Economy in the late 1920s

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Chapter 16 Crash and Depression 1929-1933 (pages
474-504)

• Economy in the late 1920s
• Stock market increased value
• Unemployment below 4
• Everybody ought to be rich
• John Raskob
• invest

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Business begin Welfare Capitalism

• Increased Wages
• Healthcare
• Paid Vacations

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Signs of Trouble

• Uneven riches-rich get richer and poor get poorer
• Mainly Big Businesses
• 80 of Families had no savings
• Buying on credit
• New appliances
• Installment buying

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Playing the Market

• Life Savings
• Buy on the Margin-Credit
• Too many Goods, too little demand
• Farmers had hard times
• Decreased demand for food overseas

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The Stock Market Crash

• Stocks valued higher than their worth
• Stock prices drop-buyers become worried
• Oct. 29, 1929 stocks plummet
• People try to sell stocks
• Some people lost money others lost their life
  savings
• Brokers and Banks call in loans

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Effects of the Crash

• Ripple effect
• Factories close
• Unemployment
• Small businesses hurt
• Agricultural prices decrease
• Banks collapse
• Rush of depositors

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U.S. Depression Affects the World

• Allies had to pay war debts
• Germany had to reparations but couldnt without
  U.S. help
• Tariffs high on Imports could not sell goods
• Global downward spiral

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Social Effects of the Depression

• Affected White collar and Blue collar workers
• Hoovervilles-shanty towns
• Farm Distress
• Decreased prices
• Sharecroppers and tenant Farmers kicked out
• Destroyed goods
• Dustbowl
• Drought/dust storms on the Great Plains
• Left farms and moved to California for migrant
  farmer jobs

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The Dust Bowl
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The Dust Bowl
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Health Problems

• Lack of Food-Sickly people, especially children
• Grew food in the South
• Tried to sell odds and ends
• Picked trash cans

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Family Problems

• Moved in together
• Men felt like failures-ashamed
• Marriages postponed
• Women worried about feeding kids
• Men thought women were taking their jobs

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Discrimination Increased

• African Americans moved north as janitors and
  porters
• Had to get private help-Government discriminated
• Southerners said African Americans stole white
  jobs
• Lynchings increased
• Denied civil rights
• Scotsboro boys

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Surviving the Great Depression

• People helped each other
• Farmers bought farms and gave them back to their
  owners
• Moves to the left
• Some became socialists but not many
• Looking Ahead
• Humor-Hoover blankets etc

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Prohibition Repealed

• 21st Amendment
• Increased production in some industries
• Empire State Building
• End of an Era
• The Babe, Al Capone, Henry Ford, and Calvin
  Coolidge

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Election of 1932 A Turning Point in History

• Hoovers Voluntary Action
• Hoover Dam
• Tariffs
• John Maynard Keyes
• Veterans March
• Bonus Army

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The Bonus Army
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The New Deal

• FDR
• Harvard
• New York State Senate
• Assistant Secretary of the Navy
• Polio
• Became Governor

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FDR
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Political Cartoon
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Eleanor Roosevelt

• Teddys niece and FDRs distant cousin
• Worked at settlement house
• Womens Rights
• Many people voted against Hoover

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Eleanor