The Great Depression

• Roaring Twenties


  The 'Roaring Twenties' came to a sudden end. The unstable economy during the 1920s and the Wall Street Crash in 1929 led to an unprecedented depression in the USA.
• Banks collapsed


  Banks collapsed. 659 banks closed in 1929. This increased to 2,294 in 1931. They collapsed because people withdrew their savings for fear of losing money. Their closures, in turn, led to the remainder of savers losing their cash as well. Those banks which remained refused loans to struggling firms, leading to bankruptcies.
• Public lost confidence


  The public lost confidence in the economy and hope in the future. They blamed big businesses and banks for the problems. Suicides went up 50 per cent. Businesses struggled to sell their products overseas so they were forced to cut production, then wages and eventually they had to sack workers.
• People couldn’t buy consumer goods

  People could no longer buy consumer goods, such as cars and clothes. As a result, workers were made redundant. Unemployment rose to 25 per cent of the national workforce (14 million people). In some regions, it was much higher. In Denora in Pennsylvania in March 1932, only 277 people out of nearly 14,000 had jobs. There was no work at all in the coal mines of Illinois. Unemployment and distress were highest among immigrants and black Americans.
• What was the overall condition of people during the Great Depression?

  There was great misery.
• What basic goods did people struggle to buy during the Great Depression?

  People struggled to buy basic goods such as food and clothing.
• How did the number of deaths related to starvation change during the Great Depression?

  The number of deaths directly linked to starvation increased during the Depression.
• What other health issues were related to the lack of nutrition during the Great Depression?


  Many other illnesses and deaths were related to a lack of nutrition.
• What was a common consequence of the economic situation during the Great Depression?

  Homelessness was common.
• What caused the increase in homelessness during the Great Depression?

  The increase in repossessions of homes caused the rise in homelessness.
• How many bankrupt farmers and unemployed people became hobos during the Great Depression?

  About 2 million bankrupt farmers and unemployed people became hobos.
• What were shanty towns called during the Great Depression?

  Shanty towns were called Hoovervilles.
• What materials were used to make Hoovervilles during the Great Depression?

  Hoovervilles were made out of waste materials like cardboard.
• Where were Hoovervilles typically located during the Great Depression?

  Hoovervilles sprang up at the edges of most towns.
• What did some people do to secure food and shelter during the Great Depression?

  Some people deliberately got themselves arrested as it meant food and a bed for the night.
• What was one way people coped with homelessness during the Great Depression?

  Some people slept on park benches.
• What was the situation of farmers in the 1920s?

  The plight of farmers was already distressing.
• How did the Hawley-Smoot Act affect farmers?

  It decreased their sales due to a renewal of the USA's tariff war with other countries.
• What was the impact of the tariff war on farmers' financial situations?

  Evictions for non-payment of mortgage increased.
• What did farmers do when prices were so low?

  They left the crops to rot in the fields and killed farm animals instead of taking them to market.
• What natural disasters affected farmers from 1930 onwards?

  Farmers were hit by a series of droughts and floods.
• What was created as a result of the droughts in the Mid-West?

  The Dust Bowl of 20 million hectares of land was created.
• What happened to crops and topsoil in the Tennessee Valley?

  They were washed away by floods.