Presentation on theme: "Chapter 26: The Great Depression Begins"— Presentation transcript:
1 Chapter 26: The Great Depression Begins The Nation’s Economy CrashesHoover’s Policies Have Little EffectRoosevelt Faces a Difficult Challenge
2 Alabama family, 1938 Photo by Walter Evans THE GREAT DEPRESSIONThe Stock Market crash signaled the beginning of the Great DepressionThe Great Depression is generally defined as the period from 1929 – 1940 in which the economy plummeted and unemployment skyrocketedThe crash alone did not cause the Great Depression, but it hastened its arrivalAlabama family, 1938 Photo by Walter Evans
3 Great DepressionThe period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed.The stock market crash was not the only cause.
4 The Nation’s Economy Crashes 4 Causes to the depressionMechanization of Industrial baseUnequal distribution of incomeFarm crisisUnfavorable balance of tradeHawley-Smoot Tariff ActEasy creditInstallment PlanBuying on margin
5 Four Causes of Great Depression 1. Tariffs and war debt policies that cut down the foreign market for American goods.2. Crisis in the farm sector.3. Availability of easy credit.4. Unequal distribution of income.
6 Income There was an uneven distribution of income. Over 70% of Americans lived below the standard of living.Less than 1% were elite. (extremely rich)
7 Credit Consumers agree to buy now and pay later. Would pay monthly payments with interest.Credit was too easy to get in the 1920s.
8 The U.S. was not the only country gripped by the Great Depression Much of Europe suffered throughout the 1920sIn 1930, Congress passed the toughest tariff in U.S. history called the Hawley- Smoot Tariff- designed to protect American farmers and businesses from foreign competition.The tariff made unemployment worse in America b/c no one wanted to buy our goods.Worst depression in American historyOther countries enacted their own tariffs and soon world trade fell 40%HAWLEY-SMOOT TARIFF
9 Economy Crashes - continued Depression devastates people’ livesNational incomeDirect sufferingShantytownsSoup kitchenBread LinesDust BowlBonus Army
11 HARDSHIPS DURING DEPRESSION The Great Depression brought hardship, homelessness, and hunger to millionsAcross the country, people lost their jobs, and their homesSome built makeshifts shacks out of scrap materialBefore long whole shantytowns (sometimes called Hoovervilles in mock reference to the president) sprung up
12 SOUP KITCHENSOne of the common features of urban areas during the era were soup kitchens and bread linesSoup kitchens and bread lines offered free or low-cost food for peopleUnemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone
13 CONDITIONS FOR MINORITIES Conditions for African Americans and Latinos were especially difficultUnemployment was the highest among minorities and their pay was the lowestIncreased violence (24 lynchings in 1933 alone) marred the 1930sMany Mexicans were “encouraged” to return to their homelandAs conditions deteriorated, violence against blacks increased
14 RURAL LIFE DURING THE DEPRESSION While the Depression was difficult for everyone, farmers did have one advantage; they could grow food for their familiesThousands of farmers, however, lost their landMany turned to tenant farming and barely scraped out a livingBetween almost ½ million farmers lost their land
15 THE DUST BOWLA severe drought gripped the Great Plains in the early 1930sWind scattered the topsoil, exposing sand and gritThe resulting dust traveled hundreds of milesOne storm in 1934 picked up millions of tons of dust from the Plains an carried it to the East CoastKansas Farmer, 1933
18 Dust buried cars and wagons in South Dakota in 1936
19 Boy covers his mouth to avoid dust, 1935 HARDEST HIT REGIONSKansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust BowlMany farmers migrated to California and other Pacific Coast statesBoy covers his mouth to avoid dust, 1935
20 Photographer Dorothea Lange captures a family headed west to escape the dust storms
22 HOBOES TRAVEL AMERICAThe 1930s created the term “hoboes” to describe poor drifters300,000 transients – or hoboes – hitched rides around the country on trains and slept under bridges (thousands were teenagers)Injuries and death was common on railroad property; over 50,000 people were hurt or killed
23 EFFECTS OF DEPRESSIONSuicide rate rose more than 30% betweenAlcoholism rose sharply in urban areasThree times as many people were admitted to state mental hospitals as in normal timesMany people showed great kindness to strangersAdditionally, many people developed habits of savings & thriftiness
25 Hoover’s Policies Democrats control Congress (1930) Hoover fails to adaptToo cautiousInflexibleSends troops against Bonus ArmyMoratoriumAllied War DebtsGerman Reparations
26 Hoover’s Policies Have Little Effect Herbert HooverSolutions to lateBoulder (Hoover Dam)Reconstruction Finance Corporation (RFC)Home Loan Bank ActHoover was a HumanitarianRugged IndividualismHoovervilles“Cinderella Man”
27 HOOVER STRUGGLES WITH THE DEPRESSION After the stock market crash, President Hoover tried to reassure AmericansHe said, “Any lack of confidence in the economic future Is foolish”He recommended business as usualHerbert Hoover
28 HOOVER’S PHILOSOPHY Hoover was not quick to react to the depression He believed in “rugged individualism” – the idea that people succeed through their own effortsPeople should take care of themselves, not depend on governmental hand-outsHe said people should “pull themselves up by their bootstraps”Hoover believed it was the individuals job to take care of themselves, not the governments
29 HOOVER’S SUCCESSFUL DAM PROJECT Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam)The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long)The dam currently provides electricity, flood control and water for 7 western states
31 HOOVER TAKES ACTION: TOO LITTLE TOO LATE Hoover gradually softened his position on government intervention in the economyHe created the Federal Farm Board to help farmersHe also created the National Credit Organization that helped smaller banksHis Federal Home Loan Bank Act and Reconstruction Finance Corp were two measures enacted to protect people’s homes and businessesHoover’s flurry of activity came too late to save the economy or his job
32 BONUS ARMY A 1932 incident further damaged Hoover’s image That spring about 15,000 World War I vets arrived in Washington to support a proposed billThe Patman Bill would have authorized Congress to pay a bonus to WWI vets immediatelyThe bonus was scheduled to be paid in The Army vets wanted it NOW
33 Thousands of Bonus Army soldiers protest – Spring 1932 BONUS ARMY TURNED DOWNHoover called the Bonus marchers, “Communists and criminals”On June 17, 1932 the Senate voted down the Putnam BillThousands of Bonus Army soldiers protest – Spring 1932
34 BONUS MARCHERS CLASH WITH SOLDIERS Hoover told the Bonus marchers to go home– most did2,000 refused to leaveHoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower
35 AMERICANS SHOCKED AT TREATMENT OF WWI VETS MacArthur’s 12th infantry gassed more than 1,000 marchers, including an 11-month old baby, who diedTwo vets were shot and scores injuredAmericans were outraged and once again, Hoover’s image suffered
36 Hoover had little chance to be re-elected in 1932
37 FDR pledges a New Deal Election of 1932 20th Amendment FDR vs. Hoover Dramatic landslide for FDRBrain Trust20th Amendment“Lame Duck”Meanwhile, conditions got worse
38 Franklin D. Roosevelt Roosevelt defeated Hoover in the 1932 election. Roosevelt wanted the government to help with the Great Depression.
39 New Deal Roosevelt’s plan to help deal with the Great Depression. He wanted to do the following:1. Help the needy2. Economic recovery3. Financial reform
40 Roosevelt Faces a Difficult Challenge FDR installs confidenceFireside Chats“We have nothing to fear, but fear itself”Physical problemsPolioWheelchairEleanor Roosevelt
41 Eleanor Roosevelt FDR’s wife, who was a social reformer Humanitarian and had great political skills.She urged the president to appoint women into government positions.One of the most powerful First Ladies in American History.
42 Frances Perkins First female cabinet member. Mary McLeod Bethune: An African American woman who was appointed to a gov’t position by Roosevelt.Roosevelt did not favor full civil rights of African Americans, he did not want to anger white, Democrats in the South.
44 FDR’s 100 Days Bank Holiday Federal Securities Act Emergency Banking Relief ActF.D.I.C.Federal Securities ActS.E.C.Reasons for Bank FailuresPanicBanks invest your moneySavings AccountsFDR supplies optimism
45 Movies Were an escape from reality. Wizard of Oz Gone with the Wind Snow White & the Seven Dwarfs (1st Disney animated film)
46 Dust BowlThe region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s.
47 Why/How it happened Drought- lack of rainfall or moisture in the soil. Farmers would plow fields which would not leave grass to cover soil.The soil would not hold moistureWind storms would carry dust and create dust storms.Impossible to grow crops in these conditions.
51 Farmers Left the land due to storms and evictions. Most went to California and other Pacific Coast states.Most migrants were called Okies b/c most were from Oklahoma.They would work as farmhands to make money.