1. CAUSES OF THE GREAT DEPRESSION

2. CAUSES OF THE GREAT DEPRESSION
Industries in trouble
Railroad loses business
Textile industry faces foreign competition
Wartime needs no longer exist
Housing decreases
Farmers growing too much
Food demand falls greatly after the war by 50%
Farmers over planted and owe loans
Farmers flooded the market
Banks foreclose

3. CAUSES OF THE GREAT DEPRESSION
Americans were buying less
Falling wages caused people to save and decreased their spending
Living on credit
Installment plan of the 1920’s caused consumers to create a large debt they are now unable to pay

4. CAUSES OF THE GREAT DEPRESSION
Uneven distribution of income
Income of the wealthiest 1% of America grew by 75% between 1920 and 1929
The stock market crash
Years of bull market gave false hope
People buying on margin: pay a little in hopes that you make a profit to pay off the balance
Speculation: buying stocks and bonds to make a quick and large profit
October 29, Black Tuesday-people began pulling their money out of the market and prices fell, so more pulled out causing it to crash

5. AMERICAN LIFE: ·Life in the rural areas- Life in the city-
Farmers were able to grow food
400,000 farms were foreclosed between 1929 and 1932
Many began tenant farming
Life in the city-
People were evicted and forced to live in shantytowns or towns of makeshift shacks built of scraps or garbage on the borders of the cities (Hoovervilles)
Privately funded relief was given to the unemployed and their families in soup kitchens and breadlines
Increase in racial violence

6. AMERICAN LIFE: The Dust Bowl
Land was over farmed and unsuitable to grow crops
Weather changes: drought and wind and nothing to hold the soil down
Great windstorms hit the plains and blew the dirt to the Atlantic ocean in some storms
Forced farmers to leave their land-migrant farmers traveled to California to find work as farm hands
Okies was one term describing migrants from OK

7. AMERICAN LIFE: The family- Families stayed home and tried unity
Men had difficulty not being able to support their families, many abandoned them
No Federal welfare or direct relief system
Some women worked outside the home for less pay
Malnutrition and Schools closed for children
**Between 1928 and 1932 suicide rate rose by almost 30% Stigma of poverty

8. The Great Depression The Depression Presidents: Herbert Hoover
Franklin Delano
Roosevelt

9. PRESIDENTS AND THE GREAT DEPRESSION:
HERBERT HOOVER
America was to remain optimistic; continue a normal life
This depression is a normal part of the business cycle
Hoover’s administration-do-nothing policy
Hoover believed in rugged individualism
He opposed any direct relief from the federal government

10. HERBERT HOOVER Farmers rioting
Burning of crops and dumping milk on the highway
Farm holiday
Rebelling against Hoover
Hoovervilles, Hoover blankets, Hoover flags
Public works program
Provide jobs for the unemployed-Boulder Dam
Federal Farm Board-buy and keep crops off market
Reconstruction Finance Corporation
Provide emergency financing to banks

11. HERBERT HOOVER
Bonus Army
WW I vets wanted to receive a promised bonus earlier due to the depression
Marchers were gassed by the infantry on what looked like Hoover’s order
Hoover’s inaction towards the depression and leadership in the Bonus Army episode cost him public support

12. FRANKLIN D. ROOSEVELT  
America wanted to move from the “do nothing” president to one with a “can do” attitude
Following the election, he waited with the “brain trust”
Designed a new program to control the depression and fix the economy-The New Deal
Focused on three major goals:
Relief for the needy
Economic recovery
Financial reform
Upon taking office, he launched into the period known as the Hundred Days
March 9 to June 16-Passed more than 15 pieces of legislation

13. Franklin Roosevelt Reforming the banks
March 5-Bank Holiday
March 12, the day before the banks were to reopen FDR gives his first fireside chat
Radio talks to the American people
First one explained how banks worked; gave them faith in the government and the economy
Began measures to regulate the stock market
Created laws to help the farmers, unemployed, and housing in the New Deal

14. Franklin Roosevelt Roosevelt and the Supreme Court
The court strikes down Roosevelt’s reforms
Wanted congress to pass a court reform bill
Called the court packing bill
Roosevelt moves to the Second Hundred Days
Remember the “forgotten man”
1936 FDR wins reelection and continues his reforms with American support

15. Franklin Roosevelt NEW DEAL PROGRAMS COMPLETE CHART
COMPLETE AFFECTS OF THE NEW DEAL ASSIGNMENT

16. THE GREAT DEPRESSION VOCABULARY
RECESSION-ECONOMIC DOWNTURNS
DEPRESSION-AN EXTREME FALL IN THE ECONOMY. THE GREAT DEPRESSION OCCURRED MILLIONS OF PEOPLE WERE WITHOUT JOBS AND THE ECONOMY WAS IN A SEVERE DECLINE.
INSTALLMENT BUYING-BUYING ON CEDIT. A PLAN TO BUY NOW AND PAY LATER.
BUYING ON MARGIN-PAYING A SMALL PERCENTAGE OF A STOCK’S PRICE AS A DOWN PAYMENT AND BORROWING THE REST.
OVERSPECULATION-BUYING STOCKS AND BONDS IN THE HOPES THAT THEY MIGHT MAKE A QUICK OR LARGE PROFIT. HIGHL RISK VENTURE.
BULL/BEAR MARKET-BULL IS A PERIOD OF RISING STOCK PRICES//BEAR IS FALLING STOCK PRICES.
DOW JONES-MOST IDELY USED TRACKING OF THE STOCK MARKET. BASED ON THE PRICES OF THE 30 REPRESENTATIVE LARGE FIRMS THAT TRADE ON THE NEW YORK STOCK EXCHANGE.
BLACK TUESDAY-OCTOBER 29; THE BOTTON FELL OUT OF THE STOCK MARKET. MANY LOST THEIR LIFE SAVINGS AND LED TO THE GREAT DEPRESSION.

17. TARIFF-A FEE CHARGED FOR GOODS BROUGHT INTO A STATE OR COUNTRY FROM ANOTHER STATE OR COUNTRY.
HOOVERVILLES-WHAT PEOPLE REFERRED TO THE SHANTYTOWNS IN 1930 DURING HOOVER’S PRESIDENCY.
SOCIALISM-AN ECONOMIC OR POLITICAL SYSTEM BASED ON GOVERNMENT OWNERSHIP OF BUSINESS AND PROPERTY AND ON EQUAL DISTRIBUTION OF WEALTH.
CAPITALISM-AN ECONOMI OR POLITICAL SYSTEM BASED ON INDIVIDUAL OWNERSHIP.
COMMUNISM-AN ECONOMIC AND POLITICAL SYSTEM BASED ON ONE PARTY GOVERNMENT AND STATE OWNERSHIP OF PROPERTY.
PUMP PRIMING-PUMPING MONEY INTO THE ECONOMY TO FIX A DEPRESSION.
DEFICIT SPENDING-SPENDING M ORE MONEY THAN THE GOVERNMENT RECEIVES IN REVENUES.

18. LIBERAL-A PERSON ON THE POLITICAL SPECTRUM VYING FOR CHANGE AND PROGRESS.
CONSERVATIVE-A PERSON ON THE POLITICAL SPECTRUM IN SUPPORT OF SLOWER AND SAFER CHANGE OR STATUS QUO
MODERATE-A PESON WHO LIES IN THE CENTER OF THE POLITICAL SPECTRUM.
REACTIONARY-A POLICY OR ACTION TO CORRECT SOMETHING. IT OCCURS IN REACTION TO THE PROBLEM.
REVOLUTIONARY-A POLICY OR ACTION CREATED THAT IS NEW AND NOT IN DIRECT RESPONSE TO A PROBLEM.
NEW DEAL-FDR’S PROGRAM TO ALLEVIATE THE PROBLEMS OF THE GREAT DEPRESSION DURING THE BEGINNING OF HIS PRESIDENCY.
DUST BOWL-DUE TO OVERFRAMING OF LAND IN THE GREAT PLAINS, A HUGE DUST STORM WAS CREATED AND THE EFFECTS WERE FELT TO THE EAST COAST AND BEYOND.
MIGRANT-FAMILIES OF FARMERS AND SHARECROPPERS THAT PICKED UP AND LOOKED TOWARDS CALIFORNIA FOR A BETTER LIFE. LEFT MANY BELONGINGS BEHIND.