Effects of the Great Depression

Industrial cities see huge unemployment ratesIn 1932: Cleveland=50%, Akron=60%,

Toledo=80%Farm income declined 60%

1/3 of farmers sold their land between ‘29 & ‘32

Unemployment was seen as a personal failureLocal and state relief efforts were

overwhelmedRed Cross, Salvation ArmyHoboesScavenging for scraps of food

Unemployment & Relief

Unemployment & ReliefHomelessnessMalnutrition, even

death from starvation

Shacks, shanties=“Hoovervilles”

WanderersFreight trains,

parks, under bridges

Unemployed man, San Francisco bread line, photo taken by Dorothea Lange, 1933

Hooverville, outside of Seattle, 1933

The Dust BowlDrought hits the Plains in 1930Accompanied by heat & high windsLed to “black blizzards”

Killed livestock & humans; respiratory problemsBlack clouds reached the east coast

Drought lingered until 1937 in most of the region, 1940 in others

As many as 2.5 million people left the PlainsTraveled west, esp. CA“Okies”Popularized by Steinbeck’s Grapes of Wrath

Hoover’s Policies 1st concern=restoring confidence in the

economyAsked business leaders & labor leaders for

voluntary cooperationNo laying off workers & no asking for higher

wagesIncreased government spending; but not

enoughIncreased taxes in 1932 (Revenue Act)Hawley-Smoot Tariff of 1930 worsened

economy globallyPopularity had sunk by 1931

Hoover’s PoliciesEst. Reconstruction

Finance Corporation in 1932Provided federal loans

to troubled banks, RRs, & other businesses

Funded public works projects

But most of the $$ went to big banks & corporations

Had a large budget; but didn’t use it

Hoover’s PoliciesAvoided providing

direct relief to homeless & unemployedThought it would

destroy desire to work & undermine self-worth

Some thought him hypocritical In 1930 refused $25

million to feed Arkansas farmers

But approved $45 million to feed their livestock

In 1932 refused to help pay Chicago teachers & city workers

But approved a $90 million loan to Chicago’s Central Republic Bank

Bonus Army1924, Congress

passed a $1K bonus for WWI vets

Wouldn’t mature until 1945

But vets demanded that gov’t pay immediately

Movement initiated in Portland, OR

By the time they reached Washington, DC they had 20K followers

HOR agreed to immediate payment, but Senate shot them down

Hoover refused to meet w/ the veterans

Bonus ArmyW/ conflict seeming

inevitable, Hoover ordered the Sec. of War to “surround the affected area & clear it w/o delay.”

In July of ‘32 the US Army (led by Patton & MacArthur) attacked the veterans’ camp

Set the tents & shacks ablaze & dispersed the Bonus Army

100+ veterans were injured, 1 infant was killed

Hardened the nation’s anti-Hoover opinion

The Election of 1932Hoover, once a

symbol of optimism, was now a failure

He was doomed in the election of 1932

Only received 39% of popular vote