Great Depression - PowerPoint by liwenting

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									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.
As the prosperity of the 1920s ends,
severe economic problems grip the
             nation.
   Problems began threatening economic prosperity by
    the end of the 1920s
   Farm debt - many farmers were forced to sell in the
    1920's
   Consumer debt - many people were buying goods on
    credit
   More goods then buyers - prices rose faster than wages
   Declining Trade - 1920's U.S. raised tariffs other
    countries raised tariffs to retaliate
   Important industries struggled
   Income disparity - Consumers & farmers went
    steadily deeper into debt
   Key industries like railroads, textiles, steel barely made
    profit
   Replaced by other forms of transportations
   Mining, lumbering expanded during were no longer in
    high demand
   Coal especially hard-hit due to availability of new
    energy sources
    - Hydroelectricity, fuel oil, & natural gas
   Boom industries - automobiles, construction,
    consumer goods weakened
   Housing starts declined
    - Affected many related industries
   International demand for U.S. grain declined after war
    - prices dropped by 40% or more
   Farmers boosted production to sell more
    - Caused prices to drop further
   Farm income declined & farmers defaulted on loans
   Rural banks failed
   Congress attempted to pass the McNary- Haugen bill
    to help farmers
    - Price-supports - government bought surplus crops at
    guarantees prices
    - President Coolidge vetoed price-support bill
   1920s - rich got richer & poor got poorer
   Prices rose faster that wages
   70% of families earned less than minimum for decent
    standard of living
    - $2500 annually
   Most couldn’t afford flood of products factories
    produce
   Many people had been purchasing goods on credit
    (buy now, pay later)
   Businesses gave easy credit & consumers piled up large
    debts
   Consumers had trouble paying off debt & cut back on
    spending
   Democrat Alfred E.
    Smith - four times
    governor of New York
   Republican Herbert
    Hoover has served as
    secretary of commerce
    under Warren Harding
    & Calvin Coolidge
   U.S. had experienced
    prosperity under
    Republicans in 1920s
   Hoover won an
    overwhelming victory
   Late 1920s – Some economist warning of
    weaknesses in the economy
    - Most Americans ignored them
   People began investing in stock market
    - Looked like an easy way to make money
   Dow Jones Industrial Average was used as
    barometer of the market’s health
    - Measure based on the stock of 30
    representative large firms trading on the New
    York Stock exchange tracks state of stock
    market
   1920s - stock prices rose
    steadily “Bull Market”
   People rushed to buy
    stocks & bonds to make
    a quick profit
    - Many engaged in
    speculation - buy on
    chance of a quick profit
    - Began Buying on
    margin - pay small
    percent of price, borrow
    rest
   September 1929 stock
    prices peaked & then
    fell
    Many investors lost
    confidence & began
    selling
   October 24, 1929 -
    Market took plunge &
    many panicked
    investors unloaded
    their shares
   October 29, 1929 -
    Stock market crashed
    (Black Tuesday)
    - Shareholders sold
    frantically
    - Millions of shares had
    no buyers
    - People who bought on
    credit were left with
    huge debts
    - Others lose most of
    their savings
   Great Depression - economy plummeted &
    unemployment skyrocketed
    - lasted from 1929–1940
   After crash, people panicked & withdraw money from
    banks
   Banks that invested in stocks failed& people lost their
    money
   1929 to1932 - gross national product was cut nearly in
    half
    - 90,000 businesses went bankrupt
   1933 - 25% of workers were unemployed
    Those with jobs received cuts in hours & pay
   Great Depression limited U.S. ability to import
    European goods
   Hawley-Smoot Tariff Act set highest
    protective tariff ever in U.S.
   Other countries couldn’t earn American
    currency to buy U.S. goods
    - Many countries retaliated by raising their
    own tariffs
   International trade dropped & unemployment
    soared around world
   Factors leading to Great Depression:
   Declining Trade - Tariffs & war debts cut
    down the foreign markets for American goods
   Farm problems - Many farmers were forced to
    sell
   Easy credit – Borrowed money to invest in
    market
   Income disparity
   Federal government kept interest rates low &
    encouraged borrowing
   During the Great Depression
Americans do what they have to do to
             survive.
   People lost jobs &
    were evicted from
    homes
   Had to live in parks or
    sewer pipes
   Shantytowns -
    settlements consisting
    of shacks, arose in
    cities
   People dug through
    garbage & begged
    - Soup kitchens offered
    free or low-cost food
    - Bread lines - people
    lined up for food from
    charities & public
    agencies
   African Americans &
    Latinos had higher
    unemployment & lower
    pay
   Minorities were also
    targets of violence
    (Lynching or
    deportation)
   Most farmers could
    grow food for their
    families
   About 400,000 farms
    were lost through
    foreclosure
    - Many became tenant
    farmers
   Farmers in Great
    Plains exhausted land
    through
    overproduction
   1930s - drought &
    windstorms scattered
    for hundreds of miles
   Dust Bowl - area from
    North Dakota to
    Texas that was
    hardest hit
   Many farm families
    migrated to Pacific
    Coast states (Route
    66)
    - California towns
    became overcrowded
    - Many people who
    moved west were
    from Oklahoma
    (Okies)
   Family was source of
    strength for most
    Americans
   Believed in traditional
    values and emphasized
    the importance of
    family unity
   Many families
    entertained themselves
    with board games &
    radio
    - Monopoly was
    invented in 1933
   Some families broke
    apart under strain of
    making ends meet
   Many men used to
    working & supporting
    families had difficulty
    coping
       Couldn’t find jobs
       Manny stopped trying
   Some men even
    abandoned their
    families
    - About 300,000 hoboes
    wandered country on
    railroad box cars
   No federal system of
    direct relief - cash or
    food from government
   Women worked hard
    to help their families
    survive the adversity
    Homemakers
    budgeted carefully,
    canned food, & sewed
    clothes
   Women worked
    outside home & were
    resented by
    unemployed men
   Early 1930s – Some
    cities refused to hire
    married
    schoolteachers
   Many women
    suffered in silence &
    were ashamed to
    stand in bread lines
   Poor diets & health care
    led to serious health
    problems in children
   Lack of tax revenue led
    to shortened school year
    & school closings
   Teenagers left home &
    rode trains in search of
    work & adventure
    - Many died or were
    beaten
   1928 to 1932 – suicide rate rose over 30%
   Admissions to state mental hospitals tripled
   People gave up health care, college
   Put off marriage & children
   Stigma of poverty didn’t disappear & financial
    security became goal
   Many people showed great kindness to
    strangers
    - Gave food, clothing & a place to stay
   People developed habit of saving and
    thriftiness
   Hoover called meeting of business, banking,
    labor leaders to solve problems
    - Asked them to work to together to solve the
    problems
   Created organization to help private charities
    raise money for poor
   Hoover’s authorized
    the construction of the
    Boulder Dam on
    Colorado River w
    - later renamed
    Hoover Dam
    - Provided electricity,
    flood control, water to
    states on river basin
   People began blaming Hoover & Republicans
    for the economic problems
   Democrats won House of Representatives
   Republican Senate majority down to 1 vote
   People Grew frustrated with the Depression
   Farmers tried to create
    food shortages to raise
    prices
       Burned fields rather
        than sell crops at a
        loss
       Some declared a farm
        holiday
   People began calling
    shantytowns
    “Hoovervilles”
   Hoover softened his
    stance on no government
    intervention in the
    economy
   Hoover negotiates
    agreements among private
    entities
   Backs Federal Farm Board
    (organization of farm
    cooperatives)
    - buy crops, keep off
    market until prices rise
   Got large banks to establish National Credit
    Corporation
     - Loaned money to smaller banks to prevent
    bankruptcy
   Late 1931 - Hoover persuaded Congress to
    pass measures reform banking, provide
    mortgage relief, & funnel federal money into
    business investment
    - Federal Home Loan Bank Act lowered
    mortgage rates
   Reconstruction Finance Corporation –
    Authorized emergency funds for businesses
    - Hoover believed that the money would tickle
    down to average citizens through job growth &
    higher wages
    - Critics said people couldn’t wait for the
    money to trickle down
   Hoover’s measures didn’t improve economy
    before presidential election
   1932 – Incident with
    World War I veterans
    further damaged
    Hoover’s image &
    public morale
   1924 – Congress agreed
    to pay a bonus to WWI
    vets who had not been
    adequately
    compensated for
    wartime service
    - Bonus was to be paid
    in 1945 in the form of
    cash & a life insurance
    policy
   Bonus Army –
    WWI veterans
    went to D.C. in
    1932 to support
    Patman Bill:
    - called for
    immediate
    payment of bonus
    to WWI vets
       ($500 per
    soldier)
   Hoover opposed bill
   Believed they were
    communists
   He respected their right to
    protest (Provided food &
    supplies for shantytown)
   June 17, 1932 - Senate
    voted down Patman Bill
   Most veterans left
    Washington
    About 2,000 stayed to
    speak to Hoover
   Hoover feared
    violence & called on
    U.S. Army to disband
    Bonus Army
    - Led by General
    Douglass Macarthur
    & Major Dwight
    Eisenhower
   Infantry tear gassed
    over 1,000 people,
    including children
    Many people were
    injured (11 month old
    baby died)
   Public was stunned &
    outraged by
    government’s actions
   Democrats nominated
    NY governor
    Franklin Delano
    Roosevelt
    - reform-minded;
    projected friendliness
    & confidence
   Democrats
    overwhelmingly won
    presidency, Senate, &
    House
   Roosevelt had to wait 4
    months to take over
   20th Amendment wasn’t
    rarified until 1933 (Move
    inauguration to January)
    FDR worked with advisors
    known as “Brain Trust,” to
    formulate policies to
    alleviate problems
   New Deal – FDR’s program
    to alleviate the problems of
    the Great Depression
    focused on 3 Rs
     Relief for needy
     Economic recovery
     Financial reform
   March 9 to June 16,
    1933 - FDR took office
    & launched Hundred
    Days
   Congress passed over
    15 major New Deal
    laws that expanded
    the federal
    government’s role in
    the nation’s economy
   March 5, 1933 – one day after taking office FDR
    declared a bank holiday & closed all banks to
    prevent further withdrawals
   Emergency Banking Relief Act - Permitted
    Treasury Dept. to inspect banks
     Sound banks were allowed to reopen
     Banks that needed help received loans
     Insolvent ones remained closed (unable to pay bills)
   Bank Holiday revived public confidence in
    banks
   - Believed that the banks remained open were
    in good shape
   FDR gave fireside
    chats - radio talks
    explaining New Deal
    measures
   March 12, 1933 – FDR
    gave 1st fireside chat
    the day before the
    banks reopened after
    holiday
   - Discussed need for
    public support of
    government, banks
   Congress took another
    step to reorganize the
    banking system
   Glass-Steagall Act -
    Established Federal
    Deposit Insurance
    Corporation (FDIC)
       insured individual bank
        accounts up to $5000
       Regulates banking
        practices ( forced them to
        act cautiously with
        money)
   Federal Securities Act – Required companies
    must give all information on stocks
   Securities and Exchange Commission (SEC)
    created to regulate stock market
   FDR got law allowing production of some
    alcoholic beverages
   21st Amendment repealed prohibition by end
    of 1933
    Roosevelt administration
    implemented programs
    aimed at helping farmers
    & other workers to
    stimulate economy
   Agricultural Adjustment
    Act (AAA) raised food
    prices by lowering supply
    - Government paid
    farmers not to plant crops
   Tennessee Valley
    Authority - Created
    jobs renovating &
    building dams
    - Also provided flood
    control &
    hydroelectric power
    to region
   Civilian
    Conservation Corps
    (CCC) - public works
    jobs for young men 18
    to 25
    - Built road, planted
    trees & helped in soils
    erosion & flood
    control projects
    - Men sent $25 out of
    $30 home to family
    each month
   National Industrial
    Recovery Act -
    established codes of
    fair practice for
    industries
   Created National
    Recovery
    Administration
    (NRA)
       NRA sets standards,
        prices, limits
        production
   1933 - Public Works
    Administration
    (PWA) was
    established as part of
    the NIRA
    – It provided money
    to states to create jobs
    chiefly in the
    construction of
    schools & other
    community buildings
   Home Owners Loan
    Corporation gave
    loans to prevent
    foreclosures
   Federal Housing
    Administration gives
    loans for mortgages &
    repairs (FHA)
   Federal Emergency
    Relief
    Administration -
    direct relief to needy
   Deficit spending - spending more money than
    government takes in
    - funded New Deal
    Opposition rose when the New Deal didn’t
    stop the Depression
   Liberals didn’t think New Deal did enough to
    help poor, & fix economy
   Conservatives believed Roosevelt used the
    New Deal to control business & socialize
    economy
   Supreme Court struck down NIRA & AAA as
    unconstitutional
   FDR proposed “Court-packing bill”
       Change the Supreme Court from 9 to 15 justices
       Would enable FDR to appoint 6 new justices
   Congress & press protested
   Starting in 1937 - justices retire & FDR
    appointed seven new ones
   Governor of Louisiana "King
    Fish"
   Built schools and hospitals
   Ruled Louisiana like a
    dictator
   Wanted to be president
   Decided to challenge FDR
   Offered new deal       "Share
    our wealth"
    - Called for every family to
    get yearly income money to
    buy food and housing
    - Taxed the rich heavily
    Made enemies in his
    attempt to become president
    - Shot and killed in 1935
The Second New Deal includes new
programs to extend federal aid and
  stimulate the nation’s economy.
   By 1935, economic recovery not as great as FDR
    had expected
       Unemployment remained high
       Work programs & productions still behind 1920s
        levels
   FDR launched second phase
   Provided more relief for farmers, workers
   First Lady Eleanor
    Roosevelt a social
    reformer prodded
    president
       She traveled the
        country observing the
        social conditions &
        reminding FDR about
        the suffering
       She also pushed for
        him to appoint
        women to
        government positions
   1936 - Democrats won
    presidency & large
    majorities in both houses
   First time most African
    Americans voted
    Democratic
   First time labor unions
    supported presidential
    candidate
   Election was a vote of
    confidence in FDR & the
    New Deal
   1936 - Soil Conservation and Domestic
    Allotment Act replaced AAA
    - Rewarded farmers for practicing soil
    conservation
   New Agricultural Adjustment Act avoided
    unconstitutional provision
   Resettlement Administration gave loans to
    small farmers to buy land
   Farm Security Administration - loaned to
    tenant farmers to buy land
    - FSA hires photographers to shoot pictures of
    rural towns & farms
   2nd New Deal established a
    series of programs to help
    youths, professionals & other
    workers
   Works Progress
    Administration (WPA)
    created many jobs for
    unskilled workers
    - WPA workers built airports,
    roads, public buildings
    - Women workers sewed
    clothes for the needy
    - WPA employed professional
    writers, artists, performers
    - Gave aid to students in
    exchange for part-time work
   National Youth
    Administration
    (NYA) - provided
    education, jobs,
    counseling &
    recreation to young
    people
   Wagner Act - replaced NIRA
    - Protected right to join unions & collective
    bargaining
    - Prohibited unfair labor practices (threatening
    workers or firing union members)
    - Established National Labor Relations Board
    that heard testimony about labor practices
    - Held elections to determine if workers
    wanted unions
   1938 - Fair Labor Standards Act sets maximum
    hours & minimum wage
    - 44 hrs per week decreasing to 40 in two years
    & 25 cents per hr.
   1935 - Social Security
    Act created Social
    Security system
   Provided insurance
    for retirees 65 or older
   Unemployment
    compensation
   Aid to disabled &
    families with children
   Rural Electrification
    Administration
    (REA) brought
    electricity to farms
    - Rose from 12.6 % in
    1935 to 48% in 1945 to
    90% in 1949
   Public Utility Holding
    Company Act aims to
    stop financial
    corruption
   Several women were named to important government
    positions
   Frances Perkins became first female cabinet member
    (Secretary of Labor)
    - FDR also appointed 2 women as diplomats & 1 as a
    federal judge
   Women still faced discrimination in workplace from
    male workers
   National Recovery Administration (NRA) set some
    lower minimum wages for women
   Federal work programs hired far fewer women than
    men
   FDR appointed more
    than 100 African
    Americans to
    government
   Educator Mary McLeod
    Bethune headed
    Division of Negro
    Affairs of NYA
   Helped organize “Black
    Cabinet”
   Group of influential
    African-American who
    advised FDR on racial
   FDR was afraid of upsetting white Southern
    Democratic voters
   Refused to approve antilynching law & end to
    poll tax
   New Deal agencies discriminated against
    African Americans
    - pay them lower wages & favored whites
   African- Americans generally supported
    Roosevelt administration & New Deal
    - Saw them as the best hope for the future
   New Deal Coalition - different groups that
    support Democratic Party
    - Helped the democratic party dominate
    national politics throughout the 1930s & 1940s
   Political organizations in large Northern cities
    supported FDR
   Urban, religious, & ethnic groups also
    supported FDR
    - FDR appoints officials of urban-immigrant
    background
   Motion pictures, radio, art, and
literature blossom during the New
                Deal.
   About 65% of
    population went to
    movies once a week
    - Movies were still
    affordable
     - People watched
    them to escape real
    life
    - Grapes of Wrath
    - Gone With the
    Wind
    - The Wizard of OZ
   90% of households had a
    radio
    Families listened together
    every day
   Dramas, variety shows
    played in evening
    - Soap operas for
    homemakers broadcast in
    middle of day
    - Children’s shows after
    school hours
    - Immediate news coverage
    became customary
    -
   Orson Welles - actor,
    director, producer, &
    writer
   Federal Art Project paid
    artists to make art, &
    teach in schools
   Aim to promote art
    appreciation & positive
    image of America
   Murals typically
    portrayed dignity of
    ordinary people at work
   Federal Theater Project
    hired actors & artists
   Singer, songwriter
    Woody Guthrie sung
    songs about the of
    plight of poor
   Federal Writers’ Project
    supported many who
    become major writers
   Richard Wright -
    African-American
    author who wrote
    Native Son
   John Steinbeck wrote
    The Grapes of Wrath
    about Dust Bowl
    migrants
The New Deal affects American society
 not only in the 1930s but also in the
        decades that follow.
   By 1937, economic improvement convinced
    many that Depression was ending
   Congress wanted to cut back programs
   By 1939 - New Deal was over
   Supporters Believed the New Deal helped
    country recover from economic difficulties
   Conservatives though FDR made federal
    government too large
    - stifled free enterprise & individual initiative
   Liberals thought New Deal didn’t do enough to
    socialize economy* end inequalities
   Expanded power of federal government & president
   Social Security Act - Federal government takes
    responsibility for citizens’ welfare
     - Provided aid for aged, disabled & needy
   FDIC still protects individual investors in case of bank
    failure
   SEC still monitors stock market, enforces laws on
    stock, bond sales
   New Deal laws set standards for wages & hours
    - banned child labor
    - Permitted unions
   Civilian Conservation Corps (CCC ) - planted trees,
    built hiking trails, & fire lookout towers
   Soil Conservation Service taught farmers how to
    preserve soil
    - Contour plowing, terraces, & crop rotation
   1934 - Taylor Grazing Act reduced grazing on public
    lands
    - Grazing had contributed to erosion that caused the
    dust bowl
   Tennessee Valley Authority (TVA) created electricity,
    & prevented floods
   New Deal reduced suffering & gave people hope
    - Provided jobs, food & money
   New Deal didn't end depression WWII did

								
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