Aim: Was the Great Depression inevitable? Essential Questions: (1)What contributed to the economic downfall of the Great Depression? (2)Did Hoover make logical arguments for his policy choices? (3)Can social programs save capitalism? (Ah, the irony!)

Causes of the Great Depression Overproduction Real Estate Speculation Buying on Credit Stock Market Speculation, Buying on margin - Crash of 1929 Hoover’s ‘Trickle Down’ Economics -Norris-LaGuardia Anti Injunction Act -Reconstruction Finance Corporation (RFC) -Bonus Army

When everyone wants their money all at the same time, a problem comes up (The Crash—Black Tuesday and Thursday).

Overproduction Sales were good, and companies expected sales to get even better. So companies overproduced. New techniques and machines made production more efficient. Unfortunately, these techniques and machines replaced workers who were no longer needed. Trouble came when sales began to slow down. Then more workers needed to be laid off. The laid off workers couldn’t purchase the goods produced in such large quantities. This led to even more unemployment because the companies were losing money on surplus products (supply high, demand low, price goes down).

Business Failures in the United States

Stock Market (Speculation) The government did little to stop people from investing in worthless stocks. It should have stopped the practice of buying stocks with only 10 % down. The government should have kept a closer eye on banks that were investing depositors’ money in worthless stocks (lack of regulation). Maintaining high tariffs (taxes on goods from other countries) severely hurt international trade, caused Europe to go into an economic depression and stifled trade. The government should have lowered these tariffs.

The Crash-Black Tuesday and Thursday What were people doing on this day? When was it finally over? October 24, Black Tuesday – Hundreds of people began widely selling their stocks-Panic October 29, 1929-Black Thursday

Stock Markets in Plain English

Streets the day the NY stock market crashed

A crowd gathers outside New York’s American Union Bank during a bank run in 1931.

Unemployment line in New York City

Results of the Crash Many people lost their jobs Businesses and banks closed due to lack of money People lost their lives Hoovervilles By 1932, ¼ of all workers were out of jobs

Unemployment Businesses went bankrupt Unemployment soared in the 1930s 1 in every 4 workers was jobless Millions of workers shortened hours or took pay cuts Jobless lost their homes

Children

Hungry Americans waiting in line for food during the Great Depression

The Elderly

No services for the aging in America No work or money Government did not provide services No retirement funds

African Americans

Had little opportunities before The Great Depression % of African Americans were unemployed

Children Families suffered Marriage and birth rates dropped Hungry parents and children searched through city dumps and restaurant garbage cans

Hoovervilles

Americans blamed President Hoover for doing very little Americans gave the name “Hoovervilles” to the shacks where homeless lived.

/multimedia/lesson59/lessonp_uccp_ap.html DEPRESSION

Farmers

1931 Great Plains Drought- no water 1939 dust storms- Dust Bowl Unlivable conditions Millions of acres of farmland damaged

Summary President Hoover did nothing to help the American people. The government knew something had to be done. Finally, there was an election year. How can an election year help a country in trouble?

Who’s to blame for the Great Depression? Individual Work: Write a thesis statement. Give three pieces of evidence to defend it. Present a counter-claim and argue against it. Concluding Sentence. ✔ + Strong clear thesis statement, 3 analytical arguments with specific evidence. Thoughtful counter-claim and rebuttal. Concluding sentence. ✔ Clear thesis, at least 2 analytical arguments made with each document, one counter claim, no concluding sentence ✔ - Missing a thesis/missing evidence/missing the counter claim.

President Hoover Responds Did not believe that the government should become directly involved in helping to end the business Opposed government relief programs Called on private charities to set up soup kitchens Set up public works programs – Hire workers to build schools, construct damns, and pave highways

Hoover’s Policies…better late than never? -Norris-LaGuardia Anti Injunction Act: outlawing businesses from making anti-union, "yellow-dog" contracts. The act also prevented federal courts from issuing injunctions to restrain strikes, boycotts, and picketing. -Reconstruction Finance Corporation (RFC): pump- priming loans that would boost the economy, yet most of these went to corporations. -Bonus Army: a group of 20,000 veterans who camped in makeshift shantytowns in Washington to lobby for immediate payment of their deferred insurance bonus. Congress vetoed a bill that would have acceded to their demands, and Hoover was left with the responsibility of disbanding the veterans. (Awkward!)