Presentation on theme: "DISASTER AND RECOVERY. Causes: stock speculation- buying stock when the price is low and selling it when the price rises in hopes of making a quick."— Presentation transcript:
DISASTER AND RECOVERY
Causes: stock speculation- buying stock when the price is low and selling it when the price rises in hopes of making a quick profit; many Americans were stuck with worthless stock when the market crashed buying on the margin- Americans were able to purchase stock by putting down as little as 10% of the stock’s value; Americans then borrowed money from the bank to pay for the rest of the stock; when the market crashed, Americans had to pay the loan back to the bank even though the stock was worthless
overproduction- various industries kept up production even though there was not a demand from the market (ex. Automobiles, crops, construction); supply exceeded demand which made prices fall stock market crash- this was the spark that began the depression; 16 million shares of stock were traded****** individual debt- Americans were in debt due to the installment buying of the 20’s
stock market crash- this was the spark that began the depression; 16 million shares of stock were traded****** individual debt- Americans were in debt due to the installment buying of the 20’s international debt- the US was in debt due to WWI; we practically financed the entire war for the Allies inevitability of depressions- depressions are a natural part of the business cycle; they will happen eventually unequal distribution of income- “the rich got richer and the poor got poorer”; salaries of the wealthiest percent of Americans increased while wages of the poorest percent of Americans decreased
Which was an important factor contributing to the Great Depression of 1929? A. unsound expansion of credit B. government restrictions of business activities C. increased importation of foreign goods D. large military expenditures
An important factor that influenced Franklin Roosevelt’s victory over Herbert Hoover in the Presidential election of 1932 was the — A end of World War I. B beginning of World War II. C passage of the Clayton Antitrust Act. D continuation of the Great Depression.
HERBERT HOOVER US PRESIDENT
Herbert Hoover- elected in 1928 by promising a “chicken in every pot, a car in every garage”; was blamed for the depression even though it was not his fault; he was in the wrong place at the wrong time (White House) Hoovervilles, Hoover flags, etc.- names given to common objects that showed Americans blamed Hoover “Brother can you spare a dime”- lyrics to a famous song of the depression Bonus Army- group of WWI vets who marched in Washington, DC ; they wanted the govt to pay them then the bonus that they had been promised for fighting in WWI; they did not receive it during the depression
The Scottsboro Case- involved 9 African-American teenaged boys who were accused of raping 2 white girls on a train; was an ex. of the intolerance of the period; they were later all freed and charges were dropped Dust Bowl- natural disaster that occurred out west where a severe drought and heavy winds blew the dry topsoil east; poor farming practices intensified the situation (lack of crop rotations); many moved to California and were nicknamed Okies (most moved from Oklahoma) 25% unemployment- highest average unemployment during the depression; in 1933
During the 1930s, many Americans moved out of the Great Plains states to — A escape the Dust Bowl. B work in railroad construction. C avoid Native American uprisings. D acquire free land in California.
Why were the “Dust Bowl” conditions of the 1930s so significant in United States history? A They occurred at the same time as the Great Depression. B They included most of the farming regions of the Northwest. C They increased farm production by nearly thirty percent. D They provided increased opportunities for government jobs.
What was a significant result of the Great Depression? A. elimination of the business cycle B. failure of the Republican Party to win the Presidency C. a major increase in the amount of farmers in the United States D. a federal government that provided a “safety net” for the people
How did Herbert Hoover try to deal with the Great Depression? A By giving emergency loans to large businesses B By distributing food and clothing to the needy C By giving grants to local communities D By increasing government spending
. Identify which statement (s) below is true. A. Wages had failed to keep pace with production in the United States during the 1920’s. B. The wealth of the United States had become evenly dispersed. C. Inventions were scarce. There were not enough goods being produced to meet the needs of the people. D. Very few people within the United States had invested in the Stock Market.
. The severity of the Great Depression became worse when the people: A. decided to re-elect Hoover as President in B. begin to buy up more goods than the nation’s industries could produce. C. begin to seek agricultural jobs in larger numbers. D. began to panic, withdrawing their money from banks and avoiding spending.
Racism and discrimination was evident during the 1930’s with the example of: A. Sacco and Vanzetti B. Hoover and the Bonus Army C. The Scottsboro Boys D. The Scopes Trial
Election of 32 and 36- FDR won both Franklin Roosevelt- promised Americans a “New Deal” and began social programs that helped ease the depression New Deal Agencies: CCC (worked outdoors doing conservation projects); CWA, PWA, WPA (all gave jobs building roads, bridges, and dams; WPA also helped writers and artists); TVA (built dams that created hydro- Electricity); FDIC (insured bank deposits); SSI (pension plan for elderly and disabled); AAA (told Farmers not to farm ¼ to ½ of land in an effort to raise farm prices)
Relief (the “dole”): The Origins of the Welfare State Recovery: Ending the Depression Banking, Industry and Agriculture Reform: FDIC, Social Security, Labor Laws, Stock Market Regulations, Farm Subsidies
FDR declared a Bank Holiday during the first 100 days. What was the purpose of this holiday? A. to give employees a much needed vacation B. to demonstrate control over the banking industry C. to investigate and eliminate the use of cash D. to inspect the banks to make sure that they are sound before reopening
Court packing plan or Judiciary Reorganization Bill- when FDR tried to get Congress to allow him to add new justices to the Sup Ct for every justice over 70; he was mad b/c they ruled many agencies unconstitutional Dorothea Lange- photographer during the Depression whose photos help bring govt aid to farmers out west
On February 5, 1937, President Franklin Roosevelt submitted to Congress a plan for reorganizing the federal judiciary. His proposal included an increase in membership on the Supreme Court, and additional judges at all levels of the federal judiciary. Which of the following caused Roosevelt to submit his proposals? A Most Supreme Court justices were young and inexperienced. B Most Supreme Court justices were retiring soon. C Roosevelt received bad advice from his presidential advisors. D The Supreme Court declared many of his New Deal programs unconstitutional.
The MAIN reason FDR asked Congress to increase the number of Supreme Court justices was: A. there was simply to much work for 9 justices B. he felt that all justices over the age of 70 were to old and inconsistent with the changing times C. he felt that 15 judges would represent the diversity in the United States D. the Supreme Court had declared several laws and agencies unconstitutional
Causes of Great Depression Consumer Debt- caused by installment buying; people overextended themselves; they bought too much and could not make the payments Overproduction/Under consumption- Farmers and industries were producing too many crops/goods; the demand was low which made prices fall Stock market speculation- buying and selling stock quickly in order to make a quick profit; this made the market unstable Bank failures- over 5,000 banks closed when there was a “run on the banks”; people withdrew their savings and banks ran out of money and were forced to close Unequal distribution of wealth- “the rich got richer and the poor got poorer”; the incomes of the wealthy increased while incomes of the poor decreased; there was a huge gap between the two groups
Social Security- provides a monthly pension to Americans over the age of 65, disabled, handicapped, unemployed, etc; FDR began SS because many elderly Americans had lost their savings due to the depression and were not able to find work to provide for themselves Federal Deposit Insurance Corporation- FDIC insures bank deposits up to $100,000 today and $2,500 back then. Banks were forced to close when there was a “run on the banks” (when Americans rushed to withdraw their savings). FDIC promises us that we will never have to worry again about losing our money if it is in a bank. It is insured by the US Government. Tennessee Valley Authority- The TVA built a series of dams in TN and surrounding Southeastern states that provided hydroelectric power. Many of these states did not have electricity. The dams also helped with flood control. Ultimately, the TVA provided much need jobs and provided electricity in the end.
How did New Deal programs and policies change the role of the federal government in domestic affairs? A States were given the exclusive power to implement relief programs for unemployment. B The federal government expanded its role by providing for the welfare of its citizens. C The federal government implemented new security procedures by interning suspected traitors and spies. D States were granted authority to regulate businesses within their boundaries.
The creation of the Tennessee Valley Authority (TVA) BEST illustrates the New Deal's commitment to — A financial reform. B agricultural relief. C rural electrification. D industrial recovery.
Which New Deal program continues to provide for the welfare of retired workers? A Social Security Administration B Works Progress Administration C Civilian Conservation Corps D Resettlement Administration
The Regulatory State The Welfare State The Warfare State The New Deal Coalition FarmersMiddle Class WorkersSenior Citizens MinoritiesThe Poor UrbanitesBosses
Critics of the New Deal stated: A. it weakened the power of the chief executive B. it failed to address the labor needs in America C. allowed laissez-faire principles to dictate legislation D. created a federal bureaucracy that was to powerful
The New Deal can BEST be described as: A. democratic socialism B. bold, persistent experimentation C. laissez-faire government D. minimal government intervention
The economic depression of the 1930s was ended by the — A demand for manufactured goods caused by World War II. B effects of the New Deal on the United States economy. C removal of federal regulations on the stock market. D “baby boom” and the resulting rise of suburbs.