Ch._11_Great_Depression

October 29, 1929: Stock market crashes on Black Tuesday.
1930: Publication of Remarque's All Quiet on the Western Front; Ras Tafari becomes Emperor Haile Selassie of Ethiopia; Grant Wood paints American Gothic.
June 1930: Hawley-Smoot Tariff passed.
1932: Reconstruction Finance Corporation is created; severe drought affects Great Plains.

Prosperity seemed limitless before the Great Depression.
Major contributing factors:
- Overproduction in industries and agriculture.
- Economic collapse primarily impacts workers and savings.
President Hoover's Responses:
- Advocated for voluntary business action and limited government relief; efforts largely ineffective.
- Millions of Americans lost jobs and life savings during this time.
Cultural Responses:
- Artists and writers reflected societal suffering; people gravitated towards escapism in lighthearted films.

Legacy:
- Hoover’s approach to business-government cooperation influences future policies.
- Artistic works like John Steinbeck’s The Grapes of Wrath and Grant Wood's American Gothic continue to resonate.

September 4, 1929: Initial worries about stock prices lead to sell-offs.
October 21-29, 1929: Panic culminates in Black Tuesday.
- Stocks lost $10-$15 billion in a single day.
Economic Effects:
- Broader economic weaknesses were exacerbated by the crash.
- Banks faced significant losses due to loans to speculators.

The bull market characterized by rising stock values led to speculation and margin purchasing.
- Margin allows purchasing large amounts with little initial cash.
Market volatility increases sensitivity to price drops; brokers respond with margin calls.

Market Speculation: Excessive speculation inflated stock prices beyond company value.
Poor Banking Practices: Many banks invested in stock markets leading to failures.
Uneven Wealth Distribution: Wealth concentration limited consumer spending capacity.
High Tariffs: Protectionist tariffs reduced international trade—Hawley-Smoot Tariff intensifies the situation.
Federal Reserve Policies: Low interest rates in the 1920s encouraged risky loans.

Annetta Gibson, an educator, describes struggles of her students who lost savings when banks failed.
A young girl, Dynamite Garland, recounts extreme hardship living in a garage after her father lost employment.
Soup kitchens became commonplace, and desperate families formed shantytowns, termed Hoovervilles.
Many searched for work, as banks foreclosed on properties leading to widespread homelessness.

Entertainment was a crucial solace during tough times:
- Movies and radio provided escapism and temporary relief.
- Artists like Grant Wood and writers like John Steinbeck portrayed hardships while fostering empathy.

Initially responded with voluntary measures and public works initiatives to stimulate job creation.
Established the Reconstruction Finance Corporation (RFC) to provide loans to banks and businesses.
Reluctant to implement federal relief; favored a philosophy of limited government intervention.

Public discontent grew as relief measures elapsed without significant economic improvement.
Bonus Army: Tens of thousands of WWI veterans organized to demand early payment of their bonuses, leading to violent confrontations with federal forces.

The Great Depression fundamentally reshaped American society, influencing economic policies and cultural productions.
Artists and writers played vital roles in documenting and interpreting the struggles of the era.
The period remains critical in understanding modern economic and social frameworks.