Great Depression in Rural America vs. Urban America September 15, 2009 Great Depression affected EVERYONE!!! Teens leave home 25% Jump freight trains People have job one day No job the next (constant fear) Lose homes Unemployment rate : avg. 3.7% 1933: 25% Wages or hours cut Paychecks 30% lower Teens leave home 25% Jump freight trains People have job one day No job the next (constant fear) Lose homes Unemployment rate : avg. 3.7% 1933: 25% Wages or hours cut Paychecks 30% lower Cook smaller meals at home Water replaces milk No meat Bread lines People feel betrayed Soldiers/ laborers What happened to wealth I created? Cook smaller meals at home Water replaces milk No meat Bread lines People feel betrayed Soldiers/ laborers What happened to wealth I created? Men feel they betrayed families Breadwinners Did EVERYTHING Nowreduced status Some men deserted families Constant fear of losing job Guilt (friends/ family lost their job) Birthrates DOWN (lowest in U.S. history) Both parents busy working Discipline DOWN Children QUIT school Runaway Men feel they betrayed families Breadwinners Did EVERYTHING Nowreduced status Some men deserted families Constant fear of losing job Guilt (friends/ family lost their job) Birthrates DOWN (lowest in U.S. history) Both parents busy working Discipline DOWN Children QUIT school Runaway Minorities Great Depression hit EVERYONE But NOT equally African Americans LAST to be hired; FIRST to be fired Unemployment rate: 50% Born into depression Mexican Americans Competition for jobs Discrimination Repatriation: encourage Mexican Americans to go back to Mexico with children (citizens) Great Depression hit EVERYONE But NOT equally African Americans LAST to be hired; FIRST to be fired Unemployment rate: 50% Born into depression Mexican Americans Competition for jobs Discrimination Repatriation: encourage Mexican Americans to go back to Mexico with children (citizens) In the cities LOSE HOMES Sold furniture, jewelry, moved to cheaper homes Evicted Live on streets Sleep on park benches, empty railroad cars, cardboard boxes Hoovervilles Makshift towns of tents & shacks built on public land/ vacant lots Largest: NYC (Central Park) LOSE HOMES Sold furniture, jewelry, moved to cheaper homes Evicted Live on streets Sleep on park benches, empty railroad cars, cardboard boxes Hoovervilles Makshift towns of tents & shacks built on public land/ vacant lots Largest: NYC (Central Park) In the country Farmers suffering even before Depression (WWI) 1. Crop prices DOWN Farmers make NO money Great Plains Massive drought lasted years Wheat $2.16 (1919) - 38 cents (1932) Income NOT enough to keep farms Cant pay debt; buy seed; repair equipment; etc. RESULT: Farmers lose farms 1 million farms lost ( ) Farmers suffering even before Depression (WWI) 1. Crop prices DOWN Farmers make NO money Great Plains Massive drought lasted years Wheat $2.16 (1919) - 38 cents (1932) Income NOT enough to keep farms Cant pay debt; buy seed; repair equipment; etc. RESULT: Farmers lose farms 1 million farms lost ( ) 2.Drought No dams/ irrigation 3.Dust Bowl Black Blizzards 8,000 feet high (like waves) 100 miles per hour Daylight to NIGHT Temporarily Choked/ blinded people Cattle/ birds/ rabbits/ fish die Dirt seeped through cracks of home Destroy crops Texas, Kansas, Oklahoma Also, New York & Boston 2 TIMES dirt dug out from Panama Canal 2.Drought No dams/ irrigation 3.Dust Bowl Black Blizzards 8,000 feet high (like waves) 100 miles per hour Daylight to NIGHT Temporarily Choked/ blinded people Cattle/ birds/ rabbits/ fish die Dirt seeped through cracks of home Destroy crops Texas, Kansas, Oklahoma Also, New York & Boston 2 TIMES dirt dug out from Panama Canal Migration People move because of dust bowl/ poverty/ lose homes Okies: Dust Bowl refugees Move to cities Population of cities INCREASE Decrease in rural areas People move because of dust bowl/ poverty/ lose homes Okies: Dust Bowl refugees Move to cities Population of cities INCREASE Decrease in rural areas Great Depression: Government Response Unemployment Homeless Dust Storms No crops Hoover did NOT cause Great Depression BUT Americans wanted him to solve it HOOVER Smart/ business savvy Worked long hours to solve problem Still FAILED Unemployment Homeless Dust Storms No crops Hoover did NOT cause Great Depression BUT Americans wanted him to solve it HOOVER Smart/ business savvy Worked long hours to solve problem Still FAILED HOOVER FAILS TO RESPOND Start of Great Depression Hands Off policy in govt Natural to have UPS and DOWNS Govt stay out of business Strong businesses will survive Soon realizeddoing NOTHING is not a good policy 1.Asked businesses to keep employment, wages, & prices the SAME 2.Asked govt to reduce taxes, lower interest rates, & create public works programs 3.Suggest wealthy give more $$$ to charities ***ALL Americans work together to combat Depression*** Start of Great Depression Hands Off policy in govt Natural to have UPS and DOWNS Govt stay out of business Strong businesses will survive Soon realizeddoing NOTHING is not a good policy 1.Asked businesses to keep employment, wages, & prices the SAME 2.Asked govt to reduce taxes, lower interest rates, & create public works programs 3.Suggest wealthy give more $$$ to charities ***ALL Americans work together to combat Depression*** PHILOSOPHY: more $$$ to businesses & people to buy more INCREASE production HIRE more Good Plan PROBLEM: too much VOLUNTEERISM President thought he could encourage (not legislate) DOES NOT WORK PHILOSOPHY: more $$$ to businesses & people to buy more INCREASE production HIRE more Good Plan PROBLEM: too much VOLUNTEERISM President thought he could encourage (not legislate) DOES NOT WORK Hoover relied on localism Problems solved at local & state level PROBLEM: state/ local levels dont have resources to solve problems Hoover against public assistance Better selves through own efforts NEED: Federal Action!!! Americans blame Hoover HOOVER creates Reconstruction Finance Corporation (RFC)think BAILOUT Give billions in loans to railroads & large business $$$ to banks (give loans to people) $$$BankersBusinessesHire WorkersIncrease ProductionDepression End Trickle Down Economics: pour at top & trickle down to rest Hoover relied on localism Problems solved at local & state level PROBLEM: state/ local levels dont have resources to solve problems Hoover against public assistance Better selves through own efforts NEED: Federal Action!!! Americans blame Hoover HOOVER creates Reconstruction Finance Corporation (RFC)think BAILOUT Give billions in loans to railroads & large business $$$ to banks (give loans to people) $$$BankersBusinessesHire WorkersIncrease ProductionDepression End Trickle Down Economics: pour at top & trickle down to rest DID NOT WORK!!! Banks didnt increase loans to businesses Businesses dont hire more workers 1 GOOD THING during presidency HOOVER DAM Increased employment in Southeast Irrigation system Banks didnt increase loans to businesses Businesses dont hire more workers 1 GOOD THING during presidency HOOVER DAM Increased employment in Southeast Irrigation system Americans Protest Hoover worked hard But symbol of FAILURE Many think Socialism/ Communism Soviet Union (more govt control) Bonus Army Congress promised bonuses to WWI vets Supposed to get them in 1945 Vets want $$$ NOW Hoover vetoes: Vets dont need Army marches to Washington, D.C. MacArthur, Eisenhower, & Patton (Generals) force out Use tear gas & bayonets (shock nation) Hoover ruined chance of reelection AMERICANS NEED CHANGE Hoover worked hard But symbol of FAILURE Many think Socialism/ Communism Soviet Union (more govt control) Bonus Army Congress promised bonuses to WWI vets Supposed to get them in 1945 Vets want $$$ NOW Hoover vetoes: Vets dont need Army marches to Washington, D.C. MacArthur, Eisenhower, & Patton (Generals) force out Use tear gas & bayonets (shock nation) Hoover ruined chance of reelection AMERICANS NEED CHANGE Great Depression/ Sub Activity Worksheet to million 3.60% 4.9 million 5.40% 6.9% to 25% 7.86, , % 11.$ $ to million 3.60% 4.9 million 5.40% 6.9% to 25% 7.86, , % 11.$ $273 13.1/3 14.$2 billion 15.October 24, Black Tuesday 17.$16 million 18.Stand by while markets works self out % to 8.7% June 17, Largest peacetime tax increase in U.S. history 13.1/3 14.$2 billion 15.October 24, Black Tuesday 17.$16 million 18.Stand by while markets works self out % to 8.7% June 17, Largest peacetime tax increase in U.S. history % 25.80% 26.10, $2 billion million 29.$16.2 billion to $300, % 31.25% to 63% 32.Franklin Delano Roosevelt (FDR) 33.Democrats 34.Aid poor in getting $$$ % 25.80% 26.10, $2 billion million 29.$16.2 billion to $300, % 31.25% to 63% 32.Franklin Delano Roosevelt (FDR) 33.Democrats 34.Aid poor in getting $$$ 35.Overthrow FDR 36.Public works Admin./ Agricultural Adjustment Admin./ Federal Emergency Relief Admin./ Farm Credit Admin./ National Recovery Admin./ Federal Deposit Insurance Corporation 37.Hitler named Chancellor of Germany 38.Regulate milk prices % to 2.1% % to 24.9% 41.Sweden 35.Overthrow FDR 36.Public works Admin./ Agricultural Adjustment Admin./ Federal Emergency Relief Admin./ Farm Credit Admin./ National Recovery Admin./ Federal Deposit Insurance Corporation 37.Hitler named Chancellor of Germany 38.Regulate milk prices % to 2.1% % to 24.9% 41.Sweden 42.1.4% % 44.Social Security Act passed % % 47.Heavy spending in preparation for war 48.Heavy govt spending/ unbalance budget - cuts budget/ recession 49.5% % % - Increased to 19% 52.Great Britain % % 44.Social Security Act passed % % 47.Heavy spending in preparation for war 48.Heavy govt spending/ unbalance budget - cuts budget/ recession 49.5% % % - Increased to 19% 52.Great Britain 53.Fair Labor Standards Act (minimum wage) % - 2.8% 55.Build armed forces prepare for war Fair Labor Standards Act (minimum wage) % - 2.8% 55.Build armed forces prepare for war