Essential Question What were the causes and effects of the Great Depression? What were the causes and effects of the Great Depression?

Essential QuestionEssential Question

What were the causes What were the causes and effects of the Great and effects of the Great

Depression?Depression?

Causes of the DepressionCauses of the Depression

Election of 1928Election of 1928

Republican Republican candidate Hoover candidate Hoover stated, stated,

““We are nearer to We are nearer to the final triumph the final triumph over poverty than over poverty than ever before in the ever before in the history of any history of any land.”land.”

U.S. AgricultureU.S. Agriculture

New inventions – New inventions – higher crop yieldshigher crop yields

OverproductionOverproduction

Low profits for Low profits for farmersfarmers

High Stock MarketHigh Stock Market

Bull market – Bull market – heavy heavy investinginvesting

Rising stock Rising stock pricesprices

Margin BuyingMargin Buying

Many investors Many investors used loans to used loans to purchase stock purchase stock with small down with small down paymentspayments

SpeculationSpeculation

Buyers who Buyers who hoped to make hoped to make a fortune a fortune overnightovernight

Took risks Took risks betting that the betting that the market would market would continue to risecontinue to rise

The Great CrashThe Great Crash

Prices on the Prices on the stock market stock market began to slipbegan to slip

Professional Professional investors sold off investors sold off holdingsholdings

Further drop in Further drop in pricesprices

The Great The Great CrashCrash

Oct. 1929Oct. 1929

Market fell Market fell dramatically with dramatically with frenzied sellingfrenzied selling

Oct. 29, 1929 – Oct. 29, 1929 – Black Tuesday Black Tuesday with the sharpest with the sharpest declinedecline

U.S. BankingU.S. Banking

Many banks were Many banks were speculators or speculators or loaned money to loaned money to themthem

Stock market Stock market crash forced bank crash forced bank closingsclosings

U.S. BankingU.S. Banking

Deposits not Deposits not insuredinsured

People ran on People ran on banks to withdraw banks to withdraw savingssavings

3000 banks 3000 banks closedclosed

Cyclical Effect of EconomicsCyclical Effect of Economics

In the space provided, trace the In the space provided, trace the cyclical effect of the decline in cyclical effect of the decline in vehicle purchases as outlined on the vehicle purchases as outlined on the board.board.

Life During the DepressionLife During the Depression

The Depression WorsensThe Depression Worsens

By 1933 – 9000 By 1933 – 9000 bank failuresbank failures

12 million 12 million workers workers unemployed (1/4 unemployed (1/4 of the workforce)of the workforce)

Sharp drop in Sharp drop in family incomefamily income

Bread LinesBread Lines

People without People without jobs went jobs went hungryhungry

Private charities Private charities handed out foodhanded out food

Bread LinesBread Lines

Soup KitchensSoup Kitchens

Quote – Peggy TerryQuote – Peggy Terry

““If you happened to be one of the first If you happened to be one of the first ones in line, you didn’t get anything ones in line, you didn’t get anything but water that was on top. So we’d but water that was on top. So we’d ask the guy that was ladling out soup ask the guy that was ladling out soup into buckets – everybody had to into buckets – everybody had to bring their own bucket to get the bring their own bucket to get the soup – he’d dip the greasy, watery soup – he’d dip the greasy, watery stuff off the top. So we’d ask him to stuff off the top. So we’d ask him to please dip down to get some meat please dip down to get some meat and potatoes from the bottom of the and potatoes from the bottom of the kettle. But he wouldn’t do it.”kettle. But he wouldn’t do it.”

ShantytownsShantytowns

Families who Families who could not pay could not pay rent or rent or mortgages lost mortgages lost their homestheir homes

Put up shacks on Put up shacks on unused or public unused or public landslands

HoovervillesHoovervilles

Many people Many people blamed the blamed the presidentpresident

This became the This became the nickname for nickname for shantytownsshantytowns

HoovervillesHoovervilles

HobosHobos

Homeless or Homeless or unemployed unemployed Americans Americans wandering the wandering the country in search country in search of workof work

Many would Many would sneak onto sneak onto railroad carsrailroad cars

Dust BowlDust Bowl

Drought in the Drought in the Great Plains Great Plains beginning in 1932beginning in 1932

Ruined farmersRuined farmers

Dry soil became Dry soil became dust stormsdust storms

Dust Dust BowlBowl

Dust BowlDust Bowl

Many farmers Many farmers packed belongings packed belongings and headed west and headed west to Californiato California

Known as “Okies”Known as “Okies”

Lived in makeshift Lived in makeshift roadside campsroadside camps

HollywoodHollywood

Films and movies Films and movies became a means became a means of escape for of escape for those who those who watchedwatched

Release from the Release from the day’s worriesday’s worries

Walt DisneyWalt Disney

First feature-First feature-length animated length animated filmfilm

Snow White and Snow White and the Seven the Seven DwarvesDwarves

The Wizard of OzThe Wizard of Oz

Mr. Smith Goes to Mr. Smith Goes to WashingtonWashington

Gone With the WindGone With the Wind

Marx BrothersMarx Brothers

RadioRadio

Comedy – Jack Comedy – Jack Benny, George Benny, George BurnsBurns

Lone RangerLone Ranger

The Guiding The Guiding Light – soap Light – soap operaopera

Art During the DepressionArt During the Depression

For many artists, For many artists, the homeless and the homeless and unemployed unemployed became the became the subject of subject of pictures and pictures and storiesstories

Thomas Hart BentonThomas Hart Benton

Grant WoodGrant Wood

Grant WoodGrant Wood

Grant Grant WoodWood

John SteinbeckJohn Steinbeck

NovelistNovelist

Wrote Wrote The Grapes The Grapes of Wrathof Wrath (1939) (1939)

Story of a migrant Story of a migrant family leaving the family leaving the Dust Bowl for Dust Bowl for CaliforniaCalifornia

Dorothea Dorothea LangeLange

PhotographePhotographerr

Margaret Bourke-WhiteMargaret Bourke-White

PhotojournalistPhotojournalist

Showed the Showed the results of the results of the prolonged prolonged droughtdrought