

SSUSH17 The student will analyze the causes and consequences of the Great Depression.



SSUSH18 The student will describe Franklin Roosevelt’s New Deal as a response to the depression and compare the ways governmental programs aided those in need.

 What do you think are some of the causes for the stock market crash?

 How do you think the people will act?

 Do you think that the Great Depression was foreshadowed?

 What would be one thing you would change to prevent the Great Depression?

 1920’s=era for ‘superficial prosperity’  While some industries soared, others faltered  Eventually, all industries started to weaken  Farmers were in need of help      During the war=crops were in high demand Post war=prices for crops decreased more than 40% Farmers kept production high, hoping to sell crops Farmers foreclosed on their land Price Supports  Coolidge vetoed

 Overproduction  During the 1920’s consumerism=HIGH   Production increased to keep up w/new technologies Producers believed they would sell the surplus:  Invested in new machines, new stock, and more workers=which increased overproduction  Under consumption  Production rising=consumers buying less   Rising prices, stagnant wages, unbalanced distribution of income, and the overbuying on credit in the previous years Living on credit  living beyond means

 During all the nation’s woes, there was an election  Herbert Hoover vs. Alfred E. Smith  Hoover won    “We in America are nearer to the final triumph over poverty than ever before” American’s maintained confidence through all the warnings of weaknesses to come Those able to, invested in stock market

 In 1929 about 3% of the nation’s population owned stock  Dow Jones Industrial Average  Stock market was not regulated   Buying on margin  Buying stock on credit Speculation  buying stocks & bonds on a chance that they would receive a quick profit

Stock Market Crash of 1929

• First Hits: • • Sept. 1929 Oct. 24 1929 • Black Thursday • The crash • • • Black Tuesday Oct. 29, 1929 The market lost $14 billion in value for the day • $30 billion for the week

 Americans were in a state of financial collapse  Had lost faith in the stock market

 In your opinion, how important do you think public confidence is in the health of the economy?

 Do you think the peoples reaction to the crash was justified?

 Americans panicked, and took their money from banks  Banks invested in stock market too    In 1929, a total of 600 banks had closed 1933: 11,000 out of 25,000 of the nations banks failed No FDIC  Businesses failed  Unemployment surged  One out of every four workers was unemployed  Worldwide depression  U.S. had no funds to purchase European imports   Which made it difficult to sell American products abroad

 1929-1939  American people suffered great hardships    Unemployment Homelessness Other basic necessities were not met  For three years the stock prices continued to decline  No money to buy goods, no production=no jobs=higher & higher unemployment

In the Cities

Life in the U.S.

In the rural areas  Shantytowns  Soup kitchens and bread lines  Minorities conditions were difficult   Unemployment for minorities  higher Dealt with racial violence and discrimination  Not in city, able to grow crops   If the farmer had retained his land Tenant farming

 The Great Depression =global effects   After WWI, U.S.=major creditor and financier of postwar Europe U.S. economy declines  the prosperity in the European countries declined  Most effected Germany and Great Britain  Countries sought to protect domestic production through   Increasing tariffs Setting quotas for foreign imports  Trade decreased by more than 50%

 The Dust Bowl started as a drought in early 1930’s  Farmers, in search of turning a profit off their crops, plowed the land constantly    More crops = a surplus Surplus of crops =overproduction Farmers plowed the land ‘dry’ & overproduced the area   Plowing pulled up all the roots and protective soil  1930’s  Drought and winds came  Replaced it with top soil for crops to grow No water=no crops=dry soil  Winds would stir up soil and blow up tons of dust for miles  Areas most affected: Kansas, Oklahoma, Texas, New Mexico, and Colorado

 In efforts to save their families from the colossal dust storms, several families left  Migrated West   Route 66 to California in search of new land or new jobs    “Okies” Originally name given to Oklahomans, but then used negatively for all migrants Found jobs as farmhands 1000’s of families packed up and left  to go west

 Tried to restore confidence in the American people   In his mind, American’s should remain optimistic  Business cycles go up and down  Periods of economic growth are normally followed by periods of depression Politically    Government should help with competition Opposed federal programs of aid and direct relief   Rugged individualism People were frustrated with his philosophies

 In 1929, the authorization for Boulder Dam (Hoover Dam) came through    Supplied water to seven states Supports California’s agricultural economy Supplies water for largely populated cities: L.A. and Las Vegas  World’s tallest, second largest dam  726 ft. tall, 1,244 ft. long

 People = frustrated w/the republican philosophies Hoover held onto  1930-Democrats took more seats in Congress  Result=Republicans lost control of the House of Representatives  Angry with the president, the people took out their frustrations in various ways:   Farmers would burn or destroy crops instead of selling them at a loss People referred to the shantytowns in the cities as

“Hoovervilles”



“Hoover blankets” & “Hoover flags”

 The people saw Hoover as cold and heartless

 In response to the publics’ criticism towards his policies, Hoover lightened up a little  Still believed in small government  He got directly involved creating 1.

2.

 Federal Home Loan Bank Act Lowered mortgage rates   Reconstruction Finance Corporation Set aside emergency money for banks and other large businesses Money would go flow from the businesses first then the people who needed it

•WWI veterans who assembled in Washington, D.C., to fight for their bonuses to be paid •About 17,000 soldiers (veterans and families)

The Bonus Army March

  The Patman Bill June 17, 1932  bill voted against  Soldiers were told to leave, all but a couple thousand stayed  Hoover and MacArthur ‘disband’ the remaining bonus army     Sent in a force of 1,000 soldiers Several people injured or killed American people were outraged Result=Hoover’s image is ruined  election  FDR time for presidential

HOOVER MAKES THEM LEAVE

 How did Hoover’s belief of “rugged individualism” shape his policies during the Great Depression?  How did these policies lead to his downfall?

 How did the Bonus Army March effect Hoover?

Chapter 23

 Franklin Delano Roosevelt  32 nd president of the U.S.

 Took office in 1933  Ready for change

 Phrase came from a campaign speech  “ a new deal for American people”  Developed during “wait time” to take office  Policies focused on three basic goals: 1.

2.

3.

Relief of the needy Economic Recovery Financial Reform  Create jobs & get out of debt

 100 days in office = intense activity  March 9 th  June 16 th  Passed 15 pieces of legislation =New Deal  3 laws  Expanded government’s role in economy  Reforms in banking/finance  March 5 th =Bank Holiday/Banks closed  Emergency Banking Relief Act

 How are the policies of FDR and Hoover different?

 How do you think the general public will respond to FDR’s policies?

 Can you predict the outcome of FDR’s presidency?

 First=March 12 th , day before banks reopened  Radio talks about issues concerning public  Informal  American’s felt close w/President

 Glass-Steagall Act 1933  Establish FDIC- Federal Deposit Insurance Corporation  Provided federal insurance=money was safe  Federal Securities Act 1933  Corp. must give info on all stock offerings and are liable for any misrepresentations  Securities and Exchange Commission-SEC (June 1934)  Regulate Stock Market

 Agricultural Adjustment Act (AAA)  Raise crop prices by lowering production  Increase farm prices=farmers had more money  Tennessee Valley Authority (TVA)  Renovated 5 dams   Constructed 20 new =jobs, flood control, hydroelectric power  benefits to impoverished region

 Civilian Conservation Corps (CCC)  Young men to work  Lived in work camps=free food  Build roads, parks, plant trees, flood-control projects  More than 200 mil. Trees = preventing Dust Bowl  Small wage= $30 a month ($25 sent directly to family)  Public Works Administration (PWA) June 1933  Part of Nat’l Industrial Recovery Act (NIRA)  Money to states=  Construction for schools & community buildings

 Civil Works Administration  Result of PWA  Provided 4 mil. Immediate jobs  Built 40,000 schools  Paid salaries of 50,000 teachers

 Home Owners Loan Corp. (HOLC)  Gov’t loans to those facing foreclosure  Federal Housing Administration (FHA) 1934  Furnish loans for home mortgages and repairs  Federal Emergency Relief Admin. (FERA)  $500 mil. Direct relief to needy  Half went to states  Half went to work relief programs

 Which of these programs do you think was the most effective and why?

 Which of these programs do you think was the least effective and why?

 Do we still see any of these around today?

 End of 100 days=millions of Americans benefited  Public confidence increased  Liberals =not enough help  Conservatives = spent too much on Direct relief/New Deal=control and socialize economy  Supreme Ct.= conservative/struck down some New Deal   Nat’l Industrial Recovery Act (unconstitutional) Agriculture Adjustment Act  States-not Fed. Gov’t

 Feb. 1937- court reform bill= appoint 6 new Supreme Ct. Justices  Keep Congress from dismantling New Deal  “Court Packing Bill” – angered public  1937—FDR got his wish w/o reorganizing Court  elderly Justice retired, Pres. Appointed liberal judge Hugo Black

 Critics of New Deal (ND) legislation  Opposed ND and believed it violated respect for the rights of individuals & property  3 tough critics: 1.

2.

3.

 Charles Coughlin Dr. Francis Townsend Huey Long Expressed views appealing to poor

 Still not enough gains in economy  President wanted to see more growth  Encouraged by his wife, Eleanor Roosevelt   Eleanor: a social reformer Humanitarian  Fought for women’s rights in gov’t

 Goal: create as many jobs as possible, stimulate growth  AAA was re-instated  Works Program Administration (WPA)   1933-1945: $11 bil. Spent to give jobs Construction work  National Youth Administration (NYA)  Provide edu, jobs, counseling, and recreation for youth

 2 nd New Deal brought reforms to labor  Wagner Act= collective bargaining    Protected rights of workers to join unions Prohibited unfair labor practices 1.

2.

3.

Threatening workers firing union members interfering w/union organization  National Labor Relations Board (NLRB) Hear testimony about unfair practices   Fair Labor Standards Act (1938) Max. 44 hrs p/week  40 hrs p/week  Min. wage .40 p/hr.

 Passed in 1935  Pension/ “welfare” system  3 major parts 1.

2.

3.

Old-age insurance for retirees 65+ & spouses Unemployment compensation Aid to families w/dependent children & the disabled

  Regulate public utilities REA  provide electricity to rural areas   1935: only 12.6% of Am. Farms had electricity 1945: 48%

 Government’s role in economy was expanded  FDIC, SEC  Worker’s rights were protected  NLRB  Banks were more secure & money was protected; American’s financial situations were stabilized  FDIC, SEC, and Social Security  The environment was protected  CCC, TVA  We still see some of these legislations today

 New Deal effectively ended by 1939  Roosevelt more concerned w/Europe  Hitler  New Deal caused gov’t to go into debt  Federal deficit increased  New Deal brought hope for the people  Provided jobs and income for families  Criticism = too much government involvement  Too much spending  Deficit necessary for programs increased as the nation entered yet another World War…

 Why did some people oppose the New Deal?

 How did Eleanor Roosevelt play a vital role as the First Lady?

 Why was the passage of Social Security important?

 How did the Wagner Act help working people?

 In what ways were the New Deal legislations good/bad?