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The Great Depression

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The Great Depression

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  2. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops                             
  3. The Great Depression
  4. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops <ul><li>Old industrial base is outdated, time for new equipment </li></ul><ul><li>2. Crisis in the farm sector – OVERPRODUCTION </li></ul><ul><li>3. Availability of easy credit (installment plans) </li></ul><ul><li>4. Unequal distribution of income, too little money in the hands of working people. </li></ul>Causes of the Great Depression                             
  5. Idle Factory
  6. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops                             
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  8. A haunting sense of failure and uncertainty about the future – powerlessness and helplessness….
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  10. Farming - prices fall constantly during the 1920’s post war depression decreases demand. R Industry is becoming more concentrated/consolidated; Government is pro – business. Two hundred companies control 51%of the economy and it becomes stiff and rigid. Growing concentration of wealth: Per Capita income grows by 9%, but 75% of that growth goes to the top 1% Integrated global economy has structural instability and chaotic volatility Crash of 1929 reveals weaknesses in the economy                             
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  12. panic Investments - people lose $ Income goes down Factories close Unemployment The Great Depression
  13. After the Stock Market Crash of 1929 <ul><li>1933 6,000 banks have closed </li></ul><ul><li>2. Between 1929-1933 Nation’s total GNP drops from 104-59 billion </li></ul><ul><li>3. Unemployment leaped from 3% (1.6 million) in 1929 to 25% (13 million) in 1933 </li></ul><ul><li>4. 1 Out of every 4 workers was out of a job </li></ul>                            
  14. What is an economic depression? Idle Factory
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  18. Idle Factory
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  20. Bread line
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  23. Employment Line
  24. THE DUST BOWL Causes? Effects?
  25. “ Necessity is the mother of invention” Taming the Great Plains                             
  26. Homework 1900 In 1830 it took 3 hours minutes to produce a bushel of grain, by 1900 it took 10 minutes. 1830 Mechanization                             
  27. The American Farmer is introduced to a variety of labor saving machines that increased their efficiency and productivity. By 1890 there are 900 manufacturers of farm machinery . The American farmers takes out loans to purchase new equipment. The efficient cultivation of crops leads to OVERPRODUCTION and a market surplus!!
  28. Overproduction drives the prices of crops down…..What does this mean for the American farmer??
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  34. &quot;And then the dispossessed were drawn west- from Kansas, Oklahoma, Texas, New Mexico; from Nevada and Arkansas, families, tribes, dusted out, tractored out. Car-loads, caravans, homeless and hungry; twenty thousand and fifty thousand and a hundred thousand and two hundred thousand. They streamed over the mountains, hungry and restless - restless as ants, scurrying to find work to do - to lift, to push, to pull, to pick, to cut - anything, any burden to bear, for food. The kids are hungry. We got no place to live. Like ants scurrying for work, for food, and most of all for land.&quot;
  35. The Dust Bowl Causes Effects Homesteaders 1860’s Uprooted Farmers 1930’s Post Civil War land rush drew thousands of families west search for free land and new opportunities Unemployed farmers leave failed farms and the dust bowl in search of work                             
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  38. HOOVER’s APPROACH <ul><li>Insensitive towards the American people </li></ul><ul><li>2. Hoover believes in economic individualism and viewed government response as temporary supports “Associationalism” </li></ul><ul><li>3. Felt capitalism would fix itself … Prosperity is just around the corner </li></ul><ul><li>4. More of a cheerleader…. </li></ul>                            
  39. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops                              Bonus Army demonstrators are dispersed by armed guards and tear gas on July 29, 1932.
  40. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops <ul><li>BONUS ARMY, 1932 </li></ul><ul><li>WWI veterans owed bonus in 1945 and 17,000 vets march on DC to petition for an early bonus (Senate kills the bill) </li></ul><ul><li>After defeat of bill 2,000 stay for the summer of 1932 and are dispersed by the US Army (PR nightmare) </li></ul><ul><li>Army coming in is a typical governmental response to labor unrest </li></ul>                            
  41. Hoovervilles
  42. The Election of 1932 Prosperity is just around the corner I promise a New Deal !
  43. FDR claims he will employ with bold consistent experimentation when he gets in office
  44. INTRO to FDR <ul><li>Americans ready for a change </li></ul><ul><li>2. Elected with 23 million votes (57% of voting population) </li></ul><ul><li>3. More of a quarterback…willing to experiment </li></ul>                            
  45. Franklin D. Roosevelt First Inaugural Address Saturday, March 4, 1933 So first of all let me assert my firm belief that the only thing we have to fear. . .is fear itself. . . nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously.                             
  46. Franklin D. Roosevelt First Inaugural Address Saturday, March 4, 1933 RECOGNIZE the problem/crisis ASSERTION - we will survive and prosper LEADERSHIP – This nation asks for action, and action now.                             
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  48. . The Great Depression fundamentally reshapes the way the American people think about the role of government #1 Creates security in the system to change the length and harshness of business cycle #2 Changes the expectations about what government could and should do Federal Budget: 1920 $3 billion 1930 $6 billion                             
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  57. President Hoover’s approach to the Depression

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