The Great Depression Overview

The Great Depression

• Economic depression: long period of severe economic downturn, high unemployment, and widespread hardship.
• WWI impact: economic strain from war, national debts, disruption of global trade, and overproduction, triggering the crash.
• Stock market crash of 1929: triggered the depression, leading to bank runs and decreased investment.
• Income inequality: significant disparity in wealth distribution, contributing to the economic crisis.
• Credit and debt: excessive borrowing and speculation in the stock market.
• Agriculture struggles: crop failures, drought, overproduction leading to low crop prices/income for farmers.
• Tariffs: trade barriers negatively impacted international commerce, contributing to the decline.
• Herbert Hoover's presidency: he believed in rugged individualism and minimal government intervention, a philosophy criticized by many.
• Speculation: gambling on the stock market rather than investing in the long-term value of businesses.
• Black Tuesday: October 29, 1929, the date of the stock market crash.
• Margin: borrowing money from a broker to buy stocks.
• Credit: the ability to purchase goods with the intention of paying later
• Dustbowl: severe drought and dry conditions in the Midwest, worsened by poor agricultural practices.
• Bank runs: widespread withdrawals from banks due to fears of bank insolvency.

Rural Areas Effects

• Agricultural decline: crop failures, drought, overproduction, and large winds led to low crop prices/income for farmers. This created widespread poverty in rural communities.
• Shantytowns: poor residential areas developed from makeshift housing, visible in rural areas.

Urban Areas Effects

• High unemployment: widespread joblessness, leading to homelessness, poverty, and abandonment in urban areas. Difficulty finding jobs increased, especially for minorities.
• Shantytowns: poor residential areas developed from makeshift housing visible in urban areas.

Impact on Children, Elderly and Minorities

• Children faced hardship: abandoned, sent to work to help families survive, as well as poverty.
• Elder poverty due to lack of savings and limited resources.
• African Americans experienced even higher unemployment rates compounded by racial discrimination. This discrimination worsened economic challenges for minorities.

Social Norms and Impacts

• Women entering workforce: increased participation in the workforce due to economic necessity.
• Psychology impacts: anxiety, fear, and depression were common responses to the hardship of the Great Depression.
• Hobos: homeless people wandering the country looking for work.
• Shantytowns: poor residential areas developed from makeshift housing.

Economic Philosophies

• Rugged individualism: the belief that individuals should rely on their own efforts, a philosophy criticized for not providing enough assistance during the crisis.
• Laissez-faire economics: minimal government intervention in the economy, a prominent viewpoint during the Great Depression that was widely criticized.
• Trickle-down economics: suggested benefits for the wealthy would benefit the overall economy, but this approach demonstrated limited effectiveness.

Hoovervilles

• Makeshift shantytowns: built during the depression by those who lost their homes, a stark visual of the widespread poverty and desperation.

Bonus Army

• WWI veterans: marched on Washington D.C. to demand early payment of promised bonuses, highlighting the economic hardship of veterans.