The Great Depression American History (B) Mr. Simmons

Election of 1928 Herbert Hoover (R) v. Alfred Smith (D) Prohibition played key role, also fact that Smith was Catholic Republicans claimed all success of Roaring Twenties Hoover won election by landslide in 1928

Long Bull Market Bull Market – long period of rising stock prices Margin buying with small cash down payments, safe unless price of stocks fail Margin call – demanded investor repay loan immediately Blind trust in rising stocks caused speculation

The Great Crash By late 1929, lack of new investors, caused stock prices to decline Margin calls led to sales which caused value to drop lower On October 29, 1929 (Black Tuesday) stocks lost value of billion dollars Weakening of banking system – defaults on loans led to bank runs

The Roots of the Great Depression Efficiency led to overproduction of goods Uneven distribution of wealth Low consumption, decrease in sales led to layoffs Americans started using the installment plan (loans) led to less expendable money Tariffs (Good v. Bad) Interest Rates (lowering instead of raising)

Discussion Questions 1. Was the great Depression a American or a Global Event? 2. Why would you blindly buy stock in companies without even researching any aspect of the earnings?

The Depression Worsens Thousands of Banks closed, High Unemployment, Soup Kitchens, and Bread Lines Many lost their homes – shantytowns or “Hoovervilles” In 1932 uncultivated fields and drought led to the “Dust Bowl” Farmers move West (Grapes of Wrath)

Escaping the Depression Idea of overcoming hardships and success – radio and movies In 1937 Walt Disney created first full- length feature film Snow White and Seven Dwarfs, others The Wizard of Oz, Mr. Smith Goes to Washington, Gone with the Wind – all had theme of triumph over adversity an a better life Soap Operas became popular

Depression in Art Homeless and unemployed were often subjects of art and literature Grant Woods, John Steinbeck's, Grapes of Wrath told story of family who lost farm in Oklahoma and struggles they went through William Faulkner wrote about the feelings of southern whites and African Americans in Mississippi

Discussion Questions 1. Why would art emphasize a better life and triumph over adversity? 2. Who did most people blame for the depression?

Promoting Recovery Hoover met with heads of government, industry, and banks with all agreeing to stay open and stop cutting wages Hoover increased public works – government building projects, but refused deficit spending Blame lay solely with Republicans in American’s eyes, lost 49 congressional seats

Pumping Money into Economy Hoover tried to persuade Federal Reserve Board to put more money in circulation, but they refused Hoover created the National Credit Corporation (NCC) to pool money to help banks, but it failed Reconstruction Finance Corporation to make loans to industry (too cautious in loan amounts) Hoover felt relief was local and state governments responsibility Emergency Relief and Construction Act – direct relief

An Angry Mood Discontent lead to riots and protesting Between 1930 and 1934 almost a million farms were foreclosed on. The Bonus Army – veterans protested not being paid bonuses, several deaths occurred

Discussion Questions 1. Who did most Americans blame for the Depression? 2. What was Hoover’s plan for economic recovery? 3. What was the problem with Hoover’s actions to stimulate the economy? 4. Did Hoover do anything positive as a president?