amh- the great depression

• Food production was not demanded after WW!, lead to farmers struggling

• Production of cars, technology was booming

What was production like for food vs technology after WW1?

Mass produced items are bought, stocks are bought and traded all on fictitious money. The banks have no physical money

What was the financial setting like in 1929 before the crash?

Stock market has grown to 40%, everyone is promoting the craze

What percentage did the stock market grow to in 1928 (before the crash in 1929)?

Investing became an obsession for the general public; people from all classes were able to “buy” but none of them actually had to pay any money up front to acquire the stocks

What was the attitude towards investing in the 20’s? How did its structure allow for it to get so popular?

A weak economy on top of the stock built up to the big crash (buying stock, buying goods; frenzy)

What caused the stock market crash in simple terms?

Black Tuesday

Oct. 29, 1929; 16M shares that were invested into the stock market were pulled out in a single day, leading to the closure of banks and prices collapsing and the start of the GD

2,000 closed on Black Tuesday; 9,000 banks closed by the end of 1933

How many banks closed on Black Tuesday? How many were closed by the end of 1933?

25%, 15M

__% or __M Americans were unemployed during the start of the GD

Lit the flame to the fire but it wasn’t just the stocks. The economy at that point was foundationally based on imaginary money. The reality of plummeting was inevitable.

Did the stock market crash cause the GD?

President during the GD; believed public aid would decrease capability of the public and they would become too reliant on the government

Herbert Hoover

Fueling the crisis due to his belief of little government intervention

Did Hoover’s response to the GD fuel or help the GD?

Thousands of unemployed WWI veterans gathered to demand early payment of their promised war bonus in DC and were open fired on by police

The Bonus Army March of 1932

Public outcry helped seal fate of Hoover not being re-elected

How did The Bonus Army March of 1932 negatively affect the Hoover’s re-election campaign?

Became president after Hoover; built campaign based on action and change and is the only 4-term president 

Franklin D. Roosevelt

FDR declared a “bank holiday”, closing all of the banks to stop widespread bank runs and prevent further economic chaos

What was FDR’s first response to the GD as president?

Enacts the FDIC; ensures your money up to $5,000

Glass Act

Pays farmers so they can stop mass producing food; farmers were struggling with low prices of foods so the AA pays them to stop producing food, which makes it easier for farmers to get back on their feet without having to spend money, time, and energy harvesting food for any money they can get

Agricultural Adjustment Act and how it helped farmers

Controversial due to starvation around US still being present

Why was the Agricultural Adjustment Act controversial?

Created public work administration which funded these large projects, stimulated economy

What was FDR’s second response to the GD?

Created jobs, established federal aid, protected worker rights 

How did the public reform by FDR help the people of US?

Created pension for elderly people and welfare for unemployed, children with 1 parent

Social Security

Gives people the right to unionize and bargain with employers

Wagner Act

• Employs 8M Americans to build airports, schools (all public buildings)

• Supports fine arts

The WPA (Works Progress Administration)

Striked out but some still remain

What happend to the majority of the acts enacted by FDR?

The worst of the GD has eased due to banks rebuilding and people going back to work, public now protected by government; unemployment was still 15%; partially recover economically; federal government’s power was expanded (federal intervention)

What was the economy like in 1938 (almost 10 years after the GD started)?

Huge, black dust storms went across the farming regions of the US; the way the farmers were plowing and farming was destroying the ecosystem, no rain; resulted in big dust storm

The Dust Bowl and its cause

Families headed west to California, hoping to work in fruit fields

Where did farmer families go to evade the Dust Bowl?

Act established in response to the devastation of the Dust Bowl that implemented crop rotation

Soil Conservation Act of 1935

GD officially ended in 40’s after WW2; ended by mass production of weapons and hiring soldiers, creating thousands of jobs

How did the GD end?