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GREAT DEPRESSION

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Title: GREAT DEPRESSION


1
GREAT DEPRESSION
  • A severe economic decline that lasted 1929-WWII,
    causing millions of Americans to lose jobs, farms
    and homes

2
EOC STANDARDS
  • e. Identify and explain the economic factors that
    contributed to the stock market crash of 1929 and
    the Great Depression
  • f. Explain the economic, environmental, and
    social impact of the Great Depression on American
    society
  • g. Evaluate the impact of the New Deal on various
    elements of American society (e.g., social,
    political)
  • CORE CONTENT
  • SS-HS-5.1.1Students will use a variety of tools
    (e.g., primary and secondary sources, data,
    artifacts) to analyze perceptions and
    perspectives (e.g., gender, race, region, ethnic
    group, nationality, age, economic status,
    religion, politics, geographic factors) of people
    and historical events in the modern world (1500
    A.D. to present) and United States History
    (Reconstruction to present). DOK 3
  • SS-HS-5.1.2Students will analyze how history is a
    series of connected events shaped by multiple
    cause and effect relationships, tying past to
    present. DOK 3
  • SS-HS-5.2.5Students will evaluate how the Great
    Depression, New Deal policies and World War II
    transformed America socially and politically at
    home (e.g., stock market crash, relief, recovery,
    reform initiatives, increased role of government
    in business, influx of women into workforce,
    rationing) and reshaped its role in world affairs
    (e.g., emergence of the U.S. as economic and
    political superpower). DOK 3

3
Causes of the Great Depression
4
Myths and Misconceptions
  • Many people believe that the crash of the stock
    market was the cause of the Depression. Not so,
    it was only a symptom.
  • Many people also believe that Herbert Hoovers
    laissez-fair economic philosophy prevented the
    federal government from taking steps to prevent
    the crisis. Hoover was proactive in trying to
    ease the impact of the depression, it was too
    little, too late.
  • Many people think that the Great Depression was
    the only major economic crisis in U.S. history.
    Nope, but it was the worst.
  • Many people do not realize that the Depression
    was global and affected almost every capitalist
    economy on earth
  • Some believe that FDR and the New Deal ended the
    Depression. Wrong again, WWII ended he Depression

5
ECONOMY of late 1920sOPTIMISTIC ATTITUDE
  • President Hoover 1928
  • Economy great
  • Everybody ought to be Rich mentality
  • Increase income by
  • investments
  • Stock market high

6
DEPRESSION FORESHADOWED
  • Rising unemployment
  • Declining of the Farming industry
  • Stock prices dropping
  • Buying on Credit (did not have money)
  • Too many goods, Too little demand
  • Unequal distribution of wealth
  • 71 families earned less 2500

7
STOCKMARKET 101
  • STOCK is partial ownership in a company
  • If others want to buy stock it increases. If
    others do not it decreases
  • BUY LOW SELL HIGH
  • Once you sell you receive money- until then just
    a sheet of paper

8
BUYING ON MARGIN
  • (To encourage less wealthy people to play stock
    market)
  • Investors bought stocks for a fraction of its
    price
  • Stock - 100.00 you paid 10.00 and borrowed the
    rest

9
CRASH
  • Black Thursday October 24, 1929 Investors began
    selling forcing stock prices to fall

10
SELL SELL SELL !!!
  • BLACK TUESDAY 10/29/29
  • 16.4 million shares were sold GREAT CRASH
  • Losses over 30 billion dollars
  • This is the beginning of the Great Depression!

11
THE CRASH AFFECTS MILLIONS
  • Factories closed
  • Farm prices fell
  • Banks closed
  • Europeans could not afford American made goods
    started a downward cycle world wide

12
US Industrial Production
13
US Stock Market 1928-1932
US Bureau of Labor Statistics
14
CAUSES FOR THE GREAT DEPRESSION
  • 1. Overproduction of goods
  • 2. Widening of Wealth Gap
  • 3. Stock and Real estate speculation
  • 4. unregulated banking practices
  • 5. Declining of farming industry
  • 6. High Tariffs
  • Hawley Smoot Tariff Act 1930

15
Many did not realize how severe the downturn was
until 1932, when the economy had technically hit
bottom.
16
Brother Can You Spare a Dime? Once I built a
railroad, I made it run I made it race against
time Once I built a railroad, now it's done
Brother, can you spare a dime? Once I built a
tower, up to the sun Bricks and mortar and lime
Once I built a tower, now it's done Brother,
can you spare a dime?
17
RESPONSE TO ECONOMIC COLLASPE
  • Hoovers response
  • Cautious approach limited govt intervention
  • Unemployment increased
  • Hoovervilles sprung up- (shantytowns made up of
    scraps in cities for the homeless)

18
Hoovers Political Decisions
  • Hoover promoted volunteerism. Cooperation between
    government and business instead of coercive
    policies.

19
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20
  • 1932- Hoover created RFC (reconstruction Finance
    Corporation)
  • Agency issued govt loans to banks, rrs,
    businesses, etc.
  • Believed TRICKLE DOWN theory-

21
  • The sole function of the government is to
    bring about a condition of affairs favorable to
    the beneficial development of private
    enterprise. Herbert Hoover (1930)
  • The Fed will stand by as the market works
    itself out Liquidate labor, liquidate stocks,
    liquidate real estate values will be adjusted,
    and enterprising people will pick up the wreck
    from less-competent people."
  • Andrew Mellon (1930)

22
The Dust Bowl
  • Between 1929 and 1932, about 400,000 farms were
    lost to foreclosure
  • Not only economic damages, but environmental
  • Land was overworked
  • Drought and dust storms in the Midwest for much
    of the 1930s
  • Black Sunday worst dust storm April 14,
    1935
  • Dust would get into everythingkitchens,
    bedrooms, hair, nails, mouths
  • Wrapped faces in damp rags to filter out the grit
  • Nostrils with Vaseline to keep noses from
    clogging and bleeding
  • dust pneumonia
  • Many packed up families and headed west to
    California along Route 66

23
Click below for a video!
24
Bonus Army of 1932
  • Veterans marched on Washington DC to demand their
    bonus from services during WWI
  • Hoover sent Douglas MacArthur in to remove the
    veterans who would not leave using tear gas and
    bayonets

25
African Americans
  • Higher unemployment rates and they received the
    lowest pay
  • Faced increased racial violence from whites
    competing for jobs
  • 1933 24 African Americans died by lynching

26
Next. The FDR Mystique
27
ELECTION OF 1932
  • FDR (DEM)
  • Promised jobs
  • He used his Brain Trust of trusted aides to
    help write speeches, etc.
  • Used the radio
  • HOOVER (REP)
  • Prosperity is Just Around the Corner
  • Seen as a do nothing president

28
NEW DEAL
  • His first Hundred Days were filled with
    legislation, over 15 pieces of major legislation
  • Expanded the role of the federal government
  • 1st job was to restore public confidence in banks
  • March 6-10 Nationwide Bank Holiday
  • Closed all banks to prevent withdrawals
  • Passed the Emergency Banking Relief Act to
    inspect the countrys banks
  • Banks that couldnt pay debts remained closed,
    restored confidence

29
FDIC
  • FEDERAL DEPOSIT INSURANCE CORPORTATION
  • To insure individuals savings and deposits.

30
3 Rs Relief, Recovery, and Reform
  • Relief short range goals
  • Recovery long range goals
  • Reform deal with current abuses

31
Emergency Banking Relief Act of 1933
  • Power to regulate the banking system
  • Close and reopen banks
  • Safer to keep money in a reopened bank than in
    the back yard!

32
Fireside Chats
  • Roosevelt used the radio to talk to Americans
  • Focused on Priming the Pump
  • Click picture for his first fireside chat during
    the bank holiday

33
Federal Emergency Relief Administration (May 1933)
  • 500 million for states agencies for the poor

34
Civilian Conservation Corps (CCC)
  • Most popular of all the New Deal alphabet
    agencies
  • Employment in fresh air government camps for
    about 3 million uniformed young men
  • Reforestation, firefighting, flood control, swamp
    drainage
  • Paid 30 a month, sent 25 home to their families

35
  • Agricultural Adjustment Act (AAA) help farmers
    meet mortgages, raised farm prices paid
    farmers to grow less
  • Home Owners Loan Corporation (HOLC) to
    refinance mortgages on non-farm homes

36
Civil Works Administration (CWA)
  • Provided 4 million temporary jobs during cruel
    winter months
  • Built 40,000 schools and half a million roads

37
Tennessee Valley Authority (TVA)
  • renovated five dams and constructed 20 new ones.
  • Created jobs, provided flood control,
    hydroelectric power

38
SEC Securities Exchange Commission
  • Watchdog over stock market and protect investors.

39
The Supreme Court
  • Struck down two New Deal acts because federal
    government overstepped their roles (NIRA and AAA)
  • FDR tried to pass a court-reform bill in 1937
    reorganizing the federal judiciary and appoint
    new justices
  • Criticized it upset judicial independence and
    checks and balances
  • Over next four years, FDR appointed 7 new
    justices from resignations

40
Some people hated the New Deal
  • Didnt go far enough to help the poor and reform
    the economic system
  • FDR spent too much on direct relief and used New
    Deal to control business and socialize economy
  • Huey LongShare-Our-Wealth promised Every Man a
    King
  • Had 7.5 million members until he was assassinated
  • Father Charles Coughlin Catholic priest who
    became anti Semitic
  • Broadcasted on radio economic, political, and
    religious ideas

41
Second Hundred Days (or Second New Deal)
  • Spring 1935
  • More relief for farmers and workers
  • Eleanor Roosevelt travelled the country to remind
    her husband of the suffering
  • 1936 election FDR wins overwhelmingly
  • 1st time African Americans voted solidly
    Democratic and labor unions supported a candidate

42
Works Progress Administration (WPA)
  • 1935
  • Employment on useful projects
  • 11 billion spent to give jobs to over 8 million
    workers
  • WKUs Cherry Hall was a recipient of the WPA
    money and workers
  • Federal Art Project was also started

43
Wagner Act
  • 1935 (National labor relations board)
  • Protected right of workers to join unions and
    collective bargain
  • Prohibited unfair labor practices like
    threatening workers, firing union members, and
    interfering with union organizing
  • 1938 Fair Labor Standards Act
  • Set maximum hours at 44 and minimum wage at 0.25
  • Set rules for 16 and under, and banned dangerous
    work for under 18

44
Social Securities Act
  • 1935
  • Aged insurance for retirees 65 or older and
    their spouses
  • Unemployment compensation system
  • 15-18 a week
  • Aid to families with dependent children and the
    disabled

45
Rural Electrification Administration
  • 1935
  • Brought electricity to isolated areas
  • In 1935, only 12.6 of American farms had
    electricity
  • 48 in 1945, 90 in 1949

46
New Roles for Women
  • More women working outside of home
  • Frances Perkins
  • Secretary of labor First woman to head an
    executive department
  • Helped create the Social Security system
  • Mary McLeod Bethune
  • Leader of the Black Cabinet and director of Negro
    Affairs in the National Youth Administration
  • Advised FDR on racial issues and made provided
    job training and benefits to minority students

47
1937 A Troubled Year
  • Moving Forward
  • Supreme court upheld many New Deal programs
  • March 1937 upheld a Washington law that granted
    Minimum Wage
  • Ruled both, a key part of the Wagner Act and
    Social Security constitutional.
  • Farm Tenancy Act - 1937
  • Gave tenant farmers and Sharecroppers a chance to
    buy land of their own
  • Recovery in Doubt
  • FDR scaled back federal deficit spending
  • 1937 - A bad year for recovery. Massive drop
    in stocks and by the end of the year another 2
    million American unemployed.

48
Impact of the New Deal
  • Relief, Recovery, Reform
  • Which area was the New Deal most successful?
  • Changing relationships
  • Changed the link between the American people and
    the Government
  • New Role for Government meant a much larger
    Government.
  • As a result many more people now looked to the
    Government for help

49
End of the New Deal
  • Weakened support 1937
  • What happened in 1937 to cause loss of support?
  • The 1938 Election
  • Republicans and Southern Democrats gained seats
    in the House and the Senate
  • Why did this happen?
  • After the New Deal
  • After 1938 FDR lacked the support to pass New
    Deal Styled programs.
  • Problems in Europe now held the attention of the
    American Public.
  • In 1939 and 1940 international conflict will
    ultimately do what FDRs programs could not.
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