The Great Depression
October 29, 1929- December 7, 1941
Causes of the Great Depression
The Great Depression had multiple causes. During the 1920s, consumerism in the United States reached a new level of frenzy. People could now afford new luxury goods using a new concept called installment buying. People in the urban areas began experiences a higher standard of living and increased wages, even though American farmers were seeing a decrease in their income due to the end of World War I. Over-speculation of stock values and buying stocks on margin began to create a new interest in the stock market.
Meanwhile, countries in Europe, especially Germany, had yet to recover from the damage inflicted by WWI and the Treaty of Versailles. As a result, tariffs were increased and international trade began to suffer. At the same time, the United States Federal Reserve was not properly supervising the activities of the banks.
The Dust Bowl
One of the worst, if not the worst, man-made environmental disasters to occur in the United States was what we now know as the Dust Bowl. The Dust Bowl occurred at the worst possible time in America- during the height of the Great Depression. Farmers in the midwest region had been over using the soil to plant crops, mainly due to the high demand of WWI and the lessened demand that followed WWI. The over using of the soil, combined with severe drought and high winds combined to create the disaster that became the Dust Bowl.
Many residents of the affected areas were forced to leave their homes and attempt to relocate where they could find work. Since the work that they were familiar with was farming, they migrated to California in record numbers. This was a devastating situation for the families who were displaced. Over nine states were affected by the dust storms.
Daily Life During The Great Depression
The Great Depression was an economically difficult time in America. In 1933, the unemployment rate was close to 25%. Many people were unable to find employment and as a result, people were hungry and homeless. There were no government sponsored programs to help with hunger, homelessness, and unemployment, so people were forced to do what they could. The luckier of the newly unemployed were able to live with family, but many people were forced to live in camps on the outskirts of towns nicknamed "Hoovervilles" after President Herbert Hoover. Local charities tried to assist the homeless and hungry by opening soup kitchens but the demand for food was more than they could accommodate. The American people were desperately seeking leadership that would move the country out of the Great Depression and into prosperity.
The New Deal
Franklin Delano Roosevelt was elected as President in 1932. He took office in January of 1933, when the Great Depression was at its worst. Roosevelt promised a New Deal for the American people. He and his advisors designed programs to try and lift America out of the Great Depression. Roosevelt's New Deal programs were divided into three categories- Relief, Recovery, and Reform.
Relief agencies were designed to provide immediate aid for the hungry and homeless in America. The Civilian Conservation Corps, or CCC, was one of the most successful relief programs. The CCC was open to young men, aged 18-25, and provided environmental jobs where the men lived on site and were provided with food and pay.
Recovery agencies were designed to repair and assist suffering agriculture and industries. These agencies were to repair the damage that had been done by the depression and provide needed assistance and jobs. The Tennessee Valley Authority, or TVA, is an example of a recovery agency. The TVA built dams and provided electricity to some of the most rural and isolated parts of America.
Reform agencies were formed to create safeguards against another economic collapse on the scale of the Great Depression. These agencies were to designed to make needed repairs to the American economy. The Social Security Administration, or SSA, is an example of a reform agency. Social Security was established to provide guaranteed income to the elderly, unemployed, and disabled.