The Grea The Great t Depr Depress ession ion
Economic Problems Leading to the Depression
1. Farmers and manufacturers overproduced products(too much = price low, so make less money)
2. Use of Credit (borrowed money) – People could NOT repay their credit, loans or other bills… USII.6d
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
But on October 24, 1929, (“Black Thursday”), thousands of investors wanted to sell their stock, NOT buy them… U.S. II 6d
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.
4. Failure of Banks After the crash… 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 other countries)
and so other countries raised tariffs on U.S. goods in retaliation… …and then the lack of sales to other countries led to more unemployment
Brother, Can You Spare A Dime? 1 They used to tell me I was building a 13 Once I built a tower to the sun dream 14 Brick and rivet and lime 2 And so I followed the mob 15 Once I built a tower, now it's 3 When there was earth to plow or done guns to bear 16 Brother can you spare a dime? 4 I was always there, right on the job 17 Once in khaki suits, gee we looked swell 5 They used to tell me I was building a 18 Full of that yankee doodle dum dream 19 Half a million boots went 6 With peace and glory ahead sloggin' through hell 7 Why should I be standing in line 20 And I was the kid with a drum 8 Just waiting for bread? 21 Say, Don't you remember they 9 Once I built a railroad, made it run called me Al? 10 Made it race against time 22 It was Al all the time 11 Once I built a railroad, now it's 23 Say, don't you remember, I'm done your pal 12 Brother can you spare a dime? 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. USII.6d
• 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! USII.6d
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 other countries” … so other countries raised tariffs on U.S. goods in retaliation…and then the lack of sales to other countries led to more unemployment. 6.Farmers and manufacturers overproduced products.
Impact on Americans USII.6d
A large number of banks… and businesses failed USII.6d
One-fourth to one third of workers were without jobs… USII.6d
Some people without jobs began to sell apples on the street to make money. USII.6d
Large numbers of people were hungry……and homeless. USII.6d
Long lines began to appear to get free soup. USII.6d
Farmers’ incomes fell to low levels. USII.6d
The The Dust Bowl Dust Bowl USII.6d
PBS “Surviving the Dust Bowl” You Tube “Surviving the Dust Bowl” At the same time, the Dust Bowl was having a widespread and severe impact on American life in the Plains states. migrant worker and children USII.6d
The “Dust Bowl” – 1930s USII.6d
Causes of the Dust Bowl USII.6d
Early in the 1930s, a drought set in on the Great Plains. The winds blew off and on for 10 years…1932 – 1939. USII.6d
With no rain, the already over-farmed soil in the fields dried out. The soil turned to dust and was blown away. USII.6d “Black Blizzard”
Roads, houses, and farms were buried in sand or dust. The Great Plains became a Dust Bowl. USII.6d
Effects of the Dust Bowl USII.6d
The Dust Bowl forced thousands of farm families to abandon their homes … USII.6d
…looking for a new home and work. USII.6d
…They packed their belongings into cars and trucks… USII.6d
...and went west to California looking for work. USII.6d
…They were called migrant workers. USII.6d
Migrant workers are people moving from one region to another looking for work. USII.6d
…They hoped to find jobs in orchards and farms on the West Coast. Do you remember...? John Steinbeck wrote novels about the struggles of migrant workers during the Dust Bowl period. USII.6d
USII.5d FDR & FDR & The The New Deal New Deal U.S. II 6d
Franklin Delano Roosevelt won OVERWHELMING VICTORY over 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 U.S. II 6d FDR easily won the 1932 election
U.S. II 6d
(Honors) “New Deal Coalition” (groups supporting FDR) Democrats Republicans • African Americans • • Wealthy white Northerners Southern whites • Constitutional conservatives • Farmers • Factory workers • City dwellers • Immigrants The New Deal coalition included liberals and conservatives (people with very different political views). U.S. II 6d
FDR LAUNCHES NEW DEAL “FDR and the First New Deal” clip (7 min.) • 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. U.S. II 6d
FDR’s New Deal used government programs to help the United States recover from the Depression. U.S. II 6d
What were the Three R’s ? RELIEF (doesn’t cure the sickness, but makes you feel better for now) RECOVERY (actually getting over the sickness) REFORM (preventing you from • Alphabet Soup notes getting sick U.S. II 6d the next time)
CCC – Civilian • Conservation Relief Corps • run by army for young men • environmental conservation (planting trees, building parks) giving help immediately to jobless workers that were in need U.S. II 6d
WPA – Works Progress Administration (“Do something useful and we’ll pay you.”) • Relief • built roads, hospitals, schools, airports, and parks • employed writers, artists, and musicians U.S. II 6d
PWA – Public Works Administration • Relief • government jobs • built ships, Grand Coulee Dam, and schools U.S. II 6d
TVA – Tennessee Valley Authority • Relief • built dams, power plants, schools, and health centers U.S. II 6d
Recovery- getting back on our feet. improving the economy U.S. II 6d
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 U.S. II 6d
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?) U.S. II 6d
Recovery REA – Rural Electrification Administration • extended rural electrical lines U.S. II 6d
• Reform trying to improve society by fixing problems for banks, businesses, farmers, and workers U.S. II 6d
Social Security • Reform • 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 The first person to collect Social Security • ex cluded farmers was Ida May Fuller of Vermont. She paid about $25 over 3 years. By the time she and self- died, she had received almost $23,000 in employed U.S. II 6d benefits from the government.
Fair Labor Standards Act • Reform • banned child labor (for good) • set 44 hours as maximum work-week • set minimum wage U.S. II 6d
Wagner Act – National Labor Relations Act • Reform • allowed workers to join unions and participate in collective bargaining (making deals with bosses) U.S. II 6d
NIRA – National Industrial Recovery Act • Reform • wrote the rules for industries • controlled production, prices, and wages U.S. II 6d
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 U.S. II 6d
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