1. PBS: American Experience1930sPBS: American Experience1930s

2. Objectives
 Discuss how Hoover went from being a symbol
of twenties business success to a symbol of
depression failure.
 Explain how the stock-market crash set off the
deep and prolonged Great Depression.

3. Visual InterpretationVisual Interpretation
 From your seat, you will take a look at 2 paintings.From your seat, you will take a look at 2 paintings.
 In your notebook, respond to the following:In your notebook, respond to the following:
1.)1.) Think of and write downThink of and write down 2 adjectives to describe2 adjectives to describe
the feeling of the illustration.the feeling of the illustration.
2.)2.) IdentifyIdentify the time period of the illustration and in 2-the time period of the illustration and in 2-
3 sentences,3 sentences, describedescribe the illustration and the message itthe illustration and the message it
is conveying.is conveying.
3.)3.) Identify and explainIdentify and explain 3-5 factors within each3-5 factors within each
illustration that aided you in identifying the time periodillustration that aided you in identifying the time period
the illustration is from.the illustration is from.

5. Alexandre Hogue
(American, 1899 – 1994),
Drouth Stricken Area,
1934, Oil on canvas
“Dust Bowl Ballads”
(Woodie Guthrie)

7. From theFrom the RoaringRoaring ’20s’20s
toto
TheThe GreatGreat DepressionDepression

8. From Prosperity to PovertyFrom Prosperity to Poverty
3 major areas of economic trouble in the3 major areas of economic trouble in the
1920s1920s::
1.)1.) IndustryIndustry
2.)2.) AgricultureAgriculture
3.)3.) Consumer SpendingConsumer Spending

9. IndustryIndustry
 Railroads, Textiles & SteelRailroads, Textiles & Steel
sufferedsuffered
- RR’s competing with the automobile- RR’s competing with the automobile
 Mining & Lumber no longer in demandMining & Lumber no longer in demand
-new forms of energy (fuel oil, natural gas)-new forms of energy (fuel oil, natural gas)
 Housing Market fellHousing Market fell (loss of jobs)(loss of jobs)

10. Agriculture: Farmers StruggleAgriculture: Farmers Struggle
 Demand for crops fell after WWIDemand for crops fell after WWI
-Surpluses-Surpluses
-Unpaid loans for land & equipment-Unpaid loans for land & equipment
 Farmers couldn’t pay back loansFarmers couldn’t pay back loans
 Banks foreclosed on farmsBanks foreclosed on farms
-Banks failed-Banks failed
Photo by Dorothea Lange

11. Helping FarmersHelping Farmers
 McNary-Haugen BillMcNary-Haugen Bill
-federal price-supports for key products (wheat, corn,-federal price-supports for key products (wheat, corn,
cotton & tobacco)cotton & tobacco)
-govt. would buy surplus crops at guaranteed prices and-govt. would buy surplus crops at guaranteed prices and
sell them on the world marketsell them on the world market
-Vetoed by Coolidge twice-Vetoed by Coolidge twice

12. Consumer SpendingConsumer Spending
 Americans Living beyondAmericans Living beyond
their means with CREDITtheir means with CREDIT
 Uneven distribution ofUneven distribution of
incomeincome
-1920s favored Big Business-1920s favored Big Business
-70% + of American families-70% + of American families
earned less than $2,500 perearned less than $2,500 per
yearyear
 Mass production madeMass production made
wages high, prices lowwages high, prices low
 Advertising targetedAdvertising targeted
consumersconsumers
Photo by Dorothea Lange

13. Advertising in the 1920s
 Madison Avenue” was first used to describe the advertising
industry and in which many products are sold because they hold
out the promise of a more modern and freer life, filled with
exciting opportunities to consumer new products.
 Some ads stressed that ordinary Americans could have the
same products as the rich and the socially prominent.
Others described natural products are superior to artificial
products. Many ads for cars and refrigerators treated these
products as objects worthy of worship by surrounding them with
halos. Invented characters like General Mills' Betty Crocker and
Philip Morris's little bellhop, Johnny helped consumers establish
a personal connection with a particular product.
 Target women as consumers; “shop therapy” invented
 Psychologists (behaviorists) used to design campaigns
 Offered installment plans (credit)

14. First million dollar ad campaign!

15. “I’ll go without
food before I’ll
see us give up
the car”
~ Middletown

17. Think Critically…Think Critically…
 How will these 3 areas of economic troublesHow will these 3 areas of economic troubles
help to pave the way for the Great Depression?help to pave the way for the Great Depression?
 Predict the events in each area (industry,Predict the events in each area (industry,
agriculture, consumerism)agriculture, consumerism)
Think about:Think about:
What happened in industry?What happened in industry?
What happened in agriculture?What happened in agriculture?
What happened to consumers?What happened to consumers?

18. A New PresidentA New President
 Herbert Hoover (Rep.)Herbert Hoover (Rep.)
““We in America areWe in America are
nearer to the finalnearer to the final
triumph over povertytriumph over poverty
than ever before in thethan ever before in the
history of any land.”history of any land.”
--1928 speech accepting the1928 speech accepting the
Republican nomination for theRepublican nomination for the
PresidencyPresidency

20. Young Hoover supporter in 1928

21. The Stock Market in the 1920sThe Stock Market in the 1920s
 Bull market – pricesBull market – prices
risingrising
 DOW roseDOW rose
-Measure of the market’s-Measure of the market’s
healthhealth
 Investors wereInvestors were
optimisticoptimistic
New York Stock Exchange
By 1929, 4 million Americans owned stocks

22. Seeds of TroubleSeeds of Trouble
 Speculation:Speculation: buying stocks &buying stocks &
bonds hoping for a quick profitbonds hoping for a quick profit
 Buying on the Margin:Buying on the Margin: payingpaying
a small percentage of a stock’sa small percentage of a stock’s
price as a downprice as a down payment andpayment and
borrowing the restborrowing the rest
 Unrestrained buying & sellingUnrestrained buying & selling
with very little governmentwith very little government
interventionintervention
 People couldn’t pay backPeople couldn’t pay back
borrowed money if value of stockborrowed money if value of stock
declined…declined…

23. By mid-November, investors had lost about $30 billion

24. THE 1929 CRASHTHE 1929 CRASH
 On October 29 -On October 29 -
Black TuesdayBlack Tuesday
 16.4 million shares16.4 million shares
were sold– priceswere sold– prices
plummetedplummeted
 People who hadPeople who had
bought on marginbought on margin
(credit) were stuck(credit) were stuck
with huge debtswith huge debts

31. A World Wide DepressionA World Wide Depression
 Hawley- Smoot Tariff (1930) – raises tariff toHawley- Smoot Tariff (1930) – raises tariff to
60%60%
 Other countries enacted their own tariffs andOther countries enacted their own tariffs and
soon world trade fell 40%soon world trade fell 40%

32. Objective
 Indicate how Hoover’s response to the
depression was a combination of old-time
individualism and the new view of federal
responsibility for the economy.

33. CAUSES OF THE GREATCAUSES OF THE GREAT
DEPRESSIONDEPRESSION
 Tariffs & war debtTariffs & war debt
policiespolicies
 Overproduction inOverproduction in
industry andindustry and
agricultureagriculture
 Easy credit led toEasy credit led to
debt and lessdebt and less
spendingspending
 UnequalUnequal
distribution ofdistribution of
incomeincome

34. How did the Crash Affect theHow did the Crash Affect the
People?People?
 Bank & Business FailuresBank & Business Failures
-Banks invested people’s money into stock-Banks invested people’s money into stock
marketmarket
-By 1933, 11,000 of the nation's 25,000 banks-By 1933, 11,000 of the nation's 25,000 banks
had failedhad failed
-No insurance on savings accounts; people lost-No insurance on savings accounts; people lost
their moneytheir money
 Unemployment reached 25%Unemployment reached 25%
-1 out every 4 people without a job-1 out every 4 people without a job

35. A Vicious Cycle
Unemployment
Purchasing Power Productivity

36. HOOVER AND THEHOOVER AND THE
DEPRESSIONDEPRESSION
 Hoover recommendedHoover recommended
business as usual; notbusiness as usual; not
quick to reactquick to react
 ““rugged individualism”rugged individualism”
–people succeed through–people succeed through
their own efforts, taketheir own efforts, take
care of themselves, notcare of themselves, not
depend on governmentdepend on government
hand-outshand-outs
Herbert
Hoover
““Any lack of confidence in the economic future . . . IsAny lack of confidence in the economic future . . . Is
foolish”foolish”

37. Hoover believed it was the
individuals job to take care of
themselves, not the governments
DepressionDepression
AppleApple
SellersSellers

38. Immediately After the Crash
 Hoover encouraged
voluntary non-
coercive
cooperation
 charitable
organizations to give
aid to the poor
 employers shouldn’t
lay off workers/lower
wages
 laborers shouldn’t
strike

39. Hoover’s “Trickle Down”Hoover’s “Trickle Down”
Approach: Too Little Too LateApproach: Too Little Too Late
 ““trickle down” – aid to banks, businesses, NOTtrickle down” – aid to banks, businesses, NOT
individualsindividuals
 Hoover DamHoover Dam
 Reconstruction Finance Corporation -Reconstruction Finance Corporation -
government lending bank; big business benefitedgovernment lending bank; big business benefited
mostmost
 Norris-La Guardia Anti-Injection ActNorris-La Guardia Anti-Injection Act
 Agriculture Marketing ActAgriculture Marketing Act
 Federal Farm Board (Grain/CottonFederal Farm Board (Grain/Cotton
Stabilization Corps – bought surpluses)Stabilization Corps – bought surpluses)
 Hawley-SmootHawley-Smoot

41. BONUSBONUS
ARMYARMY
 19321932
 Patman BillPatman Bill would havewould have
authorized Congress toauthorized Congress to
pay a bonus to WWIpay a bonus to WWI
vets immediatelyvets immediately
 The bonus wasThe bonus was
scheduled to be paid inscheduled to be paid in
1945 --- The Army vets1945 --- The Army vets
wanted it NOWwanted it NOW
43000 marchers, 17000 vets
and their families

42. BONUS ARMYBONUS ARMY
TURNED DOWNTURNED DOWN
Thousands of Bonus Army soldiers protest –
Spring 1932
The Bonus Army, their wives and
children were driven out with fixed
bayonets and adamsite gas, an
arsenical vomiting agent, and their
shelters and belongings burned.

43. AMERICANS SHOCKED ATAMERICANS SHOCKED AT
TREATMENT OF WWI VETSTREATMENT OF WWI VETS
 MacArthur’s 12MacArthur’s 12thth
infantry gassed more than 1,000 marchers,infantry gassed more than 1,000 marchers,
including an 11-month old baby, who diedincluding an 11-month old baby, who died
 Two vets were shot and scores injuredTwo vets were shot and scores injured
 Americans were outraged and once again, Hoover’s imageAmericans were outraged and once again, Hoover’s image
sufferedsuffered

45. Hoover had little chance to be re-elected in 1932

46. “Brother, Can you Spare a Dime?”“Brother, Can you Spare a Dime?”

47. HARDSHIPS DURING THE DEPRESSIONHARDSHIPS DURING THE DEPRESSION
 hardship,hardship, homelessnesshomelessness, and hunger for millions, and hunger for millions
 people lost their jobs, and their homespeople lost their jobs, and their homes
 Some built makeshifts shacks out of scrap materialSome built makeshifts shacks out of scrap material
 shantytowns (shantytowns (HoovervillesHoovervilles) sprung up) sprung up

48. SOUP KITCHENSSOUP KITCHENS
 soupsoup
kitchens andkitchens and
bread lines inbread lines in
urban areasurban areas
 free or low-free or low-
cost food forcost food for
peoplepeople
Unemployed men wait in line for food – this
particular soup kitchen was sponsored by Al
Capone
“Street of Forgotten Men, 1930
)

49. RURAL LIFE DURING THERURAL LIFE DURING THE
DEPRESSIONDEPRESSION
 farmers did have onefarmers did have one
advantage; they could growadvantage; they could grow
food for their familiesfood for their families
 Thousands of farmers lostThousands of farmers lost
their landtheir land
 Many turned to tenantMany turned to tenant
farming and barely scrapedfarming and barely scraped
out a livingout a living
Between 1929-1932 almost ½ million
farmers lost their land

50. THE DUST BOWLTHE DUST BOWL
 AA severe droughtsevere drought gripped thegripped the
Great Plains in theGreat Plains in the earlyearly
1930s1930s
 Wind scattered the topsoil,Wind scattered the topsoil,
exposing sand and gritexposing sand and grit
 The resultingThe resulting dust traveleddust traveled
hundreds of mileshundreds of miles
 One storm in 1934 picked upOne storm in 1934 picked up
millions of tons of dust frommillions of tons of dust from
the Plains an carried it to thethe Plains an carried it to the
East CoastEast Coast
Kansas Farmer, 1933

51. “The Plow that Broke the Plains”

52. Dust storm approaching Stratford, Texas - 1934

53. Storm approaching Elkhart, Kansas in
1937

54. Dust buried cars and wagons in South Dakota in
1936

55. HARDEST HIT REGIONSHARDEST HIT REGIONS
 Kansas, Oklahoma,Kansas, Oklahoma,
Texas, New Mexico,Texas, New Mexico,
and Coloradoand Colorado
 Many farmers migratedMany farmers migrated
to California and otherto California and other
Pacific Coast statesPacific Coast states
Boy covers his mouth to avoid dust, 1935

56. Photographer Dorothea Lange captures a family headed
west to escape the dust storms

58. Southern trees bear a strange fruit,
Blood on the leaves and blood at the root,
Black body swinging in the Southern breeze,
Strange fruit hanging from the poplar trees.
Pastoral scene of the gallant South,
The bulging eyes and the twisted mouth,
Scent of magnolia sweet and fresh,
And the sudden smell of burning flesh!
Here is a fruit for the crows to pluck,
For the rain to gather, for the wind to suck,
For the sun to rot, for a tree to drop,
Here is a strange and bitter crop.
Abel Meeropol, performed by Billie Holiday
“Strange Fruit”“Strange Fruit”
(video footage)(video footage)

59. CONDITIONS FORCONDITIONS FOR
MINORITIESMINORITIES
 UnemploymentUnemployment
was the highestwas the highest
among minorities,among minorities,
their pay was thetheir pay was the
lowestlowest
 Many MexicansMany Mexicans
werewere
“encouraged” to“encouraged” to
return to theirreturn to their
homelandhomeland
24 lynchings in 1930 alone

60. HOBOESHOBOES
TRAVELTRAVEL
AMERICAAMERICA
 The 1930s created the termThe 1930s created the term
“hoboes” to describe poor“hoboes” to describe poor
driftersdrifters
 300,000 transients – or300,000 transients – or
hoboes – hitched rideshoboes – hitched rides
around the country on trainsaround the country on trains
and slept under bridgesand slept under bridges
(thousands were teenagers)(thousands were teenagers)
 Injuries and death wasInjuries and death was
common on railroadcommon on railroad
property; over 50,000 peopleproperty; over 50,000 people
were hurt or killedwere hurt or killed
Dorothea Lange
Tramps and hobos are commonly lumped together,
but in their own sight they are sharply differentiated. A
hobo or bo is simply a migratory laborer; he may take
some longish holidays, but soon or late he returns to
work. A tramp never works if it can be avoided; he
simply travels. Lower than either is the bum, who
neither works nor travels, save when impelled to
[3]

61. EFFECTS OF DEPRESSIONEFFECTS OF DEPRESSION
 Suicide rate rose more than 30% between 1928-1932Suicide rate rose more than 30% between 1928-1932
 Alcoholism rose sharply in urban areasAlcoholism rose sharply in urban areas
 Three times as many people were admitted to stateThree times as many people were admitted to state
mental hospitals as in normal timesmental hospitals as in normal times
 Many people showed great kindness to strangersMany people showed great kindness to strangers
 Additionally, many people developed habits of savingsAdditionally, many people developed habits of savings
& thriftiness& thriftiness

63. Pre Class
What were the 3 areas of
economic trouble in the 1920s?
Briefly explain how, by the end of
the ’20s, each of these areas
showed signs that danger was on
the horizon.

64. Stock Market Crash
Speculation
Buying
On
Margin
Loss
Of
Confidence
Falling
Stock Market
Prices

66. Pre Class - Define the following:Pre Class - Define the following:
 Buying on the marginBuying on the margin
 SpeculationSpeculation
 How didHow did margin buyingmargin buying andand
speculationspeculation affect the stockaffect the stock
market?market?
 Led to consumer confidence in theLed to consumer confidence in the
market and more buyingmarket and more buying
 Led to a great increase in stock pricesLed to a great increase in stock prices
and strong market (and strong market (bull marketbull market))
 Led to a steeper decline in stock pricesLed to a steeper decline in stock prices
– a CRASH – when prices began to– a CRASH – when prices began to
dropdrop