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Election of 1932

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					   The Great Depression
Students will analyze the cause and effects
of the Great Depression and WWII and their
  impact on the development of the federal
                government
  Key Industries in Trouble
 Key   industries- like railroads, textiles, steel
  barely make profit
• Mining and lumbering- expanded during
  war; no longer in high demand
• Coal- especially hard hit due to availability of
  new energy sources (electricity)
 Boom industries- automobiles, construction,
  consumer goods, begin to fail
 Housing market- starts to decline as people
  can not afford new homes
 Election of 1928- Republican Herbert Hoover
  is elected in a landslide; very popular
       Causes of the Great Depression
   Causes
        1. Distribution of wealth- Wages had not risen with
        corporate profits. Over 70% of Americans were living below the
        poverty line.
        2. Stock Market Speculation- was seen as a get rich quick
        scheme. Millions of Americans pour money in expecting to get
        rich.
                a. “Playing the market”- People began guessing on
                stock prices this is called speculation.
                b. Buying on Margin- allowed people to borrow for
                the cost of the stock but only paying 10% of the price.
                When the crash occurs people can’t pay back the money
                they owe.
        3. Credit Abuse- Consumers over extend themselves while
        buying the next new thing, credit crisis develops as people
        can’t pay.
                   Causes cont’d..
4. Overproduction- Businesses were producing more consumer
   goods then America could purchase, loss money led to low wages

5. Farming Collapse- International demand for U.S. grain declines
  after WWI and prices drop by 40%
        a. Bad Cycle- Farmers boost production to sell more; prices
        drop faster
        b. Collapse- Income from crops declines causing farmers to
        default on loans leading to the collapse of rural banks.
        c. Price-supports bill- government buys surplus crops,
        guarantees prices
        d. President Hoover- vetoes price-support bill

6. Government policies – No regulation of business, high tariffs
   hurt farmers

7. Global economic problems – International banking created
   linked markets, Europe’s financial troubles after WWI affected the
   U.S.
    WHAT THE HELL IS GOING ON
           OUT THERE?
   Stock Market Crash – September of 1929 the market
    peaks and people begin selling everything.

      1. “Black Thursday” – Largest amount of selling
      ever, prices plunged, markets closed till Tuesday.

      2. October 29, 1929 “Black Tuesday” – Bottom of
      market fell out as people were attempting to sell all
      their stock

      3. Margin- people who bought on credit left with
      huge debts, banks call for their money, people have
      little or no money and are wiped out
           Great Depression 1929-1939
   Financial Collapse- economy falls, unemployment
    skyrockets

   Banks Collapse- people panic and withdraw their
    money causing banks over 20% of all banks to close
    wiping out millions of savings accounts

   Gross National Product (GNP)- the value of all goods
    and services produced by a nation fell in half in four
    years, 104 billion to 50 billion.

   Unemployment- 25% of all workers go jobless, those
    with jobs get salary and hours cut.
     President Hoover Reacts
   Reaction- believed it was the responsibility of the state
    and local governments to help not the federal
    government.

   Hawley-Smoot Tariff (1930)- President Hoover signs
    into law the highest tariff rates in history against
    European goods, in response they do the same. Nobody
    can trade and everyone falls into greater depression.
    Unemployment soars.
       The Depression’s Effects
   Soup kitchens- offer free or low-cost food

   Bread lines- people line up for food from charities,
    public agencies. Americans find this shameful to stand in
    lines and reject them.

   African Americans, Latinos have higher unemployment,
    lower pay

   Shantytowns- settlements consisting of shacks, arise in
    cities, people dig through garbage, beg for food and
    money
    Hoovervilles and Families
   Hoover was blamed primarily for the depression

   People who could not pay their mortgage needed alternative
    housing

   Villages named “Hoovervilles”

   Family- some break under the strain of the depression
        1. Men- commit suicide and go into depression, use to
        taking care of the family most can’t find jobs leave their
        families.
        2. Women- find jobs sewing, maid service, resented by their
        husbands.
        3. Children- poorly fed, schools close, poor health, teenagers
        leave home looking for jobs.
                    Dust Bowl
 DustBowl- area from North Dakota to Texas that is
 hardest hit
     1. Farmers- in Great Plains exhaust land through
     overproduction

         2. Dust Storms- 1930s, drought, windstorms hit; soil
         scattered for hundreds of miles

         3. Depression in Rural Areas- most can grow their
         own food but can’t pay back loans.

         4. Loss of Farms- over 400,000 lose their farms
         and become tenant farmers, some leave and migrate
         to the Pacific Coast
     Psychological Effects of the
         Great Depression
 1928–1932, suicide rate rises over 30%
 Admissions to state mental hospitals triple

 People give up health care, college, put off marriage,
  children
 Stigma of poverty doesn’t disappear; financial security
  becomes goal
 Many show great kindness to strangers

 Develop habit of saving and thriftiness
        Veterans want their money
   Bonus March- jobless veterans from WWI want the money promised
    them (1945) now.
         1. Patman Bill- called for the payment of bonuses, Hoover
         and the Senate oppose the bill and its struck down.

        2. March joined- thousands of veterans bring their families
        to the shacks near the capitol.

        3. Death- 2 veterans are killed in a fight with police, Hoover
        gets scared and orders them removed.

        4. Overreaction- The army uses tear gas and tanks on the
        veterans to drive them out.

        5. Public Outcry- Americans are stunned to see Hoover
        as heartless and uncaring if he’s willing to do this to
        veterans
        ELECTION OF 1932
   President Hoover (Republicans)- never fully
    appreciated the problems of the Depression and
    believed it was only a temporary downturn, this led
    many people to resent him.
          1. Hoover warning- says a Democratic victory
    will only    lead worse economic crisis.

   Franklin Delano Roosevelt F.D.R. (Democrats)-
    Governor of New York promises the American people
    a “New Deal”
         1. Repeal Prohibition
         2. Aid for the Unemployed
         3. Cuts in government spending

   Results of the Election- Roosevelt wins over 60% of
         FDR AND THE NEW
              DEAL
   Three R’s – Relief, Recovery, Reform
     Relief – for people out of work
     Recovery – for business and the economy as a whole
     Reform – of American economic institutions
     “The only thing we have to fear is fear itself”- F.D.R.

 Bank holiday – banks were closed to allow them to be
  reorganized by government
 Repeal of Prohibition – Legalized sale of beer and wine,
  increases tax revenue
 Fireside chats – FDR assured people that banks were
  safe, people put their money back
      THE FIRST HUNDRED
             DAYS
   Hundred Days- Roosevelt with Congress pass
    over 15 major New Deal laws to help the country.

         1. Bank Holiday- Roosevelt orders all banks
    closed     until the government can reorganize
    them and make them stable.

        2. Repeal of Prohibition- 21st Amendment is
    passed    and the tax money is used by
    Congress to provide     programs.
              Hundred Days cont’d..
   Financial RECOVERY-
         1. Emergency Banking Relief Act- reopened banks that were
         financially sound, people’s confidence restored they deposit
         money.

         2. Federal Deposit Insurance Corporation (FDIC)- insures
         individual bank accounts and regulates banking practices

         3. Home Owners Loan Corporation (HOLC)- refinancing of
         small homes to prevent foreclosures

         4. Farm Credit Administration- low interests loans to farms in
         order to prevent foreclosures

         5. Securities and Exchange Commission (SEC)-
         regulates the stock market
          HUNDRED DAYS
               CONT’D…
 RELIEF Programs for Unemployed-

    1. Federal Emergency Relief Administration-
    offered federal money to state and local
    government run soup kitchens and breadlines

    2. Public Works Administration (PWA)- gave money
    to state and local governments to build roads,
    bridges, dams, and other public works.

    3. Civilian Conservation Corps (CCC)- public works
    jobs to employ men
        HUNDRED DAYS…..
   4. Tennessee Valley Authority- hired thousands of men
    into the Tennessee Valley to build dams, build electric
    power plants, control flooding and erosion. Sold
    electricity cheaply to areas that previously couldn’t
    afford it.

   Farm Recovery-
       1. Agricultural Adjustment Administration-
       encouraged farmers to produce less to boost prices,
       government will subsidy farmers for every acre
       they don’t farm.

     Critics of the NEW DEAL,
    Liberals- felt that the New Deal was doing too much to
    help business and not enough to help the poor and
    unemployed.



   Conservatives- New Deal was controlling business, pro-
    union and regulations.



   Deficit Spending- government was spending more
    money than it makes on the New Deal programs causing
    people to get upset.
    THREE BIG MOUTHS TAKE
        CENTER STAGE
   Father Coughlin- popular priest uses radio to demand a
    nationalization of all banks and guaranteed income-
    Catholic Church yanks support after he becomes ant-
    Semitic and Fascist
   Dr. Francis Townsend- he wants a pension plan for the
    elderly guaranteeing them monthly income.
   Huey Long- A senator and former governor of Louisiana he
    was immensely popular in his home state.
          1. “Share Our Wealth”- program that promised a
          minimum annual income of 5k for every American
    family to be paid by taxing the wealthy
          2. New Leadership- Long challenges Roosevelt for
    leadership of          the Democratic Party by announcing
    his run for the presidency in 1935.
          3. Killed- Long is assassinated in 1935 and his
    popularity and         ideas die with him
            ROOSEVELT VS.
            SUPREME COURT
 Supreme Court- strikes down several New Deal laws
  such as the AAA, NRA as unconstitutional
 “Court-packing bill”- Roosevelt proposes that the
  president be allowed to appoint a new justice for each
  member over 70.5.
      1. Reaction- Congress and the Press are
      outraged at Roosevelt for trying to tamper with the
      system of checks and balances. (Dictator)
      2. Aftermath- most of the older justices were
      retiring by 1937 and he was able to appoint 7
      new justices to support his New Deal laws.
ELEANOR ROOSEVELT –
    LEADER IN HER OWN RIGHT
 Most active first lady in history – wrote
  newspaper column, gave speeches, traveled the
  country
 Served as the president’s social conscience
 Influenced him to support minorities
  and the less fortunate
 United Nations- Universal Declaration
   of Human Rights
 Women’s Activism – League of Women
   Voters, Women’s Democratic News
   (author), Chair of women’s delegation
   to Democratic National Convention
    WOMEN AND MINORITIES PART OF THE
               NEW DEAL
   Frances Perkins- Secretary of Labor, is the first female cabinet
    member.
          1. FDR- appoints several women but America still
    discriminates against them, hires after all men.
   African-Americans- FDR appoints more than 100 African
    Americans to government, Mrs. Roosevelt plays key role.
          1. Mary McLeod Bethune- appointed to head the division
    of    Negro Affairs. Eleanor Roosevelt’s close friend she will
          organize the “Black Cabinet” during Roosevelt’s
    presidency.
          2. Marian Anderson- famed African-American opera
    singer she    is not allowed to sing in Constitution Hall by the
    Daughters of the American Constitution, in Washington D.C.
                  a. Eleanor Roosevelt- resigns from the (DAR)
    and                     arranges for Anderson to sing on the
    steps of the                   Lincoln Memorial, heard
      SECOND NEW DEAL
   New Deal Coalition- Women, Working Class,
    Minorities, Labor Unions, Middle Class,
    Immigrants, North/South

   Works Progress Administration (WPA)- creates jobs
    building airports, roads, public buildings

   Social Security Act – Federal insurance program
    based on collection of taxes throughout working
    career
      Retirees collect monthly over the age of 65
      Other benefits paid to: unemployed, blind,
       disabled, dependent children and their
       mothers
            I just want to forget my
                 PROBLEMS!!!!
   Movies- over 65% of the population goes, escape from
    reality; shows romance, fun, wealth.
         1. Gone with the Wind- the most popular movie of
         the 1930’s and all time.
         2. Gangster movies, comedies, musicals all very
         popular ways to forget your troubles.

   Radio- 90% of all households have a radio and are the
    center of all families.
        1. Orson Wells- “War of the Worlds”
        2. Dramas and variety shows at night
        3. Soap Operas during the day
        4. Children shows during after school hours
    Artists and the Great Depression
   Support- great time for artists so to speak,
    federal aid pays for art classes to be taught, hire
    artists and writers

        1. Richard Wright- Native Son, about the
        African- American experience
        2. John Steinbeck- Grapes of Wrath, about
        Dust Bowl migrants
    End of the New Deal
 1933-1937: the economy shows signs of life,
 banks are stable, unemployment down to 15%,
 corporations are beginning to make money
     1. Americans- begin to have hope and see
     the need to end the New Deal programs,
     so does Congress.
     2. The end- The New Deal ends in 1939 as
     attention is changed to the aggressive rise
     of Nazi Germany.
          Impact of the New Deal
   Finance and Banking:                 Labor and Unions:
         1. FDIC- protects                1. National Labor Relations
         individual investors             Board- still mediates problems
         against bank failures            between unions and companies
         2. SEC- still monitors          Environment
         the Stock Market                 1. Tennessee Valley Authority-
                                          still provides electricity
   Social Security- still provides       2. Soil Conservation- maintain
    help for the elderly and needy        soil to prevent another Dust
                                          Bowl

				
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posted:9/3/2012
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