The Grea The Great t Depr Depress ession ion Economic - - PowerPoint PPT Presentation

The Grea The Great t Depr Depress ession ion

Economic Problems Leading to the Depression

• 1. Farmers and manufacturers
• verproduced products(too much =

price low, so make less money)

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• 2. Use of Credit (borrowed money) –

People could NOT repay their credit, loans or other bills…

• 3. Stock Market Crash

In the late 1920s, many people used credit in the stock market…trying to make a quick profit…and this made the stock market go higher and higher

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But on October 24, 1929, (“Black Thursday”), thousands of investors wanted to sell their stock, NOT buy them…

On October 29, 1929 (“Black Tuesday”), prices on the stock market crashed and nearly everyone lost their money. Businesses failed, and people lost their jobs.

After the crash…

• 4. Failure of Banks

Banks had also borrowed money and risked it on the stock market Many banks collapsed or closed, and the federal banking system failed.

• 5. High tariffs or taxes reduced

international trade (trade with

• ther countries)

and so other countries raised tariffs

• n U.S. goods

in retaliation… …and then the lack of sales to

• ther countries

led to more unemployment

Brother, Can You Spare A Dime?

1They used to tell me I was building a

dream

2 And so I followed the mob 3 When there was earth to plow or

guns to bear

4 I was always there, right on the

job

5 They used to tell me I was building a

dream

6 With peace and glory ahead 7 Why should I be standing in line 8 Just waiting for bread? 9 Once I built a railroad, made it run 10 Made it race against time 11 Once I built a railroad, now it's

done

12 Brother can you spare a dime? 13 Once I built a tower to the sun 14 Brick and rivet and lime 15 Once I built a tower, now it's

done

16 Brother can you spare a dime? 17 Once in khaki suits, gee we looked

swell

18 Full of that yankee doodle dum 19 Half a million boots went

sloggin' through hell

20 And I was the kid with a drum 21 Say, Don't you remember they

called me Al?

22 It was Al all the time 23 Say, don't you remember, I'm

your pal

24 Buddy can you spare a dime?

Hooverville – makeshift town for unemployed workers who were looking for jobs in the city

The Great Depression had a widespread and severe impact on American life.

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• The Great

Depression was a time in the United States (and world) when there was little money and economic growth.

• depression = long period of

little economic growth, high unemployment…Business was bad!

Causes of the Great Depression (Review)

“President Hoover and the Great Depression” clip

• 1. Stock Speculation

and the Stock Market Crash 2.Overuse of Credit 3.Federal banking system collapse

• 4. The amount of

money in circulation was reduced suddenly (after a decade of inflation)

• 5. High tariffs or taxes

reduced international trade or “trade with

• ther countries” …

so other countries raised tariffs on U.S. goods in retaliation…and then the lack of sales to

• ther countries led to

more unemployment. 6.Farmers and manufacturers

• verproduced

products.

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Impact

• n Americans

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A large number of banks… and businesses failed

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One-fourth to one third

• f

workers were without jobs…

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Some people without jobs began to sell apples on the street to make money.

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Large numbers of people were hungry……and homeless.

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Long lines began to appear to get free soup.

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Farmers’ incomes fell to low levels.

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The The Dust Bowl Dust Bowl

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At the same time, the Dust Bowl was having a widespread and severe impact

• n

American life in the Plains states.

migrant worker and children

PBS “Surviving the Dust Bowl” You Tube “Surviving the Dust Bowl”

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The “Dust Bowl” – 1930s

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Causes of the Dust Bowl

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Early in the 1930s, a drought set in on the Great Plains. The winds blew off and on for 10 years…1932 – 1939.

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With no rain, the already over-farmed soil in the fields dried out. The soil turned to dust and was blown away.

“Black Blizzard”

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Roads, houses, and farms were buried in sand or dust. The Great Plains became a Dust Bowl.

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Effects of the Dust Bowl

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The Dust Bowl forced thousands of farm families to abandon their homes …

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…looking for a new home and work.

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…They packed their belongings into cars and trucks…

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...and went west to California looking for work.

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…They were called migrant workers.

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Migrant workers are people moving from one region to another looking for work.

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…They hoped to find jobs in

• rchards and

farms on the West Coast.

Do you remember...?

John Steinbeck wrote novels about the struggles of migrant workers during the Dust Bowl period.

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FDR & FDR & The The New Deal New Deal

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Franklin Delano Roosevelt won OVERWHELMING VICTORY

• ver Herbert Hoover in 1932
• 2-term governor of New York.
• distant cousin of Teddy

Roosevelt.

• The Democrats also won huge

victories in the House and Senate.

• Greatest Democratic victory

in 80 years.

• President for 13 years

FDR easily won the 1932 election

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“New Deal Coalition”

(groups supporting FDR)

Democrats

• African Americans
• Southern whites
• Farmers
• Factory workers
• City dwellers
• Immigrants

The New Deal coalition included liberals and conservatives (people with very different political views).

Republicans

• Wealthy white Northerners
• Constitutional conservatives

(Honors)

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FDR LAUNCHES NEW DEAL

• FDR promised a “new

deal” for the American people.

• He took office with a

flurry of activity known as “The Hundred Days.”

• The 100 Days lasted from

March to June 1933.

“FDR and the First New Deal” clip (7 min.)

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FDR’s New Deal used government programs to help the United States recover from the Depression.

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RECOVERY

(actually getting

• ver the sickness)

What were the Three R’s?

RELIEF

(doesn’t cure the sickness, but makes you feel better for now)

• Alphabet Soup notes

REFORM

(preventing you from getting sick the next time)

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• Relief

giving help immediately to jobless workers that were in need

CCC – Civilian Conservation Corps

• run by army for young men
• environmental conservation

(planting trees, building parks)

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WPA – Works Progress Administration

(“Do something useful and we’ll pay you.”)

• built roads,

hospitals, schools, airports, and parks

• employed

writers, artists, and musicians

• Relief

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PWA – Public Works Administration

• government

jobs

• built ships,

Grand Coulee Dam, and schools

• Relief

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TVA – Tennessee Valley Authority

• built

dams, power plants, schools, and health centers

• Relief

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Recovery- getting back on our feet.

improving the economy

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Recovery FERA Federal Emergency Relief Administration

“We’ll pay you anyways.”

• gave money

to state and local governments to help people that were out of work

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Recovery AAA – Agriculture Adjustment Act

• paid farmers not to

grow certain crops

• destroyed excess

crops and livestock (This seemed wrong to some people…Why do you think?)

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Recovery REA – Rural Electrification Administration

• extended rural

electrical lines

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• Reform

trying to improve society by fixing problems for banks, businesses, farmers, and workers

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Social Security

• The U.S.

government takes money from workers’ paychecks and “saves” it for them (for now).

• made payments

to retired people, children, and the disabled

• paid pensions to

unemployed

• excluded farmers

and self- employed

• Reform

The first person to collect Social Security was Ida May Fuller of Vermont. She paid about $25 over 3 years. By the time she died, she had received almost $23,000 in benefits from the government.

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Fair Labor Standards Act

• banned child

labor (for good)

• set 44 hours

as maximum work-week

• set minimum

wage

• Reform

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Wagner Act – National Labor Relations Act

• allowed

workers to join unions and participate in collective bargaining

(making deals with bosses)

• Reform

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NIRA – National Industrial Recovery Act

• wrote the

rules for industries

• controlled

production, prices, and wages

• Reform

FDIC-Federal Deposit Insurance Corporation

• Restoring Faith in

Banks

– Federal Deposit Insurance Corporation (FDIC): Insured (s) money in banks up to $10,000 (today $250,000) REFORM

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Explain or describe this cartoon

• Complete Alphabet Soup

Vocabulary activities

Most economists believe that the New Deal ended up being better at “relief” and “reform” than at “recovery.”

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Fireside Chats

President Roosevelt often spoke on the radio from a chair near the fireplace in the White House to explain his goals to the American people.

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…the only thing we have to fear is fear itself.

Franklin D. Roosevelt – March 04, 1933

Fireside Chat Activity ZVD New Deal

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More and more people started to criticize FDR…

Some liberals… thought the New Deal did not go far enough. Conservatives (in both major parties)… thought the New Deal went too far.

“First New Deal Under Fire” clip (2 minutes)

(New) Deal or No Deal?

Senator Robert Taft (R - Ohio)

http://bioguide. congress.gov/ scripts/biodispl ay.pl?index=T0 00009

Senator Carter Glass (D - Virginia)

http://hdl.loc.g

• v/loc.pnp/npcc

.01044

VP/Rep. John Nance “Cactus Jack” Garner (D -Texas)

Library of Congress

Wendell Willkie (R - Indiana)

http://en.wikipe dia.org/wiki/File :Willikie-pin.jpg

Father Charles Coughlin (Michigan)

http://www.ssa. gov/history/coug h.html

Senator Huey “Kingfish” Long (Louisiana)

http://bioguide.co ngress.gov/ bioguide/photo/L /L000418.jpg

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ROOSEVELT (RED) VS. LANDON (BLUE) 1936 ELECTION

but FDR was elected 4 times anyways! (He was president until he died in 1945.)

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FDR REGAINS CONTROL OVER SUPREME COURT

• FDR got to choose many

new Supreme Court justices who supported his programs.

• He wanted to choose even

more…and annoyed many Americans by trying to “pack” the Court with extra supporters.

“FDR and the Court-Packing Plan” clip (1 min.)