2Cultural Figures of the 1930s Writers____________________Radio StarsPaintersMovie StarsCultural Figures of the 1930sWriters
3“What Would You Do?”It is 1929 and the U.S. economy has collapsed. Farms, businesses, and banks nationwide are failing, causing massive unemployment and poverty. You are out of work with little prospect of finding a job.What would you do to feed your family?What can you do to find a paying job?What can unemployed and impoverished people do to help each other?
4Children Face Hardships Social/Psychological Effects Complete the chart, describing the hardships faced during the Great DepressionHARDSHIPDESCRIPTIONLife in the CitiesThe Dust BowlMen in the StreetsWomen StruggleChildren Face HardshipsSocial/Psychological EffectsNEXT SLIDE
8Why did the farming industry grow weak? End of the war led to less demand for cropsFarmers had taken out loans during the war; when demand fell and crop prices fell, farmers went in debtFarms were lost, and they defaulted on their loan
10Why did more Americans start living on credit? People were buying less due to high prices, stagnant wages, an uneven distribution of income, and overbuying on creditPeople lived on credit so they could have new items.When you purchased items on credit, you would have to pay interest chargesPeople went into debt.
11Why did the uneven distribution of income affect producers of goods?
12Why did the uneven distribution of income affect producers of goods? Many people could not afford expensive goods, such as refrigerators, and other new appliances.
14What is meant by a “bull market”? A period of rising stock prices.Americans were rushing to buy stocks during a “bull market”.
15Explain what is meant by buying stocks on “speculation” and “buying on margin”.
16Explain what is meant by buying stocks on “speculation” and “buying on margin”. Speculation: Buying a stock/bond on the hopes of a quick return (profit) on your investmentBuying on Margin: paying only a small percentage of what the stock is worth, or only putting a down payment on the stock & borrowing the restVery little regulation of the stock market existed & the government did not interfere.
17What did shareowners do with their stocks in September/October of 1929?
18What did shareowners do with their stocks in September/October of 1929? They sold them as quickly as they could because they suspected the stock market would crash.
20What was Black Tuesday?The day (October 29, 1929) the stock market crashed.16.4 million shares were dropped that day, & many could not find buyers.People who had bought stocks were either left in debt or their savings were gone.Within a few weeks, $30 billion was lost buy investors.
21Why did banks fail after the stock market crash?
22Why did banks fail after the stock market crash? Many banks failed because they had no money… they had used people’s money to invest in the stock market as well!At this time, the government had not started to protect & insure the money in the banks.
23Why did the Great Depression impact Europe as well?
24Why did the Great Depression impact Europe as well? Europe was still trying to recover from the war.Many nations were trying to pay off war debts & Germany was paying reparations.America limited imports to protect its economy (Hawley-Smoot Tariff).In return, other nations did not buy our products .
25HARDSHIP DESCRIPTION Life in the Cities The Dust Bowl Unemployment; Homelessness; Shantytowns created; Hunger led to soup kitchen & bread lines; Higher unemployment for African Americans & Latinos (in addition to violence, discrimination, deportation)The Dust BowlOverproduction of crops & destroying of the prairie grass in the Plain; Drought & winds led to dust flying 100s of miles; People (Okies) in the Dust Bowl moved to California looking for workMen in the StreetsMen couldn’t support their families (some men abandoned their families); They took to the streets daily looking for work; Hobos; No direct relief was available at this time
26Children Face Hardships Social/Psycho-logical Effects DESCRIPTIONWomen StruggleCanned food; Sewed clothes; Some worked outside the home, but this caused resentment because there were so many men without jobsChildren Face HardshipsPoor health; School closings; Worked in factories; teens became “Hoover tourists”Social/Psycho-logical EffectsSuicides; Mental hospitals; Sacrifices made; People became determined not to be poor again; Kindness shown to strangers
27What did Hoover believe was the government’s chief function during the Depression?
28What did Hoover believe was the government’s chief function during the Depression? To foster cooperation between conflicting groups and interestsThe government should step in to solve problems, but not force cooperation.
30Why did Hoover oppose federal welfare? He believed hand-outs would weaken people’s self-respect & “moral fiber”.He believed America was based on “individualism” and it was not the job of the government to take care of individuals and their families.Individuals (people, charities, local organizations) should pitch in to help, not the government.
31Name three ways Americans protested Hoover’s efforts to get the nation out of the Depression?
32Name three ways Americans protested Hoover’s efforts to get the nation out of the Depression? The Republicans (Hoover’s party) were voted out of Congress in the 1930 elections.Farmers burned and dumped their crops rather than sell them at a loss.Farmers blocked roads to prevent food from getting to market.Shantytowns were called “Hoovervilles”; Newspapers were called “Hoover blankets”; Empty pockets (inside out) were called “Hoover flags”.
33What were some of the projects Hoover proposed to get the nation out of the Depression? How effective were they?
34What were some of the projects Hoover proposed to get the nation out of the Depression? How effective were they?Boulder Dam- successful in getting power and water to California; aided in agricultural productionFederal Home Loan Bank Act- lowered mortgage rates & allowed farmers to refinance their loansReconstruction Finance Corporation- offered financing to businesses, believing this would help average people; this was unsuccessful and was seen a “too little, too late”
35What did Hoover ultimately do about the Bonus Army?
36What did Hoover ultimately do about the Bonus Army? Tear gassed, troops moved in with bayonets, fires were started, people were shot.People were stunned at the government’s response to these veterans.
37Franklin Roosevelt’s New Deal Identify the following important aspects of the New Deal Fireside ChatsGlass-Steagall Act (especially the FDIC)Federal Securities ActAgricultural Adjustment Act (AAA)Civilian Conservation Corps (CCC)Works Progress Administration (WPA)Social Security Act
39Relief for the needy Economic Recovery Financial Reform New Deal Roosevelt’s program for getting the nation out of the Great DepressionHe wanted to give the American people a “New Deal”Three goals:Relief for the needyEconomic RecoveryFinancial Reform
43Glass-Steagall Act (especially the FDIC) Glass-Steagall Act established the FDIC.The FDIC (Federal Deposit Insurance Corporation) provided government insurance for individual bank accounts up to 5,000.This made people feel their money was safe.Banks also had to act cautiously with their customer’s money.
47Agricultural Adjustment Act (AAA) The government regulated the amount of crops produced.By doing this, crop prices rose because production was lowered.The government paid farmers NOT to cultivate all of their land.This did help farmers have more money because prices increased.This law was found unconstitutional by the Supreme Court (they stated that agriculture was a local matter, not a federal matter).
50Civilian Conservation Corps (CCC) A work relief program that put young men (18-25) to work building roads, developing parks, planting trees, and helping in soil erosion and flood controlThey helped plant trees in the Great Plains to prevent another Dust Bowl.Workers were paid in cash; they ate and lived for free.
51Our greatest task is to put people to work Our greatest task is to put people to work. This is no unsolveable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would threat the emergency of war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our national resources.—Franklin D. Roosevelt March 1933
53National Industrial Recovery Act (NIRA) Law that established fair practices in industry (ex. Set prices of many products and established standards)Law that established jobs to construct schools and other community buildingsThis law was found unconstitutional by the Supreme Court (it gave the executive branch legislative power).
55Works Progress Administration (WPA) A series of programs to help youths, professionals and others find employmentWorked in construction, collected historical material, & gave aid to students to go to school
57Social Security Act Retirement Unemployment compensation Probably one of the most important achievements of the New Deal.Provides the followingRetirementUnemployment compensationAid to families with dependent children & the disabled
58The Legacy of the New Deal The government actively participated in regulating the economy.People were given direct relief from the government.The government went into debt from all of the government spending.What really ended the Great Depression was…World War II startedThe economy got a massive boost from the production of war supplies!
59Test ReviewCauses of the Great Depression (condition of farmers, investing in the stock market, buying on credit= people were in debt)Life during the Depression (Dust Bowl, shantytowns, women, men in streets, charity)Hoover’s administration (leave the econ. Alone, Bonus army, criticisms)New Deal programsSignificance of the New Deal