Transcript The Depression

The Depression
DON”T WRITE
Great Depression in the United States, worst and
longest economic collapse in the history of the modern
industrial world, lasting from the end of 1929 until the
early 1940s. Beginning in the United States, the
depression spread to most of the world’s industrial
countries, which in the 20th century had become
economically dependent on one another.
Causes
Big Business and Fading Industries
Little government regulation
By the end of the 1920s about 200
corporations controlled half the
nation’s corporate wealth
Little diversity in economy
By 1929 the top 10% of the nation's
population received 40% of the
nation's disposable income
Many in the US could not afford automobiles
Decline in demand for American goods.
(Tariffs discouraged trade)
Lay off s caused further decline in consumer
spending and production
Crisis in Agriculture
WWI boosted agricultural production
in wheat and corn. After WWI
prices for wheat and corn
dropped by 50%
American farmers faced stiff
competition from European
markets
Many farmers had taken out loans to
buy new farm equipment.
Many defaulted on the loans.
Hoover's Response
A. Rejected direct relief (the dole) as undermining to character and rugged
individualism
B. Urged Americans to turn to community and church resources (Salvation
Army, Community Chest, Red Cross) to meet needs of the poor
C. Gradually used federal agencies to address issues
1. Met with business and labor leaders to reduce layoffs and strikes
2. Financed federal work projects, such as massive dams in the West
(Boulder, Hoover, and Grand Coulee)
3. Set up RFC (Reconstruction Finance Corporation) in 1932 to make
loans to stimulate economy in a "trickle-down" manner
4. Raised tariffs 33% by signing the Hawley-Smoot Tariff in attempt to
keep foreign goods off the U.S. market.
Refugees
Refugees
Hooverville
POP QUIZ – HOOVER AND ZINN
1. Departing from the American system would result in what?
2. What connection is there between the Revolution in Russian in 1917
and what was happening in America during the early 30s?
Or is there a connection? Why or Why not?
VOCAB
Fallow
Incipient
The Bonus Army
FDR became President at the height of the depression, 1933
came in when 1/4 of the population were out of work,
industrial production had fallen by 50% and 2 million were
homeless.
The First New Deal 1933
1st 100 Days
1.Declared a "bank holiday" states were ordered to close banks. Banks
were then analyzed. If they were sound then they could reopen. Special
legislation gave him control over all banks in the U.S. ( be careful)
19,000 banks were closed, some 4000 never to reopen.
2. FDIC Federal Deposit Insurance Corporation
3. Federal Emergency Relief Administration
a. 250,000 young men in rural local projects
b. Agricultural Adjustment force higher prices. Gave subsidies to
farmers
to NOT farm
READ HAND OUT ON MORE ALPHEBET SOUP PRGRAMS
The Great Depression Recovery Simulation
You are members of the U.S. government. (prior to 1933)
Assign your group members to the positions below. Write their names next to the
positions. Discuss what each could do to alleviate the crisis of the depression.
You will need to record your ideas and present them to the class. We will then
debate on the effectiveness of each.
PresidentSec. of Treasury- economic advisor to the president
Sec. of State- supervise foreign affairs
Sec. of Agriculture- concerned about farming and food quality
Sec. of Commerce- supervisor of business and industry
Sec of Labor- occupational safety, wage and hour standards. to improve
working conditions
Presidential Advisor- gives general advice (Pretty vague, I know.)
Make sure that you address the following problems
Bank failures
Unemployment
Farming crisis (to farm or not to farm)
Foreign debt
Foreign trade
Housing
Insurance
Stimulate consumption of goods
Critics of the New Deal
-limited business
-too many regulations
-destroying individual freedoms
-leading the nation towards dictatorship
1935- Social Security
-before you took care of your own
-monthly pension for people over 65
-based on the number of years worked
-provided care for children and the disabled
-provided unemployment insurance
Flaws of S.S.
-pay was low
-did not cover self employed
-domestic servants 60% of African American women were not
covered
-farm workers
1. Why was FDR's administration labeled the "New
Deal" do you think? What were its three goals?
Help the people hurt by the Depression
Bring the U.S. out of the Depression
Make changes for the better
2. What was the principal feature of New Deal farm
policy?
3. What were the goals of the TVA?
How did the New Deal try to reform banking?
4. Identify the three areas covered by the original Social
Security Act
The Rise of Dictatorship
Communism in Russia
-Russia becomes the Union of Soviet
Socialist Republics
-Lenin suppresses all opposition
-Campaign to wipe out private property
-Lenin dies 1924. Joseph Stalin becomes
leader
-Under Stalin the USSR becomes a major
economic and military power
-Collective Farming- 5 to 10 million die of
starvation
-The Great Purge: Campaign to get rid of
political rivals. Estimates 20 million killed
by execution, starvation and disease
Fascism in Italy
-Italians faced hard times, poverty, strikes and riots
-Italians wanted a strong leader
-Benito Mussolini was the founder/leader of the Italian
Fascist Party 1922
-Promise to crush communism and end economic hard
times
-Mussolini oppressed all media and set up a secret
police force
Nazism in Germany
-Extreme economic conditions in Germany made it
easy for a well organized and structured party to
gain support
-1933 6 million unemployed
-1933 Hitler is appointed chancellor of Germany
-Once in power Hitler oppressed all political rivals,
banned non-Nazi media and labor unions.
-Hitler begins to secretly build up the German
military
-1935 Hitler begins a campaign against the Jews.
POP Quiz- Lewisohn
The Revolt Against Civilization
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Pagan
Dervish
Apotheosis
The Gauls
Vulgar
Demagogues