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The
causes of the
Great Depression
were many and varied, beginning with rapid economic growth and
financial excess of the "Roaring Twenties.” During this time, many
Americans were quickly buying automobiles, appliances, and speculating
in the stock market. Unfortunately, much of this wild spending was
done on credit and while businesses were making huge gains, the
average workers’ wages were not increasing at anywhere near the same
rate.
But, like other
"booms” throughout history, the cycle soon led to a "bust.” As
manufacturing output continued and farmers were over producing,
circumstances began to change, leading to falling prices and rising
debt. At the same time, there was a major banking crisis, serious
policy mistakes of the Federal Reserve Board, and with the stock
market crash in October, 1929 the
country was thrown into a full-blown
Depression that would affect the nation for nearly a decade.
Businesses began to lay off people, which
was quickly followed by homelessness as the economy crumbled in the
early 1930’s. Homeowners lost their property when they could not pay
mortgages or pay taxes. Renters fell behind and faced eviction. Many
squeezed in with relatives, but hundreds of thousands were not so
fortunate. Some defied eviction, staying where they were, others found
refuge in one of the increasing number of vacant buildings, more found
shelter under bridges, in culverts, empty water mains, or on vacant
public lands, where they built crude shacks. When the
Dust Bowl began in 1931
it made matters even worse. By 1932 millions of Americans were living
outside the “normal” housing market. Between 1929 and 1933, more than
100,000 businesses failed across the nation and when President Hoover
left office in 1933, the national unemployment rate was nearly 25%.
As these many people used whatever means
they had at their disposal for survival, they blamed Hoover for the
downfall of economic stability and lack of government help. Making
matters worse, the minimal federal help that was provided often didn’t
go to the sick, hungry and homeless, as many state and local
politicians of the time, were corrupt.
These teeming communities of makeshift
shacks known as “Hoovervilles,” were often concentrated in cities
close to soup kitchens run by charities. The shelters themselves
varied widely, from stone houses and fairly solid structures built by
those with construction skills, but, far more that were thrown
together with wood crates, cardboard, tar paper, scraps of cloth and
metal, and various other discarded materials. Within their shelters,
most people had a small stove, a few cooking implements, some bedding,
and little else.
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