The Great Depression: Causes and Effects

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The Great Depression: Causes and Effects

  1. 1. TheGreatDepression<br />Causes and Effects<br />
  2. 2. Causes<br />1. False Prosperity<br />2. Speculation<br />3. Stock Market Crash<br />4. Banking Crisis<br />5. Unemployment<br />6. Trade Collapse<br />7. Republican Policy<br />
  3. 3. False Prosperity<br /><ul><li>Overdependence on mass production
  4. 4. Overproduction in textiles, farming, autos
  5. 5. 60% population earned less than the $2000 poverty minimum
  6. 6. Top 5% earned 33% income - spending by the rich essential</li></li></ul><li><ul><li>Broker loans on call rose from $3.5b in 1927 to $8.5b in 1929
  7. 7. Only 1.5m of 120m population were investors
  8. 8. Charles Mitchell of National City Bank: "I know of nothing fundamentally wrong with the stock market." (Oct. 21, 1929)</li></ul>Speculation<br />
  9. 9. Stock Market Crash<br /><ul><li>Sep. 3 Dow high of 381
  10. 10. Oct. 23 - J.P. Morgan buys to stop price decline
  11. 11. Oct. 24 - panic selling began - 12.8m shares
  12. 12. Oct. 29 - "Black Tuesday" - 16.4m shares</li></li></ul><li>Banking Crisis<br /><ul><li>Deposits withdrawn: leads to deflation
  13. 13. 9000 banks fail in 1930</li></li></ul><li>Unemployment<br /><ul><li>Ripple effect as leading factories close
  14. 14. Rose to 25-35% of total labor force
  15. 15. 80% in Toledo
  16. 16. Farm income declined 60%
  17. 17. 1/3 lost their land</li></li></ul><li>Trade Collapse<br /><ul><li>Foreign countries retaliate with high tariffs
  18. 18. Weimar Republic unable to pay reparations or U.S. banks loans
  19. 19. U.S. had been a creditor with $638m annual surplus</li></li></ul><li>Republican Policy<br /><ul><li>"The Ordeal of Herbert Hoover"
  20. 20. Laissez-Faire
  21. 21. Balanced budget
  22. 22. Trickle down
  23. 23. Voluntarism
  24. 24. Hawley-Smoot tariff</li></li></ul><li>Social Problems<br /><ul><li>Unemployment and poverty
  25. 25. Breakdown of families
  26. 26. Soaring high school dropout rates (2 to 4 million)
  27. 27. Homelessness
  28. 28. Organized protests
  29. 29. Around the country, the homeless built settlements of cardboard and tar-paper shacks, called "Hoovervilles" in reference to President Hoover
  30. 30. Farmers armed with guns and pitchforks marched on the local banks to prevent foreclosures</li></li></ul><li>Laying the Blame <br />The American public found the "Three B's" responsible for the Crash and the Depression:<br /> Bankers <br /> Brokers <br />3. Businessmen <br />
  31. 31. Effects<br />
  32. 32. Unemployment grew to record proportions. 1 in 4 people were unable to find work.<br />
  33. 33. People waited in all day lines at the unemployment office.<br />
  34. 34. Lines would wrap around the buildings and hardly move at all.<br />
  35. 35. If you were lucky enough to get in, you would be interviewed to determine your need.<br />
  36. 36. With word of banks failing, people stormed the banks, demanding their savings.<br />
  37. 37. Unable to withdraw their money from the banks, and not getting enough unemployment to live off of, people had no choice but to sell their farms.<br />
  38. 38. There were huge evacuation auctions where people sold all of their possessions.<br />
  39. 39. Many people packed up everything they had left and lived out of their cars.<br />
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  41. 41. This car was the home for a family of nine.<br />
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  44. 44. They traveled from place to place willing to do any type of work. All they worried about was how they were going to get their next meal.<br />
  45. 45. Many performed intense manual labor on farms. Picking cotton was one of the hardest jobs.<br />
  46. 46. Dust storms continually popped up due to severe droughts. This one was in eastern Colorado.<br />
  47. 47. The sand would pelt your face and sting your skin. It would often block out the sun and make noontime seem like midnight.<br />
  48. 48. Those who couldn’t sell their farms simply abandoned them. These were in Oklahoma.<br />
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  54. 54. Farmers hurriedly built fences to keep the sand away from their farm houses and to protect their livestock.<br />
  55. 55. Sand drifts would pile up along the roads and fences. This was taken in Texas.<br />
  56. 56. This used to be a road. Again, in Texas.<br />
  57. 57. Shanty towns, or “Hoovervilles” began popping up along major highways.<br />
  58. 58. People made make-shift shelters out of whatever material they could find.<br />
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  61. 61. The government set land aside where people could establish tent cities, small communities of homeless people living under tents.<br />
  62. 62. In these tent cities, people were unable to bath, there was poor sanitation, and everything was dirty.<br />
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  64. 64. Proud men were forced to humble themselves and stand in line at soup kitchens.<br />
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  66. 66. On special occasions, some families may have gotten some food. This is Christmas dinner in a “Hooverville”.<br />
  67. 67. Then there were the children<br />
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  78. 78. Analyzing the Images<br />
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  83. 83. Hoover vs. FDR<br />
  84. 84. President Herbert Hoover<br /><ul><li>Rags to riches - American dream
  85. 85. Orphaned at an early age
  86. 86. Very bright
  87. 87. Worked his way through Stanford University
  88. 88. Made a fortune as a mining engineer and consultant</li></li></ul><li>President Herbert Hoover<br /><ul><li>Head of the Food Administration during WWI
  89. 89. Conducted relief efforts in Europe during and after WWI
  90. 90. Earned a stellar reputation for efficiency and diplomacy
  91. 91. Very popular politician
  92. 92. Believed in local solutions and private initiatives to solve social problems</li></li></ul><li>President Franklin Delano Roosevelt<br /><ul><li>Distant (5th cousin) relative of Teddy Roosevelt
  93. 93. Privileged Child: Family name was well known
  94. 94. Married Eleanor Roosevelt - TR's Niece
  95. 95. TR was basically a father to Eleanor </li></li></ul><li>President Franklin Delano Roosevelt<br /><ul><li>Elected to the senate for NY in 1910
  96. 96. Ran for Vice-President in 1920 with James Cox
  97. 97. Struck down by polio in 1921
  98. 98. Paralyzed from the waist down
  99. 99. Dropped out of public life for 7 years
  100. 100. Left him with a strong empathy for suffering
  101. 101. Got into politics in 1928 - elected governor of NY
  102. 102. Ran for President in 1933</li></li></ul><li>Hoover<br />--------------------------<br />“Every time we find solutions outside of the government, we have not only strengthened our character, but we have preserved our sense of real government.”<br />FDR<br />--------------------------<br />“The test of our progress is not whether we add more to the abundance of those who have much, it is whether we  provide enough for those who have little.”<br />

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