1. THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange

2. Causes: Farmers’ Struggle No industry suffered as much as agriculture After WWI demand plummeted Farmers increased production, sent prices lower Photo by Dorothea Lange

3. Causes: American Finances By the late 1920s, American consumers were buying less Wealthiest 1% saw income rise 75%, rest of population saw increase of 9% During 1920’s stock prices rising, by 1929 4 million Americans owned stocks. Photo by Dorothea Lange

4. Causes: Speculation and Margin By late 1920s, problems with economy emerged Speculation: buying stocks & bonds hoping for a quick profit Margin: paying small percentage of stock’s price as down payment, and borrowing the rest The Stock Market’s bubble was about to break

5. THE 1929 CRASH On October 24, the market took a plunge On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day – prices plummeted People who bought on margin (credit) stuck with huge debts

6. Effects: The Great Depression Stock Market crash signaled beginning of Great Depression Great Depression, from 1929 – 1940, when economy plummeted and unemployment skyrocketed. Alabama family, 1938 Photo by Walter Evans

7. Effects: Financial Collapse After crash, many panicked and withdrew money from banks Banks had invested in the Stock Market and lost money By 1933 – 11,000 of the 25,000 banks nationwide had collapsed Bank run 1929, Los Angeles

8. Effects: Housing Hardship People lost their jobs, and their homes Makeshifts shacks out of scrap material were called Hoovervilles

9. Effects: City Living One of common features of urban areas during Depression were soup kitchens and bread lines Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone

10. Effects: Country Living Depression difficult for everyone, farmers had one advantage: grow food for own families But between 1929- 1932 almost ½ million farmers lost their land FORCLOSURE

11. Effect: Difficult for Minorities Unemployment was the highest among minorities and their pay was the lowest Increased violence (24 lynchings in 1933 alone) marred 1930s Many Mexicans were “encouraged” to return to their homeland. As conditions deteriorated, violence against blacks increased

12. Effects: America’s Psyche Suicide rate rose more than 30% between 1928-1932 But many people showed great kindness to strangers Additionally, many people developed habits of savings & thriftiness

13. The Dust Bowl: Intro Severe drought gripped Great Plains in early 1930s Wind scattered topsoil, exposing sand and grit The resulting dust traveled hundreds of miles Kansas Farmer, 1933

14. Dust storm approaching Stratford, Texas - 1934

15. Dust buried cars and wagons in South Dakota in 1936

16. Photographer Dorothea Lange captures a family headed west to escape the dust storms

18. Actions: Hoover Struggles After stock market crash, said, “Any lack of confidence in the economic future... Is foolish” Herbert Hoover

19. Action: Philosophy Hoover reacts slowly to Depression Believed in “rugged individualism” People take care of selves, not depend on governmental hand- outs Hoover believed it was the individuals job to take care of themselves, not the governments

20. Actions: Fought WWI Vets MacArthur’s 12 th infantry gassed more than 1,000 marchers Two vets shot and scores injured Americans outraged and once again, Hoover’s image suffered

21. Hoover had little chance to be re-elected in 1932