1. Click the Speaker button to listen to the audio again.
Intro 1

2. continued on next slide
Intro 7

3. Intro 8

4. Section 1-1 Guide to Reading Main Idea Key Terms and Names
Inflated stock prices, overproduction, high tariffs, and mistakes by the Federal Reserve led to the Great Depression.
Key Terms and Names
Alfred E. Smith
speculation
Black Tuesday
installment
Hawley-Smoot Tariff
stock market
bull market
margin
margin call
Click the mouse button or press the Space Bar to display the information.
Section 1-1

5. Chapter 17 Section 1 I can: explain the events that led to the Great Depression

6. Click the Speaker button to listen to the audio again.
Section 1-4

7. Section 1-5 The Election of 1928
The 1928 election placed Herbert Hoover, on the Republican ticket against Democratic candidate, Alfred E. Smith.
The issue of Prohibition played a major role in the campaign.
Hoover favored a ban on liquor sales.
Smith opposed the ban.
(pages 530–531)
Section 1-5

8. Section 1-6 The Election of 1928 (cont.)
Religious differences between the candidates had a major effect on the campaign.
The Catholic issue led to a smear campaign against Smith.
The Republicans took full credit for the prosperity of the 1920s, and Herbert Hoover easily won the 1928 election .
(pages 530–531)
Click the mouse button or press the Space Bar to display the information.
Click the mouse button or press the Space Bar to display the information.
Section 1-6

9. Click the mouse button or press the Space Bar to display the answer.
The Election of 1928 (cont.)
What were the major campaign issues in the election of 1928?
The issue of Prohibition played a major role in the campaign. Hoover favored a ban on liquor sales. Smith opposed the ban. Religious differences between the candidates had a major effect on the campaign. The Catholic issue led to a smear campaign against Smith. The Republicans took full credit for the prosperity of the 1920s.
(pages 530–531)
Click the mouse button or press the Space Bar to display the answer.
Section 1-7

10. Section 1-8 The Long Bull Market
The stock market was established as a system for buying and selling shares of companies.
A long period of rising stock prices is known as a bull market.
Prosperous times during the 1920s caused many Americans to invest heavily in the stock market.
(pages 531–532)
Click the mouse button or press the Space Bar to display the information.
Section 1-8

11. Section 1-9 The Long Bull Market (cont.)
As the bull market continued to go up, many investors bought stocks on margin, making a small cash down payment.
This was considered safe as long as stock prices continued to rise.
If the stock began to fall, the broker could issue a margin call demanding that the investor repay the loan immediately.
(pages 531–532)
Click the mouse button or press the Space Bar to display the information.
Section 1-9

12. Section 1-10 The Long Bull Market (cont.)
In the late 1920s, new investors bid prices up without looking at a company’s earnings and profits.
Speculation occurred when investors bet on the market climbing and sold whatever stock they had in an effort to make a quick profit.
(pages 531–532)
Click the mouse button or press the Space Bar to display the information.
Section 1-10

13. Click the mouse button or press the Space Bar to display the answer.
The Long Bull Market (cont.)
Why were stock market investors in the 1920s sensitive to any fall in stock prices?
Investors were uneasy about any fall in the price of stocks because it meant they might be unable to make money quickly to repay their loans.
(pages 531–532)
Click the mouse button or press the Space Bar to display the answer.
Section 1-11

14. Section 1-12 The Great Crash
By late 1929, a lack of new investors in the stock market caused stock prices to drop
As stockbrokers advised their customers of margin calls, customers responded by placing their stocks up for sale, causing the stock market to plummet further.
Stock prices fell drastically on October 29, 1929, Black Tuesday, resulting in a $10 to $15 billion loss in value.
(pages 532–533)
Click the mouse button or press the Space Bar to display the information.
Section 1-12

16. Section 1-13 The Great Crash (cont.)
This did not cause the Great Depression, but it did weaken the economy.
The stock market crash weakened the nation’s banks.
Banks lost money on their investments, and speculators defaulted on loans.
Because the government did not insure bank deposits, customers lost their money if a bank closed.
(pages 532–533)
Click the mouse button or press the Space Bar to display the information.
Section 1-13

17. Section 1-14 The Great Crash (cont.)
Bank runs resulted as many bank customers withdrew their money at the same time, causing the bank to collapse.
(pages 532–533)
Section 1-14

18. Click the mouse button or press the Space Bar to display the answer.
The Great Crash (cont.)
How did the stock market crash weaken the nation’s banks?
The stock market crash caused the banks to lose money on their investments, and speculators defaulted on bank loans. Because the government did not insure bank deposits, customers lost their money if a bank closed. Bank runs resulted as many bank customers withdrew their money at the same time, causing the bank to collapse.
(pages 532–533)
Click the mouse button or press the Space Bar to display the answer.
Section 1-15

19. Section 1-16 The Roots of the Great Depression
Efficient machinery led to overproduction, and Americans could not afford to buy all the goods produced.
In 1929 the top 5 percent of American households earned 30 percent of the country’s income.
More than two-thirds of the nation’s families earned less than $2,500 a year.
(pages 533–534)
Click the mouse button or press the Space Bar to display the information.
Section 1-16

20. Section 1-17 The Roots of the Great Depression(cont.)
Worker’s wages did not increase fast enough to keep up with the quick production of goods.
As sales decreased, workers were laid off, resulting in a chain reaction that further hurt the economy.
(pages 533–534)
Click the mouse button or press the Space Bar to display the information.
Section 1-17

21. Section 1-18 The Roots of the Great Depression(cont.)
Many Americans bought on the installment plan, making a down payment and paying the rest in monthly installments.
Paying off installment debts left little money to purchase other goods.
The Hawley-Smoot Tariff intensified the Depression by raising the tax on imports.
Americans purchased less from abroad because of the high cost.
(pages 533–534)
Click the mouse button or press the Space Bar to display the information.
Section 1-18

22. Section 1-19 The Roots of the Great Depression (cont.)
In return, foreign countries raised their own tariffs on American products.
The Federal Reserve Board made the mistake of lowering interest rates.
This encouraged banks to make risky loans and misled business owners into thinking the economy was still expanding.
(pages 533–534)
Click the mouse button or press the Space Bar to display the information.
Section 1-19

23. Click the mouse button or press the Space Bar to display the answer.
The Roots of the Great Depression (cont.)
How did the Federal Reserve Board help cause the Depression?
Lowering the interest rate instead of raising it helped cause the Depression in two ways. First, it encouraged banks to make risky loans. Second, it made it appear as if the economy was still thriving, which caused businesses to borrow money to further expand their production.
(pages 533–534)
Click the mouse button or press the Space Bar to display the answer.
Section 1-20

24. Click the mouse button or press the Space Bar to display the answers.
Checking for Understanding
Define Match the terms on the right with their definitions on the left.
__ 1. a system for buying and selling stocks in corporations
__ 2. investing money at great risk with the anticipation that the price will rise
__ 3. buying a stock by paying only a fraction of the stock price and borrowing the rest
__ 4. a long period of rising stock prices
__ 5. demand by a broker that investors pay back loans made for stocks purchased on margin A
A. stock market
B. bull market
C. margin
D. margin call
E. speculation E C B D
Click the mouse button or press the Space Bar to display the answers.
Section 1-21

25. Click the mouse button or press the Space Bar to display the answer.
Checking for Understanding (cont.)
Explain the significance of the year 1929.
The Great Depression began.
Click the mouse button or press the Space Bar to display the answer.
Section 1-22

26. Click the mouse button or press the Space Bar to display the answer.
Reviewing Themes
Economic Factors How did the practices of buying on margin and speculation cause the stock market to rise?
Speculation drove up market prices beyond the stock’s value.
Click the mouse button or press the Space Bar to display the answer.
Section 1-23

27. Click the mouse button or press the Space Bar to display the answer.
Critical Thinking
Determining Cause and Effect Why did the stock market crash cause banks to fail?
Banks had lent money to stock speculators and had invested depositors’ money in stocks.
Click the mouse button or press the Space Bar to display the answer.
Section 1-24

28. Click the mouse button or press the Space Bar to display the answer.
Analyzing Visuals
Analyzing Graphs Study the graphs on page 532 of your textbook. Note that decreased demand for automobiles ultimately led to layoffs. These layoffs further decreased the demand for automobiles. What do you think might have ended this cycle?
Answers will vary.
Click the mouse button or press the Space Bar to display the answer.
Section 1-25

29. Close
List the causes of the Great Depression.
Section 1-26

30. End of Section 1

31. Section 2-1 Guide to Reading Main Idea Key Terms and Names
Many people were impoverished during the Great Depression, but some found ways to cope with the hard times.
Key Terms and Names
bailiff
Walt Disney
soap opera
Grant Wood
John Steinbeck
William Faulkner
shantytown
Hooverville
hobo
Dust Bowl
Click the mouse button or press the Space Bar to display the information.
Section 2-1

32. Chapter 17 Section 2 I can: discuss the impact the Great Depression had on Americans

33. Click the Speaker button to listen to the audio again.
Section 2-4

34. Section 2-5 The Depression Worsens
By 1933 thousands of banks had closed and millions of American workers were unemployed.
Unemployed workers often stood at bread lines to receive free food or at soup kitchens where private charities gave a free meal to the poor.
Americans unable to pay their mortgage or rent lost their homes.
(pages 535–537)
Click the mouse button or press the Space Bar to display the information.
Click the mouse button or press the Space Bar to display the information.
Section 2-5

36. Section 2-6 The Depression Worsens (cont.)
A court-ordered eviction notice delivered by a bailiff who forced nonpaying tenants out onto the street.
Many of the homeless built shacks in shantytowns, which they referred to as “Hoovervilles” because they blamed the president for their financial trouble.
Hobos, or homeless Americans who wandered around hitching rides on railroad cars, searched for work and a better life.
(pages 535–537)
Click the mouse button or press the Space Bar to display the information.
Section 2-6

39. Section 2-7 The Depression Worsens (cont.)
As crop prices dropped in the 1920s, many American farmers left their fields uncultivated.
A terrible drought in the Great Plains, beginning in 1932, caused the region to become a “Dust Bowl.”
Many Midwestern farmers and Great Plains farmers lost their farms.
Many families moved west to California hoping to find a better life.
(pages 535–537)
Click the mouse button or press the Space Bar to display the information.
Section 2-7

42. Click the mouse button or press the Space Bar to display the answer.
The Depression Worsens (cont.)
What happened to unemployed workers and Midwestern and Great Plains farmers during the Depression?
(pages 535–537)
Click the mouse button or press the Space Bar to display the answer.
Section 2-8

43. Section 2-9 The Depression Worsens (cont.)
Unemployed workers often went to bread lines or soup kitchens to receive free food. Americans unable to pay their mortgage or rent lost their homes. Many of the homeless built shacks in shantytowns. Hobos wandered around hitching rides on railroad cars, searching for work and a better life. As crop prices dropped in the 1920s, many American farmers left their fields uncultivated. A terrible drought in the Great Plains, beginning in 1932, caused the region to become a “Dust Bowl.” Many Midwestern farmers and Great Plains farmers lost their farms. Many families moved west to California hoping to find a better life, but most of them still faced poverty and homelessness.
(pages 535–537)
Section 2-9

44. Section 2-10 Escaping the Depression
Americans escaped the hardships of the Depression by going to the movies and listening to radio broadcasts.
Stories tended to be about overcoming hardships and achieving success.
Walt Disney produced the first feature-length animated film, Snow White and the Seven Dwarfs, in 1937.
Other films, like The Wizard of Oz, Mr. Smith Goes to Washington, and Gone with the Wind, contained stories of triumph and visions of a better life.
(pages 537–538)
Click the mouse button or press the Space Bar to display the information.
Section 2-10

45. 1937
1939
1939
1939

46. Escaping the Depression (cont.)
Families gathered around the radio daily to hear news or listen to comedians like George Burns or a dramatic series like the Lone Ranger.
Melodramas, called soap operas, became very popular with housewives.
Soap operas received their name because makers of laundry soaps often sponsored them.

47. Click the mouse button or press the Space Bar to display the answer.
Escaping the Depression (cont.)
Why were movies and radio programs important during the Depression?
Movies and radio programs allowed Americans to escape their own lives and use their imagination.
(pages 537–538)
Click the mouse button or press the Space Bar to display the answer.
Section 2-12

48. The Depression in Art
John Steinbeck’s 1939 novel The Grapes of Wrath told the story of an Oklahoma family fleeing the Dust Bowl to find a new life in California.
Steinbeck, like many writers of this time, wrote of poverty, misfortune, and social injustice.

49. Section 2-15 The Depression in Art (cont.)
Novelist William Faulkner’s literary technique, revealed characters’ thoughts and feelings before they spoke–thoughts they dared not reveal.
In his novels, he exposed hidden attitudes of Southern whites and African Americans in a fictional Mississippi county.
(pages 538–539)
Section 2-15

50. Click the mouse button or press the Space Bar to display the answer.
The Depression in Art (cont.)
What was emphasized in the work of Thomas Hart Benton and Grant Wood?
The two artists were a part of the regionalist school, which focused on traditional American values, particularly those of the rural Midwest and South.
(pages 538–539)
Click the mouse button or press the Space Bar to display the answer.
Section 2-16

51. Click the mouse button or press the Space Bar to display the answers.
Checking for Understanding
Define Match the terms on the right with their definitions on the left.
__ 1. minor officer of the courts
__ 2. name given to the area of southern Great Plains severely damaged by droughts and dust storms during the 1930s
__ 3. nickname given to shantytowns in the United States during the Depression
__ 4. a poor section of town consisting of crudely built dwellings usually made of wood
__ 5. a homeless and usually penniless wanderer A
A. bailiff
B. shantytown
C. Hooverville
D. hobo
E. Dust Bowl E C B D
Click the mouse button or press the Space Bar to display the answers.
Section 2-17

52. Click the mouse button or press the Space Bar to display the answer.
Checking for Understanding (cont.)
Explain what caused the Dust Bowl conditions on the Great Plains.
Uncultivated fields, depletion of grasslands protecting soil, and drought caused the conditions.
Click the mouse button or press the Space Bar to display the answer.
Section 2-18

53. Click the mouse button or press the Space Bar to display the answer.
Reviewing Themes
Culture and Traditions In what ways did people seek to forget about the Depression?
Americans looked to radio and motion pictures as an escape.
Click the mouse button or press the Space Bar to display the answer.
Section 2-19

54. Click the mouse button or press the Space Bar to display the answer.
Critical Thinking
Making Inferences Why do you think Life magazine was so popular during the 1930s?
Its photos provided a powerful commentary on American life.
Click the mouse button or press the Space Bar to display the answer.
Section 2-20

55. Click the mouse button or press the Space Bar to display the answer.
Analyzing Visuals
Analyzing Photos Study the photograph on page 536 of your textbook. Think of three adjectives that you would use to describe the people in the photograph. Using these objectives, write a paragraph describing the family pictured.
Answers will vary.
Click the mouse button or press the Space Bar to display the answer.
Section 2-21

56. Close
Discuss how artists captured the effects of the Depression.
Section 2-22

57. End of Section 2

58. Click the mouse button or press the Space Bar to display the answers.
Reviewing Key Terms (cont.)
Define Match the terms on the right with their definitions on the left.
__ 6. buying an item on credit with a monthly plan to pay off the value of the good
__ 7. buying stock by paying only a fraction of the stock price and borrowing the rest
__ 8. name given to the area of the southern Great Plains severely damaged by droughts and dust storms during the 1930s
__ 9. to take possession of a property from a mortgagor because of defaults on payments
__ 10. minor officer of the courts D
A. bull market
B. margin
C. margin call
D. installment
E. bailiff
F. shantytown
G. Hooverville
H. Dust Bowl
I. public works
J. foreclose B H J E
Click the mouse button or press the Space Bar to display the answers.
Chapter Assessment 2