THE GREAT DEPRESSION

By:Lauren Petrozza, Jessica Veilleux, Neve Manion, and Paul

Ciarcia

Economic Issues Stock Market Crash U.S. market lost two-thirds of its value by 1993 Collapse of the American banking system Bank failures Stock of money shrank Farm Depression Farm product prices fell Economic Breakdowns World trade collapsed because of Smoot-Hawley Tariff

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Income During the Great Depression

27.5 million families in the U.S. at the time

21.5 million families (78 percent) made under $3,000

6 million families made under $1,000 per year (22 percent)

The median household income today is $51,404, about $4283.7 per month (171.3% increase)

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Race Factor Southern City People Slogan Racial slogans like ‘No jobs for Niggers until every

white man has a job” Roosevelt Did Little to Help Opposed Civil Rights African Americans Made Their Own New Deal Helped each other out and grew their own food “Slave Market” Unemployment Rate Blacks higher than Whites

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Making Ends Meet New Deal- people got jobs PWA and

WPA Farmers relocated People relied on government checks

or charity organizations for food Enlisted in the military People got jobs as cartographers

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Impact on Businesses/People

Collapse of American banking system: Depositors wanted to remove their money

from banks Banks ran out of cash so they were forced to

shut down Businesses could no longer operate Farm Depression: Many people lost their farms due to dropping

prices of crop Severe drought left soil unfertile—no plants

grew Many were forced from their homes

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Stock Market Crash Stock value dramatically dropped Thousands of shareholders lost large

sums of money By 1930 consumer spending had fallen

dramatically (no one was spending money)

Decrease in world trade—increase in trade restrictions

Nations changed their leaders and types of government because of the economic crisis

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Smoot-Hawley Tariff Created by Reed Smoot and Willis Hawley Blamed for turning “what would have been a

normal economic depression into a worldwide depression”

Reasons it was so bad: Responsible for highest tariff rates in U.S.

history “Deepened” the Great Depression by reducing

availability of foreign goods Created an “open trade war between countries”

and increased foreign trade retaliation

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