1. The Great Depression Begins
Chapter 14
The Great Depression Begins

2. Section One The Nation’s Sick Economy
Economic Troubles the Horizon
Industries in Trouble
Railroads, Textiles, Steel, Coal Mining
Farmers Struggle
Supply rises and Demand falls
Prices drop, less profit for farmers
McNary-Haugen Bill
Price-supports
Consumers Have Less Money to Spend
Buying less hurts more industries, leads to more unemployment
Similar to current recession

3. Uneven Distribution of Income
Living on Credit
Installment Plans
Easy availability of credit
People had difficulty paying off debt
Uneven Distribution of Income
Rich get richer, poor get poorer
Much of the nation lived below the poverty line
Most just barely got by

4. Hoover Takes the Nation
The Election of 1928
Alfred E. Smith vs. Herbert Hoover
Hoover and Republicans win
Dreams of Riches in the Stock Market
Why would you invest?
Dow Jones Industrial Average
Speculation -
Buying on margin -

5. The Stock Market Crashes
Black Tuesday
October 29, 1929
Massive Sell Off
Makes the problem worse
$30 Billion lost
Many people lost all that they had

6. Financial Collapse Great Depression: 1929-1940
Bank and Business Failures
Withdrawing money
Banks close
Unemployment up
Reduced hours and pay for people that maintain jobs
Worldwide Shock Waves
Depression spreads to Europe
International trade suffers
Hawley-Smoot Tariff Act- protective tariff
Buy American!
Overall Causes of the Great Depression
Tariffs and war debts
Crisis in farming
Easy credit
Unequal distribution of income

7. Section Two Hardship and Suffering During the Depression
The Depression Devastates People’s Lives
The Depression in the Cities
Shantytowns
Soup kitchens
Bread lines
The Depression in Rural Areas
Advantage over urban life -
Dust Bowl devastates Midwest
Causes -
Impact on farmers -

8. Effects on the American Family
Men in the Streets
Difficulty dealing with unemployment
Hoboes and drifters
Women Struggle to Survive
Women worked when possible
Children Suffering Hardships
Malnutrition and health problems
Dropping out of school
Many children separated from families
Social and Psychological Effects
Suicide rate rises
Many offer helping hand to strangers

9. Section Three Hoover Struggles with the Depression
Hoover Tries to Reassure the Nation
Herbert Hoover
Hoover’s Philosophy
“Rugged Individualism”
No federal welfare or direct relief
What is direct relief? Examples?
Hoover Takes Cautious Steps
Meeting with business leaders
Effects

10. Democrats Win in 1930 Congressional Elections
Boulder Dam
“Hoover” Dam
Effect on economy
Democrats Win in 1930 Congressional Elections
Shows nations frustration with Hoover
“Hoovervilles”, “Hoover Blankets”, and “Hoover Flags”

11. Hoover Takes Action Direct Intervention
Federal Home Loan Bank Act, 1932
Lowers mortgage rates
Provides opportunity to refinance
Reconstruction Finance Corporation, 1932
Emergency financing for banks
“Trickle Down Effect”
Business failures still continued

12. Gassing the Bonus Army The Patman Bill Denied
Patman Bill – back pay for WWI veterans, approximately $500 each, to be paid immediately instead of in 1945.
Bonus Army march in D.C.
Senate votes down Bill
Hoover Disbands The Bonus Army
Violence ensues, protesters gassed
MacArthur and Eisenhower
Hoover’s legacy tarnished