Introduction: The Great Depression and The Grapes of Wrath

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IntroductionThe Great Depression and The Grapes
of Wrath
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Through 1928 stock prices rose and
roseBrokerages offered very easy credit to
those whose speculated (foolishly) on booming
stock marketUnstable situation- eventually fell
apartLack of regulation at time allowed stocks
in just about everything to lose half their
value, some to lose all their value
1929 Stock Market Crash
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1929- more than half the families in America
lived on or below poverty level. 90 percent of
wealth held by 5 percent of peoplePeople
couldnt afford consumer goods Because wages so
low- and rich people not numerous enough to buy
enough stuff to keep economy
Inadequate distribution of wealth
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Between 1930 and 1933, 9000 banks went out of
businessMoney supply shrank by one
thirdManufacturers and merchants reduced
production, cut prices, laid off workers
Collapse of Banks and Constriction of Money
Supply
A "bank run" in Detroit, 1933. Panicking
customers rushed to withdraw savings
A "bank run" in Detroit, 1933. Panicking
customers rushed to withdraw savings
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The Dust Bowl

• Combination of prolonged drought and decades of
  irresponsible farming led to ecological crisis
• Soil of Great Plains dried up, was picked up by
  wind, and driven all the way to Chicago
• The Dust Bowl lasted from 1931-39
• 500,000 Americans left homeless

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Bad Foreign Policy Poor market- Would not
forgive European debt, especially Germanys. -
High Tariffs Europe retaliatedBad domestic
policy - Did not move to regulate banks or
interest rates- Felt Depression would work
itself out
Herbert Hoover Bad President
Bad President
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Results/ Themes

• Entire fiasco forced Americans to consider
  radically changing
• Economic System? Socialism
• Social System ? Distribution of Wealth
• Political System ? Populism
• Agricultural System ? Industrialized
• Labor Relations ? Rise of Organized Labor
• American Identity/ Dream ? More mature/ critical