Transcript Great Depression - Mrs. Myers US History

The Great Depression Begins
An economic crisis
grips the nation during
the Great Depression.
President Herbert
Hoover’s conservative
response to the
nation’s problems
costs him many
supporters.
https://www.youtube.com/wat
ch?v=fV4l5w0ZpcY
People reading the Manchester Union Leader
newspaper notice board in New Hampshire
(c. 1935).
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The Great Depression Begins
SECTION 1
The Nation’s Sick Economy
SECTION 2
Hardship and Suffering During
the Depression
Hoover Struggles with the Depression
SECTION 3
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Section 1
The Nation’s
Sick Economy
As the prosperity of the 1920s ends, severe
economic problems grip the nation.
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SECTION
1
The Nation’s Sick Economy
Economic Troubles on the Horizon
Industries in Trouble
• Key industries like railroads, textiles, steel barely
make profit
• Mining, lumbering expanded during war; no longer
in high demand
• Coal especially hard-hit due to availability of new
energy sources
• Boom industries—automobiles, construction,
consumer goods— now weak
• Housing starts decline
Chart
Continued . . .
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SECTION
1
Farmers Need a Lift
• International demand for U.S. grain
declines after war
- prices drop by 40% or more
• Farmers boost production to sell
more; prices drop further
• Farm income declines; farmers
default on loans; rural banks fail
• Price-supports—government buys
surplus crops, guarantees prices
- Coolidge vetoes price-support bill
https://www.youtube.com/
watch?v=vkjzE4i1WEI
Consumers Have Less Money
to Spend
• People buy less due to rising
prices, stagnant wages, credit
debts
Continued . . .
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SECTION
1
continued
Economic Troubles on the Horizon
Living on Credit
• Many people buy goods on credit (buy now, pay
later)
• Businesses give easy credit; consumers pile up
large debts
• Consumers have trouble paying off debt, cut back
on spending.
Chart
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Uneven Distribution of
Income
• In 1920s, rich get richer, poor
get poorer
• 70% of families earn less
than minimum for decent
standard of living
• Most cannot afford flood of
products factories produce
SECTION
1
Hoover Takes the Nation
The Election of 1928
• Democrat Alfred E. Smith—four times governor of
New York
• Republican Herbert Hoover gets overwhelming victory
Dreams of Riches in the Stock Market
• Dow Jones Industrial Average tracks state of
stock market
• 1920s, stock prices rise steadily; people rush to buy
stocks, bonds
• **Many engage in speculation, buy on chance of a
quick profit
• **Buying on margin—pay small percent of price,
borrow rest
Chart
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SECTION
1
The Stock Market Crashes
Black Tuesday
• September 1929 stock prices peak, then fall;
investors begin selling
• October 29 or Black Tuesday, market, nation’s
confidence plummet
• Shareholders sell frantically; millions of shares have
no buyers
• People who bought on credit left with huge debts
• Others lose most of their savings
• https://www.youtube.com/watch?v=RJpLMvgUXe8
Image
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Stock Market crash--curb scene
October 1929
SECTION
1
Financial Collapse
Bank and Business Failures
• Great Depression—economy plummets,
unemployment skyrockets
- lasts from 1929–1940
• After crash, people panic, withdraw money from
banks
• Banks that invested in stocks fail; people lose their
money
• 1929–1932, gross national product cut nearly in half
- 90,000 businesses go bankrupt
• 1933, 25% of workers jobless; those with jobs get
cuts in hours, pay
Chart
Chart
Chart
Continued . . .
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20% of
all banks
failed
Worldwide Shock
Waves
• Great Depression limits
U.S. ability to import
European goods
• **Hawley-Smoot Tariff
Act sets highest
protective tariff ever in
U.S.
• Other countries cannot
earn American currency
to buy U.S. goods
• International trade
drops; unemployment
soars around world
https://www.youtube.com/wat
ch?v=6ZxHHNMt4F0
SECTION
1
continued
Financial Collapse
Causes of the Great
Depression
•
Factors leading to Great Depression:
- tariffs, war debts, farm problems,
easy credit, income disparity
• Federal government keeps interest
rates low, encourages borrowing
Chart
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Section 2
Hardship and Suffering
During the Depression
During the Great Depression Americans do what
they have to do to survive.
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II. Hoover’s Response
• Hoover believed assistance
should come from charities, not
gov.
• Suspended war debts from WWI
• Reconstruction Finance
Corporation- (RFC) Gave millions
in loans to key businesses hoping
they would stabilize
“Hoovervilles”
People were very unhappy with President Hoover
over their living conditions.
Bonus March- 1932
• Thousands of WWI veterans and their families march on DC to
demand their pensions that were due to them in 1945
• Hoover sent the US Army to tear gas and burn their
encampment
• Incident destroyed Hoover politically
Bonus Army
The sign in front of the "Bonus Dugout" reads, "We have
come to collect the gratitude that was promised us for
participating in the World War." They received neither
gratitude nor the bonus. Instead, Hoover commented: "Thank
God we still have a government that knows how to deal with
a mob."
Dust Bowl
Severe drought hits the Great Plains during the 1930s
causing massive dust storms. This is caused by drought,
high winds and overproduction of crops.
• Okies- people who left to go to California
for jobs
• Route 66 west
Okies on the way to California
"I speak 3
languages, fought
for 3 years, have 3
children...but I only
want 1 job"
Section 4
Culture in the 1930s
Motion pictures, radio, art, and literature blossom
during the New Deal.
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SECTION
4
Culture in the 1930s
The Lure of Motion Pictures and Radio
Movies are a Hit
• About 65% of population goes to movies once a
week
• Films offer escape from reality; show wealth,
romance, fun
• Gone With the Wind—perhaps most famous
film of era
• Musicals—live action or animated—way to forget
problems
• Comedies, realistic gangster movies especially
popular
• Several films present New Deal policies in
positive light
Image
Continued . . .
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Margaret Mitchell- Gone With the Wind
• Escapism,
fantasy,
remembering a better
time
SECTION
4
continued
The Lure of Motion Pictures and Radio
Radio Entertains
• 90% of households have a radio; families listen
together every day
• Dramas, variety shows play in evening
• Orson Welles—actor, director, producer, writer
• Soap operas for homemakers broadcast in middle
of day
• Children’s shows after school hours
• Immediate news coverage becomes customary
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Radio: Orson Welles, War of the Worlds
ttp://www.authentichistory.com/1930s/otr/19381030_Mercury_Theater_War_of_The_Worlds
SECTION
The Arts in Depression America
4
Artists Decorate America
• Federal Art Project pays artists to
make art, teach in schools
• Aim to promote art appreciation,
positive image of America
• Murals typically portray dignity of
ordinary people at work
• Many outstanding works painted
by artists, including Grant Wood
• Federal Theater Project hires
actors, artists
Grant Wood,
American Gothic
Continued . . .
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Woody Guthrie
Sings of
America
• Singer,
songwriter
Woody Guthrie
sings of plight
of poor
This Land Is Your Land
•
•
•
•
This land is your land This land is my
land
•
From California to the New York island;
From the red wood forest to the Gulf
Stream waters
This land was made for you and Me.
As I was walking that ribbon of highway, •
I saw above me that endless skyway:
I saw below me that golden valley:
This land was made for you and me.
I've roamed and rambled and I followed
my footsteps
To the sparkling sands of her diamond •
deserts;
And all around me a voice was sounding:
This land was made for you and me.
When the sun came shining, and I was
strolling,
And the wheat fields waving and the
dust clouds rolling as the fog was lifting •
a voice was chanting:
•
This land was made for you and me.
As I went walking I saw a sign there
And on the sign it said "No Trespassing."
But on the other side it didn't say
nothing,
That side was made for you and me.
In the shadow of the steeple I saw my
people,
By the relief office I seen my people;
As they stood there hungry, I stood there
asking
Is this land made for you and me?
Nobody living can ever stop me,
As I go walking that freedom highway;
Nobody living can ever make me turn
back
This land was made for you and me.
http://www.playlist.com/searchbeta/res
ults/35402769
Woody Guthrie- “This is your land”
• "This song is Copyrighted in U.S., under Seal of
Copyright #154085, for a period of 28 years,
and anybody caught singin' it without our
permission, will be mighty good friends of
ourn, cause we don't give a dern. Publish it.
Write it. Sing it. Swing to it. Yodel it. We wrote
it, that's all we wanted to do."
—Written by Guthrie in the late 1930s on a
songbook distributed to listeners who wanted
the words to his recordings
Dorthea Lange- “Migrant Mother”
• Photographer that
documented the
suffering of migrant
workers
• Funded by federal
agencies, paid her and
other artists to work
SECTION
4
continued
The Arts in Depression America
Diverse Writers Depict American Life
• Federal Writers’ Project supports many who become
major writers
• Richard Wright, African-American author, writes
Native Son
• John Steinbeck writes The Grapes of Wrath about
Dust Bowl migrants
• Some writers examine difficulty of life in 1930s
• Others show dignity of ordinary people, values of
small-town life
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John Steinbeck- Grapes of Wrath
• Described Okie
experience moving west
The New Deal
President Franklin D.
Roosevelt’s New Deal
programs stimulate the
economy and the arts.
The New Deal leaves a
lasting, yet controversial
mark on American
government.
https://www.youtube.com/
watch?v=WvcWeNf9g6A
President Franklin Delano
Roosevelt sitting in the
Oval Office.
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SECTION
1
The only thing we have to fear is fear itself
The Hundred Days
** The first 100 days of FDR’s presidency.
• FDR launches Hundred Days; passes over 15 major
New Deal laws
• Emergency Banking Relief Act permits Treasury
Dept. to inspect banks
- decides which are insolvent, sound, or need loans
- public confidence in banks revived
An Important Fireside Chat
Image
• FDR gives fireside chats—radio talks explaining
New Deal measures
• First chat discusses need for public support of
government, banks
• https://www.youtube.com/watch?v=Ox3fgIYViOo Continued . . .
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First 100 Days
SECTION
1
continued
Americans Get a New Deal
Regulating Banking and Finance
• Glass-Steagall Act establishes Federal Deposit
**Insurance Corporation (FDIC)
- insures individual bank accounts, regulates banking
practices – originally protected up to $5000.00 of an
individual’s bank account.
• **Federal Securities Act—companies must give all
information on stocks
• ***Securities and Exchange Commission (SEC)
created to regulate stock market
• FDR gets law allowing production of some alcoholic
beverages
• 21st Amendment repeals prohibition by end of 1933
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SECTION
1
Helping the American People
Rural Assistance
• Agricultural Adjustment Act (AAA) raises
food prices, lowers supply
• ***Tennessee Valley Authority creates jobs
renovating, building dams, brought electricity to
rural areas
Providing Work Projects
• ***Civilian Conservation Corps—public works
jobs for young men- building roads, developing
parks, planting trees.
• Public Works Administration—money to states
to create jobs
• Civil Works Administration builds rural schools,
pays teachers
Chart
Continued . . .
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Tennessee Valley Authority- TVA, brought electricity
to rural areas, Recovery
SECTION
1
The New Deal Comes Under Attack
Opposition to the
New Deal
• Deficit spending—
spending more money
than government takes
in
- funds New Deal
• Liberals: New Deal
does not do enough to
help poor, fix economy
• Conservatives: New
Deal used to control
business, socialize
economy
Continued . . .
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The Supreme Court Reacts
• Supreme Court strikes
down NIRA, AAA as
unconstitutional
• FDR proposes “Courtpacking bill”; Congress,
press protest
• Starting in 1937, justices
retire; FDR appoints seven
new ones
SECTION
2
Roosevelt Extends Relief
Programs for Urban Workers
• **Works Progress Administration (WPA)—creates
jobs- construction of airports and libraries to sewing
of clothes for the needy.
• •WPA employs professional writers, artists,
performers
• National Youth Administration (NYA)—education,
jobs, counseling
• Gives aid to students in exchange for part-time work
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SECTION
2
continued
Improving Labor and Other Reforms
The Social Security Act
• 1935, Social Security Act
creates Social Security system;
provides:
- insurance for retirees 65 or
older
- unemployment compensation
- aid to disabled, families with
children
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•Results of the
New Deal
SECTION
5
Results of the New Deal
Expanding Government’s Role in the
Economy
• FDR expands power of federal government,
president
• Federal Deposit Insurance Corporation (FDIC)
regulates banking
• Securities and Exchange Commission (SEC)
regulates investment
• New Deal does not end Depression; does reduce
suffering, give hope
• Federal government goes deeply into debt to
create jobs, give aid
• Massive spending on equipment, supplies for
WW II end Depression
Continued . . .
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"We're in the Money,"
We're in the money, we're in the money;
We've got a lot of what it takes to get along!
We're in the money, that sky is sunny,
Old Man Depression you are through, you done us wrong.
We never see a headline about breadlines today.
And when we see the landlord we can look that guy right in the eye
We're in the money, come on, my honey,
Let's lend it, spend it, send it rolling along!
Oh, yes we're in the money, you bet we're in the money,
We've got a lot of what it takes to get along!
Let's go we're in the money,
Look up the skies are sunny,
Old Man Depression you are through, you done us wrong.
We never see a headline about breadlines today.
And when we see the landlord we can look that guy right in the eye
We're in the money, come on, my honey,
Let's lend it, spend it, send it rolling along!
Happy Days Are Here Again
FDR Campaign Song
So long sad times, go long bad times, Your cares and troubles are gone,
We are rid of you at last
There'll be no more from now on, from now
Howdy gay times, cloudy gray times,
on!
You are now a thing of the past
Happy days are here again,
The skies above are clear again
So, let us sing a song of cheer again,
Happy days are here again
All together, shout it now,
There's no one who can doubt it now,
So let's tell the world about it now,
Happy days are here again
Happy days are here again,
The skies above are clear again
So, let us sing a song of cheer again,
Happy times, happy nights, happy days are
here again
• President Hoover tried to help the economy after the
stock market crash by asking employers not to lay off
employees.
• Hawley-Smoot Tariff – taxing other countries a lot to
sell their goods in this country
• New Deal used Keynes theories which stressed
importance of deficit spending for “pump priming”
• In Florida, 90,000 or one-fourth of the population
were on relief and impacted by the depression.