What do you see?

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What do you see?
1. List 5 things you see in the picture. 2.
Based on her facial expression, what emotion(s)
do you think the woman is feeling? 3. Do you
think she is wealthy? 4. Do you think she lives
in a wealthy country? 5. Why do you think she
feels like the emotions listed in question 2? 6.
What time period does she live in? (think major
US event)
2
The Great Depression
3
The Stock Market
Traders on the floor of the stock exchange
NY Stock Exchange
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The Stock Market

• The stock market is a place where shares of
• ownership in corporations (stock) are
• bought and sold.
• Individual investors, like you, can own part
• of the greatest public corporations of the
• day.

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People were borrowing money to buy stocks

• Americans borrowed to buy stocks driving stock
  prices up. When stock prices plunged they
  couldnt repay loans and lost all their money.

6
Crash of October 1929
The stock market crashed on Tuesday October 29,
1929. This date is known as black Tuesday.
Stock prices began to fall as investors tried to
sell off their stock. Many investors had bought
stock on margin. During the 1920s when you
bought stock on margin you paid 10 percent down
and waited for the stock to go up. When the
stock price went up, you would sell it in order
to make a profit. This only worked if the price
continued to go up. If the price goes down, you
still owed the stock brokers the original
price. During the crash, investors had to sell
their stocks at a lower price PLUS they still
owed their brokers the original selling price.
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The effects of the crash
Millions of people who had owned valuable stocks
were left with worthless paper. Millionaires lost
their fortunes overnight. Panic about the overall
economy spread throughout the US.
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Interpreting Graphs
1. How much value did the Dow lose on Black
Tuesday? 2. What do you think spurred the short
recovery? 3. When did the stock market hit
bottom? 4. What event would help stabilize the
economy and the market? (It occurred between 1929
and 1954)
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Failure of Banks

• When banks were not repaid they collapsed. People
  panicked and took out money from the banks
  causing the banks to collapse. People lost their
  savings.

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Causes of the Great Depression
Americans had borrowed more money than they could
repay. This hurt banks and businesses that were
waiting to be repaid. Businesses had to lay-off
workers and banks collapsed due to loss of
money. Business had overproduced their products
and when consumers stopped buying, they had to
close or lay-off many more workers and some
businesses had to close.
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Causes of the Great Depression
High tariffs The US and other nations had high
tariffs on goods coming into their nations. This
prohibited consumers from other countries to buy
American to help out American industry. Laissez-fa
ire The idea that government should play as
little role as possible in economic affairs. Due
to this policy, the US government was late to
react to counter the causes of the depression.
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Pictures of the Great Depression
Men at an Employment Agency
Moving through a soup line
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Pictures of the Great Depression
Groups of shacks like this one were called
Hoovervilles
People wandered from town to town looking for
work.
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Pictures of the Great Depression
Long lines formed for bread and soup
Children in a tent city
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Living through the depression
1. 1 in 4 Americans were out of work 2. By 1932
unemployment reached 13 million people. 3.
Thousands of banks closed. 4. Schools were
forced to close due to lack of government
funds. 5. Georgians were already in a depression
before the Great Depression hit the rest of the
US so Georgians didnt immediately feel the
impact of the Great Depression. 6. During the
time from 1929 to 1932, an average farmers
income dropped from 206 per year to 83 per year.
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The Dust Bowl
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The Dust Bowl
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The New Deal
I pledge you, I pledge myself to a new deal for
the American people. Franklin D. Roosevelt
campaigning for President.
By the time Roosevelt took office in 1933, the
depression was being felt all over the world.
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What is the plan?
Roosevelt had no idea how to tackle the economic
problems that faced the country. Brain Trust
Roosevelt gathered a group of advisors that put
together a plan to fight the depression
First Hundred Days
Congress passed more legislation in the first one
hundred days during the Franklin D Roosevelt
administration than any other in history.
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Roosevelts Plan
The New Deals purpose was to bring about
economic recovery, relieve the suffering of the
unemployed, and reform defects in the economy.
21
Banks
Many banks closed. Customers ran to the banks in
panic to remove money. Banks did not have enough
cash on hand to cover withdraws. Roosevelt closed
all banks by declaring a Bank Holiday Only
those banks that could cover any withdraw from a
customer would be allowed to reopen.
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National Industrial Recovery Act
This program was intended to organize workers
into unions, create a high wage for workers and
allowing factories to cut back on production. In
Georgia and much of the south, unions were not
allowed to organize in mills or other
factories. When the textile workers in Georgia
went on strike, Governor Talmedge called out the
National Guard had had many workers
arrested. This program was a failure and in 1935
the US Supreme Court ruled it unconstitutional.
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Civilian Conservation Corps (CCC)
Another popular program in Georgia that provided
jobs for young single men building trails, roads,
planting trees, parks and govt facilities. Some
of the projects that they worked on include 1.
Schools across the state were built by the
CCC. 2. Hospitals in many cities were built by
the CCC including much of Grady Hospital in
Atlanta. 3. Several airports in Georgia
including the Macon Airport. 4. Daltons city
hall and several city jails were built through
this program
24
Agricultural Adjustment Act

• Its purpose was to raise the price of staple
  crops by limiting supply. In GA, farmers were
  paid subsides to plant less cotton in order to
  drive the price up.

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TVA
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Tennessee Valley Authority
The TVA was a much more popular program in
Georgia. The Tennessee River Valley was subject
to many horrible floods prior to the creation of
the TVA. TVA engineers built 40 dams in seven
states, created several lakes, deepened river
channels for shipping and planted new
forests. The dams produced cheap electricity for
the region.
TVA in GA As a result of the TVA, Georgia now has
Blue Ridge Lake, Lake Chatuge and Lake Nottely.
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Social Security Act

• A system of pensions for older people. The money
  came from payroll taxes. It was the 1st system of
  unemployment insurance money to dependent
  children and people with disabilities.

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Warm Springs, GA
Franklin Delano Roosevelt built the Little White
House in 1932 while governor of New York, prior
to being inaugurated as president in 1933. He
first came to Warm Springs in 1924 hoping to find
a cure for the infantile paralysis (polio) that
had struck him in 1921.
Swimming in the warm, buoyant spring waters
brought him no miracle cure, but it did bring
improvement. During FDRs presidency and the
Great Depression, he developed many New Deal
Programs (such as the Rural Electrification
Administration) based upon his experiences in
this small town.
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Rural Electrification Authority
As a result of President Roosevelts first stay
in Georgia, this program was started. During his
stay in Warm Springs, he noticed on that first
night that there were no lights from the
surrounding farms. When he received his electric
bill he was shocked to find out that it was more
expensive than the bill for his mansion in NY.
He created the REA to help farmers and rural
residents to create co-ops to extend their own
electrical lines to rural settings. Electricity
made farm life much easier with electrical water
pumps, milking machines, lights and electrical
appliances.
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Other Programs
Federal Deposit Insurance Corporation (FDIC)
this was set up to insure deposits that people
made into banks that have been approved by the
government. Today, the FDIC will insure 100,000
per account. Social Security Administration It
set up a system of pensions for older people.
Payments from employers and employees are
collected through payroll taxes. Second it set
up the nations first system of unemployment
insurance and third, it gave states money to
support dependent children and people with
disabilities Works Project Administration (WPA)
WPA workers were asked to build community
projects such as playgrounds, parks, and complete
restoration projects. The picture is of WPA
workers restoring the Indian Burial Mounds near
Macon.
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The New Deal Bad or Good?
Bad Federal Government grew in size and
power. Government intruded into peoples lives
threatening individual freedoms and private
property. The government was spending more than
it was taking in. This is the practice of
deficit spending
Good Ended the banking crisis Improved farmers
lives Created jobs for millions of
unemployed. Tried to correct long term flaws in
the economic system with FDIC and SSA.
You Decide