Chapter 15 THE GREAT DEPRESSION

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Presentation transcript:

Chapter 15 THE GREAT DEPRESSION The American Nation In the Modern Era 4/5/2017 Chapter 15 THE GREAT DEPRESSION Section 1: Prosperity Shattered Section 2: Hard Times Section 3: Hoover’s Policies CHAPTER 15--THE GREAT DEPRESSION

Objectives: Section 1: Prosperity Shattered Why did financial experts issue warnings about business practices during the 1920s? Why did the stock market crash in 1929? 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?

Warnings about business practices Section 1: Prosperity Shattered Warnings about business practices farm crisis “sick” industries consumers’ reliance on credit stock speculation

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

Events signaling the Great Depression Section 1: Prosperity Shattered Events signaling the Great Depression Banks failed due to heavy defaults, margin calls, and heavy withdrawals. Bank failures deprived businesses of necessary resources and customers. Businesses closed and workers lost their jobs.

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

Objectives: Section 2: Hard Times How did unemployment during the Great Depression affect the lives of American workers? 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 popular culture offer an escape from the Great Depression?

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

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

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

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

Objectives: Section 3: Hoover’s Policies 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 radicals and veterans respond to Hoover’s policies? Why was Franklin D. Roosevelt such a popular candidate in the 1932 election?

Hoover’s opposition to government relief during the Great Depression Section 3: Hoover’s Policies 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.

Hoover’s attempts to solve economic problems Section 3: Hoover’s Policies Hoover’s attempts to solve economic problems 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 Reconstruction Finance Corporation, which loaned taxpayer money to stabilize industries, helped some companies avoid bankruptcy, but used money for businesses, not people.

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

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