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The Great Depression


Though most Americans are aware of the Great Depression of 1929, 
which may well be "the most serious problem facing our free enterprise 
economic system", few know of the many Americans who lost their homes, 
life savings and jobs. This paper briefly states the causes of the 
depression and summarizes the vast problems Americans faced during the 
eleven years of its span. This paper primarily focuses on what life 
was like for farmers during the time of the Depression, as portrayed 
in John Steinbeck's The Grapes of Wrath, and tells what the government 
did to end the Depression. 

 In the 1920's, after World War 1, danger signals were apparent 
that a great Depression was coming. A major cause of the Depression 
was that the pay of workers did not increase at all. Because of this, 
they couldn't afford manufactured goods. While the factories were 
still manufacturing goods, Americans weren't able to afford them and 
the factories made no money (Drewry and O'connor 559). 

 Another major cause related to farmers. Farmers weren't doing to 
well because they were producing more crops and farm products than 
could be sold at high prices. Therefore, they made a very small 
profit. This insufficient profit wouldn't allow the farmers to 
purchase new machinery and because of this they couldn't produce goods 
quick enough (Drewry and O'connor 559). 

 A new plan was created called the installment plan. This plan was 
established because many Americans didn't have enough money to buy 
goods and services that were needed or wanted. The installment plan 
stated that people could buy products on credit and make monthly 
payments. The one major problem with this idea was that people soon 
found out that they couldn't afford to make the monthly payment(Drewry 
and O'connor 559).

 In 1929 the stock market crashed. Many Americans purchased stocks 
because they were certain of the economy. People started selling 
their stocks at a fast pace; over sixteen million stocks were sold! 
Numerous stock prices dropped to fraction of their value. Banks lost 
money from the stock market and from Americans who couldn't pay back 
loans. Many factories lost money and went out of business because of 
this great tragedy (Drewry and O'connor 

 By the 1930's, thirteen million workers lost their jobs which is 
25 percent of all workers. The blacks and unskilled workers were 
always the first to be fired. Farmers had no money and weren't 
capable of paying their mortgages. Americans traveled throughout the 
country looking for a place to work to support themselves and their 
family (Drewry and O'connor 560-561). John Steinbeck, born in 1902, 
grew up during the Depression near the fertile Salinas Valley and 
wrote many books of fiction based on his background and experiences 
during that time and area of the country. One of his great works would 
be the Grapes of Wrath In this book, Steinbeck describes the farmers 
plight during the Great Depression and drought. When the rains failed 
to come, the grass began to disappear. As the farmers watched their 
plants turn brown and the dirt slowly turn to dust they began to fear 
what was to come. In the water-cut gullies the earth dusted down in 
dry little streams. As the sharp sun struck day after day, the leaves 
of the young corn became less stiff and erect; then it was June and 
the sun shone more fiercely. The brown lines on the corn leaves 
widened and moved in on the central ribs. The weeds frayed and edged 
back toward their roots. The air was thin and the sky more pale; and 
every day the earth paled. (qtd. Steinbeck 2-3). The farmers worst 
fears were realized when their corn and other crops began to die. The 
dust became so bad they had to cover their mouths with handkerchiefs 
so they could breath (Steinbeck 3- When the drought hit the Great 
Plains and the soil turned to dust, many farmers moved to California 
because they could no longer farm their land(Drewry and O'Connor 561). 
 The drought began to affect other parts of the country. In 1930, 
Virginia's belt of fertile land dried up. Ponds, streams, and springs 
all dried up and the great Mississippi River water level sank lower 
than ever recorded. Small farmers every-where began to feel the 
drought. Their small gardens were ruined and their corn crop was cut 
almost down to nothing. The hay and grass needed to feed their 
livestock was no longer available. They now faced a major problem -how 
to feed their livestock. The silos were rapidly emptying and the barns 
in many cases were empty. The farmers were terrified that the 
government feed loans wouldn't be available to keep the livestock from 
dying. In many cases, the Red Cross was making allowances for feed to 
keep alive livestock (Meltzer 121). The small farmers of fruit trees 
and vegetable plants depended on others who ran canneries to bottle 
and can their produce. The people they depended upon were the same 
people that hired scientists to experiment on the fruits and 
vegetables to come up with better tasting and yielding produce. Thus 
the small farmers were dependent on these same rich landowners for 
almost everything. They couldn't harvest their produce on their own 
so they sold it to the rich landowners and thus made very little money 
on their produce (Steinbeck 444-447). The farmers found themselves in 
debt caused by the purchase of land, tools, animals and other items 
bought on credit. This credit was due to the bank and when the 
farmers found them- selves unable to repay the debts the bank took 
away everything they had - their land, homes, animals and equipment. 
When the banks took over, they went in with tractors and destroyed 
everything on the farms which included their homes and barns. This is 
best por- trayed in Steinbeck's description of how the tractors 
destroyed everything in its way. "The iron guard bit into the house 
corner, crumbled the wall, and wrenched the little house from its 
foundation, crushed like a bug (50).

 "In the little houses the tenant people sifted their belongings 
and the belongings of their father and of their grandfathers" 
(Steinbeck 111). This describes how after many generations of farming 
on their land these people had to gather their property and memories 
and then try to sell whatever they could. The farmers were so 
desperate for money that they had to sell for literally 
pennies.Steinbeck describes the desperate conversation of a farmer to 
a persepective buyer "Well, take it-all junk-and give me five dollars. 
You're not buying only junk, you're buying junked lives" (Steinbeck 

 The desperation for work and money became so bad that they were 
willing to work for as little as was offered just so they could have 
some sort of job and make any amount of money. Soon it was a fight 
for life or death (Steinbeck). In a desperate search for a job 
farmers moved themselves and their families all over the country. As 
people wandered the country looking for work they were unable to live 
in one place. Large numbers of homeless people led to Hoovervilles. 
 The farmers and their families had to build homes out of anything 
that they could acquire as Steinbeck describes "The south wall was 
made of three sheets of rusy corrugated iron, the east a square of 
moldy carpet tacked between two board, the north wall a strip of 
roofing paper and a strip of tattered canvas, and the west wall six 
pieces of gunny sacking"(Steinbeck 310-311). The homes were usually 
near water source so they could have water to drink from, cook and 
wash their clothing (Steinbeck 311). 

 To cut down the number of people seeking jobs or needing help, the 
government decided to try to come up with some sort of relief. Among 
other things, they limited immigration, returned hundreds of Mexicans 
living here,and sought other methods to help the farmers. Hoover's 
Federal Farm Board urged farmers to plant less so that prices would go 
up but there was no encouragement to do so.From 1920 to 1932 farm 
production did drop 6 percent but prices fell ten times as much-by 63 
percent. Farmers watched prices hit new lows-15 cents for corn, 5 
cents for cotton and wool, hogs and sugar 3 cents, and beef 2.5 
cents(Meltzer 123). With farm prices so low, most farmers, living 
under the fear of their mortgages, knew that sooner or later they will 
lose everything. In 1932 the farmers declared a holiday on selling. 
They picketed roads asking people to join the. They gave away free 
milk to the poor and unemployed rather then let it spoil because they 
refused to sell it. A thirty-day holiday on farm selling was begun 
August 8 and extended indefinitely(Meltzer 125). In December 1932, 250 
farmers from twenty-six states gathered together for a Farmers 
National Relief Conference. They announced that they demand relief 
from creditors who threaten to sweep them from their homes and 
land(Meltzer 126). 

 In May 1933, the Agricultural Ajustment Act was passed. The aim 
of this act was to raise the farm prices by growing less. The farmers 
were paid not to use all the land to plant crops. The money came from 
tax on millers, meat packers, and other food industries. In June of 
that same year the Farm Credit Act was passed. This act helped 
farmers get low interest loans. With this act, farmers wouldn't lose 
their farms to the banks that held the mortgages. The farmers who 
lost their farms already would also receive low interest loans(Drewry 
and O'connor 569). 

 The Great Depression was the end result of World War I. It 
affected the rich and poor alike, factory workers and farmers, bankers 
and stockbrokers. In short, it affected everyone; no one was left 
untouched. But of all the people hurt, farmers were the worst off. 
John Steinbeck chose to write about farmers hoping that Americans 
would recognize their plight and correct the situation. The Great 
Depression is known to be the worst economic disaster in U. S. 
history. For this reason, the Depression caused many people to change 
their ideas about the government and economy. 



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