1. U.S. History Chapter 11 Notes The Great Depression Begins

2. Section 1 The Nation’s Sick Economy

3. Economic Troubles on the Horizon
Problems began threatening economic prosperity by the end of the 1920s
Farm debt -
Consumer debt - many people were buying goods on credit
More goods then buyers - prices rose faster than wages
Declining Trade –
Income disparity - Consumers & farmers went steadily deeper into debt

4. Industries in Trouble
Key industries like railroads, textiles, steel barely made profit
Mining, lumbering expanded during were no longer in high demand
Boom industries - automobiles, construction, consumer goods weakened

5. Farm Troubles International demand for U.S. grain declined after war
- prices dropped by 40% or more
Farm income declined & farmers defaulted on loans
Congress attempted to pass the McNary- Haugen bill to help farmers
- Price-supports -

6. Consumers Problems 1920s - rich got richer & poor got poorer
70% of families earned less than minimum for decent standard of living
- $2500 annually
Many people had been purchasing goods on credit (buy now, pay later)
Consumers had trouble paying off debt & cut back on spending

7. 2. Bank Failures a b. c. d. I. OBJ #1- Cause & Spark of the Depression
OBJ #1 - Describe the CAUSES and SPARK of the Great Depression. How did Overproduction affect both farmers and industry? What system collapsed and caused millions to lose their savings? Explain how buying on Margin created the Spark. How did people lose money because of the spark?
I. OBJ #1- Cause & Spark of the Depression
A. Causes of the Depression
1. Overproduction,)
a. Factory Workers begin to get layed-off -
b. Farmers Can’t Survive
c. Supply & Demand- Prices Drop
2. Bank Failures a b. c. d.

8. 1920’s Problems BANKS Have NO $$ PEOPLE LOST SAVINGS & JOBS
NO ONE TO HELP!

9. = + Banks Close Banks have no money to give people
People Default on Loans
People Loose savings

10. The Election of 1928
Democrat Alfred E. Smith - four times governor of New York
Republican
U.S. had experienced prosperity under Republicans in 1920s

12. Dreams of Riches in the Stock Market
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 -

13. Dreams of Riches in the Stock Market
1920s - stock prices rose steadily “Bull Market”

15. The Stock Market Crashes
September 1929 stock prices peaked & then fell
October 24, Market took plunge & many panicked investors unloaded their shares

16. The Stock Market Crashes
October 29, Stock market crashed (Black Tuesday) -

17. OBJ #1- Cause & Sparks of Depression
QUICK REVIEW: Causes: Spark: 1. Results: 1.
TOO MUCH STUFF!
BLACK TUESDAY

18. Financial Collapse Great Depression – - lasted from
After crash, people panicked & withdraw money from banks
Banks
1929 to gross national product was cut nearly in half
- 90,000 businesses went bankrupt
1933
Those with jobs received cuts in hours & pay

19. Worldwide Shock Waves
Great Depression limited U.S. ability to import European goods
Other countries couldn’t earn American currency to buy U.S. goods
- Many countries retaliated by raising their own tariffs

20. Causes of the Great Depression
Factors leading to Great Depression:
Declining Trade –
Farm problems - Many farmers were forced to sell
Easy credit – Borrowed money to invest in market
Income disparity

21. Section 2 Hardship and Suffering During the Depression

22. The Depression Devastates People’s Lives
People lost jobs & were evicted from homes
Had to live in parks or sewer pipes
Shantytowns -

23. The Depression Devastates People’s Lives
People dug through garbage & begged
- 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)

24. The Depression in Rural Areas
Most farmers could grow food for their families

25. The Dust Bowl
Farmers in Great Plains exhausted land through overproduction
1930s - drought & windstorms scattered for hundreds of miles
Dust Bowl

30. The Dust Bowl
Many farm families migrated to Pacific Coast

31. OBJ #3 - Describe the natural disaster that affected the U. S
OBJ #3 - Describe the natural disaster that affected the U.S. during the Great Depression. What was the disaster’s nick-name? What caused the disaster? Where did the people go to try and escape their troubles and how were they treated (nick-names for these people)?
III. OBJ. #3- Natural Disaster “The DUST BOWL”
A. Great Plains suffers a huge Drought (1931)
1. Causes: a b
2. Huge Dust storms cover ‘Great Plains
B. Results 1.
2., a. b.

33. 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

34. Men in the Streets
Many men used to working & supporting families had difficulty coping
Couldn’t find jobs
Many stopped trying
Some men even abandoned their families

35. Women Struggle to Survive
Women worked hard to help their families survive the adversity
Women worked outside home & were resented by unemployed men

36. Women Struggle to Survive
Early 1930s – Some cities refused to hire married schoolteachers
Many women

37. Children Suffer Hardships
Poor diets & health care led to serious health problems in children
Teenagers left home & rode trains in search of work & adventure
- Many died or were beaten

38. Social and Psychological Effects
1928 to 1932 –
Admissions to state mental hospitals tripled
Put off marriage & children
Many people showed great kindness to strangers
- Gave food, clothing & a place to stay

39. Section 3 Hoover Struggles with the Depression

40. Hoover Tries to Reassure the Nation
President Herbert Hoover told Americans the economy was sound
Many experts believed depressions were normal part of business cycle
- Believed that it was best to do nothing & let the economy fix itself
Hoover believed government

41. Hoover Tries to Reassure the Nation
Many believed that people should succeed through their own efforts
People should take care of own families & not depend on government
Hoover

42. Hoover Takes Cautious Steps
Hoover called meeting of business, banking, labor leaders to solve problems
- Asked them to work to together to solve the problems
Created organization to

43. Hoover Takes Cautious Steps
Hoover’s authorized the construction of the Boulder Dam on Colorado River w
- later renamed Hoover Dam -

47. Democrats Win in 1930 Congressional Elections

48. Democrats Win in 1930 Congressional Elections
Farmers tried to create food shortages to raise prices

50. Hoover Takes Action
Hoover softened his stance on no government intervention in the economy
Hoover negotiates agreements among private entities
Backs
- buy crops, keep off market until prices rise

51. Hoover Takes Action Got large banks to establish
- Loaned money to smaller banks to prevent bankruptcy
Late Hoover persuaded Congress to pass measures reform banking, provide mortgage relief, & funnel federal money into business investment -

52. Hoover Takes Action Reconstruction Finance Corporation –
Hoover’s measures didn’t improve economy before presidential election

53. Gassing the Bonus Army
1932 – Incident with World War I veterans further damaged Hoover’s image & public morale
1924 – -

54. Gassing the Bonus Army
Bonus Army –

55. Gassing the Bonus Army Hoover opposed bill
Believed they were communists
He respected their right to protest (Provided food & supplies for shantytown)
June 17, 1932 –
Most veterans left Washington

56. Gassing the Bonus Army
Hoover feared violence & called on U.S. Army to disband Bonus Army
- Led by

57. Gassing the Bonus Army
Infantry tear gassed over 1,000 people, including children
Many people were injured (11 month old baby died)

58. OBJ #2 -Describe how the Great Depression affected people
OBJ #2 -Describe how the Great Depression affected people. Who was the president when it started, and what did he do to help? Who tried to help the poor and what problems did they have? How did people try to escape the Great Depression?
II. OBJ. #2 – Affects of the Depression A. Jobless / Homeless B. Hatred for President Hoover 1. Say’s it is NOT Government’s job to fix the Poor a. b. PROBLEM 2. People name Poor Places after Hoover a b

59. OBJ #2- Effects of the Great Depression
Wizard
C. Escaping the Depression 1. Radio- 2. Movies- a. b. 3. Literature a. Steinbeck, of OZ