Docstoc

The Great Depression

Document Sample
The Great Depression Powered By Docstoc
					The Great Depression
Beneath the ‘Boom’
• Farmers did not prosper - new machines produced
  more which lowered prices.

• The black population did not prosper - farmers
  laid them off. Many moved North looking for work.

• Recent immigrants did not prosper - they were
  given low paid jobs and lived in overcrowded
  conditions.

• Workers in ‘old’ industries (eg. mining, textiles)
  did not prosper - they were low paid.
• 50% of American families earned less than $2000 a
  year.
                             www.schoolhistory.co.uk/gcselinks/indepth/usa19191941/resources/BoomandBust2.ppt
The Coming Crash
                                 www.schoolhistory.co.uk/gcselinks/indepth/usa19191941/resources/BoomandBust2.ppt




    20 million shareholders
       by summer 1929               Car and Steel Production falls



 Prices reach an all time high
                                                           Profits Fall




Experts start to worry                    People start to Sell
Black Tuesday
Tuesday 29th Oct
• 16 million shares sold.
• No buyers found.
• Ticker tape machines break due to
  pressure.
• Many investors are ruined.

                        www.schoolhistory.co.uk/gcselinks/indepth/usa19191941/resources/BoomandBust2.ppt
 Re-Cap                             www.schoolhistory.co.uk/gcselinks/indepth/usa19191941/resources/BoomandBust2.ppt




  Overproduction
         +
 Underlying poverty                    Stocks of unsold goods
                       Lack of
                       confidence
     Demand falls

                                                  Profits Fall
People start to sell
      shares

                                                                         CRASH
                            Panic.
               The Crash of 1929
• Between 1924 and 1929 the values of stocks listed on the NYSE
  increased more than 400%
• Speculators felt that the Good Times would never end.
• October 23, 1929- stock prices fall sharply
• October 24, 1929- Black Thursday, heavy trading slide continues.
• J.P. Morgan Jr. and other investors infused the market with over
  $100 million
• October 29, 1929- Black Tuesday, Crash hits, over a billion dollars
  in losses
• Over the next 6 months the market would lose 6/7 of its total value.
• Dow-Jones Industrial Average- had peaked at 381 in 1929 bottoms
  out at 42 by 1932, market would not reach 381 until the 1950’s.




                   www.prep.fairfield.edu/atschool/FacultyWebSites/rmauritz/The%20Great%20Depression.ppt
                  Other Causes
• Distribution of Wealth
• The American Farmer, low crop prices,
  indebtedness
• Top 5% of the wealthiest Americans received
  33% of the income
• 2/3 of American families lived off $2000 or less
  per year, subsistence level
• Since 1925, new home construction dropped,
  auto industry had met the demand, production
  slowed, workers laid-off, banks were failing

             www.prep.fairfield.edu/atschool/FacultyWebSites/rmauritz/The%20Great%20Depression.ppt
   Causes of the Depression: Fear
    Demand                                Fewer goods                                       People lose
     drops.                                 are sold.                                        their jobs.


   In order to
stay in business                The Spiral                                               Even more people
 companies cut                      Of                                                  Lose their confidence
      wages                                                                             And spend less money
                                Depression

People lose their
  confidence &                             Demand                                          Companies are
start saving their                        drops even                                      forced to cut costs
      money                                 further.                                     by laying people off
                     www.coombegirlsschool.org/sixth/history/documents/Thenewdeal.PPT
Causes of the Great Depression
Effects of the Great Depression
                             Effects of Depression on
                                     Individual
         •      Thousands of individual investors ruined
         •      Loss of savings
         •      Poverty and panic
         •      Less spending and demand
         •      Unemployment
         •      Wages decrease


http://www41.homepage.villanova.edu/klaus.volpert/teaching/finance_math/Papers_and_Presentations/stock%20market%20crash.ppt
wps.ablongman.com/wps/media/objects/577/590960/powerpoints/ppt/chp24.ppt
Decline in Production
                                               DOWNWARD SPIRAL
                                               - little out put means
                                                 less jobs
                                               - Manufacturing output
                                                 fallen to 54% of its
                                                 1929 output
                                               - 25-30% of work force
                                                 unemployed
                                               - 12 -15 Million jobless


  http://www41.homepage.villanova.edu/klaus.volpert/teaching/finance_math/Papers_and_Presentations/stock%20market%20crash.ppt
     Effects of Depression on
             Economy
• Stock prices drop
• Industry declines
• Value of assets decline
• 11,000 of 25,000 banks fail
• Because of tariffs international trade
  market decreases
• Causes a world wide depression

           http://www41.homepage.villanova.edu/klaus.volpert/teaching/finance_math/Papers_and_Presentations/stock%20market%20crash.ppt
(1933-1934) Farmer’s plight in Great Plains made
worse by drought and the consequent
dust storms-- “Dust Bowl.”




                    salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
                                          Consumed by “Dust Bowl”-
                                          “dust pneumonia,” brown snow reaches northeast.
salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
                                  25% of farmers migrate
                                  out of “Dust Bowl.”

                                  “Okies” escape the
                                  dust storms and move
                                  to California.
                                  (Steinbeck’s novel,
                                  Grapes of Wrath)




salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
             Cause and Effect: Graphic Practice
          CAUSE                                                        EFFECT
Over speculation of stocks               Stock Market Crash, 1929 --
                                         followed by Great Depression
Factories lay off workers, no            Local missions sponsor soup
insurance                                kitchens and bread lines

Federal Reserve failed to prevent Banks close as people make a “run
collapse of banking system in late on the bank” to take money out
1920s and ’30s, severe
contraction in nation’s money
supply
Banks need money                         Foreclosure of family farms, farmers
                                         not able to pay their debt in cash

Drought in Great Plains creates          “Okies” escape Great Plains for
“Dust Bowl.”                             California

                                  salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
                      The Great Depression’s
                      Effects Upon the People


Impact on Ordinary People




  www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
People blame Hoover for Great Depression:
        Shantytowns = Hoovervilles
        Empty pockets = Hoover flags
        Newspaper = Hoover blankets




                                                                         Hooverville
                 salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
 Hoover’s reputation gets worse….

“Bonus Army” Incident-
20,000 WWI vets protest in D.C. They want pensions. There is a
few violent skirmishes and army is called out to drive them out.




                             salem.k12.va.us/staff/sataylor/SOLGreatDepression.ppt
       Soup Kitchens & Bread Lines
• People dug through
  trash
• Soup kitchens
  popped up that
  offered low-cost food
• Breadlines created by
  charities




www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
                                                          Hoboes
                                                                               • Men walked streets in
                                                                                 search of work
                                                                               • Many left cites when
                                                                                 could find work
                                                                               • Called Hoboes:
                                                                                 wandered country,
                                                                                 road railcars, slept
                                                                                 under bridges




www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
                                                          Hoboes




www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
                                                          Women
                                                                               Did what they could to
                                                                                 hold family together
                                                                               • Cooked, cleaned,
                                                                                 cared for children
                                                                                 while husbands
                                                                                 looked for work daily
                                                                               • Some worked too!
                                                                                 (Pink collar jobs)



www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
                                                        Children
  • Most not able to live • Many wondered
    “normal” childhood      streets looking for
                            food, clothing, shelter,
  • For many no school      or work
  • 1 out 5 five          • Some grew up w/o a
    malnourished            father
  • Some died from        • Many sought help
    diseases                elsewhere
                          • Many teenagers left &
                            became hoboes


www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
                                                        Children




www.memorial.ecasd.k12.wi.us/.../ppts/The%20Great%20Depression’s%20Effects%20Upon%20the%20People.ppt
Effects
                          Hoover
• American business wants a higher tariff, Hawley-
  Smoot Tariff, 1930
• Dawes Plan stopped, Debt Moratorium Issued
• Federal Farm Board, grain and cotton storage
• Reconstruction Finance Corporation, 1932,
  loaned funds to fledgling companies in industries
  deemed necessary to the U.S. Trickle Down
• Bonus March, Summer 1932, General Douglas
  MacArthur

              www.prep.fairfield.edu/atschool/FacultyWebSites/rmauritz/The%20Great%20Depression.ppt
                    Election of 1932
• Democrats nominated: Franklin Delano
  Roosevelt, Governor of NY, progressive.
•   “I pledge to you, I pledge myself, to a new deal for the American people. Let
    us all here assembled constitute ourselves prophets of a new order of
    competence and courage. This is more than a political campaign; it is a call
    to arms. Give me your help, not to win votes alone, but to win in this
    crusade to restore America to its own people.” Acceptance Speech, 1932
• Democrats blamed Republicans for the
  Depression, favored cutting Federal
  expenditures, balanced budget, sound currency,
  reciprocal trade agreements, shorter working
  hours, public works projects, unemployment and
  old age insurance, federal regulation of the
  securities and utility rates.
                       www.prep.fairfield.edu/atschool/FacultyWebSites/rmauritz/The%20Great%20Depression.ppt
webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt
           Key Quotes: FDR’s Inauguration Speech

                                                                    Let me assert my firm belief
                                                                   that the only thing we have to
                                                                          fear is fear itself


                                                                      This Nation asks for action, and
                                                                     action now. Our greatest primary
                                                                   task is to put people to work. I shall
                                                                     ask congress for broad executive
                                                                      power to wage was against the
                                                                                 emergency.
www.coombegirlsschool.org/sixth/history/documents/Thenewdeal.PPT
             webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




 ROOSEVELT’S
FIRESIDE CHATS
            • FDR communicated
              to Americans via
              radio
            • His frequent
              “Fireside Chats” kept
              Americans abreast of
              the government’s
              efforts during the
              Depression
                  The First
                  Hundred
                    Days

March 5, 1933 -
June 16, 1933

                  www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
                   webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




TO DO LIST: #1-
 HELP BANKS
           • First order of business was to get
             the banking system in order
           • On March 5, one day after taking
             office, FDR declared a bank
             holiday
           • He persuaded Congress to pass
             the Emergency Relief Act, which
             authorized the Treasury
             Department to inspect the
             nation’s banks
                              webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt



          AMERICANS GAIN
        CONFIDENCE IN BANKS

• Next, FDR passed the
  Glass-Steagall Act which
  established the Federal
  Deposit Insurance
  Corporation
• The FDIC insured
  account holders up to
  $5,000 and set strict
  standards for banks to
  follow (today = $100,000)
                                            FHA
NYA
               FCA
       USHA                                           FCIC



“Alphabet Soup”
FERA                                                FCC
               CCC

   AAA                                     REA
         PWA
                                                                   HOLC
                www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
  National
  Recovery                National Industrial Recovery Act




Administration
           www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
       FERA
Federal
 Emergency
   Relief
     Administration




                www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
   Provided people                 food
   with the things they
   needed to survive…




clothing

                                                money




                          www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
           WPA

Works Progress Administration
   Provided jobs for 2 million workers



                    www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
 Slum clearance


                                                    Construction
                                                    of school
              Flood control                         and
                                                    hospital
                                                    buildings




         Rural
electrification


                              www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
             Federal Art Project
                                                        photographers
                         writers




painters
                                             performers
           sculptors




                       www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
                        Civilian
                      Conservation
                         Corps
Took needy young men off the streets
and put them to work in forests and
national parks
 -carved out roads and hiking trails
 -cleaned up beaches
 -cleared camping areas

  Many of these are still in use today - look for the CCC signs!
                              www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
  CCC was also responsible for
  helping to end the
  horrible conditions of
  the Dust Bowl by
  planting over 2 million
  trees in a wide belt
  from Texas up to the
  Dakotas.
These trees helped
  keep the topsoil in
  place.

                            www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
Agricultural
Adjustment
Association



 www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
                               Tennessee
                             Valley Authority
  Created in 1933 to
  ease economic
  hardship in the
  Tennessee River
  Valley (Tennessee,
  Kentucky, Alabama, Georgia,
  North Carolina, and Virginia)


• Taught better farming
  methods
• Replanted trees
• Built dams                      www.bringinghistoryhome.org/downloads/Fourth/A_New_Deal_for_America.ppt
webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




                                                     T
                                                     V
                                                     A
   Banking and Finance Reform
• Banking industry about to collapse
• Emergency Banking Act- sec of Treasury given the power to decide
  which banks should be reopened. Bank Holiday
• Glass-Steagall Banking Act- established the FDIC, Insure up to
  $5000
• Roosevelt took the U.S. off the Gold Standard
• Securities and Exchange Commission, 1934 SEC to regulate the
  industry, set margin requirements, and regulate transactions.
• “Safer to keep your money in the bank than under the mattress.”
• Banking Act, 1935, reorganized the Federal Reserve System
The New Deal
 New Deal and the Supreme Court
• National Recovery Agency, declared unconstitutional, Schechter
  Poultry Corp. v United States, 1935
• Agricultural Adjustment Act, 1933, declared unconstitutional, U.S. v
  Butler et al., 1936
• Parts of New Deal declared unconstitutional, Roosevelt wants
  current New Deal Legislation to pass and remain, Social Security
  Act, Wagner Act, Securities and Exchange Commission
• Proposed a new justice be added for each justice that had been on
  the bench 10 years and over age 70
• Possibility of 6 New Deal justices out voting the elderly, conservative
  Republicans, Bill was defeated
• Chief Justice Charles Evans Hughes and Owen Roberts moderated
  views, one of the 4 elderly justices retired.
• FDR named 8 justices to the Supreme Court during his time in
  office.


                    www.prep.fairfield.edu/atschool/FacultyWebSites/rmauritz/The%20Great%20Depression.ppt
                    webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




 Thunder from the Left

           • Every Sunday, Father Charles
             Coughlin broadcast radio sermons
             slamming FDR
           • He called for a guaranteed annual
             income and nationalized banks
           • At his height of popularity,
             Coughlin had 45 million listeners
           • His increasingly anti-Semitic
             remarks ultimately cost him
Coughlin
             support
                             webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




                    ANOTHER CRITIC

• Huey Long was a
  Senator from Louisiana
  who was a constant (and
  effective) critic of FDR
• Long was setting up a
  run for president
• A lone gunman
  assassinated Long at the
  height of his popularity         Huey Long made effective use
  in 1935                          of radio to promote his views
     DR. FRANCIS TOWNSEND
                                                                                     (right)




  Proposed a pension plan to give
  monthly payments to the elderly.
Many elderly voters liked Townsend’s
                plan.      itweb.fortworthisd.net/social_studies/flag/documents/Ch.15ANEWDEALFIGHTSTH.ppt
• Francis E. Townsend – a Calif. doctor
  who was upset at the sight of elderly
  women digging in the trash for food,
  proposed the Townsend Plan of 1934.
  This plan would pay $200/mo. to
  everyone over 60 who had retired, as
  long as they promised to spend the
  money that month. This provided
  financial security for the elderly & job
  openings for the young.

                         www.abac.edu/awright/HIST%202112/PPT/ch28.ppt
The Court Packing Bill
                              webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




                         THE SECOND
                        HUNDRED DAYS

• FDR launches the “Second New Deal”
  also called the “Second Hundred Days”
• First priority was the farmers – FDR reinvigorated
  the AAA which provided aid for migrants,
  sharecroppers, and poor farmers
• FDR authorized more than $1 billion to help tenant
  farmers become landowners
webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt
webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




                                  Arkansas Tenant
                                  Farmers,1936
                                      webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




                           WORKS PROGRESS
                            ADMINISTRATION


• Helping urban workers was
  critical to the success of the
  Second Hundred Days
• The WPA set out to create as
  many jobs as possible as
  quickly as possible
• Between 1935-1943, the WPA
  spent $11 billion to give jobs to
  8 million workers
                                                webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




WPA BUILDS AMERICA

                                                        • WPA
                                                          workers
                                                          built 850 airports,
                                                          651,000 miles of
                                                          roads and streets,
                                                          and 125,000 public
                                                          buildings
                                                        • The WPA also hired
                                                          artists, writers and
The Davis Street School Extension in Atlanta under        photographers to
   construction as part of the Works Progress
    Administration Program, November 2, 1936              create art
                              webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




             NATIONAL YOUTH
             ADMINISTRATION
• The National Youth
  Administration (NYA) was
  created to provide
  education, jobs and
  recreation for young
  people
• Getting young people off
  the streets and into
  schools and jobs was a
  high priority for the NYA
                               webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




IMPROVING LABOR
   RELATIONS

                           • In the Second New Deal
                             FDR helped pass the
                             National Labor
                             Relations Act (NLRA)
                           • This legislation
                             protected workers,
                             ensured collective
                             bargaining, and
                             preserved the right to
The NLRA was also called     unionize
     the Wagner Act
                      webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt



      CONGRESS PROTECTS
          WORKERS


• In 1938, Congress
  passed the Fair
  Labor Standards
  Act which set
  maximum hours at
  44 per week and
  minimum wage at
  25 cents per hour
             webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt




SOCIAL SECURITY
      ACT
          • One of the most important
            achievements of the New
            Deal era was the creation of
            the Social Security System
          • The Social Security Act,
            passed in 1935, had 3 parts:
           Old-Age Pension
           Unemployment
            compensation
           Aid to families with
            dependent children &
            disabled (welfare)
The Second New Deal
                               webzoom.freewebs.com/centralhistory/A%20C%2015%20US%20CHAPTER%2015.ppt



     LEGACIES OF THE NEW
            DEAL

• FDIC – banking insurance
  critical to sound economy
• Deficit spending has
  become a normal feature
  of government
• Social Security is a key
  legacy of the New Deal in
  that the Feds have
  assumed a greater
  responsibility for the
  social welfare of citizens
  since 1935

				
DOCUMENT INFO