2. Chapter 15 THE GREAT DEPRESSION Section 1: Prosperity Shattered Section 2: Hard Times Section 3: Hoover’s Policies

3. Blame Who is to blame for the Great Depression? Who is to blame for the Great Depression? A} President Hoover A} President Hoover B} Warren Harding B} Warren Harding C} All of America C} All of America D} the Empty Cow theory D} the Empty Cow theory …..survey says…..

5. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops

7. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops 1.Old industrial base is outdated, time for new equipment 2. Crisis in the farm sector – OVERPRODUCTION 3. Availability of easy credit (installment plans) 4. Unequal distribution of income, too little money in the hands of working people. Causes of the Great Depression

8. Idle Factory

9. Cash crops: the growth of a single crop indigo, tobacco, rice, cotton..thanks Ian River valley provided arable land for plantations, and transportation route for crops

11. A haunting sense of failure and uncertainty about the future – powerlessness and helplessness….

13. Farming- Farming- prices fall constantly during the 1920’s post war depression decreases demand. R Industry Industry is becoming more concentrated/consolidated; Government is pro – business. Two hundred companies control 51%of the economy and it becomes stiff and rigid. Growing concentration of wealth: Growing concentration of wealth: Per Capita income grows by 9%, but 75% of that growth goes to the top 1% Integrated global economy has structural instability and chaotic volatility Crash of 1929 reveals weaknesses in the economy

15. The Great Depression

16. After the Stock Market Crash of 1929 1.1933 6,000 banks have closed 2. Between 1929-1933 Nation’s total GNP drops from 104-59 billion 3. Unemployment leaped from 3% (1.6 million) in 1929 to 25% (13 million) in 1933 4. 1 Out of every 4 workers was out of a job

18. In thousands

20. Idle Factory

22. Bread line

25. Employment Line

26. Common Sights During the Great Depression

27. Picking Over a garbage dump for scraps of food “ One man’s junk is another man’s treasure”

28. In Oakland California, some were living in sewer pipes a manufacturer could not sell

29. Bonus Marchers slept in piano boxes, coffins, barrels filled with grass

30. One woman borrowed 5o cents bought stale bread at 3 ½ cents a loaf and fed her family for 11 days

31. Children would hang around the grocery stores begging for food or running errands for food

32. At Pittsburgh steel mills, men were called back to work, but were too weak from not eating

33. In Harlan, Kentucky dandelions and blackberries were a popular meal

34. A little boy from Kentucky tried to hide his pet rabbit and his sister told a reporter ‘ He thinks we are not going to eat it but we are”

35. A teacher at a Middle School told a little girl to go home and eat something because she looked sick and she replied “ I can’t its my sisters turn to eat today”

36. Police saw the worst. In NY City 29 died from malnutrition

37. People who took public relief were denied civil rights in some states. An example they were denied from voting if they were on relief or their kids were kept out of school

38. Some people would spend 10 cents a day to go to a movie house and stay all day to get warm

39. Some people stole electric from neighbors

40. Studies found that the poor survived best because they knew how to be poor. It was the “ new” poor that struggled

41. Shoe repair kits were made from old tires that were cut and attached them to shoes

42. Objectives: Why did financial experts issue warnings about business practices during the 1920s? Why did financial experts issue warnings about business practices during the 1920s? Why did the stock market crash in 1929? Why did the stock market crash in 1929? How did the banking crisis and subsequent business failures signal the beginning of the Great Depression? How did the banking crisis and subsequent business failures signal the beginning of the Great Depression? What were the main causes of the Great Depression? What were the main causes of the Great Depression? Section 1: Prosperity Shattered

43. Warnings about business practices farm crisis farm crisis “sick” industries “sick” industries consumers’ reliance on credit consumers’ reliance on credit stock speculation stock speculation Can these signs be compared to the tough times of the early 2000’s? Can these signs be compared to the tough times of the early 2000’s? Section 1: Prosperity Shattered

44. Reasons for the stock market crash of 1929 Economic factors such as rising interest rates began to worry investors. Economic factors such as rising interest rates began to worry investors. Investors sold stocks. Investors sold stocks. Stock prices dropped sharply, fueling panic. Stock prices dropped sharply, fueling panic. Heavy selling continued. Heavy selling continued. Section 1: Prosperity Shattered

45. Events signaling the Great Depression Banks failed due to heavy defaults, margin calls, and heavy withdrawals. Banks failed due to heavy defaults, margin calls, and heavy withdrawals. Bank failures deprived businesses of necessary resources and customers. Bank failures deprived businesses of necessary resources and customers. Businesses closed and workers lost their jobs. Businesses closed and workers lost their jobs. Makes many American's afraid of banks…. Creates the idea of “cold hard cash” Makes many American's afraid of banks…. Creates the idea of “cold hard cash” Section 1: Prosperity Shattered

46. Causes of the Great Depression The global economic crisis decreased exports. The global economic crisis decreased exports. Unequal distribution of income reduced the total purchasing power available in the economy. Unequal distribution of income reduced the total purchasing power available in the economy. Consumer debt undermined individuals and increased economic chaos. Consumer debt undermined individuals and increased economic chaos. Section 1: Prosperity Shattered

47. SECTION 1 Prosperity Shattered The Crash 1. economic factors such as rising interest rates worry investors 2. investors sell stocks 3. stock prices plunge 4. heavy sales continue Factors That Caused the Stock Market Crash

48. Blame Who is to for the Great Depression? Who is to for the Great Depression? A} President Hoover A} President Hoover B} Warren Harding B} Warren Harding C} All of America C} All of America D} Empty Cow ( no milk) D} Empty Cow ( no milk)

49. B ANKS B ANKS L EGISLATURE L EGISLATURE A MERICAN SHOPPERS A MERICAN SHOPPERS M ANUFACTURERS M ANUFACTURERS E UROPE E UROPE M ARGIN ACCOUNTS M ARGIN ACCOUNTS T ARIFFS T ARIFFS C REDIT C REDIT O OVERPRODUCTION O OVERPRODUCTION W ORLD WAR 1 W ORLD WAR 1 That cow has got no milk

50. AN (EMPTY) COW CAUSED THE GREAT DEPRESSION Banks and Margin Accounts Banks and Margin Accounts Federal Banks were forbidden to loan money for stock market speculation Federal Banks were forbidden to loan money for stock market speculation Private Banks did not - they used Margin Accounts Private Banks did not - they used Margin Accounts

51. Margin Accounts - a buyer wants to purchase stock and puts down part of the money (25%) Margin Accounts - a buyer wants to purchase stock and puts down part of the money (25%) - His broker or agent puts down the rest for him, but charges interest on a Margin Account - His broker or agent puts down the rest for him, but charges interest on a Margin Account The broker gets the rest of the money by borrowing it from a bank and he uses the stock as collateral The broker gets the rest of the money by borrowing it from a bank and he uses the stock as collateral

52. Inexperienced investors ( a large number from the middle class who had never invested before) panic when the stock falls which leads to a "a gambler's type panic" Inexperienced investors ( a large number from the middle class who had never invested before) panic when the stock falls which leads to a "a gambler's type panic" The Banks were ruined from the loans The Banks were ruined from the loans

53. Legislature and the Tariff Legislature and the Tariff Hawley Smoot Tariff -1930 - was the highest protective tariff in U.S History - it created an unbalanced foreign trade Hawley Smoot Tariff -1930 - was the highest protective tariff in U.S History - it created an unbalanced foreign trade Foreign Nations were unable to sell their goods in the American market and thus could not afford American products Foreign Nations were unable to sell their goods in the American market and thus could not afford American products

54. This led to Economic Warfare - which is not a good business practice This led to Economic Warfare - which is not a good business practice BAD BUSINESS PRACTICE BAD BUSINESS PRACTICE Raffle Ticket theory - if many people sell raffles to you and you refuse all the time- when it comes time for you to Raffle Ticket theory - if many people sell raffles to you and you refuse all the time- when it comes time for you to sell some - look out sell some - look out

55. Credit and the American Shopper Credit and the American Shopper The Installment Plan - Americans built up huge debts on credit The Installment Plan - Americans built up huge debts on credit They couldn't afford to pay back their loans

56. Manufacturers and Overproduction Manufacturers and Overproduction Mechanization - New plants built the latest technology -increased output of goods but needed less workers to do it Mechanization - New plants built the latest technology -increased output of goods but needed less workers to do it Uneven distribution of income - lack of balance between consumption and production Uneven distribution of income - lack of balance between consumption and production

57. Profits from production went to the stockholders or were put back into the business - at first; in the early 20's stocks were great Profits from production went to the stockholders or were put back into the business - at first; in the early 20's stocks were great PROBLEM: Workers under low wages couldn't afford to buy the products. The farmers had the same problem. They were PROBLEM: Workers under low wages couldn't afford to buy the products. The farmers had the same problem. They were not receiving enough money for their crops not receiving enough money for their crops

58. Europe and World War 1 Europe and World War 1 European nations were in debt, had property destroyed which reduced their purchase of American goods European nations were in debt, had property destroyed which reduced their purchase of American goods The insistence that Germany pay war debts of 33 billion caused Europe to go off of the Gold Standard (paper money could no The insistence that Germany pay war debts of 33 billion caused Europe to go off of the Gold Standard (paper money could no longer be exchanged for gold) - the gold value dropped which meant that Europe bought American products with a cheaper longer be exchanged for gold) - the gold value dropped which meant that Europe bought American products with a cheaper currency currency

59. Objectives: How did unemployment during the Great Depression affect the lives of American workers? How did unemployment during the Great Depression affect the lives of American workers? What hardships did urban and rural residents face during the depression? What hardships did urban and rural residents face during the depression? How did the Great Depression affect family life and the attitudes of Americans? How did the Great Depression affect family life and the attitudes of Americans? How did popular culture offer an escape from the Great Depression? How did popular culture offer an escape from the Great Depression? Section 2: Hard Times

60. Unemployment during the Great Depression rose sharply rose sharply created severe financial problems created severe financial problems created severe emotional problems created severe emotional problems Section 2: Hard Times

61. Hardships during the depression poverty poverty diminished expectations diminished expectations low prices or lack of market for farm products low prices or lack of market for farm products farm foreclosures farm foreclosures hunger hunger homelessness homelessness deportation for aliens deportation for aliens Section 2: Hard Times

62. Great Depression’s effects on family life and attitudes of Americans fractured some families, forced others to band together for survival fractured some families, forced others to band together for survival divorce rates up divorce rates up birth rates down birth rates down many psychological problems many psychological problems Section 2: Hard Times

63. Popular culture during the depression movies movies radio radio comic books and popular novels comic books and popular novels Section 2: Hard Times

64. SECTION 2 Hard Times The Great Depression in the City and the Country received some aid from charities formed mutual-aid organizations experienced hunger experienced homelessness faced lower prices for food products forced to let crops rot and kill animals faced farm foreclosures Mexican aliens and immigrants faced deportation experienced poverty experienced diminished expectations URBAN RURAL

65. Objectives: Why did President Hoover oppose government-sponsored direct relief for individuals during the Great Depression? Why did President Hoover oppose government-sponsored direct relief for individuals during the Great Depression? How did the Hoover administration attempt to solve the depression’s economic problems, and how successful were these efforts? How did the Hoover administration attempt to solve the depression’s economic problems, and how successful were these efforts? How did radicals and veterans respond to Hoover’s policies? How did radicals and veterans respond to Hoover’s policies? Why was Franklin D. Roosevelt such a popular candidate in the 1932 election? Why was Franklin D. Roosevelt such a popular candidate in the 1932 election? Section 3: Hoover’s Policies

66. Hoover’s opposition to government relief during the Great Depression President Hoover believed that individuals and businesses should be self-reliant and that government help would create a bureaucracy. Section 3: Hoover’s Policies

67. Hoover’s attempts to solve economic problems Public-works programs such as building Boulder Dam failed to relieve entrenched depression. Public-works programs such as building Boulder Dam failed to relieve entrenched depression. The Federal Farm Board, which made loans, established cooperatives, and bought surplus goods, avoided some foreclosures, but failed to end the farm crisis. The Federal Farm Board, which made loans, established cooperatives, and bought surplus goods, avoided some foreclosures, but failed to end the farm crisis. The Reconstruction Finance Corporation, which loaned taxpayer money to stabilize industries, helped some companies avoid bankruptcy, but used money for businesses, not people. The Reconstruction Finance Corporation, which loaned taxpayer money to stabilize industries, helped some companies avoid bankruptcy, but used money for businesses, not people. Section 3: Hoover’s Policies

68. Radical response to Hoover’s policies staged protests staged protests became involved legally became involved legally Veterans’ response gathered in Washington D.C. to demand payment of their pension bonuses gathered in Washington D.C. to demand payment of their pension bonuses Section 3: Hoover’s Policies

69. Reasons for Roosevelt’s popularity Roosevelt’s optimism and enthusiasm contrasted with Hoover’s gloom. Roosevelt’s optimism and enthusiasm contrasted with Hoover’s gloom. As governor of New York, Roosevelt had designed new relief programs. As governor of New York, Roosevelt had designed new relief programs. Section 3: Hoover’s Policies

70. SECTION 3 Hoover’s Policies PORTRAYAL OF AMERICAN LIFE BY LOST GENERATION WRITERS Effort Description Effectiveness public-works programs agricultural efforts Reconstruction Finance Corporation (RFC) poured money into public construction projects such as the Boulder Dam created the Federal Farm Board; made loans, established cooperatives, and bought surplus goods loaned taxpayer money to stabilize industries failed to affect the entrenched depression helped some farmers take advantage of cooperatives and avoid closure, but failed to end the farm crisis helped some companies avoid bankruptcy, used money for businesses; not people

71. The Federal Govt should direct agencies and states to give relief Hoover's blamed for the Depression Hoover's blamed for the Depression The Democratic National Committee hired a public relations expert to damage Hoover. They linked Hoover to the Depression. The Democratic National Committee hired a public relations expert to damage Hoover. They linked Hoover to the Depression. Hoovervilles - shacks for the homeless outside the cities Hoovervilles - shacks for the homeless outside the cities Hoover blankets - old newspapers worn under the clothing Hoover blankets - old newspapers worn under the clothing Hoover Hog - a jackrabbit Hoover Hog - a jackrabbit Hoover flags - empty pockets inside out Hoover flags - empty pockets inside out

74. Hoover's Flaws The great engineer could not adapt UNFLEXIBLE UNFLEXIBLE A] Congress wanted 40 billion to spend - He spent only 2 He would not listen to them - In tough times a bad move A] Congress wanted 40 billion to spend - He spent only 2 He would not listen to them - In tough times a bad move B] Bonus Army - 1932 VETERANS from WW 1 wanted bonuses promised them for 1945 -earlier. B] Bonus Army - 1932 VETERANS from WW 1 wanted bonuses promised them for 1945 -earlier. In mid July - there were 15,000 marchers camped out on the white house lawn - they had been there for 2 months In mid July - there were 15,000 marchers camped out on the white house lawn - they had been there for 2 months C] Refused to cancel foreign war debts C] Refused to cancel foreign war debts D] Hoover could be seen at fine restaurants, living well while most of America suffered D] Hoover could be seen at fine restaurants, living well while most of America suffered

75. The Patman Bill voted down the bill to give them their bonus early. They did agree to pay for their way home but deducted it from their 500 dollar bonus they were to receive in 1945 The Patman Bill voted down the bill to give them their bonus early. They did agree to pay for their way home but deducted it from their 500 dollar bonus they were to receive in 1945 Bonus Army

76. Congress voted not to grant them the bonus early Congress voted not to grant them the bonus early Hoover sided with Congress and sent in Gen Douglass Hoover sided with Congress and sent in Gen Douglass Macarthur to remove the marchers with tanks and tear gas. Macarthur to remove the marchers with tanks and tear gas. Bonus Army

77. Bonus March A 3 month old baby Benard Myers was killed A 3 month old baby Benard Myers was killed The BEF News suggested an epitaph The BEF News suggested an epitaph "Here lies Benard Myers, aged 3 months, gassed to death by order of President Hoover" "Here lies Benard Myers, aged 3 months, gassed to death by order of President Hoover"

80. Hoover set aside 800 million dollars for public works like the Hoover Dam. Hoover set aside 800 million dollars for public works like the Hoover Dam. Built in Nevada Built in Nevada Hoover…..AKA Boulder Dam

81. Harold Ickes – sec. Of Interior believed Hoover had nothing to do with the dam and along with FDR at the dedication he promoted it as the Boulder Dam. The name stuck for a dozen years Harold Ickes – sec. Of Interior believed Hoover had nothing to do with the dam and along with FDR at the dedication he promoted it as the Boulder Dam. The name stuck for a dozen years

82. President Truman officially changed the name in 1947

83. Franklin Delano Roosevelt Governor of NY New Deal – program OF RELEIF Brain Trust -Trusted advisors Polio (1921) Eleanor Roosevelt (distant cousin to FDR) – she championed the Poor and comforted FDR during his illness

84. Brain Trust Harry HopkinsSocial Worker from NY Strong on work relief rather than direct relief Cordell HullSec of State Harold IckesSec of Interior – an attorney from Chicago Francis Perkins 1 st woman to sit on the Presidential Cabinet – an expert at Industrial Safety

85. FDR Policy Bank Holiday Bank Holiday EBRA EBRA Straight Talk Straight Talk Fireside Chats Fireside Chats

86. Bank Holiday March 6, 1933 2 days into office –FDR closed every bank in the nation until each was sound enough to re – open March 6, 1933 2 days into office –FDR closed every bank in the nation until each was sound enough to re – open EBRA –Emergency Banking Relief Act EBRA –Emergency Banking Relief Act

87. Straight Talk Explains to the people about Banks – on march 12 th Explains to the people about Banks – on march 12 th Banks invest your money and do not have it all on hand Banks invest your money and do not have it all on hand Fireside Chats – FDR explained the New Deal measures on radio – he spoke of friendly encouragement Fireside Chats – FDR explained the New Deal measures on radio – he spoke of friendly encouragement

88. Side note in History Hindenburg Disaster 1937 – New Jersey Hindenburg Disaster 1937 – New Jersey