USE THE READING STRATEGY TO READ CHAPTER 15

Causes of the Depression Stock Market – Buying on margin & stock speculation – Selling at a loss – Bank closings

2. BANK FAILURES Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures

CAUSES OF THE GREAT DEPRESSION AGRICULTURAL OVERPRODUCTION POOR ENVIRONMENTAL POLICIES & PRACTICE INDUSTRIAL OVERPRODUCTION UNEVEN DISTRIBUTION OF WEALTH OVERSPECULATION +MARGIN BUYING EASY MONEY (CREDIT) POOR MONETARY POLICY POOR FISCAL POLICY HIGH TARIFFS

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. 5

Market Causes of the Depression Stock Market – Buying on margin & stock speculation – Selling at a loss – Bank closings

Causes of the Depression Stock Market Crash – Get out while the getting’s good – Black Thursday – Black Tuesday CLICK TO SEE BLACK TUSEDAY VIDEO

Causes of the Depression Government policies on business – Laissez-faire policies – Unprecedented growth – Who’s to blame? Coolidge Harding Hoover

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. 9

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. 10

Causes of the Depression Stock Market Crash – Get out while the getting’s good – Black Thursday – Black Tuesday

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. 12

Buying on Margin Video Single click screen to view video

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. 14

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 15

Causes of the Depression Unstable economy – Standard of living is up – Credit – Rookie stock owners

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. 17

Psychological Impact Responsibility – Self-reliance – Merit-based rewards – Self blame & doubt

Psychological Impact Anxiety – Factories close – Inflation up – Foreclosures – Hunger

Psychological Impact Depression – Humiliation Brother, Can You Spare a Dime? – Expectations – Help??? Single click speaker to hear audio clip >>>>

Psychological Impact Suicide – Numbers climb – Mostly males – War effects

Physical Impact Hunger & Diet – Poor eating = bad health – Malnutrition is prevalent

Physical Impact Inadequate medical care “Luxury”? Long-term effects Low priority Picture from the Franklin D. Roosevelt Library, courtesy of the National Archives and Records Administration.

Impact on the Family Women forced to work The argument versus the reality Women were less likely to lose jobs Women actually gained jobs

Children and teens forced to work Teenage workers Role reversal Impact on the Family

President Hoover’s Philosophy No government help Bureaucracy Work ethic Homerville's

Hoover Video Single click screen to view video

President Hoover’s Actions Raising import taxes Public works programs Reconstruction Finance Corporation

Farm Problems Farmers suffer too Three main causes

Farm Problems What a pest... – Boll weevil Irresponsible – Single-crop farming

Dust Bowl No more rain Dust storms Poor plowing techniques Lost topsoil

Dust Bowl Map

Dust Storms Black Blizzards Black Sunday Dust Pneumonia

Conservation Efforts Last Man’s Club Hugh Bennett The Plow that Broke the Plains The ultimate visual aid Bennett

“Okies” Headin’ West California – the Promised Land? Route 66 The Grapes of Wrath

Route 66 Map

“Okie” Problems Unwanted Pickers

Socialism??? Emigration Huey Long “Share the Wealth” “Every Man a King” Long

The People’s Response Bonus Army 1932 election

FDR—The Common Man Happy Days are Here Again! Polio Contact with farmers “Champion of the Common Man” “The only thing we have to fear is fear itself” Single click speaker to hear audio clip >>>> FDR

Fireside Chats Reassurance Restoring trust Weekly addresses

The New Deal Reforms to put America back to work Alphabet Soup government Short-term solution Brings government into business

New Deal—Banks are Back! Restoring bank confidence One-week bank holiday Federal Deposit Insurance Corporation (FDIC)

New Deal Programs Tennessee Valley Authority (TVA) Agricultural Adjustment Act (AAA) Civilian Conservation Corps (CCC)

New Deal Programs Federal Arts Program (FAP) Works Progress Administration (WPA)

Labor Issues Power to the owners AFL-CIO split Presidential support for workers Accomplishments

Prohibition Repealed 21 st Amendment Violation of personal liberty Revenue source Political leanings

Radio War of the Worlds Swing music Evangelists McPherson Welles Single click speakers to hear audio clips >>>>

Radio Gossip columnists Comedy Auto advertising Single click speakers to hear audio clips >>>> Winchell Benny Advertisement Benny Burns

Big Band Music of the ’30s Swing music Band leaders Dorsey Single click speakers to hear audio clips >>>> Miller MillerEllington

Combo Bands of the ’30s Combo bands Benny Goodman Goodman Single click speaker to hear audio clip >>>>

Folk Music of the ’30s Folk music Woody Guthrie Huddie Ledbetter Ledbetter Guthrie Single click speaker to hear audio clip >>>>

Pop Music of the ’30s Andrews Sisters Bing Crosby Shirley Temple Temple & Crosby Andrews Sisters Single click speaker to hear audio clip >>>>

Musical Movies of the ’30s Movie musicals Singing cowboys Rogers Porgy and Bess Single click speakers to hear audio clips >>>>

Movies Golden Age of Hollywood Technicolor Full-length animation Drive-in theaters

Theater Video

Movie Stars Jean Harlow and Greta Garbo John Wayne Johnny Weissmuller Shirley Temple Three Stooges/Laurel and Hardy Harlow Single click speakers to hear audio clips >>>>

African-American Advances Jesse Owens Joe Louis Benny Goodman’s Orchestra Marian Anderson Louis Owens

Notable Names Amelia Earhart Lindbergh baby kidnapping Lindbergh Earhart

Notable Names Lou Gehrig Hindenburg Gehrig

Hindenburg Video Single click screen to view video

Horse Racing Gambling addictions Triple Crown Seabiscuit

Hardships during the depression poverty diminished expectations low prices or lack of market for farm products farm foreclosures hunger homelessness deportation for aliens 63

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 64

Seabiscuit Video Single click screen to view video

Concluding Thoughts How depressing! Alphabet Soup Pop culture icons Strengthened nation

Hard time killing floor blues (1931)

HOMEWORK