Chapter 12: The Great Depression - PowerPoint PPT Presentation

1 / 81
About This Presentation
Title:

Chapter 12: The Great Depression

Description:

Chapter 12: The Great Depression – PowerPoint PPT presentation

Number of Views:397
Avg rating:3.0/5.0
Slides: 82
Provided by: chri4279
Category:

less

Transcript and Presenter's Notes

Title: Chapter 12: The Great Depression


1
Chapter 12 The Great Depression
2
Section 1 The Nations Sick Economy
  • Economic Troubles on the Horizon
  • A. Industries in Trouble
  • 1. A number of key industries were barely
    making profit in the mid 1920s.
  • 2. There was a diminished need for many goods
    produced in wartime.
  • 3. Production of consumer goods, homes, and
    virtually every other product declined.

3
B. Farmers need a lift
  • 1. Problems
  • a. Demand for farm products lower than prior to
    WWI
  • Many farmers had gone deep into debt to meet the
    needs of WWI.
  • Many farmers began to default on their loans.

4
  • McNary Haugen bill Proposal to prop up the
    farming sector within the U.S.
  • Price supports Support of a certain price level
    at or above market value by the U.S. government
  • 3 parts of the bill
  • Government to buy surplus of crops at guaranteed
    prices..above market value
  • Government sell those crops overseas for whatever
    they can get
  • To make up for losses..the government would
    increase taxes on food.
  • in other words..the loss would be spread
    throughout society rather than on farmers alone.

5
Consumers Have less to Spend
  • 1. As incomes fell ---- families had less money
    to spend on necessities.

6
D. Living on Credit
  • Credit Arrangement between consumer and
    business where the consumer buys now and pays
    later.
  • Many Americans had been living beyond their
    means
  • 2. Businesses were encouraging Americans to use
    credit..it was the only way many could buy

7
(No Transcript)
8
E. Uneven Distribution of Income
  1. Less than 50 of U.S. families earned 1500 per
    yr.
  2. Wealthy class kept on getting richer and the
    middle class was disappearing..and becoming part
    of the growing lower class.
  3. The prosperity experienced during the roaring
    20s never reached most Americans.

9
F. A New President
  • 1. Alfred E. Smith Democratic Governor of NY.
    Career politician, Catholic (so?), opposed
    prohibition.

10
  • 2. Herbert Hoover Republican, Worked in
    Wilson, Coolidge, and Hardings administrations.
    Had full support of the Republican Party and
    could point to the 1920s as years of prosperity
    under republican leadership.

11
II. The Stock Market Comes Tumbling Down
  • By 1929, many economists were warning of serious
    economic downturns.
  • The Stock Market became the most visible symbol
    of the American economy.
  • Many Americans thought that investing in the
    market was their way to get rich.

12
Stock Market Floor 1920s
13
  • Dreams of Riches in the Stock Market
  • 1. bull market Period of time when the stock
    markets prices are rising.
  • 2. by 1929 nearly 4 million Americans owned
    stock.
  • 3. speculation buying of stocks and bonds on
    the chance that you may make a quick profit.

14
  • buying on margin Paying only a of the stocks
    price as a down payment and borrowing the rest
    from the brokerage house.
  • a. The idea being that you would make your
    money on the stock and then sell it to pay back
    your money.
  • b. If prices went up - if not ??

15
B. Black Tuesday
  • B. Black Tuesday October 29, 1929 The Day
    that the bottom fell out of the stock market
    Prices crashed!
  • BLACK TUESDAY (506)

16
  • People dumped their stocks as fast as they could
  • Most people lost everything that they owned or
    worked for their entire lives.
  • By 11/1/1929 - 30 billion had been lost
  • Where did it go? Into the pockets of the
    wealthiest investors who were able to sell all
    their stocks before anyone realized what was
    happening.

17
C. Causes of the Great Depression
  • Great Depression Economic downturn in the U.S.
    that lasted from 1929 1941.
  • Old and decaying industrial base
  • Crisis in the farming sector
  • Easy credit high debt
  • Unequal distribution of wealth

18
  • Dow Jones Industrial Average The average value
    of a share of stock from the nations 30 largest
    firms that trade their stock on the U.S. stock
    market.
  • This is a standard measure for the condition of
    the U.S. economy

19
III. Financial Collapse
  • Banks collapsed
  • 1. people panicked and began to withdraw all
    their money out of the banks
  • a. soon banks ran out of cash and could not
    cover the withdraws and had to close down.
  • 2. By 1933 6k banks had shut down in the U.S.

20
B. Businesses failed
  1. Nations output of goods and services dropped 50
    over the depression
  2. 85,000 businesses went bankrupt

21
C. Economy spiraled out of Control
  1. Millions of workers lost their jobs
  2. 23.8 unemployment rate in 1932. ALL TIME HIGH!!

22
D. Worldwide Shockwaves
  • Hawley-Smoot Tariff Was designed to help
    farmers by reducing foreign competition.
  • Highest tariff in history
  • Other countries raised tariffs on U.S. goods
  • Further reduced the amount of American goods
    being bought.\
  • 2. Huge depression in Europe prevented them from
    buying American products and helping to rebuild
    our economy.

23
Section 2 Hardship and Suffering during the
Depression
  • The Depression Devastates Peoples Lives
  • A. Depression in the Cities
  • 1. shanty towns Little towns consisting of
    shacks on the outskirts of towns.

24
Shantytown Shack
25
2. soup kitchens Places where food is offered
by charitable organizations to people who are
needy.
26
  • 3. Bread Lines LONG lines of people waiting
    for free bread a often supplied by charitable
    organizations.

27
B. Depression in Rural America
  • Between 1929 1932 400,000 farmers lost their
    farms.
  • The one advantage that farmers had over city
    dwellersgrowing food, was then gone.

28
C. The Dust Bowl
  • 1. Dust bowl Territory of the Great Plains
    (Texas to N. Dakota). Called this because of
    intense wind storms that whipped up large dust
    storms.

29
Dust Storm
30
  • 2. Okies A derogatory term used to describe
    migrants from Oklahoma who left their home state
    to find a better life out of the dust bowl.

31
II. Effects on American Families
  • Family Lives Changed
  • 1. families had to turn to each other to
    survive..move in with relatives etc..
  • 2. The stress of the Depression led many
    families to break up.

32
(No Transcript)
33
B. Men in the streets/on the rails
  1. Approx 2 million men wandered the U.S. looking
    for ?????
  2. The hobos as they were called, became the
    uprooted, unwanted members of society.

34
Unwanted!?
35
(No Transcript)
36
  • 3. Direct Relief Cash payments, handouts, food
    provided to the needy by the government.
  • There was NO SUCH system in this time period
  • Citizens began to beg for/demand it.
  • Hoover Pull yourself up by your bootstraps.

37
C. Women and Children struggle to survive.
  1. Penny pinchers Women worked very hard to
    scrimp and scrape to get their families by. Made
    their own clothes, canned food.
  2. Women were forced to work outside the home.
  3. Children suffered the worst in many cases they
    were left to fend for themselves.
  4. By 1933 2,600 schools were shut down 300k
    students without school.
  5. Many children had to work in sweat shops to help
    the family.

38
D. Social Psychological Effects of the
Depression
  1. Many were demoralized lost their will to live.
  2. Suicide rate rose 30. Mental health admissions
    Tripled.
  3. No ecducation, Dr. and Dentist put off, put off
    marriage/kids, basically put their lives on hold.
  4. Achieving financial security became a life long
    pursuit of manya lifetime of scraping by left
    permanent marks on peoples souls.

39
Section 3 Hoover Struggles with the Depression
  • Hoover Tries to Reassure the Nation
  • most thought that the Depression was just a
    normal part of the business cycle.

40
A. Hoovers Philosophy of Government
  1. The economy should function with minimal
    interference from the government.
  2. Government should take a ROLE in solving economic
    issues like this
  3. Hoover was a humanitarian.
  4. Rugged individualism The idea that people
    should succeed on their own, not rely on others
    to solve their problems.

41
E. Hoover takes cautious steps
  1. Hoover was not a career politician so..he found
    it tough to compromise.
  2. He was VERY cautious as to how to handle issues.
  3. Hoover asked businesses to work hard to help end
    the crisis without government assistance.
  4. BasicallyHoover did not do much to solve the
    issues that faced society. And people blamed him
    for making things worse not better.

42
F. Democrats win 1930 Congressional Elections
  1. Obviously the Republicans had failed the people.
  2. Democrats quickly won control of both the House
    and the Senate. (Much like 2008)
  3. People began to call shantytownshoovervilles

43
III. Hoover takes action
  • Boulder Dam A power plant project designed to
    build a hydroelectric facility AND provide jobs
    to jumpstart the economy.
  • Hoover was finally listening to the people
  • 800 million cost

44
A. Boulder Dam Other Government Projects
  1. Public Works Programs to build roads, dams,
    power plants, RR etc.. To provide jobs and
    stimulate the economy.
  2. Federal Home Loan Bank Lowered bank interest
    rates for mortgages and allowed farmers to
    refinance their loans so they would not lose
    their farms.

45
  • Reconstruction Finance Corporation Was
    authorized by Congress to provide emergency funds
    to banks, insurance companies RR.

46
B. Gassing the Bonus Army
  • Bonus Army WWI Vets who wanted to get their
    military service bonus NOW when they needed it
    instead of when the government promised them.
  • 1 per day served 1.25 served overseas
  • Not payable until 1945.

47
(No Transcript)
48
  • 2. Walter Waters Leader of the Bonus Armys
    march to Washington D.C. to protest Congress
    previous decision to not give the bonus early.

49
3. Congress voted again on the issue and voted
NO.Vets stayed in protest
50
4. President Hoover ordered the protestors
removed
  • a. General Douglas MacArthur used the U.S.
    Army
  • b. Used bayonets to push protestors out.
  • c. Tear gas was deployed
  • 1k people gassed, 1 infant dead, 8 yr
  • old boy blinded.

51
Burning the Encampments
52
  1. The whole thing was a public relations nightmare
    for the President as his faltering image now
    looked even worse.
  2. Citizens were outragedand the Presidential
    election was just around the corner.

53
(No Transcript)
54
Chapter 13 The New Deal
55
Section 1 A New Deal Fights the Depression
  • Electing Franklin Deleno Roosevelt (FDR)
  • Republicans knew they had little chance of
    getting Hoover Re-elected.
  • Gov. of New York, reform minded fix
    unemployment.
  • Can do attitude that voters wanted. He wasnt
    afraid to try to fix things.

56
(No Transcript)
57
  • Waiting for FDR to take over
  • Americas problems worsened while waiting for
    Marchs inauguration.
  • New Deal FDRs plan for fixing economic
    problems of U.S.
  • 3. 100 Days Period from 3/9-6/16 in which FDR
    and his government intensely passed laws and
    provisions designed to fix our economy. Fifteen
    pieces of legislation passed in this time.

58
  • C. Reforming banking and finance
  • Bank Holiday On March 5, 1933 FDR declared a
    national bank holiday. All banks to close until
    they could prove that they were stable.
  • Banking Relief Act Allowed the U.S. Treasury
    Department to inspect banks to determine if they
    were stable enough to open.

59
(No Transcript)
60
  • D. Fireside Chats Radio talks that FDR gave
    that discussed issues affecting the people. They
    were informal and relaxed and it helped ease many
    peoples fears about the Depression. FDR would
    explain his actions and New Deal policies so
    people would understand what he and the
    Government were doing.

61
1st fireside chat
62
  1. We have provided the machinery to restore our
    financial institutions and it is now up to you to
    make it work.
  2. Glass-Steagall Banking Act Established the
    (FDIC) which guaranteed that all bank deposits
    would be available for withdrawal.
  3. Federal Securities Act required all companies
    selling shares on the stock market to provide
    complete information on the companys finances or
    be liable for any misrepresentations.

63
II. Helping the American People
  • Assisting Farmers
  • Agricultural Adjustment Act Sought to raise
    farm prices by reducing crop output. Government
    paid farmers for letting their fields stay empty.
  • Reduced quantity would raise prices

64
  • B. Providing Work Projects to provide relief
    through paying jobs.
  • Civilian Conservation Corps Put young men
    (18-25) to work building roads, developing parks,
    planting trees, helping in soil erosion and flood
    prevention projects sponsored by the government
    paid 30/week, 25/week was sent home to the
    family.
  • 2. Federal Emergency Relief Administration
    Provided 500 million in direct relief for
    citizens for food, clothing and housing.

65
(No Transcript)
66
  • Public Works Administration Provided money to
    states to create jobs. Mainly the construction
    of schools and public buildings.
  • Civil Works Administration Replaced the PWA.
    More money and effort to find jobs for the
    unemployed. Paid for the building of 40k schools
    and paid 50k teachers.
  • 3. National Industrial Recovery Act Sought to
    promote industrial growth by mandating fair
    business practices, set prices for many products,
    banned child labor, and set standards for wages
    and hours.

67
C. Helping People with Housing
  • 1. Home Owners Loan Corporation Provided
    government funded loans to families who faced
    foreclosure on their homes. Led to the creation
    of the FHA which continues to help homeowners
    today.

68
III. New Deal comes under attack
  • A. Critics on both sides
  • Liberals believed the New Deal did not go far
    enough to help people stuck in poverty.
  • Conservatives believed that FDR spent way too
    much money on direct relief for the citizens.

69
  • B. Supreme Court Reacts to New Deal
  • Supreme Court ruled that the National Industry
    Recovery Act was unconstitutional because the
    Federal Government had no authority to set the
    laws and procedures that they wanted to set.
    Just the beginning as the SC challenged the
    legality of many of FDRs policies/programs.
  • FDR accused of stacking the court with Supreme
    Court Justices that would pass his policies.
  • As Supreme Court Justices retired, quit ectFDR
    was able to appoint seven Justices that obviously
    he viewed as allies to his plans.

70
C. Three Fiery Critics
  • 1. Charles Coughlin Catholic Priest that had a
    fiery radio talk show that was critical of FDRs
    policies and practices as he felt they were not
    strong enough. Was asked by the Catholic Church
    to back off.

71
  • 2. Francis Townsend A physician and Health
    Care officer in California. Believed that FDR
    wasnt doing enough to help the needy. Believed
    that the government should provide monthly cash
    benefits to the aged. That would help the
    economy by putting more cash into circulation.

72
  • 3. Huey Long Louisiana Senator, and eventual
    Governor who fought for increased distribution of
    wealth among all citizens in the U.S. Even
    campaigned for the Presidency. His main
    program/policy (Share our Wealth) drew massive
    amounts of supporters.
  • a. Huey Long was assassinated by a gunman at the
    height of his popularity.

73
(No Transcript)
74
Section 2 The Second New Deal Takes Hold
  • I. The Second Hundred Days
  • name given to the second new deal

75
  • A. Eleanor Roosevelt First lady who prodded her
    husband/President to work for the forgotten
    man.
  • She traveled the country seeking out social
    conditions that needed improving.
  • She worked tirelessly to inform the President of
    the immense suffering of the American people.

76
  • B. Re-Electing FDR
  • Are you better of today than four years ago
  • FDR won re-election in 1936.

77
II. Helping Farmers
  • A. Farming communities continued to suffer the
    worst.
  • B. Soil Conservation and Domestic Allotment Act
    Paid farmers for not growing soil depleting
    crops like cotton.
  • C. Attempts were made to help sharecroppers,
    migrant workers and other poor farmers.
  • Resettlement Administration provided loans to
    small farmers to help set up on new land and get
    a fresh start.
  • Was replaced by the farm security administration.

78
III. Helping Youth, Professionals, and Others
  • A. Works Progress Administration (WPA) Set out
    to create as many jobs as possible as quickly as
    possible.
  • Had eight million workers who built airports,
    schools, roads, parks, libraries, hospitalsetc..
  • You worked, your got a paycheck, and you got
    some dignity
  • Teachers, musicians, and artists were also hired
    for their abilities.

79
  • B. National Youth Administration (NYA) - Was
    created to help the youth of America. 200k
    students received aid and assistance.

80
IV. Labor and Other Reforms
  • A. Improving Labor Conditions
  • National Labor Relations ACT (Wagner ACT) -
    Defined unfair labor practices.
  • Established the national labor relations board
    which investigated claims of unfair or illegal
    business practices.
  • Threatening workers, unjust firings, banning
    labor unions ect

81
  • Fair Labor Standards ACT Established maximum
    hours and minimum wages.
  • Old age insurance for workers 65 and older and
    their spouses. (social security)
  • Unemployment compensation
  • Aid to families with dependant children and the
    disabled.
Write a Comment
User Comments (0)
About PowerShow.com