Chapter 25

  1. “Black Tuesday” October 29, 1929- The stock market crashed and essentially ushered in the Great Depression

  2. Causes of Depression- The economy was too dependent on a very small number of industries. Too many customers were too poor to purchase the goods of an over-productive economy, too much credit had been extended to too many people. European demand for American goods was decreasing. Europe’s debt to American kept piling up and leading to default

  3. Progress of the Depression- Stock market collapse, Banks began to go bankrupt, Money supply decreased, Purchasing power decreased, companies cut prices, production, and employees. 

  4. Simple progress of the Depression- stock market collapsed, companies got into financial trouble. Companies had to lay people off. The unemployed had little money to spend. 

  5. Simple progress of the Depression- other companies had to contract or close. More people lost their jobs

  6. Unemployment- estimated at the time (1932) to be 25% or more. Averaged 20% throughout the 1930s and never got below 15%. Some cities in 1932; Cleveland- 50%, Akron- 60%. Toledo- 80%

  7. Relief- Financial assistance to the unemployed, through various government agencies. 

  8. Dust Bowl- A large area of the South and mIdwes experienced a sever drought during the 1930s. Millions of acres of farmland simply dried up and blew away in dust storms called “black bliszzards” 

  9. Scottsboro Case- In 1931, nine black teenagers were arrested in Alabama for vagrancy and disorder. Accused of raping two white women and quickly found guilty by an all white jury. We’re sentenced to death. All were eventually freed in 1950. 

  10. The Depression’s impact on the Families- Women learned to sew their own clothes and preserve their own food. Women took in laundry, sold baked goods, and took in borders. Relatives moved in with each other. Relatives moved in with each other. Families often broke up informally as unemployed men deserted them or tried to find work elsewhere. Many families gained strength and unity in suffering and learning to trust God. 

  11. Dale Carnegie- Author of Gow to Win Friends and Influence People. A best-selling self help book promoting the value of individual initiative and understanding other people. 

  12. John Steinbeck- Author of the novel The Grapes of Wrath concerning the trials of a family of “Oakies” who were migrating to California. 

  13. “Escapist” Radio Shows- 

  14. Life Magazine- photojournalism became popular, occasionally to portray depression conditions but more often as another diversion. 

  15. Abraham Lincoln Brigade- A group of more than 3000 hyoung Americans who went to Spain to fight against Franco’s rebel fascists. 

  16. Popular Front- The American Communist Party began to align itself with various downtrodden groups. Gained some support while taking its orders directly from the Comintern in Moscow. 

  17. Agricultural Marketing Act- Hoover established a government bureaucracy to help farmers maintain prices. It didnt work… 

  18. Hawley Smoot Tariff- Goover raised the rates to protect farm products. Raised rates on other things the farmers needed. Other countries chose to retaliate with trade restrictions 

  19. “Hoovervilles”- People began to blame the President personally for their troubles. “Hoovervilles” were makeshift shantytowns the desetitute established on the outskirts of cities. 

  20. Reconstruction Finance Corporation- Hoover established a government agency to provide federal loans to banks, railroads, businesses, and local governments. 

  21. Bonus Army- 1932- Veterans of WWI demanded early payment of their promised bonuses. Hoover refused. 20,000 veterans marched to Congress and stayed in makeshift housing

  22. Franklin D. Roosevelt- Wealthy, Educated at Harvard and Columbia. Overcame polio, governor of New York. Promised a “New Deal” for the American people.