1. Do Now Write down the Date and Daily Objective in your Notebooks
Answer the following question in your notebooks: What is the first line of the Classroom Expectations and Policies? (Hint: It’s your memorization homework for today)

2. The Great Depression Begins
CHAPTER 11
The Great Depression Begins

3. Section 1
The Causes of the Great Depression

4. The Long Bull Market
The ECONOMIC COLLAPSE of 1929 was something that NO ONE could have predicted
CALVIN COOLIDGE did not run for presidency again in 1928
Republicans nominate HERBERT HOOVER (WWI  Food Administration), Democrats nominate ALFRED SMITH
Smith loses election to Hoover by 6 million votes, a LANDSLIDE
Pres. Hoover says he has “NO FEAR” for the future of the U.S.

5. The Long Bull Market
OPTIMISM from the Federal Government led to RISING stock market and stock market PRICES
LONG BULL MARKET  GOOD for investors
[Stocks example]
People in the 1920s began to SPECULATE which led to investments based on GUESSING/GAMBLING  a BAD strategy

6. The Great Crash 1920s bull market rose as long as people INVESTED
1929  not many NEW INVESTORS, stock prices start to SLIP AND FALL
October 24, 1929  “BLACK THURSDAY”, stock market PLUMMETED, chain reaction starts
October 29, 1929  “BLACK TUESDAY”, stock market takes STEEPEST DIVE, $30 billion lost

7. The Great Crash Banks were HIT HARD by the stock market crash
Banks had LOANED $6 billion to stock market SPECULATORS
Banks had INVESTED depositors money in the stock market
No profits from the stock market led to REDUCED CREDIT and loans which led to ECONOMIC RECESSION
PANIC led to BANK RUNS which led many banks to COLLAPSE
DEPOSITORS who did not invest in the stock market still LOST money if the banks closed

8. The Roots of the Great Depression
The Great Depression was not just caused by the STOCK MARKET CRASH
UNEVEN distribution of INCOME led to OVERPRODUCTION and little DISPOSABLE INCOME
No DISPOSABLE INCOME and INSTALLMENT PLANS led to less PURCHASING which led to less DEMAND and more LAY-OFFS in manufacturing
Cyclical CHAIN REACTION

9. The Roots of the Great Depression
Many LAY-OFFS could have been avoided if American EXPORTS stayed high
Foreign countries also experiencing ECONOMIC RECESSIONS
Pres. Hoover wanted to LOWER TARIFFS for foreign trade, Republicans RAISE TARIFFS instead
American exports drop 4/5THS from 1929 to 1932

10. The Roots of the Great Depression
The Federal Reserve Board made MAJOR MISTAKES that led to the Great Depression
The Federal Reserve did not raise INTEREST RATES to stop risky LOANING
The Federal Reserve did not report that SALES were DROPPING leading to OVERPRODUCTION
The Federal Reserve raised INTEREST RATES after the crash which led to LESS CREDIT and HURT the economy more

11. Section 2
Life During the Depression

12. The Depression Worsens
Over 9,000 banks failed
Over 30,000 businesses closed
Over 12 million unemployed
Bread lines by charities fed 12,000 daily
People lost their homes  leads to the creation of shantytowns (“Hoovervilles”)
Hobos “ride the rails” to find a better life

13. The Depression Worsens
Major homesteading led to major loss of wild grasses  No grasses = no moisture in the ground, farmers inattentive in 1920s
Drought + Neglect – Moisture = soil turns to dust
From the Dakotas to Texas was called “the Dust Bowl”
Dust buried crops, livestock, and people  deadly outdoors
“Okies” (Oklahoma) and others head to California, live homeless

14. Art and Entertainment
1930s  Americans seek entertainment to help them escape the hard times and worries
Movies, radio plays, and comic books become popular (Superman and Batman created in ‘38 & ‘39)
60 million in theaters each week to see: Shirley Temple, Groucho Marx, King Kong, Walt Disney (Snow White – ’37), Jimmy Stewart, Gone With the Wind, and The Wizard of Oz

15. Art and Entertainment
Movies captured imagination, radio provided information and entertainment at home
Jack Benny, George Burns, and Grace Allen (among others) make popular radio shows like The Lone Ranger and the Green Hornet
Radio shows often sponsored by laundry soap companies  “Soap Operas”
Community of people created around radio show characters  “fandoms”

16. Art and Entertainment Literature and Art also flourish during the ‘30s
John Steinbeck writes novels about social injustices, sympathy for characters
William Faulkner develops “stream of consciousness” writing technique, wins the Nobel Prize for Literature
Thomas Benton and Grant Wood develop painting style called “regionalist” that depicts American values in rural Midwest and South (now referred to as “American Gothic”)

17. Section 3
Hoover Responds to the Depression

18. Promoting Recovery
Hoover tried to be optimistic to avoid increasing fear, believed in American Individualism
Public works projects only created some jobs, not enough
Hoover and government could not raise or lower taxes to fix economy
1930 elections  public blames the party in power (the Republicans) for the ailing economy and lose many seats in House and Senate

19. Promoting Recovery
Hoover tried to save the banks to help the economy  set up the National Credit Corporation  wasn’t that effective, economy still declining
Hoover and Congress set up the Reconstruction Finance Corporation to make loans to businesses  didn’t help enough, economy still declining
Hoover did not believe that financial relief should come from the federal government
1932  Congress passes the Emergency Relief and Construction Act, it helped but too late to save the economy

20. In an Angry Mood
1931  Americans angry and discontent about the economy, “hunger marches” start across the country
Farmers had taken mortgages that they couldn’t pay now, many farms foreclosed, crops gone to waste
1931  Veterans march on Washington D.C. to get their bonuses from WWI, “Bonus Army”, “Bonus marchers”
Bonus Army was sent away and then driven away by the army and General Douglas MacArthur
Hoover gained bad reputation, but he had done more than any other president to increase the role of the federal government in the economy