Transcript THE GREAT DEPRESSION,

THE GREAT DEPRESSION,
 SSUSH17 The 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.
 b. Explain the impact of the drought in the creation
of the Dust Bowl.
 c. Explain the social and political impact of
widespread unemployment that resulted in
developments such as Hoovervilles.
GREAT DEPRESSION
 The Great Depression was a worldwide
economic downturn starting in most places in 1929
and ending at different times in the 1930s or early
1940s for different countries.
 The Great Depression originated in the United
States.
 Starting date, the stock market crash, on October
29, 1929, known as Black Tuesday.
 The end of the depression in the U.S.A. is
associated with the onset of the war economy of
World War II, beginning around 1939, 1940
CAUSES OF THE GREAT
DEPRESSION IN THE USA
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*1. Unequal distribution of wealth
*2. High Tariffs and war debts
*3. Superficial (“fake”) prosperity
*4. Stock market crash and financial
panic
1. UNEQUAL DISTRIBUTION OF
WEALTH
 1.RICH RICHER, POOR, POORER
 2.NOT ALL PEOPLE ENJOYED THE
PROSPERITY OF THE 1920S.
 3.NOT ENOUGH MONEY TO BUY THE
FLOOD OF GOODS PRODUCED
2. HIGH TARIFFS AND WAR
DEBTS
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1.REDUCED FLOW OF GOODS INTO USA
2.DECREASE IN TRADE
3.ECONOMIC RETALIATION ABROAD
4.NON-PAYMENT OF WAR DEBTS
3. SUPERFICIAL (FAKE)
PROSPERITY
 1.OVERPRODUCTION IN INDUSTRY AND
AGRICULTURE
 2.DECLINE IN DEMAND FOR GOODS
 3.DROUGHT CONDITIONS
4. STOCK MARKET CRASH AND
FINANCIAL PANIC
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1.FINANCIAL CRISIS
2.CONSUMER CREDIT AND DEBT
3.LESS SPENDING
4.BANK FAILURES
5.BUYING STOCKS ON MARGIN (BUYING
% OF STOCK AS DOWN PAYMENT, THE
REST ON CREDIT)
THE GREAT DEPRESSION
 International trade was deeply affected, as were
personal incomes, tax revenues, prices, and
profits. Cities all around the world were hit hard,
especially those dependent on heavy industry.
Construction was virtually halted in many
countries. Farming and rural areas suffered as
crop prices fell by 40 to 60 percent. Facing
plummeting demand with few alternate sources of
jobs, areas dependent on primary sector industries
such as farming, mining and logging, suffered the
most .
GREAT DEPRESSION
 The Great Depression ended at different
times in different countries. The majority of
countries set up relief programs, and most
underwent some sort of political upheaval
(change), pushing them to the left or right. In
some states, the desperate citizens turned
toward nationalist demagogues - the most
infamous being Adolf Hitler - setting the
stage for World War II in 1939.
IMPACT OF THE GREAT
DEPRESSION
 1.HARDSHIP, SUFFERING ON FAMILY, MEN, WOMEN,
CHILDREN
 2.SHANTYTOWNS, SOUP KITCHENS, BREAD LINES
 3.BEGINNING OF DUST BOWL, 1933-36
 a.CAUSED BY SEVERE DROUGHTS
 b.FARMERS PLOWED AND EXHAUSTED LAND.
 c.WIND REMOVED TOPSOIL, ESPECIALLY IN OK, KA,
TX, NM, CO
 d.MANY MIGRATE TO PACIFIC COAST STATES
 4.PSYCHOLOGICAL IMPACT-SUICIDES
IMPACT
 5.WIDESPREAD UNEMPLOYMENT
 a.MEN IN THE STREETS,
HOMELESSNESS
 b.TRANSIENT (MOVING) POPULATION
 c.NO DIRECT RELIEF (FOOD OR CASH
PAYMENTS) FROM GOVERNMENT
 6.HOOVERVILLES
IMPACT
 HOOVERVILLES, popular name for a
shanty town built by homeless men in the
depression years. The term was coined by
Charles Michelson, publicity chief of the
Democratic National Committee.
HOOVERVILLES
 These settlements were often formed on
empty land and consisted of jerry-built
shacks and tents. Authorities did not
officially recognize these Hoovervilles and
occasionally removed the occupants for
technically trespassing on private lands, but
they were frequently tolerated out of
necessity.
HOOVERVILLES
 Most people to building their residences out of box
wood, cardboard, and any scraps of metal they
could find. Some individuals even lived in sewer
mains.
 Most unemployed residents of the Hoovervilles
begged for food from those who had housing
during this era. Democrats coined other terms,
such as "Hoover blanket“, old newspaper used as
blanketing.
HERBERT HOOVER
 Herbert Clark Hoover
,1874 –1964, was the
thirty-first President of
the United
States,1929–1933.
HERBER HOOVER
 By 1932, the Great Depression had spread across the
globe. In the U.S., unemployment had reached 24.9%, a
drought persisted in the agricultural heartland, businesses
and families defaulted on record numbers of loans, and
more than 5,000 banks had failed. Tens-of-thousands of
Americans found themselves homeless and they began
congregating in the numerous Hoovervilles (also known as
shanty towns or tent cities) that had begun to appear
across the country. The name 'Hooverville' was coined by
their residents as a sign of their disappointment and
frustration with the perceived lack of assistance from the
federal government.
RESULTS OF THE GREAT
DEPRESSION
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1.UNEMPLOYMENT
2.RISE OF SHANTYTOWNS
3.BANKS FAIL AND SCHOOLS CLOSE.
4.WORLD ECONOMIC DOWNTURN
5.MORE GOVERNMENT INVOLVEMENT
6.PRESIDENCY OF FRANKLIN
ROOSEVELT, A DEMOCRAT, AND THE
NEW DEAL, 1932