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The Great Depression

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Title: The Great Depression


1
The Great Depression
  • 1929 1933
  • Chapter 15

2
Section 1 Pg. 442What you need to know
  • Explain the warnings that financial experts
    issued about business practices in the 1920s
  • Causes of the stock market crash in 1929.
  • How did the banking crisis and business failures
    point to the beginning of the Great Depression?
  • Main Causes of the Great Depression

3
1 Warnings from experts
  • Danger !!
  • Farm crisis
  • Sick Industries
  • Reliance on credit buying goods without
    actually paying money
  • Buying/Selling stocks quickly ? inflated stock
    prices
  • Margin Buying

4
2 Stock Market Crash
  • Once the stock market starts to fall, can
    anything reverse the decline?

1. Rising Interest rates and other factors worry
investors.
  1. Investors sell stocks.

3. Stock prices go down.
4. Heavy sales continue.
CRASH
5
3 Banking Crisis ? Depression
How do Banks Make ??
  • Borrowers could not pay loans default
  • Banks left with little
  • Depositors panicked and tried to take life
    savings out.
  • 1930-1932 ? 5,000 banks failed.

6
3 Business Failures ? Depression
  • GNP Gross National Product total value of
    goods and services produced in a given year.
  • 1929 103 Billion
  • 1933 56 Billion
  • Industry lost money in the stock market
  • Consumers did not buy
  • NO MORE USING CREDIT!
  • Forced companies to have less inventory, scale
    back making products, lay off employees or go
    bankrupt.

7
4-Causes of Great DepressionPg. 5 in Packet
  • Global finances after WWI
  • Others paying war debts ? buying American goods
  • Smoot-Hawley Tariff
  • Few people had wealth, many had debts.
  • No buying power
  • The Business Cycle
  • The normal ups and downs in a free-enterprise
    economy

8
Hard Times
  • Section 2 Page 448-455

9
What you need to know
  1. Describe how unemployment affected the lives of
    workers during G.D.
  2. Compare/Contrast hardships between urban and
    rural citizens.
  3. How G.D. affected family life and American
    attitudes.
  4. Explain how popular culture provided an escape
    from G.D.

10
1-Unemployment affected lives
  • Everyone in America was looking for work.
  • 1929 1.5 Million unemployed
  • 1933 15 Million unemployed
  • Wages ?
  • Hours ?
  • Immigration ?
  • Discrimination ?
  • Women working ?

11
2 Life in the city
  • Unemployment Poverty
  • Fighting over scraps
  • Groups tried to provide to the needy
  • Salvation Army, Red Cross, mutualistas, rent
    parties
  • Breadlines
  • Eviction ? Shantytowns / Hoovervilles

12
2 Life in the country
  • Prices ? - Who could buy?
  • Too many products
  • Income ? - Foreclosing farms
  • Pressured migrant workers to leave
  • Dust Bowl drought in some states

13
3 Family life attitudes
  • Fractured some families / forced some families
    together
  • Divorce ?
  • Birthrates ?
  • Depression was the mood 28 increase in suicide
    in 1932 over 1929
  • Shame for middle-class / wealthy
  • Made every penny count made as much as they
    could

14
4 Culture Escape
  • Took up inexpensive hobbies
  • Reading, games, movies, radio
  • Literature presented heroes and easy lives /
    others portrayed grim life
  • VIDEO

15
What did the Government Do??
  • Hoovers Policies
  • Section 3 Page 456-463

16
What you need to know
  1. Explain why Pres. Hoover opposed government
    sponsored relief for the needy.
  2. Outline Hoovers attempts to solve economic
    problems and analyze the successes.
  3. Explain how veterans and radicals responded to
    Hoovers policies.
  4. Why was FDR a popular candidate in the 1932
    election?

17
1 Opposition to Government Relief
  • REASONS NOT TO HELP
  • Relief would create large government
  • Inflate the federal budget
  • Reduce self-respect of people getting aid
  • INSTEAD
  • Rugged Individualism success through individual
    effort and private enterprise
  • Encouraged voluntarism PCUR ? Presidential
    committee collected info and donations for local
    relief agencies

18
2 Government Economy
  • Laissez-faire approach to economy
  • Funded several public-works programs
  • Stimulated business reduced unemployment

19
2 Government Economy
  • Established Federal Farm Board
  • GOAL Find ways for farmers to help themselves
  • OFFERED loans, financed cooperatives to reduce
    expenses by allowing them to purchase in bulk
  • Established Reconstruction Finance Corporation
  • Loaned tax payer money to stabilize banks,
    insurance companies, railroads
  • Government realized that they could do something
    to help the economy

20
3 Radicals / Veterans Protested
  • Condemned capitalism felt it led to G.D.
  • Bonus Army group that wanted early payment of
    pension bonuses owed to them
  • Bill was rejected and caused deadly conflict!

21
4 1932 Election
  • Rep. Herbert Hoover vs. Dem. F. D. Roosevelt
  • Hoovers gloom vs. Roosevelts optimism
  • Roosevelt pushed for a fairer distribution of
    wealth
  • Roosevelt had designed creative relief programs
    as governor of NY.
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