The Great Depression



Hoovervilles were created during the Great Depression due to a mass amount of people losing their homes to debt. They congregated together in hovels and created shanty towns out of whatever materials they could scrounge. These people had to rely on begging and handouts to get by in their lives.


Causes: due to the stock market crash, many people became afraid of keeping their money in the banks.this caused many people to withdraw their money all at once, causing banks to close down. Everyone who didn't get their money back lost it all and couldn't afford the rent and debts piled up. They were ejected from their homes and had to live on the streets, scrounging up whatever they could to survive.

Characteristics: the Bonus Army was a Hooverville made up of many war veterans who were forced to live in Hoovervilles due to not having much money. A conflict erupted when the president called the police to clear out the area.

Significance: these Hoovervilles sent a message to people, showing what could happen if the entire country became indebted, forced out of their homes and forced to seek other shelter. Luckily, an event of this magnitude has not happened since the Great Depression, and although their are still groups who live in Hoovervilles, the majority of people have righted themselves financially and don't have much fear of this. Additionally, the government has created laws where a blank can't get shut down if it doesn't pay back all of the money, so people don't have to worry about banks foreclosing as much.