Great Depression

Warm-Up: Pick up Notes Packet + Assignment Packet and answer top part of page 1 Schedule Warm-Up PowerPoint Key Question/Closure: How did the US get itself into one of the worst economic disasters in history? Assignment Packet page 1 due Wednesday

The Myth of Prosperity Mood of most Americans in late 1920s was optimistic In 1928, Republican President Herbert Hoover declared, “poverty will be banished from this nation.” Few people realized that serious economic issues were coming

Looking at this chart, what information jumps out at you? What does this graph tell us about the US economically?

Economic Danger Signs Many industries were producing more and more goods Majority of middle class and poor incomes didn’t rise enough to buy additional goods (cars, refrigerators etc) + little savings 60% of America living on less than $2,000 a year = poverty line

Many items were not sold and piled up in warehouses (too much supply, too little demand) Businesses could not sell products  can’t pay for materials + salaries  close factories and lay off workers

Get-rich-quick’ attitude was popular Speculation  practice of investors of buying and selling risky stocks in the hope of making a quick profit To attract other than wealthy investors  buying on margin  investors could buy a stock for a fraction of its original price (10- 50%) and borrow the rest If stock prices fall  borrowers wouldn’t be able to repay loan

The Crash and the Great Depression Only 8 months in office, President Hoover faced an economic calamity October  Beginning of economic depression  severe economic slump (stock prices sharply decline)

Economy got worse when financial panic led to stock market crash of 1929 Stocks went from being worth a fortune to worthless Investors tried to sell stock before going bankrupt Oct 29th  Black Tuesday  stock prices fell 75% Millions lost life savings

In the following months, thousands of banks closed (ran out of money) People couldn’t afford everyday products  businesses laid off workers

The Great Depression Great Depression  worst economic crisis in US history + impacted whole world Many European countries borrowed from Europe to rebuild post WWI When US economy tanked  called in loans that couldn’t be repaid Europe’s economy failed From 1929-1941 (entry into WWII)

Hoover Loses the Nation As unemployment, hunger and homelessness grew, Americans looked to President Hoover to end their suffering Hoover did not want to increase the government’s role in the economy or aid to the needy Encouraged private charities to aid people + businesses to maintain wages Eventually, but too late, realized change was needed

Reconstruction Finance Corporation  govt- funded program give loans directly to banks Public works—govt funded construction projects that would create jobs and assist communities with issues  Hoover Dam (cheap water-powered electricity)

Bonus Army Incident WWI veterans promised bonus for service (not due until after 1940) Veterans demand early payment in 1932  Congress rejected idea Veterans protest outside Washington DC in Hooverville—village of huts + shacks

President Hoover ordered the army to clear the campsite  a few casualties Shelters and belongings burned Americans were outraged with incident + reputation as a ‘do- nothing’ president led America to choose Franklin D Roosevelt as president in 1932.

Warm-Up: Complete review questions on page 4 in Notes Packet Schedule Warm-Up PowerPoint: FDR’s New Deal Powerful speaker analysis Key Question/Closure: How did FDR attempt to restore America’s confidence? Assignment Packet page 1 due Wednesday

Who are the people in the political cartoon? What is happening in the cartoon with the 3 characters?

FDR Takes Charge FDR’s words reassured Americans and gave them hope that their country could prosper once again From November-March, country had to wait for FDR to become president 20th Amendment  moved Inauguration to January As FDR waited, he studied America’s problems

FDR created programs to fight Great Depression  New Deal In First New Deal (1933-1935)  FDR focused on relief, recovery & reform

First 100 Days  period of time when the power and influence of the President is greatest and Congress is most cooperative

FDR’s initial steps: Declare bank holiday  close all banks and have government inspectors examine health of all banks Opened only banks that were in good shape  people begin to put money back in (banks begin to make loans)

Fire-side chats  series of radio talks in which he explained his policies to the American public

Federal Deposit Insurance Corporation (FDIC) Insures bank deposits (your money) up to a certain amount Securities and Exchange Commission (SEC) Regulate stock market + protect investors Civilian Conservation Corps (CCC) Hired young men to work on conservation (plant trees and maintain beaches + parks) Agricultural Adjustment Administration (AAA) Attempted to raise farm prices by paying farmers to lower farm output Public Works Administration (PWA) Created jobs by having people build public works (highways + bridges)

Warm-Up: Complete warm-up question on page 8 in notes packet Schedule Warm-Up Social Security Analysis FDR & Supreme Court Analysis PowerPoint Notes Key Question/Closure: Identify and describe the major issues FDR faced in his second term as President? Assignment Packet page 2 due Friday

FDR’S 2ND NEW DEAL In 1935, Congress passed the Social Security Act— provide security, in the form of old age pensions, disability payments & unemployment benefits While a person worked, a small amount of each paycheck goes to Social Security fund Work matches employee’s contributions When retired, person would receive monthly payments Wagner Act  protect labor rights (form unions, collective bargaining—wages/conditions)

Roosevelt’s Critics How do these political cartoons illustrate issues with FDR’s New Deal policies?

Republicans  knew something had to be done about the Great Depression BUT Roosevelt went too far (too much government control + spending) New Deal was seen as a form of socialism  take away private business, property, liberty = society control nation’s wealth Democrats  New Deal programs didn’t go far enough (more spending/govt control)

Throughout the 1st New Deal era, the Supreme Court had caused FDR his greatest frustration Most of the 9 judges believed FDR’s programs gave the government too much power  declared several unconstitutional

1937, FDR proposed radical Supreme Court reform bill Add 6 judges to original 9

Many saw FDR’s real vision  ‘packing the court’ with judges who share his views and support New Deal laws Interfered with checks/balances  vetoed In end, Roosevelt, got what he wanted with Supreme Court justices dying and retiring but…lost more than he won Harshly criticized (dictator)  united political opponents against him until WWII

New Deal Slows Down: Recession of 1937 Industrial production (supply) + employment decrease causes Social Security tax  took money out of paycheck = less $$ spend FDR cut back on supporting government-run programs FDR afraid of deficit spending— borrow money to fund programs while taking in less money Economy wouldn’t recover until WWII

Warm-Up: Start working on page 11 in notes packet. Schedule Warm-Up Word-Web Activities Key Question/Closure: How did the Great Depression happen? How did FDR attempt to solve the problem? What major issues did FDR run into? Assignment Packet page 2 due tomorrow + Quiz

Warm-Up: Hand in review vocabulary page and go over quiz procedures Schedule Warm-Up Great Depression Quiz When finished, grab reading + questions and complete for section 3  Due Monday Key Question/Closure: How did the Great Depression happen? How did FDR attempt to solve the problem? What major issues did FDR run into? Assignment Packet page 3 due Monday

Warm-Up: Take out notes packet and answer questions near top of page 14 Schedule Warm-Up Dust Storm Disaster PowerPoint Railroad Reading Key Question/Closure: How did most Americans fair during the Great Depression? Assignment: NONE DBQ TOMORROW

Living Through Hard Times: Dust Bowl Few people escaped financial hardship during the Great Depression Farmers, especially on the Great Plains out west, were hit the hardest In the early 1930s, a drought hit the Great Plains and lasted for several years Land had already been damaged from before by farming and grazing practices Winds picked up dry dirt and created mile long dust storms which ravaged farms and blocked out the sun Areas affected: Kansas, Oklahoma, Texas, Colorado, New Mexico (12,500 square miles)

Took until the early 1940s for steady rain to return With crops and cattle buried under layers of dirt  thousands of farmers moved to California for work (Okies from Oklahoma) By 1940, 2.5 million people left the Midwest and traveled west But California farm towns quickly became over-populated Took until the early 1940s for steady rain to return

Living Through Hard Times: Unemployment Without work, families couldn’t afford to buy food  bread lines feed thousands Lost homes  shacks, huts, under bridges, cars

Living Through Hard Times: Women & Kids Children had to grow up fast during the Great Depression Boys typically dropped out of school to work Girls stayed home to take care of younger siblings Some teens ran away from home to avoid being a burden to their families Women had to give up their jobs to men or work in low-paying jobs men didn’t want

Warm-Up: Grab DBQ Packet and begin working on outline Schedule Warm-Up Great Depression DBQ (outline + essay) Key Question/Closure: What events led to the Great Depression? How were people affected? Assignment: DBQ TOMORROW TEST COMING UP

Warm-Up: Answer the warm-up question on page 20 in notes packet Schedule Warm-Up Letters to Mrs. Roosevelt Grapes of Wrath Key Question/Closure: Culturally, how was the Great Depression perceived? Assignment: TEST COMING UP

Warm-Up: Students will pick up review packet questions and complete independently Schedule Warm-Up Review packet Class review of review packet Key Question/Closure: How did the federal government respond to the Great Depression? Assignment: TEST COMING UP

Warm-Up: Go over test procedures Schedule Warm-Up Great Depression Test Key Question/Closure: How did the federal government respond to the Great Depression? Assignment: NONE

Warm-Up: Take Cinderella Man packet from front cart. Schedule Warm-Up Great Depression discussion Background on Cinderella Man + Writing Assignment Cinderella Man Movie Writing Assignment on Cinderella Man Key Question/Closure: How does the movie Cinderella Man relate to our class discussions on the Great Depression? Assignment: Cinderella Writing Assignment

http://www.youtube.com/watch?v=eGhdX1SI3KY&bpctr=1359924646