GREAT DEPRESSION

1
GREAT DEPRESSION

• OVERPRODUCTION
• UNDERCONSUMPTION
• STOCK MARKET SPECULATION
• MARKET CRASH 1929
• HOOVERVILLES
• DUST BOWL
• OVER FARMING CLIMATE
• MIGRATION WEST

2
(No Transcript)
3
GREAT DEPRESSION

• CREDIT buyer pays later for a purchase
• SPECULATION engagement in a risky business
  transaction on the chance of a quick or
  considerable profit
• BUYING ON MARGIN purchasing stock on credit
• GREAT DEPRESSION period lasting from 1929 to
  1941 in which the US economy was in severe
  decline and millions of Americans were unemployed
• BLACK TUESDAY name given to October 29, 1929
  when stock prices fell sharply

4

• HAWLEY-SMOOT TARIFF ACT enacted in 1930-
  established the highest protective tariff in U.S
  history and worsened the depression in America
  and abroad

5
THROUGHOUT 1928 THERE WERE SIGNS THAT THE ECONOMY
WAS IN TROUBLE.

• OVERPRODUCTION companies producing more than
  they could sell. Surplus increased threefold
  between 1928 1929
• UNDERCONSUMPTION Consumers stopped buying
  manufactured goods that had spurred the boom?
  many concerned about CREDIT issues.
• Unequal Distribution of Wealth poor did not
  have to spend on consumer goods that kept
  millions employed
• OVER-SPECULATION Over-speculation borrowed to
  buy stocks and then pledged those stocks as
  collateral to buy more stocks no real money
  borrowing on optimism

6

• Buying on margin purchasing stock on credit
• GOVERNMENT FISCAL POLICIES allowed wealthy to
  keep more , reduced business regulations,
  lowered corporate taxes
• POOR Wages same but prices increased. New
  benefits for workers created a false sense of
  security so poor continued to buy even though
  they did not have the
• Slumps in key industries textile, railroads,
  auto, mining, lumbering, farming
• New construction declined while inventories
  increased

7

• EFFECTS OF GREAT DEPRESSION
• Millions laid off
• Women Children some cities refused to hire
  married women, many died from starvation and
  hypothermia, underfed, poor health, malnutrition
• Rich hit the quickest but the poor were hit the
  longest
• While wealthy people lost money in the stock
  market, many had other sources of income or
  resources to live on
• Blacks increased lynching and increased
  discrimination
• Latinos many Mexicans deported and discriminated
  against
• Barter system

8
SOUP KITCHENS AND BREAD LINES
9
FARMERS

• OVERPRODUCTION OF GOODS Farmers hit very hard
• McNary-Haugen Bill? called for federal PRICE
  SUPPORTS
• Govt buys high from farmers surplus
• Govt sells low on global market
• Govt makes up difference by taxing domestic food
  sales thus passing the cost of the farm program
  along to consumers

10
PRESIDENT HOOVER

• Believed that individuals, charities and private
  organizations should help care for the less
  fortunate decided to help far too late
• SHANTY TOWNS AKA HOOVERVILLES
• 1932 ELECTION DEMOCRAT FRANKLIN D. ROOSEVELT WON

11

• HOOVERVILLES aka
• SHANTY TOWNS
• Shacks, soup kitchens, breadlines
• Overall increase in divorce
• approximately 2 million men became vagrants
• AAS increase in lynching, targets of hostility,
  unemployment much higher
• LATINOS? mostly Mexicans? targets of hostility,
  many deported

12
Hoovervilles
13

• DUST BOWL region
• extending from Texas
• to N. Dakota that was
• made worthless by
• excessive farming,
• drought, and dust storms
• during the 1930s

14
(No Transcript)
15