THE GREAT DEPRESSION 1929…Black Tuesday

CAUSES 1- Crop prices declined by 50% after the war…many farmers planted crops and took out loans to help with the war effort. The demand was very low post WWI. 2- Consumers have less money to spend…not making as much money on crops anymore. Americans were forced to spend less. U.S. bought domestic goods only, thus making it difficult for France and G.B. to pay their loans to the U.S. back. 3- Installment Plan- consumers buying on credit…buy now and pay later 4- Unequal distribution of income…the wealthiest 5% of people controlled 33% of the income. 5- Stock Market Crash of 1929…Black Tuesday…stock prices declined…investors sold their stocks…people pulled money from banks.

HERBERT HOOVER -31 st President -“Any lack of confidence in the economic future…is foolish” -Wanted to find solutions to the stock market crash…however, the economy was still shrinking and unemployment was rising. Soup kitchens became a common sight. -Farmers stung by low crop prices burned their corn and dumped milk on the highway instead of sell it for a loss. -Hoover refused to support direct relief or other forms of federal welfare. -Added construction jobs to the economy late in his term…Boulder Dam (Hoover Dam) -Bonus Army- WWI Vets…not adequately compensated for their WWI duties…

HOOVERVILLES Named after President Hoover, people built makeshift homes out of scrap materials…cardboard, tarps, etc. Little towns consisting of these shacks sprang up on the outskirts of cities. These were also called “Shantytowns”. People wrapping themselves in newspapers, called it “Hoover blankets”. “Here were all these people living in old, rusted-out car bodies…There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box…People living in whatever they could junk together.”

THE DUST BOWL -The worst man-made ecological disaster in American history. Overproduced farm land. -Severe draughts throughout the mid-west. Killed crops…created dust. -A decade long “black blizzard” destroyed farmland and homes…dust storms -Dust from the over-plowed land and over-grazed land -Homes were buried…people died…this went on for a decade.