The Great Depression Widens

From Great Depression 22-2 Reading

1. How did the Great Depression affect minorities?     
Minorities, such as Mexicans and Mexican Americans, had an especially hard time during the great depression. They had higher unemployment rates and lower-paying jobs. They had to deal with racial violence from whites that were competing for jobs. Many whites demanded that they be deported. Hundreds of thousands of people of Mexican descent left the country; some voluntarily and some were deported.


2. Why did so many men leave their homes during the Depression?    
Men were accustomed to working and supporting their  families. When they lost their jobs, it became part of their daily routine to search the streets for employment. But it was very hard to find work. Many people stopped trying because they were so discouraged and even left their families. 


3. How did the Great Depression affect women and children?    
Woman had to work hard during the Great Depression. Many of them canned food and sewed clothing.  They learned how to be extremely frugal and save every penny. Those who worked outside the home earned much less than men. They became the targets of much hatred. People felt that woman weren't struggling as much as men (especially married women) and felt woman didn't deserve jobs if men were unemployed.
 

From Great Depression 22-3 Reading

4. What were some of Hoover’s key convictions about government?     
Hoover believed that one of the government's most import jobs was to find solutions that would benefit both sides of a dispute. He opposed any type of federal welfare or direct relief to the needy, believing that people should support themselves, which was known as rugged individualism. People found him to be cold and heartless, but he didn't change his beliefs despite public criticism. 


5. Why do you think people blamed Hoover for the nation’s difficulties?    
People did not feel like Hoover was helping them at all. Hoover didn't want to hurt anyone's "moral fiber" helping them, but the people couldn't care less about their moral fiber- they were starving. Hoover was taking a hands-off approach and waiting for the economy to fix itself, but things were only getting worse. 


6. What were some of the projects proposed by Hoover, and how effective were they?    
He urged key leaders of business, banking and labor to find solutions to the country's economic problems after the crash happened. He asked employers not to cut wagers or fire workers, and for labor leaders to not go on strike. Hoover also made an organization that helped charities help the poor. None of these things were very helpful, and the economy was still worsening after a year. Hoover also organized the Boulder Dam, which created jobs, provided flood control and electricity and enabled growth of California's agricultural economy. 


7. What did the Bonus Army want?    
The Bonus Army was made up of World War I veterans and their families. They were supporting the Patman Bill, which authorized the government to pay a bonus to veterans who had not been fairly compensated for their service during the war. They felt that the money ($500) should be payed immediately.

The Crash Occurs and the Great Depression Begins

1. What industrial weakness signaled a declining economy in the 1920s?        
Key basic industries (railroads, textiles, steel) only made a small profit. Railroads lost business due to competition from trucks, buses and personal automobiles. Mining and lumbering were no longer in high demand. Coal mining lost business from new forms of energy and the boo, industries of the 1920s (automobiles, construction and consumer goods) weakened.

2. What did the experience of farmers and consumers at this time suggest about the health of the economy?       
Agriculture was hit hard. Demand for crops fell after the war ended and prices fell by 40%. They increased production but were unable to sell everything they made, further lowering the prices. Farmers' income plummeted and many could pay off their debts.


3. How did speculation and margin buying cause stock prices to rise?      
People would just by something in hopes of making some quick cash and they would ignore all the risks (this was speculation). Buying on a margin was making a down payment and then borrowing the rest of the money. Easy money was available and trade was unrestrained. Rising prices didn't reflect the worth of their company. 


4. What happened to ordinary workers during the Great Depression?      
Many banks had to close down because they didn't have any money and people lost their entire savings. Millions of workers lost their jobs. Unemployment was at 25% and those who did have jobs had reduced pay and reduced hours.


5. How did the Great Depression affect the world economy?  

The Great Depression not only affected American economy, but also the world economy. Many countries had to deal with war debt, and Germany had to pay war reparations. The Great Depression worsened these things by limiting America's ability to import European goods, which made it difficult to sell American products to other countries.