Transcript Great Depression Chapter 9

Great Depression
Chapter 9-1
January 29, 2015
1
Guided Reading Activity Lesson 1A
• In the presidential
election of 1928, the
Republican candidate
was Herbert Hoover
and the Democratic
candidate was Alfred E.
Smith
• The Democratic
candidate practiced the
Roman Catholic
religion, which became
a campaign issue.
2
Guided Reading Lesson 1A
• Rising stock prices, also called a bull market,
convinced many people to invest.
3
Guided Reading Activity Lesson 2B
• By mid-November of
1929, the market price
of stocks had dropped
about 30 Billions
• Banks were weakened
in two ways: banks had
loaned billions to stock
speculators, and they
had invested
depositors’ money in
the stock market.
4
Guided Reading Activity Lesson 2B
• With less credit available, the economy went
into a recession.
5
Guided Reading Activity Lesson 3C
• Many Americans in the
1920s bought high-cost
items on the
installment plan
• Because they had to
pay off their debts,
many Americans
stopped buying new
products.
Manufacturers then cut
production, causing
employees to lose their
jobs
6
Guided Reading Activity Lesson 3C
• The Hawley-Smoot
Tariff, meant to protect
American businesses,
caused fewer American
goods to be sold
overseas.
• Low interest rates set
by the Federal Reserve
encouraged banks to
make risky loans and
led business leaders to
believe the economy
was expanding.
7
Summary and Reflection GRA Lesson 1
• Many Americans were in debt because of risky
investments. Many lost jobs as workers were
laid off. Stock values dropped so far that
people’s fortunes were wiped out. When
some banks closed people lost their savings.
8
Lesson 9-1 Notes
• Buying on margin was a method of buying
stocks with mostly borrowed money
• Stockbrokers who made loans that allowed
investors to buy stocks could issue a margin
call to protect their loans.
• The stock market took its steepest dive on
October 29, 1929, the day now known as
Black Tuesday
9
Lesson 9-1 Notes
• As a result of the stock market crash, some banks
suffered more losses than they could absorb and
were forced to close
• At the time of the stock market crash, the
government did not insure bank deposits, so
customers lost their savings if a bank collapsed
• If they remain too low, banks make risky loans
and companies expand too much interest rates
10
Lesson 9-1 Notes
• Companies make more goods than people can
buy, causing a decrease in sales
overproduction
• When many depositors decide to withdraw
their money at one time bank run
• Making investments in hope that prices will go
up, yielding a quick windfall speculation
• A long period of rising stock prices bull market
11
Guided Reading Activity Lesson 9-2
• Jobless people often stood in Bread lines or
lined up outside Soup Kitchens for free food.
• Homeless people put up shacks forming
communities called Shantytowns
(Hoovervilles)
• Some homeless, unemployed Americans
wandered around the country. They were
called Hoboes
12
Guided Reading Activity Lesson 9-2
• A terrible Drought on the Great Plains caused
U.S. wheat fields to become a huge Dust Bowl
• Many of Great Plains farmers headed west to
California in search of a better life.
• During the 1930s, 60 million Americans went
to the Movies each week.
• During this decade Walt Disney produced the
first full-length animated feature called Snow
White and the Seven Dwarfs.
13
Guided Reading Activity Lesson 9-2
• The first African American to win an Academy
Award was Hattie McDaniel who appeared in the
movie Gone With the Wind.
• Radio programs gave listeners Information and
Entertainment. The first daytime dramas called
Soap Operas presented families confronting
everyday problems.
• New writing techniques such as Stream of
Consciousness were used to show what literary
characters were thinking.
14
Guided Reading Activity Lesson 9-2
• Margaret Bourke-White and other Photojournalists
captured in pictures how the Great Depression affected
many Americans.
• How did Americans cope with hunger and
homelessness during the Great Depression? Many
Americans used bread lines and soup kitchens to get
free food. Some of the homeless stayed in their homes
until they were evicted. Then they made shacks in
shantytowns. Some wandered across the country
looking for work. Farmers in the Great Plains left for
California hoping for a better life. Those lucky enough
to work used the movies and radio to bring happiness
to their lives.
15
9-2 Notes
• The Depression WORSENED steadily during
President Hoover’s administration.
• Blaming the president for their plight, newly
homeless people established shantytowns
they called Hoovervilles.
• The Dust Bowl occurred primarily because
plowed land was left uncultivated and there
was a terrible drought.
16
9-2 Notes
• During the early 1930s, dust storms blackened
the skies of the Great Plains for hundreds of
miles
• “Okies” were usually farmers who LOST their
land and TRAVELED to California TO LOOK FOR
WORK.
• During the Depression, charities set up soup
kitchens to give poor people meals.
17
9-2 Notes
• In search of work or a better life, many
unemployed people rode the rails.
• During the Depression, most people were able
to enjoy which two popular forms of
entertainment? movies and radio
• The first feature-length animated film was
Snow White and the Seven Dwarfs.
18
9-2 Notes
• To portray life around them, artists and writers
of the 1930s often used the homeless and
unemployed as subjects in their work.
19
Guided Reading Activity Lesson 9-3
• Why did Hoover believe the government should not step in to
help individuals? He believed that American “rugged
individualism” would keep the economy moving.
• What did he think contributed to Europe’s slow recovery?
Many European countries implemented a form of socialism.
• How did Hoover hope to rescue banks? He set up a credit
corporation to allow banks to continue lending money.
• Why did Congress pass the Emergency Relief and
Construction Act? It provided direct relief funds to states for
the poor.
20
Guided Reading Activity Lesson 9-3
• Who organized hunger marches in 1931? the American
Communist Party
• Why did farmers burn their crops? to reduce the supply and
hopefully raise prices
• What did the Bonus Army want? They wanted Congress to
pass a bill authorizing payment of bonuses to military
veterans of World War I.
• How was President Hoover’s image tarnished? The clearing
out of the Bonus Army marchers’ camps and the lingering
economic depression hurt his image.
21
Guided Reading Activity Lesson 9-3
• What was the public mood concerning the economy at the
beginning of the 1930s? Although the president tried to
reduce people’s fears and inspire confidence, people were
afraid and had no confidence in the economy.
Gradually, fear gave way to anger and to protests that the
government take a more aggressive role in fixing the
economy.
22
Lesson 9-3 NOTES
• After the Federal Reserve Board refused to put more money
into circulation, President Hoover set up the National Credit
Corporation to create a pool of money for troubled banks
• The Reconstruction Finance Corporation marked the first time
that the federal government had established an agency to
stimulate the economy during peacetime.
• In July 1932, Congress overrode President Hoover’s veto and
passed the Emergency Relief and Construction Act, which
called for $1.5 billion for public works and $300 million in
loans to the states for direct relief.
23
Lesson 9-3 NOTES
• The group of World War I veterans who marched on
Washington in 1932 was called the Bonus Army.
• When President Hoover ordered the buildings in Washington,
D.C., cleared of veterans, the ultimate result was 700 soldiers
chasing unarmed veterans and tear-gassing stragglers.
• President Herbert Hoover did not want the government to
create as many new jobs as the millions of unemployed
people needed because that would require increased
government spending
24
Lesson 9-3 NOTES
• In 1932 President Hoover asked Congress to set up the
Reconstruction Finance Corporation in order to allow the
government to make loans to businesses
• As creditors foreclosed on nearly one million farms between 1930
and 1934, some farmers destroyed their crops in a desperate
attempt to raise prices by reducing supply
• When the Senate voted down a bill that promised an immediate
$1,000 bonus to each veteran of World War I, some veterans
camped in vacant buildings in Washington, D.C.
• President Hoover’s image was tarnished by the rout of the Bonus
Marchers, as well as by the lingering Depression