1. The Great Depression

2. Essential Questions Do our modern day economic problems (high gas prices, slow growth, economic uncertainty) compare to the problems of the Great Depression? Could the United States ever experience another economic slowdown similar to the Great Depression of the 1930s? How could the nation go from great economic prosperity and plunge into a nationwide and worldwide depression where over 25 percent of the population was out of work? What were the main causes of the Great Depression? What were the main impacts of the Great Depression?

3. Pre Assessment 1. Which of the following did NOT contribute to the coming of the Great Depression? a. high levels of unemployment b. falling farm prices c. overproduction d. high tariff rates e. a poor distribution of wealth and income

4. 2. The primary beneficiaries of New Deal farm programs were: a. sharecroppers b. tenant farmers c. large farmers

5. 3. The New Deal assisted workers by a. funding public works projects b. mandating an eight-hour day c. guaranteeing labor the right to organize d. all of the above e. none of the above

6. 4. The New Deal a. eliminated Depression unemployment b. broke up large corporations c. established new laws protecting the rights of women and racial minorities d. restored public morale

7. 5. Which of the following was NOT accomplished by the New Deal? a. Wealth was radically redistributed. b. American workers received unemployment insurance and old age pensions c. Impoverished children were provided with welfare payments d. Farmers received a guaranteed minimum income

8. 6. In what war did Adolf Hitler take control of Germany and conquer most of Europe? a.World War I b.Korean War c.World War II d.Persian Gulf War

9. 7.Who was president of the United States during the Great Depression? a.Teddy Roosevelt b.William McKinley c.Harry Truman d.Franklin Roosevelt

10. Answers 1. a - high levels of unemployment 2. c - large farmers 3. d - all of the above 4. d - restored public morale 5.d - Farmers received a guaranteed minimum income 6.c – World War II 7.d – Franklin Roosevelt

11. Causes of the Great Depression Over-speculation (anticipating the value of stocks will rise even when you borrowed money to buy the stock) Smoot-Hawley Tariff (tax on foreign goods) reduced trade between countries Unstable banking industry and practices

12. Causes Continued Troubles abroad – Still recovering from World War I, countries like Germany and England were in debt to the United States and suffered from hyperinflation. Germany was unable to repay the enormous reparations necessary to the Allies, further pushing its economy into the abyss and setting the stage for a “Hitler” to take power.

13. More Causes Overproduction – America produced too many goods with too few markets and too few consumers to buy them. Too much credit Uneven income distribution. The rich got richer while working Americans paid higher taxes and could not afford many consumer goods. “Run” or panic on banks. Then, lack of credit

14. Consequences/Effects Stock market crash 25-30 percent unemployment rate –In Germany, 45 percent were unemployed Those who had jobs worked shorter hours for less pay. Drop in production (factories produced 30 percent less goods) Drop in prices (farm prices dropped over 50 percent Drop in consumption (consumers bought less goods)

15. Consequences Continued Increase in government intervention –New Deal programs acted to help Americans with their suffering, provide jobs and hope for a generation who was suffering under a decade of economic ruin. –Many of these programs such as Social Security are still with us today. Drop in birth rate Increase in health concerns and problems

16. Consequences Social implications –Children were uneducated and often left to wander the streets or work. –People were forced to live in “Hoovervilles” or shantytowns which were no more than shacks made of wood and cardboard boxes. –Individuals’ emotional health was in jeopardy and many committed suicide.

17. How Did it End? Just as the causes of the Great Depression are complex, how the United States and the world emerged from economic calamity is just as unclear. The New Deal, while it did end suffering, probably did little to end the Great Depression. Some economists have even argued that it made matters worse.

18. Effects and Legacy Economists still debate what policies led to the end of the Great Depression whether it was the New Deal, WWII or even time. What is important to remember is that the Great Depression had a tremendous impact on the U.S. and the world, defined a generation for years to come and fostered a new belief in the role of government in the economy and society.

19. Did WWII end the Great Depression? A common misconception of the end of the Depression was that WWII helped bring its resolution. Certainly, the employment of WWII put many people back to work in a partially recovered economy. However, another view is that WWII emerged as a out of similar causes of the Great Depression. Germany’s forced reparations and severe economic troubles in the 1920s and 1930s led to the rise of Hitler and its desire to regain some of its power and prestige lost following WWI.

20. WWII In addition, the United States was reluctant to tackle some of the world problems that were emerging at the end of the 1930s because it was embroiled in its own economic and political troubles.

21. Images of the Great Depression Destitute pea pickers in California. Mother of seven children. (Circa February 1936)

22. Dust Storms: In 1934 and 1936 drought and dust storms ravaged the Midwest adding to the suffering of the Great Depression.

23. Many families lost their homes and farms that were later sold in auctions.

24. Families that lost their farms and homes in the Midwest, moved westward to find a new life in the fertile valleys of California. Their plight inspired such stories such as Steinbeck’s The Grapes of Wrath.

25. Long lines of people waiting to be fed in a breadline in New York City. In the absence of substantial government relief programs during the Depression, free food was distributed with private funds in some urban centers to large numbers of the unemployed.

26. Part of President’s New Deal was the development of jobs programs such Civilian Conservation Corps. We see their projects today with the construction of buildings like the lodges at many of our national parks.

27. Company 2941 of the Civilian Conservation Corps at Sunshine Point Camp in Rainier National Park. (Darius Kinsey photo courtesy of Mount Rainier National Park.)