In the late 1920’s, there were many signs of economic peril. Workers’ wages did not rise with the cost of living. Business production slipped as demand decreased, resulting in layoffs. For many, an illusion of prosperity had been created as consumers increasingly relied on credit throughout the latter 1920’s. Farm prices were down, bringing economic duress to nearly one third of Americans.

The failure of thousands of banks in the early 1930’s contributed to the severity of the Depression. Banks had loaned great amount of money to speculators. After the stock market crash, some banks collapsed when borrowers couldn’t pay back their loans. Panic by depositors. Bank failures left many families without money. From 1929 to 1932 nearly 5000 banks failed. A run on a bank

An Abandoned farm. Cimarron County, Oklahoma (1936)

An unemployed man selling apples 1930s. In the beginning of the Depression, unemployed workers could expect little or no help from the government. Many unemployed persons who had faith in the economic system tried relentlessly to create business successes. The level of individual desperation created by the Depression was symbolized by the apple sellers, many of whom lost life savings in failed banks.

By 1932 unemployment in the United States had reached about 25%. To be unemployed sapped individual self- worth. Thousands of businesses had failed, and those that were operable usually were struggling and not hiring. Many unemployed men left their families to roam the land seeking work.

a bread line Bread lines were established to feed the hungry. Most who accepted handouts felt shame, humiliation, and degradation. Hundreds of thousands were forced by poverty and hunger to accept charity.

Hoovervilles Hoovervilles sprung up most major cities. There was a growing number of homeless. Hoovervilles were so named because many believed that President Herbert Hoover did not do enough to help the poor. The homeless built shacks out of tin, cardboard, and orange crates.

Herbert Hoover in the rebuilt Oval Office in 1930

Franklin Delano Roosevelt (FDR)