GREAT DEPRESSION in 1930 S.

Sometimes people ARE depressed

Vincent Willem Van Gogh - DEPRESSION

BUT THE WORST THING IS WHEN ALL PEOPLE AND WHOLE COUNTRY IS UNDER DEPRESSION

On Black Tuesday, October 29, 1929, the stock market crashed, triggering the Great Depression, the worst economic collapse in the history of the modern industrial world

It spread from the United States to the rest of the world, lasting from the end of 1929 until the early 1940s. With banks failing and businesses closing, more than 15 million Americans (one- quarter of the workforce) became unemployed.

Total employment in the United States from 1920 to 1940, excluding farms and WPA

The unemployment rate under Hoover rose dramatically, to 24.1 percent in 1932 from 3.2 percent in 1929.

What did President Hoover do to fight the Depression? Many people believe that President Hoover did little or nothing in response to the Great Depression. In fact, beginning immediately after the stock market crash in October, 1929, Hoover implemented many ideas to lessen the effect of the Depression and to hasten the recovery. He directed all Federal Departments to speed up public works and other projects, in order to create more jobs. He directed the Federal Farm Board to support commodities prices and asked Congress to decrease non-essential government spending and use the money to start new public works. President Hoover called many conferences with industry and finance leaders to encourage voluntary cooperation among businesses to relieve the Depression. Hoover also created the President's Organization on Unemployment Relief to stimulate and coordinate employment and relief efforts. After the collapse of the European economy in April of 1931 caused the Depression to become even worse, President Hoover called for a temporary suspension of international debt payments, which saved the international banking system from complete collapse. With foreign trade at a standstill, prices for U.S. manufactured goods and farm products fell, and American industries began laying off even more workers. President Hoover asked Congress to appropriate more money for farm loans and to create the Reconstruction Finance Corporation, which would be used to help financially endangered building and loan associations, agricultural cooperatives, banks and railways. He proposed federally funded Home Loan Discount Banks to help protect people from losing their homes. He asked Congress to loan $300,000,000 to the states to aid their relief programs, and to transfer agricultural surpluses from the Farm Board to the Red Cross for distribution to relief agencies.

President Hoover and his dog, King Tut.

By July, 1932 the Depression had begun to show signs of improvement. But many people in the United States were unhappy with the rate of recovery, and blamed Hoover for all the problems and suffering that had occurred. With the Presidential election approaching, the Democratic candidate, Franklin D. Roosevelt, promised the people a "New Deal." The New Deal programs created a liberal political alliance of labor unions, blacks and other minorities, some farmers and others receiving government relief, and intellectuals, also reforming the financial system, especially the banks and Wall Street.

The depression had devastating effects both in the industrialized countries and in those which exported raw materials. International trade declined sharply, as did personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by 40 to 60 percent.

The Great Depression and the New Deal changed forever the relationship between Americans and their government. Government involvement and responsibility in caring for the needy and regulating the economy came to be expected.

GREAT DEPRESSION