THE GREAT DEPRESSION BEGINS Chapter 14 THE GREAT DEPRESSION BEGINS

Section 1 Economic troubles The Stock Market crashes Bank and business failure

Economic Troubles Late 1920s industries – railroads, textiles, steel, mining, lumbering – barley made a profit “Boom industries” declined- automobiles, consumer goods, construction Crop prices declined by 40 percent -> farmers defaulted on their loans -> banks seized farms as payment for debt -> many banks failed Price support bills for wheat, corn, cotton, tobacco were vetoed by Pres. Coolidge

Economic Troubles Installment plans were used to buy good on credit in the 1920s -> people accumulated debt Mass production of goods, advertising, mass media pressured people into buying Only 1/10 city homes had an electric refrigerator but the income of the rich went up by 75%

The Stock Market By 1929 most Americans still believed the economy was strong Many invested in the stock market Dow Jones Industrial Average = stock prices of 30 representative large firms trading on the NY Stock Exchange The Dow reached a high in the 1920s -> average Americans bought stocks Speculation – bought stocks on the chance of a quick profit while ignoring the risks Buying on margin – pay a small percentage of a stock and borrow money for the rest

The Stock Market Crashes September 1929, stock prices peaked and then fell Some panicked and sold their stocks October 29 – Black Tuesday – shareholders quickly try to sell stocks has prices go even lower 16.4 million shares are sold Millions of shares are not purchased Huge debts for those who bought stock on credit Investors lost $30 billion

The Great Depression 1929 – 1940 beginning with the stock market crash People took money out of banks Banks had invested in the stock market and could not give people their money 1,000s of banks closed Govt. did not protect bank accounts 90,000 business went bankrupt (railroads + automobiles) Unemployment went from 3% (1929) to 25% (1933)

Worldwide Effects U.S. imported fewer European goods 1930 – Hawley – Smoot Tariff Act Raised tax on foreign goods Other countries did not have enough money to buy American goods Made unemployment worse

Causes of the Great Depression Tariffs and war debt cut down the foreign market for American goods Crisis in farming Availability of easy credit Unequal distribution of income

1. What do you think the spirit of the farm auction was in the 1920s?

2. How does the cartoonist show the sense of fear and shock? 1. What does the cartoonist suggest will happen to individuals because of the crash? 2. How does the cartoonist show the sense of fear and shock? 3. What do the looks on people’s faces indicate about the impact of the crash? Day of Wrath

Create a Political Cartoon Illustrate some aspect of the stock market crash Its effects on business business people farmers consumers Cartoons should Illustrate the effects of the crash Convey (show) the sense of fear and shock inspired by the crash Include a caption or title that captures the essential spirit of the illustration

Sample Slide with Image http://en.wikipedia.org/wiki/File:Dust-storm-Texas-1935.png 1) Describe what you see in this picture. 2) When and where do you think this picture was taken? Explain your answer.

The Dust Bowl

The Dust Bowl Parts of the Great Plains that experienced the most intense soil erosion and dust storms of the 1930s. Parts of Oklahoma, Texas, Kansas, Colorado, and smaller parts of New Mexico and Nebraska. Image source: http://capita.wustl.edu/namaerosol/Dust%20Bowl%20map.htm

The Dust Bowl There were more than 300 dust storms, also known as “Black Blizzards,” between 1933 and 1938. These storms often featured fast moving clouds of dust several miles wide that covered farms and homes, destroyed crops, and made people sick. Image source: http://en.wikipedia.org/wiki/File:Wea01422.jpg

The Dust Bowl Many people abandoned their homes and looked for work in Western states However, many stayed behind and attempted to maintain their lives and farms. Migrant family in San Francisco, 1935 Upper image source: http://www.loc.gov/pictures/item/fsa1998018535/PP/ Lower image source: http://www.loc.gov/pictures/item/fsa2000001781/PP/ Farmer leveling dust hills in Texas, 1938

Today’s Central Historical Question: What caused the Dust Bowl?

Procedure (after groups are organized) 1 Procedure (after groups are organized) 1. Record your first hypothesis 2. Read Document A independently (5 minutes) 3. As a group, complete the section of the graphic organizer for that document (4-5 minutes) -----Natural disaster or people’s actions 4. Share as a class (2-3 minutes) 5. Repeat process for documents B, C, and D 6. Rewrite/change your hypothesis (if necessary) after discussing documents b, and c

Procedure – Guiding Questions 1. Document A – with me 2 Procedure – Guiding Questions 1. Document A – with me 2. Document B – complete guiding questions with your group (5 minutes) and discuss with class (3 minutes) 3. Document C and D – complete guiding questions with your group (10 – 15 minutes)

Document E 1. What were four causes of the Dust Bowl that professor Hurt identifies? 2. What were the long term effects of mechanized agriculture on the farmland? 3. Is this a reliable account? Why or why not?

Justification Paragraph – What caused the Dust Bowl. 1 Justification Paragraph – What caused the Dust Bowl? 1. State your claim – “The Dust Bowl was caused by……” 2. State the reason – “The reason this led to the Dust Bowl was because ……..” 3. Cite evidence (at least 2 documents) – “In Document A it states ……..” 4. Use academic language – “As a result of…” “If ……… then ……..” “This was a cause or effect of ……..” “Documents A and B are similar or different because…” “On the other hand…..” “As opposed to ……” “From the perspective of….” 5. Use content vocabulary (at least 3) – overcropping, drought, cultivated, erosion, catastrophe, volatile, incessant, conserve, cultivated, abandoned, prosperous, gales, irreparably, Great Plains, etc.

Discussion 1. What caused the Dust Bowl? 2. Whose hypotheses changed across rounds? How? Why? 3. Which documents and what evidence did you find most convincing? Why?

Journal Write about three aspects of the Dust Bowl that you did know about before viewing the documentary.

Section 2 Hardship and suffering during the Depression

DUST BOWL DOCUMENTARY http://www.pbs.org/wgbh/americanexperience/films/dustbowl/player/

The Depression in the Cities Shantytowns – little towns consisting of shacks Soup kitchens – offered low-cost or free food Breadlines – charitable organizations gave away free bread Latinos and African Americans had the lowest pay and were targets of racial violence

How did the Great Depression affect minorities?

The Depression in Rural Areas Most farmers could grow food for their families Thousands of farmers lost their land

Effects on the American Family -- family unity but some broke apart -- some men abandon their families because they cannot find jobs -- “hobos” = wanderers/beggars (300,000)

Why did so many men leave their homes?

Women and Children Struggle to Survive No direct relief – cash or food provided by the govt. Women who worked were looked down upon Malnutrition leads to children developing rickets

“Wild Boys”

How did the Great Depression affect women and children?

Psychological Effects Dreams are crushed Suicide goes up by 30% Fewer marriages More people in mental institutions Develop habits of savings Help strangers

Questions 1. How is what happened to men during the Great Depression different from what happened to women and children? 2. How did the Dust Bowl conditions in the Great Plains affect the entire country? 3. In what ways did the Great Depression affect people’s outlook?

Section 3: Hoover Struggles with the Depression

President Hoover’s 1928 campaign add When the Depression begins in 1929 how do you think people respond to this idea? ….and a car in every garage.”

Hoover’s Philosophy of Govt. Encourages voluntary cooperation between businesses and workers Federal govt. should only guide relief “rugged individualism” – people should look after themselves

President Hoover believed the government could help the economy by ______________________________________________________.

Hoover’s Cautious Reaction Bring leaders together from business, banking, labor Work together to find solutions Asks employers not to cut wages Ask labor leaders to not strike

Economy in 1930 Unemployment continues to rise

Hoover Takes Action Federal funds used for public works programs 1929 – authorizes the construction of the Hoover Dam Provides electricity, flood control, regular water supply to California, Nevada, Arizona

Hoovervilles

Americans called shantytowns ____________________ because _____________________.

Hoover Takes Action 1930-1932 Backed many federal programs Federal Farm Board – raises crop prices National Credit Corporation – loan money to smaller banks Federal Home Loan Bank Act – lowers mortgage rates Reconstruction Finance Corporation - $2 billion for emergency financing for banks, insurance companies, large businesses

Bonus Army --

How did the economy respond?