The Great Depression and The New Deal

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The Great Depression and The New Deal

• Causes and Effects of the Depression How We Got
  Out

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The " Great Depression " was a worldwide
economic disintegration symbolized in the United
States by the stock market crash on "Black
Thursday", October 24, 1929 . The causes of the
Great Depression were varied, but the impact was
visible across the country. When FDR was
inaugurated president on March 4, 1933, the
banking system had collapsed, nearly 25 of the
labor force was unemployed, and prices and
productivity had fallen to 1/3 below their 1929
levels. Reduced prices and reduced output
resulted in lower incomes in wages, rents,
dividends, and profits throughout the economy.
Factories were shut down, farms and homes were
lost to foreclosure, mills and mines were
abandoned, and people went hungry. The
resulting lower incomes meant the further
inability of the people to spend or to save their
way out of the crisis, thus perpetuating the
economic slowdown in a seemingly never-ending
cycle.
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SSUSH 17The student will analyze the causes and
consequences of the Great Depression

• A. Describe the causes, including overproduction,
  underconsumption, and stock market speculation
  that led to the stock market crash of 1929 and
  the Great Depression

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Causes of the Great Depression

• Global Economic Downturn
• (connection to WWI)
• Unequal distribution of wealth
• (rich-poor gap)
• Increased Supply, Decreased Demand
• (Overproduction Underconsumption)
• Bank Failures
• Easy Credit Margin Spending
• (buying stocks on margin speculation)
• Stock Market Crash 1929

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Stock Market Crash 1929
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Effects of the Great Depression

• Unemployment at 25
• Homelessness
• Poverty
• Destruction of Families
• Farm Losses
• Business and Bank Failures

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Unemployment
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Poverty Soup Bread Lines
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Hoovervilles
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Farm Foreclosure
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Migrant Mother Photograph
Migrant Mother photograph that
Dorothea Lange made of Florence Owens Thompson
and her children in 1936 in California.
Lange gave this account of the experience
I saw and approached the hungry and desperate
mother, as if drawn by a magnet. She asked me no
questions. I did not ask her name or her history.
She told me her age, that she was thirty-two. She
said that they had been living on frozen
vegetables from the surrounding fields, and birds
that the children killed. She had just sold the
tires from her car to buy food. There she sat in
that lean- to tent with her children huddled
around her. (From Popular Photography, Feb.
1960).
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SSUSH 17The student will analyze the causes and
consequences of the Great Depression

• Explain the impact of the drought in the creation
  of the Dust Bowl

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Black Blizzards name given to the one
thousand foot high dust storms that overtook the
Midwest during the Great Depression.
Farmers of the area in and around the panhandle
of Texas abused the land with their poor farming
techniques. Failure to take proper care of
the soil they were using resulted in the land
losing moisture which made it vulnerable to wind
erosion. Besides land being destroyed by
farmers, the rest of the land in the area that
was rich in grass was also destroyed by
overgrazing of livestock. The combination of this
and a major drought in the 1930's led to the
tragic events of the Dust Bowl.
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SSUSH 17The student will analyze the causes and
consequences of the Great Depression

• C. Explain the social and political impact of
  widespread unemployment that resulted in
  developments such as Hoovervilles.

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Hoovers Policy

• Rugged Individualism
• Smoot-Hawley Tariff
• Conferences Speeches to help stimulate economy

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Hoovers Policy

• Public Works projects
• 1) big contracts
• 2) JOBS
• Over 800 million in public works
• Hoover Dam
• Reconstruction Finance Corporation

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Bonus Army
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Social Unrest

• Hoover blamed for everything!
• Communism and Socialism considered by many as
  viable form of government
• Marches and Protests
• Bonus Army