CHAPTER 28 Section 1:The Postwar Era Section 2:Postwar Prosperity Crumbles Section 3:Political Tensions After World War I Section 4: Fascist Dictatorships in Italy and Germany Section 5: Dictatorship in the Soviet Union The Great Depression and the Rise of Totalitarianism

SECTION 2 Bell Ringer 19.2: What economic weaknesses led to the Great Depression? Postwar Prosperity Crumbles

The Great Depression A.Europe began the Great Depression in During a depression there is very low economic activity and high unemployment.

B.The Great Depression had two main causes: 1.Farmers expenses (machinery) rose higher than the prices they received for their crops. Farmers could not payback their loans, so they lost their farms. 2.The second cause was the collapse of the U.S. stock market in 1929.

SECTION 2 Postwar Prosperity Crumbles Stock Market Market speculations (risky investments) Stock prices soar... Investors believed stock prices would continue to rise. Many bought stocks on margin – borrowing the money to buy stocks. If prices went up … great. But if prices went down?

6 In August 1929, many investors were worried that the economic boom might end so they began selling off their stocks. The rash of selling caused the stock prices to fall. stocks The Stock Market Crash

7 On Tuesday October 29th, also known as Black Tuesday, their was a stampede of selling in the stock market. This caused stocks to be worthless. Black Tuesday stock market

8 During the Great Depression, families suffered. Marriage and birth rates dropped. Hungry parents searched for food to feed their families. Families doubled up, taking in aunts, uncles, and cousins. People felt they were a failure because they could not find work.

12. Churches set up soup kitchens or places where the hungry could get a good meal.soup kitchens

13 Father DivineFather Divine, an African American religious leader, fed 3,000 hungry people a day in his soup kitchen. President Herbert Hoover set up public work projects. Father Divine Public work projects

14 Many blamed the President for doing so little. They gave the name Hoovervilles to the shacks where the homeless lived.Hoovervilles

15 II. The Nation in Hard Times During the 1930’s, states from Texas to the Dakotas suffered a severe drought. High winds carried the soil away. As a result, this area became known as the dust bowl. Dust storms buried houses and farms. Years of over grazing cattle on the land caused the disaster.dust bowl

16 Poor farmers lost their farms due to the dust storms. They became migrant workers, people who moved from one region to another in search of work.migrant workers migrant workers in the 1930’s Poor farm families

17 The Grapes of WrathThe Grapes of Wrath by John Steinbeck told of the heartbreaking story of the Okies trying to find new homes in California. Grant Wood painted an Iowa farmer and his daughter (American Gothic) who look determined enough to survive any hardship.John Steinbeck Grant Wood John SteinbeckThe Grapes of Wrath American Gothic American Gothic (1930) Grant Wood

The United States was terribly affected by the Great Depression. President Herbert Hoover was unable to turn the economy around. In 1932, Franklin Roosevelt was elected President on a jobs promise program called the New Deal By 1933, 15 million people were out of work. 24.9% unemployment 10% 2009

21 As part of his New Deal FDR started the Civilian Conservation Corps which hired men to plant trees, build bridges, and work on flood control projects. The Works Progress Administration was created to enable the jobless to work making clothes, building hospitals and schools. Civilian Conservation Corps Works Progress Administration

22 To help farmers the Agricultural Adjustment Act was passed. Farmers were paid by the government not to grow certain crops. Roosevelt hoped with smaller harvests would control supply and demand prices for farmers.

23 The Tennessee Valley Authority helped rebuild Tennessee after the devastation of floods. Dams were built and trees were planted. The area was transformed from a place destined to poverty to an prosperous area. Tennessee Valley Authority