The Great DepressionThe Great Depression

Herbert Hoover and the American People During Hard

Times

Herbert Hoover and the American People During Hard

Times

*For more information on the economic causes of the Great Depression, refer to Mr. Kelly’s PowerPoint Economics of the Great Depression

The Coming of the Depression

The Coming of the Depression

Feb. 1928 stocks rose upward for a year and a half

May 1928-September 1929 Average stock prices rose 40% Dow Jones doubled Trading rose from 2-3 million shares per

day to 5 million Sometimes 10-12 million

Feb. 1928 stocks rose upward for a year and a half

May 1928-September 1929 Average stock prices rose 40% Dow Jones doubled Trading rose from 2-3 million shares per

day to 5 million Sometimes 10-12 million

The Great CrashThe Great Crash

October 21 and 24, 1929- alarming decline in stock prices Both followed by temporary recovery

Black Tuesday October 29, 1929 16 million shares traded Index dropped 43 points- previous year’s gains

gone By July 1932 the market was at 58

Down from high of 452 in September 1929 Not the cause of the Depression, only a sign

October 21 and 24, 1929- alarming decline in stock prices Both followed by temporary recovery

Black Tuesday October 29, 1929 16 million shares traded Index dropped 43 points- previous year’s gains

gone By July 1932 the market was at 58

Down from high of 452 in September 1929 Not the cause of the Depression, only a sign

Causes of the Great Depression

Causes of the Great Depression

Debated by economists and historians Lack of diversification in the economy

Prosperity based on a few industries Disparity between rich and poor too great

Many people too poor to buy goods to lift economy Credit structure in the economy

Farmers in debt and prices were declining Banks weakened by people defaulting on loans

International trade declines European demand for goods declines

World War I loans European nations could not repay their debts America would not forgive the loans

Debated by economists and historians Lack of diversification in the economy

Prosperity based on a few industries Disparity between rich and poor too great

Many people too poor to buy goods to lift economy Credit structure in the economy

Farmers in debt and prices were declining Banks weakened by people defaulting on loans

International trade declines European demand for goods declines

World War I loans European nations could not repay their debts America would not forgive the loans

Progress of the Depression 1930-1933

Progress of the Depression 1930-1933

Collapse of the Banking System 9,000 banks closed their doors Depositors lost $2.5 billion in deposits Nations money supply decreases by 1/3

Deflation and decrease in purchasing power

Gross National Product Shrunk from $104 billion (1929) to $76.4 billion (1932)

Consumer Price Index declined 25 % (1929-1933)

Unemployment was 25% by 1933. Averaged nearly 20% for the rest of the decade. 1/3 of workforce was underemployed.

Collapse of the Banking System 9,000 banks closed their doors Depositors lost $2.5 billion in deposits Nations money supply decreases by 1/3

Deflation and decrease in purchasing power

Gross National Product Shrunk from $104 billion (1929) to $76.4 billion (1932)

Consumer Price Index declined 25 % (1929-1933)

Unemployment was 25% by 1933. Averaged nearly 20% for the rest of the decade. 1/3 of workforce was underemployed.

Unemployment and ReliefUnemployment and Relief

Impacted industrial cities in the Northeast and Midwest

Unemployed turned to local & state relief agencies. They were ill-equipped to handle large numbers

1/3 of farmers lost their land Dust Bowl

Area stretching from Texas to the Dakotas Experienced decade long drought Okies (often from Oklahoma) left the Dust Bowl to look

for better jobs Worked as agricultural migrants.

Impacted industrial cities in the Northeast and Midwest

Unemployed turned to local & state relief agencies. They were ill-equipped to handle large numbers

1/3 of farmers lost their land Dust Bowl

Area stretching from Texas to the Dakotas Experienced decade long drought Okies (often from Oklahoma) left the Dust Bowl to look

for better jobs Worked as agricultural migrants.

African-Americans and the Depression

African-Americans and the Depression

By 1932- nearly 1/2 African Americans were unemployed Denied the limited amount of relief

Many migrated to northern cities Conditions not much better there

Scottsboro Case Nine African American boys were convicted of rape in

Alabama Evidence shows that the rapes didn’t occur 8/9 sentenced to death

Case went to the Supreme Court

NAACP grew stronger as it broke down racial barriers

By 1932- nearly 1/2 African Americans were unemployed Denied the limited amount of relief

Many migrated to northern cities Conditions not much better there

Scottsboro Case Nine African American boys were convicted of rape in

Alabama Evidence shows that the rapes didn’t occur 8/9 sentenced to death

Case went to the Supreme Court

NAACP grew stronger as it broke down racial barriers

Hispanics and the Depression

Hispanics and the Depression

The Southwest part of the U.S. saw massive migration from Mexico They experienced immigration similar to

African Americans Chicanos (as Mexican Americans

were known) were primarily migrant farmers As whites headed west in search of jobs,

they demanded those held by Chicanos

The Southwest part of the U.S. saw massive migration from Mexico They experienced immigration similar to

African Americans Chicanos (as Mexican Americans

were known) were primarily migrant farmers As whites headed west in search of jobs,

they demanded those held by Chicanos

Women and Families in the Great Depression

Women and Families in the Great Depression

Depression reemphasized the belief that a woman’s place was in the home.

Men moved into jobs that were traditionally held by women

Female industrial workers were more likely to be laid off or have reduced hours

Nonprofessional jobs held by women were less likely to be laid off

By the end of the 1930s feminism was at its lowest point in a hundred years

Depression reemphasized the belief that a woman’s place was in the home.

Men moved into jobs that were traditionally held by women

Female industrial workers were more likely to be laid off or have reduced hours

Nonprofessional jobs held by women were less likely to be laid off

By the end of the 1930s feminism was at its lowest point in a hundred years

Values and CultureValues and Culture

Social values changed very little during the Depression Maintained the traditional individual success

ethic Some people thought the economic problems

were society’s fault Photographers documented the extreme conditions

of the rural poor Books such as John Steinbeck’s The Grapes of Wrath

(1939) pointed out the injustices in society

Radio and the movies provided light and diverting entertainment

Social values changed very little during the Depression Maintained the traditional individual success

ethic Some people thought the economic problems

were society’s fault Photographers documented the extreme conditions

of the rural poor Books such as John Steinbeck’s The Grapes of Wrath

(1939) pointed out the injustices in society

Radio and the movies provided light and diverting entertainment

The Allure of the LeftThe Allure of the Left

Appealed to intellectuals, artists, workers, African Americans and other disenchanted with American life

American Communist party saw a rise in numbers 100,000 during mid-1930s It helped organized black sharecroppers in

Alabama Its close supervision by the Soviet Union hurt it in

the U.S. Socialist party saw membership go below

20,000 by 1936.

Appealed to intellectuals, artists, workers, African Americans and other disenchanted with American life

American Communist party saw a rise in numbers 100,000 during mid-1930s It helped organized black sharecroppers in

Alabama Its close supervision by the Soviet Union hurt it in

the U.S. Socialist party saw membership go below

20,000 by 1936.

The Hoover ProgramThe Hoover Program

Attempt to restore confidence in the economy Summoned business, labor and agricultural leaders

and urged voluntary cooperation for recovery This system did not work

Asked Congress to increase spending for works programs It didn’t spend enough or last long enough to work

As the crisis continued, he tried proposed a tax increase to balance the budget

Attempted to help farmers Farm Board created to help maintain prices Smoot-Hawley tariff set up to protect 75 farm products

from competition

Attempt to restore confidence in the economy Summoned business, labor and agricultural leaders

and urged voluntary cooperation for recovery This system did not work

Asked Congress to increase spending for works programs It didn’t spend enough or last long enough to work

As the crisis continued, he tried proposed a tax increase to balance the budget

Attempted to help farmers Farm Board created to help maintain prices Smoot-Hawley tariff set up to protect 75 farm products

from competition

The Hoover ProgramThe Hoover Program

1930 midterm elections Hoover’s popularity declining Democrats took substantial control of the House Democrats made gains in the Senate

1931 international financial panic Showed that the downturn wasn’t ending soon

Hoover tried new measures Reconstruction Finance Corporation (RFC)

Created to provide federal loans to struggling banks, railroad and other businesses

Made funds available to support public works programs

1930 midterm elections Hoover’s popularity declining Democrats took substantial control of the House Democrats made gains in the Senate

1931 international financial panic Showed that the downturn wasn’t ending soon

Hoover tried new measures Reconstruction Finance Corporation (RFC)

Created to provide federal loans to struggling banks, railroad and other businesses

Made funds available to support public works programs

The Rise of Popular Protest

The Rise of Popular Protest

Farmers’ Holiday Association Wanted to withhold farm products from the

market (a strike)

Bonus Army WWI veterans demanding their bonus be paid June 1932- 20,000 veterans march to

Washington The military, using machine guns and six

tanks, forced the veterans out of the city. 100 marchers were inured and 1 baby died

Farmers’ Holiday Association Wanted to withhold farm products from the

market (a strike)

Bonus Army WWI veterans demanding their bonus be paid June 1932- 20,000 veterans march to

Washington The military, using machine guns and six

tanks, forced the veterans out of the city. 100 marchers were inured and 1 baby died

The Election of 1932The Election of 1932

Hoover was unenthusiastically renominated by the Republicans

Franklin Delano Roosevelt nominated by the Democrats Was governor of New York.

Roosevelt won 472-59 in electoral votes 57.4%-39.7% in popular votes

Hoover was unenthusiastically renominated by the Republicans

Franklin Delano Roosevelt nominated by the Democrats Was governor of New York.

Roosevelt won 472-59 in electoral votes 57.4%-39.7% in popular votes

Waiting for FDRWaiting for FDR

Four months between the election and inauguration

Hoover tried to work with FDR to slow the worsening crisis FDR would not commit to anything

In February the American banking system was close to collapse Hoover asked FDR to declare he would not

tinker with the currency Borrow heavily Unbalance the budget

Roosevelt refused

Four months between the election and inauguration

Hoover tried to work with FDR to slow the worsening crisis FDR would not commit to anything

In February the American banking system was close to collapse Hoover asked FDR to declare he would not

tinker with the currency Borrow heavily Unbalance the budget

Roosevelt refused