Title: U.S. History Chapter 11 Notes The Great Depression Begins
1U.S. History Chapter 11 Notes The Great
Depression Begins
- An economic crisis grips the nation during the
Great Depression. President Herbert Hoovers
conservative response to the nations problems
costs him many supporters.
2Section 1The Nations Sick Economy
- As the prosperity of the 1920s ends, severe
economic problems grip the nation.
3Economic Troubles on the Horizon
- Problems began threatening economic prosperity by
the end of the 1920s - Farm debt - many farmers were forced to sell in
the 1920's - Consumer debt - many people were buying goods on
credit - More goods then buyers - prices rose faster than
wages - Declining Trade - 1920's U.S. raised tariffs
other countries raised tariffs to retaliate - Important industries struggled
- Income disparity - Consumers farmers went
steadily deeper into debt
4Industries in Trouble
- Key industries like railroads, textiles, steel
barely made profit - Replaced by other forms of transportations
- Mining, lumbering expanded during were no longer
in high demand - Coal especially hard-hit due to availability of
new energy sources - - Hydroelectricity, fuel oil, natural gas
- Boom industries - automobiles, construction,
consumer goods weakened - Housing starts declined
- - Affected many related industries
5Farm Troubles
- International demand for U.S. grain declined
after war - - prices dropped by 40 or more
- Farmers boosted production to sell more
- - Caused prices to drop further
- Farm income declined farmers defaulted on loans
- Rural banks failed
- Congress attempted to pass the McNary- Haugen
bill to help farmers - - Price-supports - government bought surplus
crops at guarantees prices - - President Coolidge vetoed price-support bill
6Consumers Problems
- 1920s - rich got richer poor got poorer
- Prices rose faster that wages
- 70 of families earned less than minimum for
decent standard of living - - 2500 annually
- Most couldnt afford flood of products factories
produce - Many people had been purchasing goods on credit
(buy now, pay later) - Businesses gave easy credit consumers piled up
large debts - Consumers had trouble paying off debt cut back
on spending
7OBJ 1 - Describe the CAUSES and SPARK of the
Great Depression. How did Overproduction affect
both farmers and industry? What system collapsed
and caused millions to lose their savings?
Explain how buying on Margin created the Spark.
How did people lose money because of the spark?
- I. OBJ 1- Cause Spark of the Depression
- A. Causes of the Depression
- 1. Overproduction, too much stuff (Factories
and Farms) - a. Factory Workers begin to get layed-off
- - Workers cannot buy goods, even more
goods are overproduced - b. Farmers Cant Survive
- -low prices (cant pay loans / make a
living) - c. Supply Demand- Prices Drop
- 2. Bank Failures
- a. Banks close and loose
- b. People default on loans (Cant
pay Back) - c. Banks cannot cover their
deposits, because it was lent out to bad
creditors 5,000 banks close between
1929-1932 - d. People loose entire LIFE SAVINGS
81920s Problems
Factories making Too Much, Farms growing too much
BANKS Have NO PEOPLE LOST SAVINGS
JOBS NO ONE TO HELP!
Factories Fire Workers
(Dont need them) Farm Prices fall
(Farmers cant make )
Banks Close because they have no money Loans
have not been paid back, cant give people
their savings
Farmers Factory Workers cant pay back loans to
Banks DEFAULT!!
9Banks Close
Banks have no money to give people
People Default on Loans
People Loose savings
10The Election of 1928
- Democrat Alfred E. Smith - four times governor of
New York - Republican Herbert Hoover has served as secretary
of commerce under Warren Harding Calvin
Coolidge - U.S. had experienced prosperity under Republicans
in 1920s - Hoover won an overwhelming victory
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12Dreams of Riches in the Stock Market
- Late 1920s Some economist warning of weaknesses
in the economy - - Most Americans ignored them
- People began investing in stock market
- - Looked like an easy way to make money
- Dow Jones Industrial Average was used as
barometer of the markets health - - Measure based on the stock of 30
representative large firms trading on the New
York Stock exchange tracks state of stock market
13Dreams of Riches in the Stock Market
- 1920s - stock prices rose steadily Bull
Market - People rushed to buy stocks bonds to make a
quick profit - - Many engaged in speculation - buy on chance
of a quick profit - - Began Buying on margin - pay small percent of
price, borrow rest
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16The Stock Market Crashes
- September 1929 stock prices peaked then fell
- Many investors lost confidence began selling
- October 24, 1929 - Market took plunge many
panicked investors unloaded their shares
17The Stock Market Crashes
- October 29, 1929 - Stock market crashed (Black
Tuesday) - - Shareholders sold frantically
- - Millions of shares had no buyers
- - People who bought on credit were left with
huge debts - - Others lose most of their savings
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19OBJ 1- Cause Sparks of Depression
- QUICK REVIEW
- Causes 1. Overproduction
- 2. Bank Closings
- Spark 1. Stock Market Crash
- Results 1. Unemployment
- 2. Life Savings Lost
TOO MUCH STUFF!
BLACK TUESDAY
20Financial Collapse
- Great Depression - economy plummeted
unemployment skyrocketed - - lasted from 19291940
- After crash, people panicked withdraw money
from banks - Banks that invested in stocks failed people lost
their money - 1929 to1932 - gross national product was cut
nearly in half - - 90,000 businesses went bankrupt
- 1933 - 25 of workers were unemployed
- Those with jobs received cuts in hours pay
21Worldwide Shock Waves
- Great Depression limited U.S. ability to import
European goods - Hawley-Smoot Tariff Act set highest protective
tariff ever in U.S. - Other countries couldnt earn American currency
to buy U.S. goods - - Many countries retaliated by raising their own
tariffs - International trade dropped unemployment soared
around world
22Causes of the Great Depression
- Factors leading to Great Depression
- Declining Trade - Tariffs war debts cut down
the foreign markets for American goods - Farm problems - Many farmers were forced to sell
- Easy credit Borrowed money to invest in market
- Income disparity
- Federal government kept interest rates low
encouraged borrowing
23Section 2Hardship and Suffering During the
Depression
- During the Great Depression Americans do what
they have to do to survive.
24The Depression Devastates Peoples Lives
- People lost jobs were evicted from homes
- Had to live in parks or sewer pipes
- Shantytowns - settlements consisting of shacks,
arose in cities
25The Depression Devastates Peoples Lives
- People dug through garbage begged
- - Soup kitchens offered free or low-cost food
- - Bread lines - people lined up for food from
charities public agencies - African Americans Latinos had higher
unemployment lower pay - Minorities were also targets of violence
(Lynching or deportation)
26The Depression in Rural Areas
- Most farmers could grow food for their families
- About 400,000 farms were lost through foreclosure
- - Many became tenant farmers worked for large
- landowners rather than
- themselves
27The Dust Bowl
- Farmers in Great Plains exhausted land through
overproduction - 1930s - drought windstorms scattered for
hundreds of miles - Dust Bowl - area from North Dakota to Texas that
was hardest hit
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32The Dust Bowl
- Many farm families migrated to Pacific Coast
states (Route 66) - - California towns became overcrowded
- - Many people who moved west were from Oklahoma
(Okies)
33OBJ 3 - Describe the natural disaster that
affected the U.S. during the Great Depression.
What was the disasters nick-name? What caused
the disaster? Where did the people go to try
and escape their troubles and how were they
treated (nick-names for these people)?
- III. OBJ. 3- Natural Disaster The DUST BOWL
- A. Great Plains suffers a huge Drought (1931)
- 1. Causes
- a. Drought . . .no rain
- b. New technology, tractors and steel
plows tear-up extra sod that was holding onto
soil, drought turns open soil into sand box - 2. Huge Dust storms cover Great Plains
- B. Results
- 1. Cant pay banks- Banks take Farms
- 2. Many Great Plains farmers move to
California, - a. Try to get jobs on large farms
- b. Treated poorly in Calif. -
- Oakies Arkies-Not wanted in West
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35Effects on the American Family
- Family was source of strength for most Americans
- Believed in traditional values and emphasized the
importance of family unity - Many families entertained themselves with board
games radio - - Monopoly was invented in 1933
- Some families broke apart under strain of making
ends meet
36Men in the Streets
- Many men used to working supporting families
had difficulty coping - Couldnt find jobs
- Many stopped trying
- Some men even abandoned their families
- - About 300,000 hoboes wandered country on
railroad box cars - No federal system of direct relief - cash or food
from government
37Women Struggle to Survive
- Women worked hard to help their families survive
the adversity - Homemakers budgeted carefully, canned food,
sewed clothes - Women worked outside home were resented by
unemployed men
38Women Struggle to Survive
- Early 1930s Some cities refused to hire married
schoolteachers - Many women suffered in silence were ashamed to
stand in bread lines
39Children Suffer Hardships
- Poor diets health care led to serious health
problems in children - Lack of tax revenue led to shortened school year
school closings - Teenagers left home rode trains in search of
work adventure - - Many died or were beaten
40Social and Psychological Effects
- 1928 to 1932 suicide rate rose over 30
- Admissions to state mental hospitals tripled
- People gave up health care, college
- Put off marriage children
- Stigma of poverty didnt disappear financial
security became goal - Many people showed great kindness to strangers
- - Gave food, clothing a place to stay
- People developed habit of saving and thriftiness
41Section 3Hoover Struggles with the Depression
- President Hoovers conservative response to the
Great Depression draws criticism from many
Americans.
42Hoover Tries to Reassure the Nation
- President Herbert Hoover told Americans the
economy was sound - Many experts believed depressions were normal
part of business cycle - - Believed that it was best to do nothing let
the economy fix itself - Hoover believed government should foster
cooperation between competing groups
43Hoover Tries to Reassure the Nation
- Many believed that people should succeed through
their own efforts - People should take care of own families not
depend on government - Hoover opposed any form of federal welfare or
direct relief to the needy - - Believed that hand-outs would weaken peoples
self respect moral fiber - - Said that charities local organizations
should help the less fortunate
44Hoover Takes Cautious Steps
- Hoover called meeting of business, banking, labor
leaders to solve problems - - Asked them to work to together to solve the
problems - Created organization to help private charities
raise money for poor
45Hoover Takes Cautious Steps
- Hoovers authorized the construction of the
Boulder Dam on Colorado River w - - later renamed Hoover Dam
- - Provided electricity, flood control, water to
states on river basin
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49Democrats Win in 1930 Congressional Elections
- People began blaming Hoover Republicans for the
economic problems - Democrats won House of Representatives
- Republican Senate majority down to 1 vote
- People Grew frustrated with the Depression
50Democrats Win in 1930 Congressional Elections
- Farmers tried to create food shortages to raise
prices - Burned fields rather than sell crops at a loss
- Some declared a farm holiday
- People began calling shantytowns Hoovervilles
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52Hoover Takes Action
- Hoover softened his stance on no government
intervention in the economy - Hoover negotiates agreements among private
entities - Backs Federal Farm Board (organization of farm
cooperatives) - - buy crops, keep off market until prices rise
53Hoover Takes Action
- Got large banks to establish National Credit
Corporation - - Loaned money to smaller banks to prevent
bankruptcy - Late 1931 - Hoover persuaded Congress to pass
measures reform banking, provide mortgage relief,
funnel federal money into business investment - - Federal Home Loan Bank Act lowered mortgage
rates
54Hoover Takes Action
- Reconstruction Finance Corporation Authorized
emergency funds for businesses - - Hoover believed that the money would trickle
down to average citizens through job growth
higher wages - - Critics said people couldnt wait for the
money to trickle down - Hoovers measures didnt improve economy before
presidential election
55Gassing the Bonus Army
- 1932 Incident with World War I veterans further
damaged Hoovers image public morale - 1924 Congress agreed to pay a bonus to WWI vets
who had not been adequately compensated for
wartime service - - Bonus was to be paid in 1945 in the form of
cash a life insurance policy
56Gassing the Bonus Army
- Bonus Army WWI veterans went to D.C. in 1932 to
support Patman Bill - - called for immediate payment of bonus to WWI
vets (500 per soldier)
57Gassing the Bonus Army
- Hoover opposed bill
- Believed they were communists
- He respected their right to protest (Provided
food supplies for shantytown) - June 17, 1932 - Senate voted down Patman Bill
- Most veterans left Washington
- About 2,000 stayed to speak to Hoover
58Gassing the Bonus Army
- Hoover feared violence called on U.S. Army to
disband Bonus Army - - Led by General Douglass Macarthur Major
Dwight Eisenhower
59Gassing the Bonus Army
- Infantry tear gassed over 1,000 people, including
children - Many people were injured (11 month old baby
died) - Public was stunned outraged by governments
actions
60OBJ 2 -Describe how the Great Depression
affected people. Who was the president when it
started, and what did he do to help? Who tried
to help the poor and what problems did they have?
How did people try to escape the Great
Depression?
- II. OBJ. 2 Affects of the Depression
- A. Jobless / Homeless
- 1. 1930-1932 Jobless goes from 4 to 12
million - 2. Houses are lost, people become homeless
- 3. People are Desperate!!!!
- B. Hatred for President Hoover
- 1. Says it is NOT Governments job to fix the
Poor - a. Say Churches and other groups should help
- b. PROBLEM People too poor to help churches
so churches cant help as much!!! - 2. People name Poor Places after Hoover
- a.Hooverville- Shanty towns / Hoovermobile-
cars pulled by mules - b. HOBOS- look for jobsHooverblankets-
newspapers used as traveling the
rails blankets by homeless
61 OBJ 2- Affects of the Great Depression
Wizard
- C. Escaping the Depression
- 1. Radio- Comedies, Soap Operas
- 2. Movies- Shirley Temple, Child Actors
- a. Snow White (first full-length
animation) - b. Wizard of OZ
- Small girl escaping the Dust Bowl
- 3. Literature
- a. Steinbeck, Grapes of Wrath
- About a family of Okies escaping the Dust
Bowl and how horribly they
were treated
of
OZ
62U.S. History Chapter 13 NotesThe New Deal
- President Franklin D. Roosevelts New Deal
programs stimulate the economy and the arts. The
New Deal leaves a lasting, yet controversial mark
on American government.
63Section 1A New Deal Fights the Depression
- After becoming president, Franklin Delano
Roosevelt uses government programs to combat the
Depression.
64Election of 1932
- Democrats nominated NY governor Franklin Delano
Roosevelt - - reform-minded
- projected friendliness confidence
- Democrats overwhelmingly won presidency, Senate,
House
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67Election of 1932
- Roosevelt had to wait 4 months to take over
- 20th Amendment wasnt rarified until 1933 (Move
inauguration to January) - FDR worked with advisors known as Brain
Trust, to formulate policies to alleviate
problems - New Deal FDRs program to alleviate the
problems of the Great Depression focused on 3 Rs - Relief for needy
- Economic recovery
- Financial reform
68The Hundred Days
- March 9 to June 16, 1933 - FDR took office
launched Hundred Days - Congress passed over 15 major New Deal laws that
expanded the federal governments role in the
nations economy
69Bank Holiday
- March 5, 1933 one day after taking office FDR
declared a bank holiday closed all banks to
prevent further withdrawals - Emergency Banking Relief Act - Permitted
Treasury Dept. to inspect banks - Sound banks were allowed to reopen
- Banks that needed help received loans
- Insolvent ones remained closed (unable to pay
bills) - Bank Holiday revived public confidence in banks
- - Believed that the banks remained open were in
good shape
70An Important Fireside Chat
- FDR gave fireside chats - radio talks explaining
New Deal measures - March 12, 1933 FDR gave 1st fireside chat the
day before the banks reopened after holiday - - Discussed need for public support of
government, banks
71Regulating Banking and Finance
- Congress took another step to reorganize the
banking system - Glass-Steagall Act - Established Federal Deposit
Insurance Corporation (FDIC) - insured individual bank accounts up to 5000
- Regulates banking practices ( forced them to act
cautiously with money)
72Regulating Banking and Finance
- Federal Securities Act Required companies must
give all information on stocks - Securities and Exchange Commission (SEC) created
to regulate stock market - FDR got law allowing production of some alcoholic
beverages - 21st Amendment repealed prohibition by end of
1933
73Helping the American People
- Roosevelt administration implemented programs
aimed at helping farmers other workers to
stimulate economy - Agricultural Adjustment Act (AAA) raised food
prices by lowering supply - - Government paid farmers not to plant crops
74Helping the American People
- Tennessee Valley Authority - Created jobs
renovating building dams - - Also provided flood control hydroelectric
power to region
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76Helping the American People
- Civilian Conservation Corps (CCC) - public works
jobs for young men 18 to 25 - - Built road, planted trees helped in soils
erosion flood control projects - - Men sent 25 out of 30 home to family each
month
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82NIRA
- National Industrial Recovery Act - established
codes of fair practice for industries - Created National Recovery Administration (NRA)
- NRA sets standards, prices, limits production
83NIRA
- 1933 - Public Works Administration (PWA) was
established as part of the NIRA - It provided money to states to create jobs
chiefly in the construction of schools other
community buildings
84Food, Clothing, and Shelter
- Home Owners Loan Corporation gave loans to
prevent foreclosures - Federal Housing Administration gives loans for
mortgages repairs (FHA)
85Food, Clothing, and Shelter
- Federal Emergency Relief Administration -direct
relief to needy
86The New Deal Comes Under Attack
- Deficit spending - spending more money than
government takes in - - funded New Deal
- Opposition rose when the New Deal didnt stop
the Depression - Liberals didnt think New Deal did enough to help
poor, fix economy - Conservatives believed Roosevelt used the New
Deal to control business socialize economy
87The Supreme Court Reacts
- Supreme Court struck down NIRA AAA as
unconstitutional - FDR proposed Court-packing bill
- Change the Supreme Court from 9 to 15 justices
- Would enable FDR to appoint 6 new justices
- Congress press protested
- Starting in 1937 - justices retire FDR
appointed seven new ones
88Huey Long Attacked the New Deal
- Governor of Louisiana "King Fish"
- Built schools and hospitals
- Ruled Louisiana like a dictator
- Wanted to be president
- Decided to challenge FDR
- Offered new deal "Share our wealth"
- - Called for every family to get yearly income
money to buy food and housing - - Taxed the rich heavily
- Made enemies in his attempt to become president
- - Shot and killed in 1935
89Section 2The Second New Deal Takes Hold
- The Second New Deal includes new programs to
extend federal aid and stimulate the nations
economy.
90The Second Hundred Days
- By 1935, economic recovery not as great as FDR
had expected - Unemployment remained high
- Work programs productions still behind 1920s
levels - FDR launched second phase
- Provided more relief for farmers, workers
91The Second Hundred Days
- First Lady Eleanor Roosevelt a social reformer
prodded president - She traveled the country observing the social
conditions reminding FDR about the suffering - She also pushed for him to appoint women to
government positions
92Election of 1936
- 1936 - Democrats won presidency large
majorities in both houses - First time most African Americans voted
Democratic - First time labor unions supported presidential
candidate - Election was a vote of confidence in FDR the
New Deal
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94Helping Farmers
- 1936 - Soil Conservation and Domestic Allotment
Act replaced AAA - - Rewarded farmers for practicing soil
conservation - New Agricultural Adjustment Act avoided
unconstitutional provision - Resettlement Administration gave loans to small
farmers to buy land - Farm Security Administration - loaned to tenant
farmers to buy land - - FSA hires photographers to shoot pictures of
rural towns farms
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96Roosevelt Extends Relief
- 2nd New Deal established a series of programs to
help youths, professionals other workers - Works Progress Administration (WPA)
- - WPA workers built airports, roads, public
buildings - - Women workers sewed clothes for the needy
- - WPA employed professional writers, artists,
performers - - Gave aid to students in exchange for part-time
work
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101Roosevelt Extends Relief
- National Youth Administration (NYA) - provided
education, jobs, counseling recreation to young
people
102Improving Labor and Other Reforms
- Wagner Act - replaced NIRA
- - Protected right to join unions collective
bargaining - - Prohibited unfair labor practices (threatening
workers or firing union members) - - Established National Labor Relations Board
that heard testimony about labor practices - - Held elections to determine if workers wanted
unions - 1938 - Fair Labor Standards Act sets maximum
hours minimum wage - - 44 hrs per week decreasing to 40 in two years
25 cents per hr.
103Social Security Act
- 1935 - Social Security Act created Social
Security system - Provided insurance for retirees 65 or older
- Unemployment compensation
- Aid to disabled families with children
104Expanding and Regulating Utilities
- Rural Electrification Administration (REA)
brought electricity to farms - - Rose from 12.6 in 1935 to 48 in 1945 to 90
in 1949 - Public Utility Holding Company Act aims to stop
financial corruption
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106Section 3The New Deal Affects Many Groups
- New Deal policies and actions affect various
social and ethnic groups.
107The New Deal Brings New Opportunities for Women
- Several women were named to important government
positions - Frances Perkins became first female cabinet
member (Secretary of Labor) - - FDR also appointed 2 women as diplomats 1 as
a federal judge - Women still faced discrimination in workplace
from male workers - National Recovery Administration (NRA) set some
lower minimum wages for women - Federal work programs hired far fewer women than
men
108African-American Activism
- FDR appointed more than 100 African Americans to
government - Educator Mary McLeod Bethune headed Division of
Negro Affairs of NYA - Helped organize Black Cabinet
- Group of influential African-American who advised
FDR on racial issues
109The President Fails to Support Civil Rights
- FDR was afraid of upsetting white Southern
Democratic voters - Refused to approve antilynching law end to poll
tax - New Deal agencies discriminated against African
Americans - - pay them lower wages favored whites
- African- Americans generally supported Roosevelt
administration New Deal - - Saw them as the best hope for the future
110FDR Wins in 1936
- New Deal Coalition - different groups that
support Democratic Party - - Helped the democratic party dominate national
politics throughout the 1930s 1940s - Political organizations in large Northern cities
supported FDR - Urban, religious, ethnic groups also supported
FDR - - FDR appoints officials of urban-immigrant
background
111Indian New Deal
- Indian New Deal gave Native Americans economic
assistance and greater control over their own
affairs
112Section 4Culture in the 1930s
- Motion pictures, radio, art, and literature
blossom during the New Deal.
113The Lure of Motion Pictures and Radio
- About 65 of population went to movies once a
week - - Movies were still affordable
- - People watched them to escape real life
- - Grapes of Wrath
- - Gone With the Wind
- - The Wizard of OZ
114The Lure of Motion Pictures and Radio
- 90 of households had a radio
- Families listened together every day
- Dramas, variety shows played in evening
- - Soap operas for homemakers broadcast in
middle of day - - Childrens shows after school hours
- - Immediate news coverage became customary
- -
115The Lure of Motion Pictures and Radio
- Orson Welles - actor, director, producer, writer
116The Arts in Depression America
- Federal Art Project paid artists to make art,
teach in schools - Aim to promote art appreciation positive image
of America - Murals typically portrayed dignity of ordinary
people at work - Federal Theater Project hired actors artists
- Singer, songwriter Woody Guthrie sung songs about
the of plight of poor
117Diverse Writers Depict American Life
- Federal Writers Project supported many who
become major writers - Richard Wright - African-American author who
wrote Native Son - John Steinbeck wrote The Grapes of Wrath about
Dust Bowl migrants
118Section 5The Impact of the New Deal
- The New Deal affects American society not only in
the 1930s but also in the decades that follow.
119The New Deal Ends
- By 1937, economic improvement convinced many that
Depression was ending - Congress wanted to cut back programs
- By 1939 - New Deal was over
120Supporters and Critics of the New Deal
- Supporters Believed the New Deal helped country
recover from economic difficulties - Conservatives though FDR made federal government
too large - - stifled free enterprise individual
initiative - Liberals thought New Deal didnt do enough to
socialize economy end inequalities
121Effects of the New Deal
- Expanded power of federal government president
- Social Security Act - Federal government takes
responsibility for citizens welfare - - Provided aid for aged, disabled needy
- FDIC still protects individual investors in case
of bank failure - SEC still monitors stock market, enforces laws on
stock, bond sales - New Deal laws set standards for wages hours
- - banned child labor
- - Permitted unions
- Civilian Conservation Corps (CCC ) - planted
trees, built hiking trails, fire lookout towers
122Effects of the New Deal
- Soil Conservation Service taught farmers how to
preserve soil - - Contour plowing, terraces, crop rotation
- 1934 - Taylor Grazing Act reduced grazing on
public lands - - Grazing had contributed to erosion that caused
the dust bowl - Tennessee Valley Authority (TVA) created
electricity, prevented floods - New Deal reduced suffering gave people hope
- - Provided jobs, food money
- New Deal didn't end depression WWII did