The Great Depression 1929-1933

The Great Depression 1929-1933

The Great Depression 1929-1933

Semester One Research Project

Jennifer Ortega

Semester One Research Project

Jennifer Ortega

TimelineTimeline

1929October: Wall Street Crash, marks beginning of the Great Depression.

Congress institutes the Reconstruction Finance Corporation in January.

Hoover’s Agricultural Marketing Act is passed

Interests rates for the Federal Reserve go up.

Hawley-Smoot Tariff proposed by Hoover becomes enacted in June.

Japanese invade Manchuria after a bridge explodes in a part of China that Japan was controlling.

1930In early 1930, over 3.2 million people were left unemployed.

February: Food Riots break out nationwide and people begin to gain resentment towards foreign workers.

Europe begins the feel the effect of the Depression while it becomes worse in the US 1931

1932 Stimson Doctrine is sent to both Japan and China on January 7th.

Farmers Holiday Association is formed in Iowa.

In June, 20,000 members of the Bonus Army march to Capitol Hill to get their bonuses.

The Dustbowl begins in the Midwest, devastating those people even more.

Election of 1932, Franklin D. Roosevelt is elected by the majority of the American people.1933

Franklin D. Roosevelt is inaugurated and so begins the New Deal.

The Effects of the Great Depression

The Effects of the Great Depression

Changed the relationship between Americans and the government. Put an immense fear of another Stock Market Crash in the minds of

Americans. Unemployment rate was over 20%

Between 1929 and 1932 output declined by 40% More government regulations on banks

International commerce declined Massive poverty

Devastation of American Farms 12,000 people became unemployed every day

20,000 companies had gone bankrupt 1,616 banks had gone bankrupt

23,000 people committed suicide in one year

Changed the relationship between Americans and the government. Put an immense fear of another Stock Market Crash in the minds of

Americans. Unemployment rate was over 20%

Between 1929 and 1932 output declined by 40% More government regulations on banks

International commerce declined Massive poverty

Devastation of American Farms 12,000 people became unemployed every day

20,000 companies had gone bankrupt 1,616 banks had gone bankrupt

23,000 people committed suicide in one year

This is the floor inside the New York City Stock Exchange on the day that $13 million dollars in shares were lost, Black Thursday.

Wall Street Crash

It was a cloudy Thursday morning when the “nightmare on Wall Street” began. October 24, 1929 marked the end of the great bull market that Coolidge had held together and marked the first step of the rest of the economic collapse that led to the great depression. By the end of the day there had been a loss of $13 million dollars in shares. This graph shows

the steady increase of the Dow Jones Industrial Average to October where you can see the major decrease after Wall Street crashed.

Causes for the CrashCauses for the CrashCAUSES:The Unequal distribution of purchasing

power60% of families couldn’t afford to buy consumer

goods such as cars and radios.Those who were able to purchase goods bought

on credit.

International Trade decreasedThe high tariffs put on American goods and the

European countries were already struggling with paying back reparations after World War I

Overproduction Everyone who could afford the consumer goods

had already bought them, which led to drop in prices, with led to the laying off of workers because the companies were trying to save money.

CAUSES:The Unequal distribution of purchasing

power60% of families couldn’t afford to buy consumer

goods such as cars and radios.Those who were able to purchase goods bought

on credit.

International Trade decreasedThe high tariffs put on American goods and the

European countries were already struggling with paying back reparations after World War I

Overproduction Everyone who could afford the consumer goods

had already bought them, which led to drop in prices, with led to the laying off of workers because the companies were trying to save money.

Country’s Credit StructureSince crop prices were lowered

farmers couldn’t pay off their land mortgages causing them to default on loans. Small banks that depended on the agricultural economy were in danger.

Buying on MarginA practice that was soon made illegal after the

stock market crash because it was so risky. Buying on margin was buying on the promise of future shares. The problem was a lot of the time those shares never came.

BanksBanks had been reckless in the

years before the stock market crash, making foolish loans and making hasty investments in the stock market.

Country’s Credit StructureSince crop prices were lowered

farmers couldn’t pay off their land mortgages causing them to default on loans. Small banks that depended on the agricultural economy were in danger.

Buying on MarginA practice that was soon made illegal after the

stock market crash because it was so risky. Buying on margin was buying on the promise of future shares. The problem was a lot of the time those shares never came.

BanksBanks had been reckless in the

years before the stock market crash, making foolish loans and making hasty investments in the stock market.

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Left: This shows people outside the Stock Exchange on the day of the Wall Street Crash. Right: Shows speculators trying to catch people and convince them that it is okay to buy stocks even after the crash.

GROWTH BOOM

$$$$

People have jobs, so they buy more goods, so companies make more goods and hire more people increasing the number in consumers.

People have already bought all goods, so now there is over productions which causes drops in prices and employers to lay off workers, less sold=less $$ to pay workers.

PRICES FALL

JOBS LOST

Depression EconomyDepression EconomyThe economy during the depression

was horrific. Nearly 9,000 American banks went bankrupt or closed their doors to avoid bankruptcy. This caused a drop in money supply, which caused a drop in purchases, which caused deflation. With this companies began to drop the prices on goods and cut workers so they could save money. In just three years the American gross national product declined 25 percent, along with capital investment, consumer price index and the gross farm income. People were now being laid off and experiencing cuts in paychecks or hours.



Unemployment rates had reached an all time low. The men in the pictures gathered outside of employment agencies for days in and days out in hope of finding any job.

Moods of DespairMoods of Despair

Not all Americans were affected by the depression but those who were, suffered tremendously.

During this era, Americans believed that every man was responsible for his own fate, and with that being jobless, homeless or poverty stricken was a result of their own personal failure. This put immense stress on men to get themselves out of that situation, and find a job so they could gain their masculinity back.

Families turned to public relief systems, but the high number of families in need of relief caused for the relief systems to fall apart. There was simply too many families and not enough to go around

Thousands of people stood in breadlines just to have a good meal, others chose to pick the scraps from the trash.

Not all Americans were affected by the depression but those who were, suffered tremendously.

During this era, Americans believed that every man was responsible for his own fate, and with that being jobless, homeless or poverty stricken was a result of their own personal failure. This put immense stress on men to get themselves out of that situation, and find a job so they could gain their masculinity back.

Families turned to public relief systems, but the high number of families in need of relief caused for the relief systems to fall apart. There was simply too many families and not enough to go around

Thousands of people stood in breadlines just to have a good meal, others chose to pick the scraps from the trash.

Below: A man stands outside of a building hoping someone will offer him a job; men were under tremendous stress to get themselves out of the gutter for sake of their masculinity. Right: Breadlines in New York City and Chicago stretched for blocks and served thousands a day.

HoovervillesHoovervilles

Families who were left homeless often lived in shanty towns called “Hoovervilles.” They built houses out of anything they could possibly find.

Families who were left homeless often lived in shanty towns called “Hoovervilles.” They built houses out of anything they could possibly find.

Agrarian UnrestAgrarian Unrest

◊ But the Midwest had it worst of all, not only had farm income declined by 60 percent but a natural disaster had hit them hard. In early 1930 people in Colorado, Oklahoma, New Mexico, Kansas, and the Texas panhandle, which became to be known as the “Dustbowl” experienced a decade long drought.

◊ But the Midwest had it worst of all, not only had farm income declined by 60 percent but a natural disaster had hit them hard. In early 1930 people in Colorado, Oklahoma, New Mexico, Kansas, and the Texas panhandle, which became to be known as the “Dustbowl” experienced a decade long drought.

◊ As a result many people decided to head west to California in search for work. These people were known as “Okies” because most came from the state of Oklahoma. It is estimated that hundreds of thousands of families left the “Dustbowl” to find a better situation.

◊ As a result many people decided to head west to California in search for work. These people were known as “Okies” because most came from the state of Oklahoma. It is estimated that hundreds of thousands of families left the “Dustbowl” to find a better situation.

Left: A man in a dust storm, the ten year long drought not only caused even more economic damage to parts of the Midwest but the dust storms could cause even more damage. Right: Migrants on the side of the road leaving the “Dustbowl” and headed towards California.

Above: a dust storm near Oklahoma. Left: a father and his two sons head for their shelter to avoid being caught in a dust storm.

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The ten year long drought known as the “Dustbowl” devastated people in Colorado, Oklahoma, Kansas, and Texas causing them to migrate west to California.

Farm Foreclosures

Since farm income had declined by 60%, farmers couldn't afford to pay their mortgages on their land; the result, farm foreclosures. They weren’t uncommon at all, one in five farmers had lost their farms.

Minorities & The DepressionWhite people weren’t the only ones effected due to the

depression; African Americans, Mexican Americans, and Asian Americans faced harder challenges.

They all experienced unemployment, malnutrition and homlessness but what they also experienced was more discrimination and racism.

White Southerners began committing more racist acts towards African Americans, blaming them for taking their jobs and demanding that all white men get jobs before them.

Chicanos faced similar challenges. They were not allowed to attend American schools or allowed to seek medical

treatment. Asian Americans who had attended college, found

themselves working at fruit stands and lost jobs to whites.

Bonus MarchBonus March

Veterans of World War I were promised to be paid $1,000 starting in 1945 but many veterans began to demand for their bonuses much earlier due to the economic situation. In June of 1932, 20,000 members of the Bonus Expeditionary Force or otherwise known as the Bonus Army marched into Washington and camped out in and around the city until Congress decided to pay them their dues. Many remained even after Congress

Veterans of World War I were promised to be paid $1,000 starting in 1945 but many veterans began to demand for their bonuses much earlier due to the economic situation. In June of 1932, 20,000 members of the Bonus Expeditionary Force or otherwise known as the Bonus Army marched into Washington and camped out in and around the city until Congress decided to pay them their dues. Many remained even after Congress

disproved legislation to pay them their bonuses. In mid-July Hoover first ordered police to clear out some empty federal building that veterans were occupying, when the veterans reacted Hoover sent General Douglas MacArthur to use force to remove the veterans from the Capitol grounds. Federal troops used tear gas and fire to destroy the makeshift camp they had built near the Anacostia River.

disproved legislation to pay them their bonuses. In mid-July Hoover first ordered police to clear out some empty federal building that veterans were occupying, when the veterans reacted Hoover sent General Douglas MacArthur to use force to remove the veterans from the Capitol grounds. Federal troops used tear gas and fire to destroy the makeshift camp they had built near the Anacostia River.

The Bonus Army on the steps of Capitol Hill

Below is a picture of a Bonus Army camp.

Hoover-Stimson diplomacy; Japan

Hoover-Stimson diplomacy; Japan

Though it is called Hoover-Stimson diplomacy both men were very different in their views on foreign policy. Hoover could have possibly cared less about what was going on in Asia while the Secretary of State, Henry L. Stimson to stop Japan from invading China more than it already had.

The whole ordeal began in July of 1931 when a bridge in China, on the South Manchuria Railroad blew up. At the time Japan was in control of the area and blamed the explosion on Chinese rebels. In turn, Japan used this as an excuse to begin their conquest of Manchuria.

Stimson tried to tell Japan not to ignore the treaties it had signed and stop expanding into China with the Stimson Doctrine. Stimson wanted European countries to back him up but no one wanted to/cared enough.

No one took Stimson seriously, seeing all this occur with little reaction only encouraged Hitler and Mussolini to do in what events soon followed the great

depression

Though it is called Hoover-Stimson diplomacy both men were very different in their views on foreign policy. Hoover could have possibly cared less about what was going on in Asia while the Secretary of State, Henry L. Stimson to stop Japan from invading China more than it already had.

The whole ordeal began in July of 1931 when a bridge in China, on the South Manchuria Railroad blew up. At the time Japan was in control of the area and blamed the explosion on Chinese rebels. In turn, Japan used this as an excuse to begin their conquest of Manchuria.

Stimson tried to tell Japan not to ignore the treaties it had signed and stop expanding into China with the Stimson Doctrine. Stimson wanted European countries to back him up but no one wanted to/cared enough.

No one took Stimson seriously, seeing all this occur with little reaction only encouraged Hitler and Mussolini to do in what events soon followed the great

depression



This political cartoon is showing how Japan completely ignored the international treaties it was bounded by and continued with their invasion of China.

Hoover’s Growing Unpopularity and the Election of 1932

• Hoover’s Inaction and laissez-faire philosophy had him loosing popular votes for quite some time and the incident with the Bonus Army is what completely lost all chances for his reelection. As can be seen the election of 1932 was not a tight one. Franklin D. Roosevelt won by a landslide.



ConclusionConclusion

The Great Depression was the worst economic time in the history of the modern world, it left millions upon millions jobless, homeless, and starving. Through the Great Depression we can learn how to prevent such occurrences from happening again, or at least how to lessen the impact.

The Great Depression was the worst economic time in the history of the modern world, it left millions upon millions jobless, homeless, and starving. Through the Great Depression we can learn how to prevent such occurrences from happening again, or at least how to lessen the impact.

Documents

The Great Depression 1929-1933