S: Cause and Effect Of the Great Depression
BC: Shakia C. Watson English IV Ms. McLeod Senior Exit Product
FC: The American Storm! | Created by: Shakia Watson
1: The Great Depression | The Great Depression was an international economic crisis following World War I. America experienced this event from 1929 until approximately 1939. There are many theories about the cause of the depression, but the major starting point is listed as October 29, 1929, commonly called Black Tuesday.This was the date that the Stock Market fell dramatically by 12.8%. 16,410,030 shares of stocks were sold throughout America. Wall Street became a wailing wall as gloom and doom replaced bloom, and suicides increased alarmingly. No other industrialized nation suffered so severe a setback.
2: What led to the Great Depression in the 1930's ?
3: False Sense of Prosperity Before the Great Depression | During "The Roaring Twenties" when America was overdependent on production, automobiles were the leading industry. There was a great disparity between the rich and the poor. | 60% of the population was living below poverty levels. | 10% of the richest owned 40% of the nation's wealth | 5% of the wealthiest people in America accounted for 33% of the income | This uneven distribution of wealth was mirrored in the unequal distribution of riches between industry and agriculture.
4: Global Crisis | While America prospered during the 1920's, most of Europe was still reeling from the devastation of World War I. Their economic system fell dramatically. | America than became the world's banker so as Europe started defaulting on loans and buying less American products, the Great Depression started to spread.
5: Speculation and Over leverage | Buying Stock on the margin was easy to do because you only needed to pay 10% of the stock | There was Rampant speculation that led to falsely high stock prices. The stock market rose 181 points 1928 to 381 points in September 1929. This was fueled by optimism, false hope, and plunged by the stark fear. | They had loose stock market regulations. Investors were able to speculate wildly.
6: Stock Market Crash A Dark Day October 29,1929 | The formal advent of depression occurred on October 29,1929, when the New York stock market crashed. Stock values tumbled, as investors quickly lost confidence in issues that had been pushed ridiculously high. United States banks, which had depended heavily on their stock investments, rapidly echoed the financial crisis, and many institutions failed, dragging their depositor along with them
7: Bank Failures | As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash, during the first 10 months of 1930, 744 banks failed – 10 times as many. In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933 alone. By 1933, depositors saw $140 billion disappear through bank failures.
8: High Unemployment Rates | *Unemployment rates reached almost 25% with more than 11 million people looking for work *Farmers lost their land and homes to foreclosures as a result of the Dust Bowl which made up a large part of the idle work force *People just stopped spending money and everything went down hill
9: Now how did these causes effect America as a whole?
10: Mass Migration | In 1930's, the Dust Bowl led farmers to abandoning their fields. This resulted in mass migration patterns emerging within the populations, shifting from rural areas to urban centers.
11: Societal | Changes | Many People who survived the depression would remain frugal throughout the rest of their lives, wary of banks, and suspicious of the stock market.
12: Diary Entries | "Being Without Money"
13: "Dust Bowl" | "The Kids" | The below diary entries were written by a woman named Ann Marie Low, a person who lived in southeastern North Dakota. April 25, 1934 Wednesday Last weekend was the worst dust storm we ever had. We've been having quite a bit of blowing dirt every day since the drought started, not only here, but all over the Great Plains. Many days this spring the air is just full of dirt coming from hundreds of miles. It sifts into everything. After we wash the dishes and put them away, so much dust sifts into the cupboards we must wash them again before the next meal. Clothes in the closets are covered with dust.Last weekend no one was taking an automobile out for fear of ruining the motor. I drove my friend's car to Frank’s place to return something. To find my way I had to drive right besides the fence posts so I could see where I was going.Newspapers say the deaths of many babies and old people are attributed to breathing in so much dirt. May 7, 1934 Monday | The below letter was written by a child to the First Lady. (For those of you who don't know, the First Lady is the wife of the President of the United States.) Dear Mrs. Roosevelt: I am writing you a little letter this morning. Are you glad it is spring now? I am—mainly because so many poor people can now grow more food to eat. Do you know what I am writing this letter for? My mother said you are like a godmother to the world, and I thought maybe you had some old clothes I could have. You know, Mother is a good sewer, and all the little girls are getting Easter dresses. I thought that you had some, and I was hoping I could have one, too. You know, Papa could wear Mr. Roosevelt's shirts and clothes.
14: Franklin D. Roosevelt | Franklin D. Roosevelt was in his second term as governor of New York when he was elected as the nation's 32nd president in 1932. With the country mired in the depths of the Great Depression, Roosevelt immediately acted to restore public confidence, proclaiming a bank holiday and speaking directly to the public in a series of radio broadcasts or "fireside chats." His ambitious slate of New Deal programs and reforms redefined the role of the federal government in the lives of Americans. Reelected by comfortable margins in 1936, 1940 and 1944. He was the only American president in history to be elected four times, Roosevelt died in office in April 1945
15: The New Deal | FDIC, insured savings accounts in banks approved by the government. | FDIC | WPA | AAA | CCC | REA | The WPA made jobs for people to work | The AAA said that the government would pay the farmers for not producing crops. | CCC provided jobs for single men between the ages of 18 and 25. | REA loaned money to extend electricity to rural areas
16: Expanded Role of Government | FDR New Deal increased the role of government in people's lives to unprecedented levels, levels that continued long after America had recovered from the great depression.
17: The End of The Great Depression Journey... Now turn the page for the "Then and Now"
18: Then | The Great Depression left a mark on the world that remains today, nearly 80 years after it began. It re-created our banking system, molded our securities laws, and left scars on the nation's psyche that have faded only modestly with the decades. During the Depression, savers watched their money evaporate in bank failures, because deposits weren't insured. Bankers became so unpopular that bank robbers, such as Bonnie and Clyde, became folk heroes. By the depths of the Depression, 25% of the population was out of work. The Dow Jones industrial average had fallen 89%. The entire banking system was shut for four days by presidential order. Home and farm foreclosures soared. Homeless people created vast shantytowns, called "Hoovervilles," outside most major cities. Mitchel Namy, 96, recalls how his family fared. "My father was very successful in the wholesale dry-goods business," Namy recalls. "He lost the business, our home and a valuable 26-acre tract of land in suburban Pittsburgh."
19: Now | The Great Depression was a huge debate between presidential elections. President Hoover was not a good leader for America so President Roosevelt came and took his position and turned America around. He got us through the Great Depression and made sure we were prepared if this happened again. Now, elections have been looked upon as "Is this a good person that will help America?" When Presidents are elected into office there is always something they have to fix to help America. For example, since his first day in office, President Obama has made many accomplishments that have kept us from going through another crisis like the Great Depression. He had to come in right when we were going through the 2008 recession that was tearing America apart but he is working hard just like President Roosevelt did. There have been so many doubts about our economy, but having faith and learning how to change America is the only way we will get back on the right path. | "Among the accomplishments cited by Obama: "Saving this country from a Great Depression," the recovery of the U.S. auto industry, the health care bill, revamping the financial system, changing the student loan system, ending the military's "don't ask, don't tell" policies against gays, and killing al-Qaeda leader Osama bin Laden."