Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Nation’s Sick Economy Chapter 22 Section 1. Causes of the Great Depression Industry: Some industries were less competitive Industry: Some industries.

Similar presentations


Presentation on theme: "The Nation’s Sick Economy Chapter 22 Section 1. Causes of the Great Depression Industry: Some industries were less competitive Industry: Some industries."— Presentation transcript:

1 The Nation’s Sick Economy Chapter 22 Section 1

2 Causes of the Great Depression Industry: Some industries were less competitive Industry: Some industries were less competitive Farming: Farmers produced more than they could sell Farming: Farmers produced more than they could sell Easy credit: Many went into debt buying goods on the installment plan Easy credit: Many went into debt buying goods on the installment plan Income: Rich got richer while the poor got poorer Income: Rich got richer while the poor got poorer

3 A New President The Election of 1928 DemocratsRepublicans Alfred E. SmithHerbert Hoover Governor of New York Sec. of Commerce Witty / OutgoingFormal / Reserved Hoover Wins

4 Risky Business Many Americans practiced speculation & buying on margin Many Americans practiced speculation & buying on margin Speculation – very risky Speculation – very risky Buying on margin – only paying for part of the stock Buying on margin – only paying for part of the stock

5 Stock Market Crashes October 29, 1929 Stock prices dropped Stock prices dropped Investors started selling all their stocks Investors started selling all their stocks Wall Street lost $30 billion in one month Wall Street lost $30 billion in one month

6 Financial Collapse Many Americans lost EVERYTHING in the crash Many Americans lost EVERYTHING in the crash After the Crash Americans panicked & tried to withdraw their money from the bank Americans panicked & tried to withdraw their money from the bank The banks ran out of money and closed The banks ran out of money and closed People lost their savings People lost their savings

7 After the Crash, Continued 85,000 businesses went bankrupt 85,000 businesses went bankrupt 1 out of every 4 people were unemployed 1 out of every 4 people were unemployed People who kept their jobs had cut hours and less wages People who kept their jobs had cut hours and less wages

8 Hawley – Smoot Tariff Act Highest tariff in US History Highest tariff in US History Designed to protect farmers and manufacturers from foreign competition Designed to protect farmers and manufacturers from foreign competition Backfired – foreign countries couldn’t afford to buy American goods Backfired – foreign countries couldn’t afford to buy American goods

9 Questions over Section 1 Fill in the following graphic organizer: First Cause of Great Depression: Effect: Second Cause of Great Depression: Effect: Third Cause of Great Depression: Effect: Fourth Cause of Great Depression: Effect:

10 Hardship and Suffering During the Depression Chapter 22 Section 2

11 Depression in the Cities Many people were evicted from their homes and lived on the street or in shantytowns Many people were evicted from their homes and lived on the street or in shantytowns Charities provided food in soup kitchens and bread lines Charities provided food in soup kitchens and bread lines

12 Minorities & the Depression African Americans and Latinos had the highest unemployment rates African Americans and Latinos had the highest unemployment rates Racial violence increased – there were 24 lynchings in 1933 Racial violence increased – there were 24 lynchings in 1933 Many demanded that Latinos be deported to Mexico Many demanded that Latinos be deported to Mexico Some left voluntarily while others were deported Some left voluntarily while others were deported

13 Depression in Rural Areas Some farmers were able to grow enough food to feed their families Some farmers were able to grow enough food to feed their families Over 400,000 farms were foreclosed due to unpaid debts Over 400,000 farms were foreclosed due to unpaid debts Many turned to tenant farming but were VERY poor Many turned to tenant farming but were VERY poor Thousands left their land and went to California Thousands left their land and went to California

14 The Dust Bowl Farmers overused land Farmers overused land Grasslands became unsuitable for farming Grasslands became unsuitable for farming Drought and winds blew the soil away Drought and winds blew the soil away

15 Men & the Depression Men could not provide for their families Men could not provide for their families 2 million men abandoned their families and wandered the country 2 million men abandoned their families and wandered the country

16 Relief? The government did not offer direct relief The government did not offer direct relief Some charities gave a weekly payment of $2.39 for a family Some charities gave a weekly payment of $2.39 for a family

17 Women and Children Women sewed clothes and canned food Women sewed clothes and canned food Managed household budgets Managed household budgets Worked outside the home Worked outside the home Many women were too ashamed to admit their hardship Many women were too ashamed to admit their hardship

18 Problems Poor diets and lack of money for health care led to health problems for many children Poor diets and lack of money for health care led to health problems for many children –Malnutrition –Rickets –Pellagra

19 Social and Psychological Effects Suicide rates rose by 30% Suicide rates rose by 30% People developed habits of thriftiness People developed habits of thriftiness People gave up on dreams People gave up on dreams

20 Positive Effects of the Depression People showed kindness to strangers People showed kindness to strangers Gave food, clothing and a place to stay for the needy Gave food, clothing and a place to stay for the needy Shared resources and helped each other out Shared resources and helped each other out

21 Answer the following questions What were positive effects of the depression? What were positive effects of the depression? What were negative effects of the depression? What were negative effects of the depression?

22 Hoover Struggles with the Depression Chapter 22 Section 3

23 Hoover’s Philosophy Tried to reassure Americans that the economy was on strong footing. Tried to reassure Americans that the economy was on strong footing. Felt the gov. should play a limited role in helping to solve the economy’s problems. Felt the gov. should play a limited role in helping to solve the economy’s problems. Gov. role to encourage & facilitate cooperation. Gov. role to encourage & facilitate cooperation. Direct relief efforts not support them finacially. Direct relief efforts not support them finacially.

24 Hoover takes Cautious Steps Cautious approach to the depression Cautious approach to the depression –Asked employers not to cut wages or layoff workers –Asked labor leaders not to demand higher wages or go on strike. –Created a special organization to help private charities generate contributions for the poor. None of these steps made much of a difference. None of these steps made much of a difference.

25 Boulder Dam Hoover dam was approved to be built in Boulder Dam Hoover dam was approved to be built in Boulder Dam World’s tallest dam & second largest dam World’s tallest dam & second largest dam

26 Democrats Win in 1930 Congressional Elections Political tide turned Political tide turned Republicans lost control of the House of Representatives & only remained in control by only 1 vote in Senate. Republicans lost control of the House of Representatives & only remained in control by only 1 vote in Senate. Farmers burned crops rather than sell at a loss. Farmers burned crops rather than sell at a loss. Declared a “farm holiday” – refused to work in fields. Declared a “farm holiday” – refused to work in fields. Calling Shantytowns “Hoovervilles” Calling Shantytowns “Hoovervilles” –Hoover blankets –Hoover Flags

27 Hoover Backs Cooperatives Attempts to relieve the depression involved negotiating agreements among private entities reflecting his belief in small gov. Attempts to relieve the depression involved negotiating agreements among private entities reflecting his belief in small gov. Tried to prop up banking system by establishing the National Credit Corporation. Tried to prop up banking system by establishing the National Credit Corporation. –Loaned money to smaller banks

28 Direct Intervention Appealed to Congress to pass a series of measures to reform banking. Appealed to Congress to pass a series of measures to reform banking. –Provide mortgage relief –Funnel more money into business investment –Federal Home Loan Bank Act – lowered mortgage rates & allowed farmers credit –Glass – Steagall Act – separated investment from commercial banking –Reconstruction Finance Corporation – authorized $2 billion for emergency financing for banks

29 Patman Bill Denied 10,000-20,000 WWI veterans went to Washington D.C. – Bonus Army 10,000-20,000 WWI veterans went to Washington D.C. – Bonus Army Patman Bill authorized the gov. to pay a bonus to WWI veterans. Patman Bill authorized the gov. to pay a bonus to WWI veterans. Was supposed to be paid out in 1945 Was supposed to be paid out in 1945 Wright Patman believed money should be paid immediately. Wright Patman believed money should be paid immediately. Hoover opposed legislation Hoover opposed legislation Called on Bonus Army to leave - refused Called on Bonus Army to leave - refused

30 Hoover Disbands the Bonus Army Hoover called for the infantry to gas 1,000 people who were injured. Hoover called for the infantry to gas 1,000 people who were injured. Most Americans were stunned & outraged at the government’s treatment of veterans. Most Americans were stunned & outraged at the government’s treatment of veterans.

31 Hoover’s Response Hoover’s Responses ???

32 Extra-Credit Questions 1. Why was Hoover reluctant to help people during the Depression? 2. What types of action did Hoover take to remedy the effects of the Depression? 3. What measures did Hoover take and what results did he achieve to help the economy? 4. Why did Hoover use to force against World War I veterans? 5. What was the Patman Bill and what happened when it failed in the Senate? 6. What happened to the Bonus Army? 7. How did the treatment of the Bonus Army affect President Hoover?


Download ppt "The Nation’s Sick Economy Chapter 22 Section 1. Causes of the Great Depression Industry: Some industries were less competitive Industry: Some industries."

Similar presentations


Ads by Google