Transcript What do you see?

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)
The Great Depression
The Stock Market
Traders on the floor of the stock
exchange
NY Stock Exchange
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.
People were borrowing money
to buy stocks:
*Americans borrowed to buy stocks driving
stock prices up. When stock prices plunged
they couldn’t repay loans and lost all their
money$.
Crash of October 1929
The stock market crashed on Tuesday October 29, 1929.
This date is known as “black Tuesday.” Stock prices began to
fall as investors tried to sell off their stock.
Many investors had bought stock on margin. During the
1920’s when you bought stock on margin you paid 10 percent
down and waited for the stock to go up. When the stock price
went up, you would sell it in order to make a profit. This only
worked if the price continued to go up. If the price goes down,
you still owed the stock brokers the original price.
During the crash, investors had to sell their stocks at a lower
price PLUS they still owed their brokers the original selling
price.
The effects of the crash
Millions of people who had owned valuable stocks
were left with worthless paper.
Millionaires lost their fortunes overnight.
Panic about the overall economy spread throughout
the US.
Interpreting Graphs
1. How much value did
the Dow lose on Black
Tuesday?
2. What do you think
spurred the short
recovery?
3. When did the stock
market hit bottom?
4. What event would
help stabilize the
economy and the
market? (It occurred
between 1929 and
1954)
Failure of Banks:
• When banks were not repaid they
collapsed. People panicked and took out
money$ from the banks causing the banks
to collapse. People lost their savings.
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.
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-faire – 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.
Pictures of the Great Depression
Men at an Employment Agency
Moving through a soup line
Pictures of the Great Depression
Groups of shacks like this one were
called “Hoovervilles”
People wandered from town to
town looking for work.
Pictures of the Great Depression
Long lines formed for bread and soup
Children in a tent city
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 didn’t
immediately feel the impact of the Great Depression.
6. During the time from 1929 to 1932, an average farmer’s
income dropped from $206 per year to $83 per year.
The Dust Bowl
The Dust Bowl
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.
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.
Roosevelt’s Plan
The New Deal’s purpose was to bring about economic
recovery, relieve the suffering of the unemployed, and
reform defects in the economy.
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.
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.
Civilian Conservation Corps (CCC)
Another popular program in Georgia that provided jobs for
young single men building trails, roads, planting trees, parks and
gov’t 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. Dalton’s city hall and several city jails were built through this
program
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.
TVA
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.
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.
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 FDR’s
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.
Rural Electrification Authority
As a result of President Roosevelt’s 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.
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 nation’s 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.
The New Deal: Bad or Good?
Bad
Good
Federal Government grew in size
and power.
Government intruded into
people’s lives threatening
individual freedoms and private
property.
The government was spending
more than it was taking in. This is
the practice of deficit spending
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…