Eleanor Roosevelt

The Great Crash Preceded by stock market boom Black Tuesday (Oct 29, 1929) - 16 million shares traded - 1st visible sign of crisis

Causes of the Depression Lack of Diversification in economy = growth depended on few industries

Causes of the Depression Unequal distribution of wealth = workers could not afford products = surplus = layoffs

Causes of the Depression Credit structure of the economy 1. Farmers in debt 2. Too much reliance on credit 3. Banks speculated in stock market

Causes of the Depression Declining exports

Causes of the Depression International debt structure 1. Allies owed US $ (war loans) 2. Borrowed $ from US banks to pay debt 3. Late 1920s, US banks less willing to loan $ & US tariffs made it difficult to sell products in US 4. Countries began to default on loans

Effects Banking Collapse 9,000 banks closed; depositors lost $2.5 billion Declining $ supply = decline in consumer demand = layoffs GNP dropped, investment declined, unemployment increased

Dust Bowl Drought in Great Plains + dust storms Weather problems made worse by farming techniques Okies: left for CA to work as migrants 1/3 of farmers lost land; 60% of population left

The Dust Bowl Dust Storms Health clinic For homeless

Impact on People Minorities saw opportunities decline Gender Differences 1. Men considered themselves failures 2. Women’s sense of self-importance increased

Impact on People Spending patterns changed Strain on families Telephone use & clothing sales decreased Cigarettes, movies, radio, & newspapers became necessities Strain on families Birth rate & marriage rate declined Divorce rate declined

Herbert Hoover Elected 1928 Republican Gets blamed for the depression

Hoover’s Response Believed depression was temporary Tried voluntary cooperation of business & labor Tried to use govt spending to fight the Depression – not enough $

Hoover’s Response Tried to help farmers: Agricultural Marketing Act (1929) Created the Federal Farm Board Lent $ to farm cooperatives to buy, sell, & store supplies Hawley-Smoot Tariff (1930): increased tariffs on farm products

Hoover’s Response Reconstruction Finance Corporation (1932) Loans to railroads, banks, other businesses Loans to local govts for public works & relief “Pump-priming” Was not sufficient