1. Ch. 11 Part 1The Beginnings of the Great Depression

2. The Election of 1928 The Republican Herbert Hoover vs. Democrat Alfred E. Smith. Smith was the first Roman Catholic nominated for the presidency. If you favored prohibition you were called a “dry.” If you wanted prohibition repealed you were called “wet.” Hoover was elected by a large margin of 444 to 87 electoral votes. Hoover promised such things as “a chicken in every pot and two cars in every garage.” "We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us."

3. Herbert Hoover

4. At this point life in the US is still GREAT! The Roaring 20s is still going strong, and people are filled with hope.

5. Stock Market Increase A Bull Market is when stock steadily rises. Many people used this time of progress in the 1920s to invest in the stock market. If the price of the stock fell, the broker could issue a Margin Call. This forced you to pay up on your loans. People began to sell their stock and make lots of money since the market was doing so well.

6. Stock Market Crash October 24th 1929 is known as Black Thursday. This is when prices went down. People started getting nervous and began selling their stock. Then they have the weekend to think…and worry…and talk…and worry…and worry…and worry October 29th 1929 is known as Black Tuesday. Prices dropped $10-$15 billion. This drop in prices weakened the nations banks. People then could not borrow money. Many people began to withdraw money from banks which forced the banks to close.

9. Stock prices in Great Depression

10. “Bank Run” at beginning of panic

11. Great Crash Great Crash Great Crash Great Crash Great Crash World Payments World Payments World Payments Investors Investors Investors Investors Investors Businesses and Workers Businesses and Workers Businesses and Workers Businesses and Workers Overall U.S. production plummets. Overall U.S. production plummets. Overall U.S. production plummets. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Banks Banks Banks Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Consumer spending drops. Consumer spending drops. U.S. investors have little or no money to invest. Consumer spending drops. U.S. investors have little or no money to invest. U.S. investors have little or no money to invest. Consumer spending drops. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses cut investment and production Some fail. Businesses cut investment and production. Some fail. Businesses cut investment and production Some fail. Savings accounts are wiped out. Savings accounts are wiped out. Savings accounts are wiped out. Businesses cut investment and production Some fail. Banks run out of money and fail. Banks run out of money and fail. Banks run out of money and fail. Workers are laid off. Workers are laid off. Workers are laid off. Workers are laid off. Europeans cannot afford American goods. Europeans cannot afford American goods. Europeans cannot afford American goods. U.S. investments in Germany decline. U.S. investments in Germany decline. Bank runs occur. Bank runs occur. Effects of the Great Crash, 1929 U.S. investments in Germany decline. Bank runs occur. German war payments to Allies fall off. German war payments to Allies fall off. German war payments to Allies fall off.

12. The Great Depression Begins The Great Depression took place from 1930 to 1939. During this time the prices of stock fell 40%. BY 1933: 9,000 banks went out of business and 9 million savings accounts were wiped out. 86,00 businesses failed, and wages were decreased by an average of 60%. The unemployment rate went from 9% all the way to 25%, about 15 million jobless people.

14. Charities Help Private charities and millionaires would provide soup kitchens and bread lines. The poor and homeless would line up to receive a free meal.

23. Shantytowns and Hoovervilles Families that could not pay rent or mortgage were forced to live on the street. Many people built homes of cardboard, scrap metal, and lumber pieces. Shantytowns and Hoovervilles were nicknames of “neighborhoods for homeless.” Many people who did not want to live in a cardboard home began to wonder from city to city jumping boxcars for rides. These people were known as hobos.

27. Hobo Codes

33. The Story of Us: Great Depression

34. The Dust Bowl To make matters worse, the Midwest experienced the worst drought in history in 1932. Without water for crops, many farmers could not pay their rent, and thus became hobos. The sun dried earth from Texas to the Dakotas was nicknamed the Dust Bowl. Many people from Oklahoma moved west to California to work picking fruit in the fertile San Joaquin Valley. These people were known as Okies.

47. The Migrant Mother

50. The Story of Us: Dust Bowl

51. Surviving the Dust Bowl

52. Entertainment Many people found escape from the hard life in movies, books, and radio broadcasts. Some examples of depression era entertainment: MoviesBooksRadio Shows Animal Crackers The Grapes of Wrath Lone Ranger Snow White & 7 Dwarfs The Sound and the Fury The Guiding Light The Wizard of Oz Look Homeward Angel Green Hornet Gone With The Wind George Burns King Kong