Transcript 102_Wirbicki_powerpoint

The Great Depression in the U.S.
(1930’s)
Grade 10 American History, February 12, 2012
Kelsey Wirbicki, EDLT-102
4/3/2016 2:53:36 AM
Why Should We Study the Great
Depression?
Worst economic disaster of the 20th
century
Causes still unknown
Study contributions to the depression to
prevent future depressions
Relevant to current events (2008)
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Relating the Past & Present: Great Depression
(1930) vs. Great Recession (2008)
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Contributing Factors to the Great
Depression: The Roaring 20’s
• Economy based on complex
productions
• Automobiles, Clothing, Processed
foods, etc
• Favorable Business Conditions
• Job Growth
• Consumer Credit
• Many invested their money in stocks
• Collapse of purchasing power slowed
transition to new economy
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Herbert Hoover (1929-1933)
31st President during
onset of Great
Depression
 Republican
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Herbert Hoover
 Believed that economy would right itself without gvt.
intervention
 Feared self-reliance would be destroyed
 Tried to combat Great Depression with:
1. Volunteer Efforts
2. Public Works Projects (Hoover Dam)
3. High Tariffs/Increases in corporate taxes
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Herbert Hoover
 Firm believer in balanced budgets
 Unwilling to run a budget deficit to fund welfare programs
 Drought persisted in central U.S.
 Crop failure (Dust Bowl)
 Homeless began congregating to Hoovervilles (shanty towns)
 Final attempt of Hoover Administration was the Emergency Relief
and Construction Act
 Authorized funds for public works and creation of the Reconstruction
Finance Corporation (RFC)
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Popular Political Cartoons
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Debated Causes of the Depression
 Stock Market
Crash
 Thursday,
October 24,
1929
 Panic set in as
brokers rushed
to unload
stocks
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 October 29,
1929: “Black
Tuesday”
 Market stood
at only half its
precash worth
 Corporations
and Individuals
are wiped out
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Causes Continued
 Ill-conceived government
policies were at fault
 1920’s focused on reducing gvt.
interference with economy
 Lower taxes on wealthy and
reduce spending
 Rickety credit and financial
system
 Bank failures were common
 Traced to low farm prices and
risky loans
 Banks were virtually unregulated
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Causes Continued
 Harding & Coolidge administrations concerned
about a strong dollar rather than about stable
employment
 Possible Channels:
 Loss of deposits
 Decline in expenditures
 Customer relationships broken  harder to borrow
 Money supply contraction
Kelsey Wirbicki, EDLT-102
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How Serious Was the Great Depression?
Real output (GDP) fell 29% from 1929 to 1933.
• Real GDP: GDP measured at a fixed price level (i.e., inflation
adjusted).
• Unemployment increased to 25%
•Consumer prices fell 25%; wholesale prices 32%
7,000 banks failed
 Fell from 25,000 in 1929 to 15,000 by 1934
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Kelsey Wirbicki, EDLT-102
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Bank Panics
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Growing Up in the Great Depression
(Video)
 “The shared
memories of five
adults who survived
the Depression
weave a tapestry
that illustrates an
aspect of American
culture in the 1930s:
children maturing
quickly and
becoming self-reliant
at an early age.”
Kelsey Wirbicki, EDLT-102
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Recovery and FDR
 Franklin Roosevelt
 Democrat
 Elected president in 1933
 Beat Hoover for re-election
 Created the New Deal with
the help of his trusted advisors
(the Brain Trust)
 Shifted from a non-intervention
policy to a gvt. of regulation &
relief
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Recovery and The New Deal
 Series of economic programs implemented in the United
States between 1933 and 1936
 Passed by U.S. Congress
 Three Goals of The New Deal (The Three R’s):
1. Relief (for the unemployed and poor)
2. Economic Recovery
3. Financial Reform
 Restored confidence in banking system (FDIC)
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The New Deal (ABC Programs)
 FDR expanded Executive Branch using implied
power in first 100 days of office
 Created numerous agencies
 Aided Agriculture, Business, and Unemployed (Known as
Alphabet Soup)
 e.g. AAA, NRA, WPA, PWA, CCC, etc.
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The New Deal Continued
Pros
 Maintained an average of
17% level the unemployment
throughout the 1930s
 Political and economic life
became more competitive
 Workers, farmers,
consumers, etc. able to
press their demands upon
the government in ways
that in the past had been
available only to the
corporate world
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Cons
 Did not resolve Depression
 Failed to lower the
unemployment rate
below 14%
 Many argued that ABC
programs were
unconstitutional
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Recovery and WWII
 Recession of 1937 set back recovery
 Additional measures placed to cope with Depression
 Fall of 1937: Roosevelt called for action to isolate the
aggressive powers
 Congress enacted several neutrality measures between
1935-1939
 Prevented nation from trading or giving financial credit to
nations engaged in armed conflict
Kelsey Wirbicki, EDLT-102
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Recovery and WWII
 America soon entered WWII
 Unemployment finally fell below 10%
 Massive war spending doubled economic growth rates
 Either masking the effects of the Depression or essentially ending
the Depression
 U.S. Soldiers were paid and some sent money home
 Women worked in factories to build airplane's, ships, tanks,
etc.
 WWII created much needed jobs in factories involving the
production of war supplies
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For Further Research About
the Great Depression
Novels
The Grapes of Wrath
Author: John
Steinbeck
Plot Overview: Forced
from their home during
the Great Depression, the
Joad family is lured to
California to find work;
instead they find
disillusionment,
exploitation, and hunger.
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Further Information About the Great
Depression
Songs of the Great Depression:
1.Brother, Can You Spare a Dime?
(1931)-Jay Gorney
2.Life is Just a Bowl of Cherries
(1931)-Ray Henderson
3.Heading For Better Times (1931)Ted Lewis
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“Walk the Plank”
 A game of trivia to help test your knowledge about the
Great Depression
 Walk the Plank
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Review
1. What were the ABC Programs designed to do?
2. Did the New Deal Completely restore the economy?
Why or Why not?
3. What novel was inspired by the Great Depression?
4. Who was the Democratic candidate that beat Herbert
Hoover in 1933?
Kelsey Wirbicki, EDLT-102
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References
Goldman, D. (n.d.). Great Depression vs. 'Great Recession' . CNN Money. Retrieved February 9,
2012, from http://money.cnn.com/news/storysupplement/economy/recession_depression/
Herbert Hoover National Historic Site (2011, November 17). Herbert Hoover. NPS. Retrieved
February 9, 2012, from http://www.nps.gov/heho/historyculture/herbert-hoover.htm
Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Great Depression and a
New Deal. In Of the People. (2nd ed.). (pp. 673-699). New York, New York: Oxford University
Press Inc..
Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Second World War. In Of
the People. (2nd ed.). (pp. 701-730). New York, New York: Oxford University Press Inc..
Rosenberg, J. (n.d.). Great Depression Pictures. About: 20th Century History. Retrieved February 10,
2012, from http://history1900s.about.com/od/photographs/tp/greatdepressionpictures.htm
Steinbeck, J. (1992). The Grapes of Wrath. New York, New York: Penguin Classics.
The Phoenix Learning Group, Inc. (2008). Growing Up In The Great Depression . Youtube. Retrieved
February 11, 2012, from http://www.youtube.com/watch?v=hbEVeKIghCk
Walk the Plank: The Great Depression. (n.d.). School History. Retrieved February 12, 2012, from
http://www.schoolhistory.co.uk/games/walk/walk_depression.html
Kelsey Wirbicki, EDLT-102
4/3/2016 2:53:38 AM