The economy during the 1920's was booming. Consumers bought more and more products, which causes the businesses to grow and expand. The stock market crash was caused by companies over producing more products than the consumers could buy. The businesses were stuck with a surplus of products. While the people would take out loans from the bank to buy these expensive products, but when the stock market crashed, they owed the bank money and the consumers had no money.
Economy Over 15 Years
The economy from the 1920's to the 1930's severely decreased.
People of the 1920's often bought products on credit. This means that they only paid a small percentage of the product now and they would slowly pay it off. For example, the people would buy a big and expensive product, like a dishwasher, and they would only pay about 10% at the store. In order to pay for these expensive products, the consumers had to take out loans from the bank.
Buying On Credit
The government persuaded people to buy on credit by putting encouraging signs up all over the cites. These signs were tricking the people into thinking that they could afford the expensive products, while in reality they could not.
Businesses were forced to close because no one could buy their products, meaning people did not have any money. The businesses had continued to produce more and more products as the demand for them dropped. Now, the businesses were stuck with a surplus of goods.
Business Forced to Close
A business owner is forced to shut down his business because they were not making any sales
the Dust Bowl ruined crops. The soil was too dry to grow crops and gusts of wind would blow the soil, turning it into dust. This dust killed crops and people and forced people to leave.
The Dust Bowl
Dust is invading a town, it is smothering and killing everything in it's path
Home life during the 1930s was extremely difficult. People were going hungry they had no money to buy food, water or clothes. They had to eat at soup kitchens and wait in bread lines for food.
These desperate people are waiting in line just to get a little bit of food.
This tragedy did not even affect the wealthy people. They had so much money that the depression did not affect them.
Wealthy women walk the streets of New York City showing off their wealth to the poor and struggling poor people.
People were forced to live in Hoovervilles. These were towns on the outskirts of the cities where people lived in shanties. These shacks were made of any material people could find like, cardboard, glass, metal, newspaper and steel.
Another Run-Down Shack
Yet, another family is living in a Hooverville. They are so desperate for a home that they have to live here or on the streets.
The Farmers were struggling as they had a buildup of products and prices dropped even lower and they had to pay debts to the bank with cash. The Farmers needed relief fast but they never really got it.
A family of farmers is trying to harvest some food so they can eat. While they are still overproducing their products.
In the 1930s for their leisure time people watched movies and read books for their entertainment. They distracted themselves with book and movie characters and the radio.
Shirley Temple was a very popular and iconic actress in the 30's. Her work distracted the people from the harsh reality of the Great Depression
People often resorted to the radio for entertainment. They huddled around the radio to listen to Franklin D. Roosevelt’s Fireside Chats.
Meaningful Fireside Chat
A family is huddling around their radio, grasping every word that President Franklin D. Roosevelt says
Franklin D. Roosevelt gave the people fireside chats to make them understand what is happening in our economy, and what they could do to help.
Franklin D. Roosevelt Giving a Fireside Chat
Franklin D. Roosevelt is giving a Fireside Chat to the people of the United States.
Prohibition impacted the people because alcohol was banned but the people were deprived of alcohol that they were desperate for it. This made the crime rate rise, people started to illegally buy and sell alcohol.
Protest for Alcohol
People are walking the streets protesting about how alcohol should not be banned.
The role of government in the 1920s was very laid back. The government was not involved in the people’s lives at all. hen President Franklin D. Roosevelt was elected president in the 30’s, he proposed The New Deal. These programs were meant to bring relief, reform and recovery to the people.
President Hoover refused to pay War Veterans. He promised them money and they were protesting. Hoover just locked himself in his office because he did not want to pay them for their service.
Protesting War Veterans
War Veterans are walking the streets of New York demanding their money for their service from Republican President Herbert C. Hoover
The New Deal programs were bringing immediate help, temporary help and permanent help and changed to the American People.
New Deal Programs Helping
This New Deal program is bringing immediate help, or relief, to poor consumers.
The businesses in the 1930's did not support the New Deal Programs. They believed that it was too expensive.
New Deal Programs are Expensive
Businesses do not agree with the New Deal programs because it is racking up our country's national debt
The government put up posters about the New Deal programs to encourage consumers to support them.
New Deal Ad
The government is persuading people about how the New Deal programs are fixing the economy.