The Great The Great DepressionDepression

A Destitute mother of seven children in A Destitute mother of seven children in California. Images like this one were used to California. Images like this one were used to gain public support for New Deal Programsgain public support for New Deal Programs

Economic WarningsEconomic Warnings

1.) Uneven prosperity and business growth1.) Uneven prosperity and business growth 2.) Farm crisis (surplus)2.) Farm crisis (surplus) 3.) Buying on margin3.) Buying on margin

Investing with borrowed moneyInvesting with borrowed money 4.) Consumer reliance on credit4.) Consumer reliance on credit 5.) Stock speculation5.) Stock speculation

Investing in high risk stockInvesting in high risk stock Result: Black Tuesday Oct 29Result: Black Tuesday Oct 29thth, 1929 – , 1929 – The Stock Market CrashThe Stock Market Crash

Recession vs. DepressionRecession vs. Depression

economic cycleeconomic cycle -- the alternation in -- the alternation in the economy between periods of the economy between periods of prosperity and periods of decline.prosperity and periods of decline.

RecessionRecession – mild, widespread – mild, widespread decline in business, trade, and decline in business, trade, and employment.employment.

DepressionDepression – A deep, long-lasting – A deep, long-lasting decline.decline.

Bull Market vs. Bear Bull Market vs. Bear MarketMarket Bull Market – Upward trend in stock Bull Market – Upward trend in stock

pricesprices

The The Charging Bull in in Bowling Green, , New York is a symbol of the bull market. is a symbol of the bull market.

Bear Market – Downward trend in stock Bear Market – Downward trend in stock prices.prices.

From 1929 to 1933, over 5,000 banks From 1929 to 1933, over 5,000 banks closed their doors.closed their doors.

10,000 depositors lost their savings.10,000 depositors lost their savings. From 1931 to 1940, the average From 1931 to 1940, the average

unemployment rate was 14%.unemployment rate was 14%. At the depth of the downturn – 25% At the depth of the downturn – 25% 25% = 15 million Americans25% = 15 million Americans In 1929 nearly 80% of the nation’s families In 1929 nearly 80% of the nation’s families

had no savings.had no savings.

Global DepressionGlobal Depression Smoot-Hawley Tariff:Smoot-Hawley Tariff:

During the 1920’s Congress maintained During the 1920’s Congress maintained high tariffs, or import tax, to protect high tariffs, or import tax, to protect American business from foreign American business from foreign competition.competition.

The Depression effected the U.S., Great The Depression effected the U.S., Great Britain and Germany.Britain and Germany.

France, Australia, Argentina and BrazilFrance, Australia, Argentina and Brazil By 1930 manufacturing, investments, trade By 1930 manufacturing, investments, trade

and banking had all become international.and banking had all become international. Made countries more dependant Made countries more dependant

economically.economically.

No HelpNo Help

No system of unemployment No system of unemployment insurance to help those without jobsinsurance to help those without jobs

No national welfare to help the No national welfare to help the jobless.jobless.

State and local governments, as well State and local governments, as well as, charities helped to raise funds to as, charities helped to raise funds to feed the poor.feed the poor.

Breadlines, Soup Kitchens and Breadlines, Soup Kitchens and Shelters were established.Shelters were established.

Soup kitchens and Soup kitchens and BreadlinesBreadlines

InflationInflation

Is the continuing increase in the Is the continuing increase in the price of goods.price of goods.

During the 1920’s inflation spiraled During the 1920’s inflation spiraled out of control.out of control.

Herbert HooverHerbert Hoover

Great Depression Relief:Great Depression Relief: tax cuts tax cuts boost in governmental spending for public boost in governmental spending for public

works projects. (roads and dams)works projects. (roads and dams) Believed in little or no government Believed in little or no government

intervention to help the depression. intervention to help the depression. (Laissez-faire)(Laissez-faire)

Called for rugged individualismCalled for rugged individualism Success through individual effort and private Success through individual effort and private

enterprise.enterprise.

HoovervillesHoovervilles

““Hoover Wagons”Hoover Wagons”

Bonus ArmyBonus Army

May/July 1932May/July 1932 World War I veterans protest early World War I veterans protest early

pension bonuses in Washington D. C.pension bonuses in Washington D. C. Gassed by General Douglas Gassed by General Douglas

MacArthurMacArthur Sealed Hoovers fate, Franklin Sealed Hoovers fate, Franklin

Roosevelt would be elected next Roosevelt would be elected next president.president.

The Bonus ArmyThe Bonus Army

The The DepressionDepression DevastatesDevastates

HardshipsHardships

Hero’s?Hero’s? Bonnie and Clyde

were notorious bank were notorious bank robbers during what robbers during what is sometimes referred is sometimes referred to as the "to as the "public enemy era" " between 1931 and between 1931 and 1935. During the 1935. During the Depression bankers Depression bankers became so unpopular became so unpopular that bank robbers, that bank robbers, such as such as John Dillinger, became folk heroes., became folk heroes.

John Herbert Dillinger Jr.John Herbert Dillinger Jr. (June 22, 1903 – July 22, (June 22, 1903 – July 22,

19341934 An American An American bank robber in the in the

Midwest during the early 1930s. during the early 1930s. He was considered to be a He was considered to be a

dangerous criminal who was dangerous criminal who was involved in the deaths of several involved in the deaths of several police officers, robbed at least police officers, robbed at least two dozen banks and four police two dozen banks and four police stations, escaped from jail twice stations, escaped from jail twice and was idolized by some as a and was idolized by some as a modern-day modern-day Robin Hood. .

The exploits of Dillinger and his The exploits of Dillinger and his gang, along with those of other gang, along with those of other criminals of the criminals of the Great Depression such as such as Bonnie and Clyde and and Ma Barker, dominated the attention of the , dominated the attention of the American press.American press.

Referred to as the Referred to as the public enemy era (1931–1935), a period which era (1931–1935), a period which led to the development of the led to the development of the modern, more sophisticated modern, more sophisticated Federal Bureau of Investigation..

FBI photograph of the FBI photograph of the Biograph in 1934, soon Biograph in 1934, soon after Dillinger's death. after Dillinger's death.

Grave in Grave in Crown Hill Cemetery, , Indianapolis, Indiana. Indianapolis, Indiana.

Set during the Set during the Great Depression, , it focuses on the it focuses on the true story of true story of Bureau of Bureau of Investigation agent Investigation agent Melvin Purvis Melvin Purvis (Christian Bale)'s (Christian Bale)'s attempt to stop attempt to stop criminals John criminals John Dillinger (Johnny Dillinger (Johnny Depp), Baby Face Depp), Baby Face Nelson, and Pretty Nelson, and Pretty Boy Floyd. Boy Floyd.

The EndThe End