Chapter 13: The Great Depression

Chapter 13 examines some of the causes of the Great Depression and looks at the ways in which families and communities coped with its hardships.

Section 1 describes how the 1920s' economic euphoria turned into the 1930s' Great Depression. On October 24,1929, amid unmet margin calls and widespread panic, the stock market crashed. Banks that had loaned to stockbrokers lost their cash reserves and, in turn, ordinary citizens lost their bank savings. Several factors added to the nation's economic troubles. Industry was overproducing, and Americans were unable to consume swelling inventories. Lower farm prices created economic hardships for farmers, and foreign exports had dwindled. President Hoover's plan to provide relief through voluntary actions and local programs was optimistic but proved inadequate against deepening economic troubles.

Section 2 explains how the Great Depression affected individuals, families, and communities. In rural areas, foreclosures and dust storms forced thousands of farmers out of work, while in the city factory layoffs sent national unemployment to 25 percent. People wandered about the country looking for work. On the fringes of cities, the unemployed constructed makeshift communities, called "Hoovervilles," out of boxes and other refuse. These shacks helped to shelter some of the nearly 2 million homeless Americans. Many Depression-era families were deeply affected by the poverty that filled their lives with hopelessness.

Section 3 looks at some of the innovations and diversions that helped people cope in the 1930s. To escape the despair of the Depression, people embraced books, movies, radios, and cars. The automobile's popularity grew throughout the 1930s as Americans escaped the Depression by hopping in their cars for drives or vacations. At home, electricity and modern appliances freed people from the everyday drudgery of household chores. Color and sound made their favorite escape, movies, even more enjoyable. While many Americans sought respites from economic troubles, others chose to examine the problems and explore solutions. Writers, painters, playwrights and photographers used their media to reveal the country's suffering.