•ECONOMY IN THE LATE 1920S•Stock market increased value•Unemployment below 4%•“Everybody ought to be rich”•John Raskob•invest

Chapter 16 Crash and Depression 1929-1933 (pages

474-504)

Business begin Welfare Capitalism

Increased WagesHealthcarePaid Vacations

Signs of Trouble

Uneven riches-rich get richer and poor get poorer

Mainly Big Businesses80% of Families had no savingsBuying on credit

New appliancesInstallment buying

Playing the Market

Life SavingsBuy on the Margin-CreditToo many Goods, too little demand

Farmers had hard timesDecreased demand for food overseas

The Stock Market Crash

Stocks valued higher than their worthStock prices drop-buyers become worriedOct. 29, 1929 stocks plummet

People try to sell stocksSome people lost money others lost

their life savingsBrokers and Banks call in loans

Effects of the Crash

Ripple effectFactories closeUnemploymentSmall businesses hurtAgricultural prices decreaseBanks collapse

Rush of depositors

U.S. Depression Affects the World

Allies had to pay war debtsGermany had to reparations but couldn’t without U.S. help

Tariffs high on Imports could not sell goods

Global downward spiral

Social Effects of the Depression

Affected White collar and Blue collar workers

Hoovervilles-shanty townsFarm Distress

Decreased prices Sharecroppers and tenant Farmers kicked out Destroyed goods Dustbowl

Drought/dust storms on the Great Plains Left farms and moved to California for

migrant farmer jobs

The Dust Bowl

The Dust Bowl

Health Problems

Lack of Food-Sickly people, especially children

Grew food in the SouthTried to sell odds and endsPicked trash cans

Family Problems

Moved in togetherMen felt like failures-ashamedMarriages postponedWomen worried about feeding kidsMen thought women were taking their jobs

Discrimination Increased

African Americans moved north as janitors and porters

Had to get private help-Government discriminated

Southerners said African Americans stole white jobs Lynchings increased Denied civil rights Scotsboro boys

Surviving the Great Depression

People helped each otherFarmers bought farms and gave them back to their owners

Moves to the leftSome became socialists but not many

Looking Ahead Humor-Hoover blankets etc

Prohibition Repealed

21st AmendmentIncreased production in some industries

Empire State BuildingEnd of an Era The Babe, Al Capone, Henry Ford, and Calvin Coolidge

Election of 1932: A Turning Point in History

Hoover’s Voluntary ActionHoover DamTariffsJohn Maynard KeyesVeteran’s March

Bonus Army

The Bonus Army

The New Deal

FDR Harvard New York State Senate Assistant Secretary of the Navy Polio Became Governor

FDR

Political Cartoon

Eleanor Roosevelt

Teddy’s niece and FDR’s distant cousin

Worked at settlement houseWomen’s RightsMany people voted against Hoover

Eleanor