The Government and the Great Depression Ms. De La O English 9

Economic Troubles on the Horizon Problems began threatening economic prosperity by the end of the 1920s Farm debt Consumer debt Declining Trade Overproduction: too much stuff Factories and Farm Bank Failures Farm debt - many farmers were forced to sell in the 1920's Consumer debt - many people were buying goods on credit More goods then buyers - prices rose faster than wages Declining Trade - 1920's U.S. raised tariffs other countries raised tariffs to retaliate Important industries struggled Income disparity - Consumers & farmers went steadily deeper into debt

The Stock Market Late 1920s – Some economist warning of weaknesses in the economy People began investing in stock market Dow Jones Industrial Average 1920s - stock prices rose steadily “Bull Market” September 1929: stock prices peaked & then fell October 24, 1929 (Black Tuesday) - Market took plunge & many panicked investors unloaded their shares Late 1920s – Some economist warning of weaknesses in the economy - Most Americans ignored them Dow Jones Industrial Average was used as barometer of the market’s health September 1929: stock prices peaked & then fell Many investors lost confidence & began selling - Shareholders sold frantically - Millions of shares had no buyers - People who bought on credit were left with huge debts - Others lose most of their savings

The Depression and the Public economy plummeted & unemployment skyrocketed After crash, people panicked & withdraw money from banks Shantytowns People dug through garbage & begged - lasted from 1929–1940 Banks that invested in stocks failed& people lost their money People lost jobs & were evicted from homes Had to live in parks or sewer pipes - Soup kitchens offered free or low-cost food - Bread lines - people lined up for food from charities & public agencies African Americans & Latinos had higher unemployment & lower pay Minorities were also targets of violence (Lynching or deportation) Most farmers could grow food for their families About 400,000 farms were lost through foreclosure Many farm families migrated to Pacific Coast states (Route 66) Shantytowns - settlements consisting of shacks, arose in cities

Effects on the American Family Family was source of strength for most Americans Believed in traditional values and emphasized the importance of family unity Some families broke apart under strain of making ends meet Many men used to working & supporting families had difficulty coping Many men used to working & supporting families had difficulty coping Couldn’t find jobs Many stopped trying Some men even abandoned their families - About 300,000 hoboes wandered country on railroad box cars No federal system of direct relief - cash or food from government