1930 the great depression

1930 The Great Depression

1. Presented By: Rahul Gaikwad
Submitted To : Prof. Sarojini Seth

2. Content
What is Depression – Business Cycle
Causes of The Great Depression
Impact of the Great Depression
President Herbert Hoovers Response to the Great Depression
The New Deal for American People
US Statistical Data
Life Before Depression (1920s)
Immediate cause of Great Depression
President Franklin Delano Roosevelt Response to the Great Depression
Conclusion

3. What is Depression – Business Cycle

4. Life Before Depression (1920s)

5. Causes of The Great Depression

6. US Statistical Data

7. Total income rose from $74.3 billion in 1923 to $89 billion
in 1929
65
70
75
80
85
90
1923 1929
income

8. 99% of the population received a 9% increase in their
income, while the top 1% saw their income rise by 75%.

9. Decline in the prices of various products
from American farms
Agricultural
product
1912-1913 1932-1933
Corn (per bushel) 0.56 0.20
Wheat (per bushel) 0.88 0.41
Oats (per bushel) 0.34 0.17
Butter (per lb) 0.21 0.13
Butterfat (per lb) 0.25 0.16
Wool (per lb) 0.24 0.10
Hogs (per cwt) 7.50 3.80
Milk (per cwt) 1.79 0.90

10. Farmers, suffering during the 1920s, suffered
further declines during the Great Depression.
Wholesale food prices
collapsed, led to a lack of
money to purchase new
equipment and many could
not pay for their mortgages
and lost their farms.

11. 1910 1918 1932
Average gross
receipts
2177 3837 1512
Average
expenditures
770 1655 1019
Balance 1407 2182 493
Drop in profits for farmers
Hence farmers unable to afford new equipment, and in many cases
their mortgages, which led to the hundreds of thousands of
foreclosures on farms.

12. Immediate cause of the Great Depression

13. Impact of The Great Depression
Continued…
Farmers
Prices of crops went down
Many farms foreclosed
Banks
Could not pay out money
People
Could not afford luxuries
Factories shut down
Businesses went out
Schools shut down due to lack of funds
Many families became homeless and
had to live in shanties

14. Impact of The Great Depression
Continued…
People
President Hoover did nothing
Looking for help and no ideas on how to
correct or help were coming
People in cities would wait in line for
bread to bring to their family.
Hoorverville
Some families were forced to live in
shanty towns
President Hoover’s lack of help during
the depression, people referred to as
“Hooverville”

15. Impact of The Great Depression
Continued…
The Dust Bowl
A drought in the South lead to dust
storms that destroyed crops.
Crops turned to dust=No food to be sent
out
Homes buried
South in state of emergency
Dust Bowl the #1 weather crisis of the
20th century

16. Impact of The Great Depression
International trade fell
Nations tried to protect their industries
by raising tariffs on imported goods
Beggar-thy-neighbor
Major reason why the Depression persisted as
long as it did. By 1932, an estimated 30 million
people were unemployed around the world.
Military Dictatorship
Western industrialized countries cut back on
purchase of raw materials and other commodities.
The price of coffee, cotton, rubber, tin, and other
commodities dropped 40 percent. The collapse in
raw material and agricultural commodity prices
led to social unrest

17. President Herbert Hoovers Response to the
Great Depression
President Herbert Hoover was slow
to respond
State governments to undertake
public-works projects
Big companies to keep workers’ pay
steady
Labour unions to stop demanding
raises.
Still, the crisis worsened.
Between 1930 and 1933, more than
9,000 banks closed in the US
Unemployed people standing in
charity breadlines to feed their
families
Selling apples on street corners

18. President Franklin Delano Roosevelt (FDR)
Response to the Great Depression
Continued…
Won presidential election in 1932.
FDR took charge in March 1933, the
country was virtually leaderless and
the banking system had collapsed.

19. In his inaugural address, he said “The
only thing we have to fear is fear
itself….”
Promised…
Strong leadership and bold action,
called for discipline and cooperation,
expressed his faith in democracy, and
asked for divine protection and
guidance.
A change: “I pledge myself,” he said,
“to a New Deal for the American
people.” This New Deal would use
the power of the federal government
to try and stop the economy’s
downward spiral.
President Franklin Delano Roosevelt (FDR)
Response to the Great Depression

20. The New Deal for American People
Purposes of the New Deal
Primary aim: Economic recovery
Relief: To provide jobs for the
unemployed and to protect farmers from
foreclosure
Recovery: To get the economy back into
high gear
Reform: To regulate banks, stop child
labor, and conserve farm lands
Sources of the New Deal
Brains Trust: Specialists and experts, mostly
college professors, idea men
Continued…

21. National Recovery Act (NRA)
& First Agricultural Adjustment Act (AAA)
National Recovery Act (NRA)
Purpose: Recovery of industry
Partnership of business, labor, and
government to attack the
depression with such measures as
price controls, high wages, and
codes of fair competition
First Agricultural Adjustment Act
Purpose: Recovery of agriculture
Paid farmers who agreed to reduce
production of basic crops such as cotton,
wheat, tobacco, hogs, and corn
Money came from a tax on processors
such as flour millers and meat packers
who passed the cost on to the consumer
Continued…

22. Federal Emergency Relief Admin (FERA)
& Civilian Conservation Corp (CCC)
Federal Emergency Relief Admin
Purpose: relief
Gave money to states and
municipalities so they could
distribute money, clothing, and
food to the unemployed
Civilian Conservation Corp
Purpose: Relief
Gave work like planting trees,
maintaining forest road,
building flood barriers to
unemployed men between the
ages of 17 and 29
They received $30 per month

23. This Can be linked to today because we are in a
“recovery” and came from “recession” and “The Great
Depression” was just the result of a “bad recession”
Take right decision at the right time
Save for your future
Conclusion

25. Thank You