Chapter 26: The Great Depression Begins The Nation’s

Economy Crashes Hoover’s Policies

Have Little Effect Roosevelt Faces a

Difficult Challenge

THE GREAT DEPRESSION The Stock Market

crash signaled the the beginning of the beginning of the Great DepressionGreat Depression

The Great Depression is generally defined as the period from 1929 – 1940 in which the economy economy plummeted and plummeted and unemploymentunemployment skyrocketed

The crash alone did not cause the Great Depression, but it hastened its arrival

Alabama family, 1938 Photo by Walter Evans

Great Depression

The period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed.

The stock market crash was not the only cause.

The Nation’s Economy Crashes 4 Causes to the depression

Mechanization of Industrial base Unequal distribution of income Farm crisis

Unfavorable balance of trade Hawley-Smoot Tariff Act

Easy credit Installment Plan Buying on margin

Four Causes of Great Depression

1. Tariffs and war debt policies that cut down the foreign market for American goods.

2. Crisis in the farm sector. 3. Availability of easy credit. 4. Unequal distribution of income.

Income

There was an uneven distribution of income.

Over 70% of Americans lived below the standard of living.

Less than 1% were elite. (extremely rich)

Credit Consumers agree to buy now and

pay later.

Would pay monthly payments with interest.

Credit was too easy to get in the 1920s.

HAWLEY-SMOOT TARIFF

The U.S. was not the only country gripped by the Great Depression

Much of Europe suffered Much of Europe suffered throughout the 1920sthroughout the 1920s

In 1930, Congress passed the toughest tariff in U.S. history called the Hawley- Smoot Hawley- Smoot Tariff- Tariff- designeddesigned to protect American farmers and businesses from foreign competition.

The tariff made unemployment worse in America b/c no one wanted to buy our goods.

Worst depression in American history

Other countries enacted their own tariffs and soon world world trade fell 40%trade fell 40%

Economy Crashes - continued Depression

devastates people’ lives National income Direct suffering Shantytowns Soup kitchen

Bread Lines Dust Bowl Bonus Army

Hardship and Suffering

HARDSHIPS DURING DEPRESSION

The Great Depression brought hardship, homelessnesshomelessness, and hunger to millions

Across the country, people lost their jobs, and their homes

Some built makeshifts shacks out of scrap material

Before long whole shantytowns (sometimes called HoovervillesHoovervilles in mock reference to the president) sprung up

SOUP KITCHENS

One of the common features of urban areas during the era were soup kitchens soup kitchens and bread linesand bread lines

Soup kitchens and bread lines offered free or low-cost food for people

Unemployed men wait in line for food – this particular soup kitchen was

sponsored by Al Capone

CONDITIONS FOR MINORITIES

Conditions for African Americans and Latinos were especially difficult

UnemploymentUnemployment was the highest among minorities and their paypay was the lowestlowest

Increased violenceIncreased violence (24 lynchings in 1933 alone) marred the 1930s

Many Mexicans were “encouraged” to return to their homeland

As conditions deteriorated, violence against blacks

increased

RURAL LIFE DURING THE DEPRESSION

While the Depression was difficult for everyone, farmers did have one advantage; they could grow food they could grow food for their familiesfor their families

Thousands of farmers, however, lost their lost their landland

Many turned to tenant farming and barely scraped out a living

Between 1929-1932 almost ½ million farmers lost their land

THE DUST BOWL A severe droughtsevere drought

gripped the Great Plains in the early early 1930s1930s

Wind scattered the topsoil, exposing sand and grit

The resulting dust dust traveledtraveled hundreds of miles

One storm in 1934 picked up millions of tons of dust from the Plains an carried it to the East Coast Kansas Farmer, 1933

Dust storm approaching Stratford, Texas - 1934Dust storm approaching Stratford, Texas - 1934

THE DUST BOWL

Storm approaching Elkhart, Kansas in 1937

Dust buried cars and wagons in South Dakota in 1936

HARDEST HIT REGIONS

Kansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust Bowl

Many farmers Many farmers migratedmigrated to California and other Pacific Coast statesBoy covers his mouth to avoid

dust, 1935

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

HOBOES TRAVEL AMERICA

The 1930s created the term “hoboes”“hoboes” to describe poor drifterspoor drifters

300,000 transients – or hoboes – hitched rides around the country on trains and slept under bridges (thousands were teenagers)

Injuries andInjuries and death was common on railroad property; over 50,000 people were hurt or killed

EFFECTS OF DEPRESSIONEFFECTS OF DEPRESSION Suicide rate roseSuicide rate rose more

than 30% between 1928-1932

Alcoholism roseAlcoholism rose sharply in urban areas

Three times as many people were admitted to state mental hospitalsstate mental hospitals as in normal times

Many people showed great kindness to kindness to strangersstrangers

Additionally, many people developed habits of savings & thriftinesssavings & thriftiness

Hoover’s Policies

Hoover’s Policies

Democrats control Congress (1930) Hoover fails to adapt

Too cautious Inflexible Sends troops against Bonus Army Moratorium

Allied War Debts German Reparations

Hoover’s Policies Have Little Effect Herbert Hoover Solutions to late

Boulder (Hoover Dam) Reconstruction Finance Corporation (RFC) Home Loan Bank Act

Hoover was a Humanitarian Rugged Individualism Hoovervilles “Cinderella Man”

HOOVER STRUGGLES WITH THE DEPRESSION

After the stock market crash, President Hoover tried to reassure Americans

He said, “Any lack of confidence in the economic future . . . Is foolish”

He recommended business as usual Herbert

Hoover

HOOVER’S PHILOSOPHY

Hoover was not quick to Hoover was not quick to reactreact to the depression

He believed in “rugged “rugged individualism”individualism” – the idea that people succeed through their own efforts

People should take care of themselves, not depend on governmental hand-outs

He said people should “pull themselves“pull themselves up by their bootstraps”Hoover believed it was the individuals job to

take care of themselves, not the governments

HOOVER’S SUCCESSFUL DAM PROJECT

Hoover successfully organized and authorized the construction of the Boulder DamBoulder Dam (Now called the Hoover Dam)

The $700 million project was the world’s world’s tallest damtallest dam (726 feet) and the second largest (1,244 feet long)

The dam currently provides electricity, flood control and water for 7 western states

Any dam questions?

HOOVER TAKES ACTION: TOO LITTLE TOO LATE

Hoover gradually softened his position on government intervention in the economy

He created the Federal Federal Farm BoardFarm Board to help farmers

He also created the National Credit Organization that helped smaller banks

His Federal Home Loan Federal Home Loan Bank ActBank Act and Reconstruction Finance Reconstruction Finance CorpCorp were two measures enacted to protect people’s homes and businesses

Hoover’s flurry of activity came too late to save the economy or

his job

BONUS ARMY

A 1932 incident further damaged Hoover’s image

That spring about 15,000 World War I vets arrived in Washington to support a proposed bill

TheThe Patman Bill would have authorized Congress to pay a bonus to WWI vets immediately

The bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOWvets wanted it NOW

BONUS ARMY TURNED DOWN

Hoover called the Bonus marchers, “Communists and criminals”

On June 17, 1932 the Senate voted Senate voted down the down the Putnam BillPutnam Bill

Thousands of Bonus Army soldiers protest – Spring 1932

BONUS MARCHERS CLASH WITH SOLDIERS

Hoover told the Bonus marchers to go home– most did

2,000 refused to leave2,000 refused to leave Hoover sent a force of

1,000 soldiers under the command of General Douglas Douglas MacArthurMacArthur and his aide DwighDwight Eisenhower

AMERICANS SHOCKED AT TREATMENT OF WWI VETS

MacArthur’s 12MacArthur’s 12thth infantry gassed more than 1,000 infantry gassed more than 1,000 marchers, including an 11-month old baby, who died

Two vets were shot and scores injured Americans were outraged and once again, Hoover’s Hoover’s

image sufferedimage suffered

Hoover had little chance to be re-elected in 1932

FDR pledges a New Deal

Election of 1932 FDR vs. Hoover Dramatic landslide

for FDR Brain Trust

20th Amendment “Lame Duck” Meanwhile,

conditions got worse

Franklin D. Roosevelt

Roosevelt defeated Hoover in the 1932 election.

Roosevelt wanted the government to help with the Great Depression.

New Deal

Roosevelt’s plan to help deal with the Great Depression.

He wanted to do the following:1. Help the needy2. Economic recovery3. Financial reform

Roosevelt Faces a Difficult Challenge FDR installs

confidence Fireside Chats “We have nothing

to fear, but fear itself”

Physical problems Polio Wheelchair

Eleanor Roosevelt

Eleanor Roosevelt

FDR’s wife, who was a social reformer

Humanitarian and had great political skills.

She urged the president to appoint women into government positions.

One of the most powerful First Ladies in American History.

Frances Perkins First female cabinet member. Mary McLeod Bethune: An African

American woman who was appointed to a gov’t position by Roosevelt.

Roosevelt did not favor full civil rights of African Americans, he did not want to anger white, Democrats in the South.

Key People

FDR’s 100 Days

Bank Holiday Emergency Banking Relief Act F.D.I.C.

Federal Securities Act S.E.C.

Reasons for Bank Failures Panic Banks invest your money Savings Accounts

FDR supplies optimism

Movies Were an escape

from reality. Wizard of Oz Gone with the

Wind Snow White & the

Seven Dwarfs (1st Disney animated film)

Dust Bowl

The region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s.

Why/How it happened Drought- lack of rainfall or moisture

in the soil. Farmers would plow fields which

would not leave grass to cover soil. The soil would not hold moisture Wind storms would carry dust and

create dust storms. Impossible to grow crops in these

conditions.

Dust Storm

Farmland Covered in Dust

Car Stuck in Dust

Farmers

Left the land due to storms and evictions.

Most went to California and other Pacific Coast states.

Most migrants were called Okies b/c most were from Oklahoma.

They would work as farmhands to make money.

Migrant farmers