The Great Depression Mr. Giesler American History Do Now: What is an economic depression? What are typical characteristics of a depression or recession? Background Info The.
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Transcript The Great Depression Mr. Giesler American History Do Now: What is an economic depression? What are typical characteristics of a depression or recession? Background Info The.
The Great Depression
Mr. Giesler
American History
Do Now: What is an economic depression?
What are typical characteristics of a depression or
recession?
Background Info
The Election of 1928
Herbert Hoover; President; Republican
Mining Engineer; accumulated a fortune
“He had never known failure” – John Maynard Keynes regarding
Hoover
Exemplified the “new era” of American capitalism
Author American Individualism – condemned government regulation as
an interference with the economic opportunities of ordinary Americans
Warning Signs
Southern California and Florida
real-estate speculation
Banks failing
Land remained underdeveloped
Mortgages foreclosed
High unequal distribution of income reduced purchasing power
Sales of consumer goods such as new autos stagnated after 1926
European demand for American goods declined
A fall in the bloated stock market was inevitable
Black Thursday
Oct. 24, 1929 – The Stock Market Crash
Panic struck
Massive amounts of people attempt to sell their stock, but nobody was
buying
The Initial Impact
“a passing incident in our national lives” – Hoover
Hoover attempted to assure Americans that the incident would be over
in 60 days
U.S. Steel – stock fell from $262 to $22; GM from $73 to $8
By 1932, Gross National Product had fallen by 1/3
11M or 25% of the labor force could not find work
U.S. – 1929, 225K f/t workers to none at the end of 1932
Every industrial economy suffered
The Aftermath
Destroyed investment companies and wiped out thousands of investors
Reduced business and consumer confidence
26,000 business failed
Germany Defaults
Massive layoffs
Banks failed as depositors withdrew money
Millions of families lost their life savings
The Transformation
of American Society
Hundreds of thousands
of people took to the
road in search of work
People lined the
streets in bread lines
Bread Line
seeking food
TTYN: Describe what the picture depicts
Hoovervilles
TTYN: Describe what the picture depicts
The Aftermath
Children go barefoot
American suicide rate rose to the highest level in the nation’s history
birthrate fell to the lowest
TTYN – If you were Herbert Hoover, how would you respond ?
How would help the citizens of the United States? How should you
help the business that were failing?
Hoover’s Response
Hoover believed that economic downturns were a normal part of
capitalism
Weeded out unproductive firms
Encouraged moral virtue among the less fortunate
Opposed federal aid to the unemployed
Individual “belt-tightening” as the road to recovery
Hoover’s Response
Associational Action – voluntary steps by business to maintain
investment and employment
Charity organizations should assist need neighbors
Raised taxes on imported goods, which reduced international trade
1932 tax increase
attempt to balance the federal budget
reduced Americans’ purchasing power even further
Hoover’s Response
1932
Voluntary action had failed
Approved loans to failing banks, railroads, and other businesses
Aid to home owners near foreclosure
Public works projects – roads and bridge construction
Would not offer direct relief to the unemployed
“It would do them a disservice” – Hoover
Refer to your Notes Packet
The Great Depression DBQ
Analyze the documents and answer the short-answer questions that
follow each document in the space provided.
Doc. 1
According to this graph, how did the stock
market crash of 1929 affect workers?
Doc. 2
Then, on Black Thursday, the American dream turned into a nightmare as Wall Street’s Stock
Market Boom turned into The Crash. People were stunned, unbelieving at first. Paper fortunes
had vanished, but money was the foundation of American life. Disbelief turned to panic as
people besieged [stormed] the banks (this one was in New Jersey) trying to withdraw their life’s
savings — often too late. The banks began to collapse and industrial production ground to a
halt.
According to this document, what effect did The Crash have on banks?
Doc. 3
Based on this photograph, what assistance is being
offered to the people standing in line?
Doc. 4
. . . In such a spirit on my part and on yours we face our common difficulties. They concern,
thank God, only material things. Values have shrunken to fantastic levels; taxes have
risen; our ability to pay has fallen; government of all kinds is faced by serious curtailment
[decrease] of income; the means of exchange [money and credit] are frozen in the currents
of trade; the withered leaves [failure] of industrial enterprise [business] lie on every side;
farmers find no markets for their produce; the savings of many years in thousands of
families are gone. . . .
Our greatest primary task is to put people to work. This is no unsolvable problem if we
face it wisely and courageously. It can be accomplished in part by direct recruiting
[hiring] by the Government itself, treating the task as we would treat the emergency of a
war, but at the same time, through this employment, accomplishing greatly needed
projects to stimulate and reorganize the use of our natural resources. . . .
According to President Roosevelt, what two problems did
Americans face in 1933?
Winds of Change
“Now, my friends, let me make clear in as emphatic words as I can find, the
fundamental issue in this campaign. Mr. Hoover believes that farmers and
workers must wait for general recovery, until some miracle occurs by which
the factory wheels revolve again. No one knows the formula of this miracle.
I, on the other hand, am saying over and over that I believe that we can
restore prosperity here in this country by re-establishing the purchasing
power of half of the people of the country, that when this gigantic market of
50,000,000 people is able to purchase goods, industry will start to turn, and
the millions of men and women now walking the streets will be employed.”
TTYN: Explain the difference in recovery philosophy that
Hoover and FDR each had
Winds of Change
FDR Takes Action
"The only thing we have to fear is fear itself “
The New Deal 1
An unprecedented number of reforms addressing the
catastrophic effects of the Great Depression.
Unlike Herbert Hoover, who felt that the public should support
the government and not the other way around, Roosevelt felt it was
the federal government’s duty to help the American people weather
these bad times.
The New Deal 1
From a life of privilege to the symbolic representative of ordinary citizens
FDR believed that is was the government’s responsibility to guarantee
every man a right to make a comfortable living.
The New Deal – an alternative to socialism on the left, Nazism on the right,
and the inaction of upholders of unregulated capitalism
Small Group Activity
Breaking Down the New Deal
Group One will examine New Deal One
Group Two will examine New Deal Two
Refer to respective handouts
Present the important aspects of each – whole group setting
The New Deal 1: Group One
The New Deal 2: Group Two
Refer to your Notes Packet
The Great Depression DBQ
Doc. 5
In this cartoon, who does the doctor represent?
In this cartoon, what do the bottles on the table represent?
Doc. 6
According to this document, which group of people would benefit
from Dr. Townsend’s plan?
Based on this document, state one provision of Dr. Townsend’s plan.
Next Unit:
World War II: The End of the Depression