If you are citizen of an European Union member nation, you may not use this service unless you are at least 16 years old.
You already know Dokkio is an AI-powered assistant to organize & manage your digital files & messages. Very soon, Dokkio will support Outlook as well as One Drive. Check it out today!
Prosperity L.O.S.T -The Economic Boom and Bust of the 1920s
Post-war changes in the global financial markets transformed the world economy, examines the role of boosters and
politicians in promoting speculation, and describes in detail the disastrous aftermath of the 1929 panic.
Boom and Bust in the 1920s (5 minutes 18 secs)
ThePROSPERITYof the 1920s never reached farmers, who had suffered from overproduction, high debt, and low prices since the end of World War I. High protective tariffs protected US industries by hurt farmers and international trade. As the depression continued through the 1930s, severe weather and a long drought exacerbated farmers’ difficulties.
Due to advancement in production techniques in the 1920s, there was a great rise in production in industries like automobile. But the demand didn’t rise proportionately and this led to many companies struggling to sell what they produced.
Also with better technology there was an increase in supply of food but the demand couldn’t keep pace. Therefore, prices fell and farmers’ incomes dropped leading to widespread financial despair among American farmers. Disappointing profit results of companies and agricultural recession were major causes behind the unexpected stock market crash.
Workers: By 1932, twelve million people, or 25% of the labor force, were unemployed. Those workers who kept their jobs were forced to work for low wages. Many of the unemployed lived in “Hoovervilles,” or rundown towns, whose makeshift houses were made of cardboard and tin collected from dumps. For millions of Americans, soup kitchens offered their only meals. What does 25 percent Unemployment look like?
Soldier Against Soldier: The Story of the Bonus Army In the summer of 1932, at the height of the Depression, some forty-five thousand veterans of World War I descended on Washington, D.C., from all over the country to demand the bonus promised them eight years earlier for their wartime service. Synthesis: Marches on Washington
Farmers: Farmers of the Great Plain’s faced several years of drought during the early 1930”s. Dust storms swept across the plains removing much needed topsoil. Many “Okies,” or migrant farmers, moved westward to find work. Such hardships were depicted in John Steinbeck’s novel, The Grapes of Wrath. Due to problems such as the Dust Bowl and surplus food stuffs, over one-half million farmers lost their farms during the Great Depression.
PRESIDENTIAL RESPONSE Herbert Hoover
A Republican, President Hoover believed the economy would repair itself and did not want to implement government remedies to “cure” it. As the depression worsened, Hoover began to take actions to increase business profits, believing business prosperity would “trickle down” to the average American by way of employment and increased income. To accomplish this, he cut taxes and created the Reconstruction Finance Corporation.
The Corporation gave $2 billion in loans to banks, railroads, and large corporations. However, many Americans felt that President Hoover’s actions were too little, too late. He was soundly defeated by Franklin D. Roosevelt in the presidential election of 1932.
Comments (0)
You don't have permission to comment on this page.