1. The Party of the 1920s Comes to an End!

2. The Great Depression

3. ECONOMY CRUMBLES CAUSES OF STOCK MARKET CRASH 1. SPECULATION 2. CREDIT
3. BUYING ON MARGIN
4. MARGIN CALL
5. FALLING STOCK PRICES (LACK OF CONFIDENCE IN THE MARKET)

4. SPECULATION RISKY INVESTMENT 1. TRYING TO EARN QUICK PROFIT OR DOLLAR
2. MILLIONS OF AMERICANS WERE ENGAGING IN THESE PRACTICES OF BUYING STOCKS BASED OFF UNFOUNDED TIPS.
3. STOCK PRICES SOARED
4. TRULY INFLATED (NOT WORTH WHAT YOU PAID FOR IT)

5. The Roaring 20’s The new concept of “credit” People were buying:
Automobiles
Appliances
Clothes
Fun times reigned
Dancing
Flappers
Drinking

6. Why was this bad? Credit system
People didn’t really have the money they were spending
INSTALLMENT PLAN
1. AGREEMENT BETWEEN CONSUMER AND SELLER
2. BUY NOW PAY LATER
3. PAYMENT PLAN
4. INTEREST CHARGES INCLUDED

7. The Stock Market Buying stocks on margin Stocks fall
If a stock is $100 you can pay $10 now and the rest later when the stock rose
Stocks fall
Now the person has less than $100 and no money to pay back

8. With people panicking about their money investors tried to sell their stocks
This leads to a huge decline in stocks
Stocks were worthless now
People who bought on “margins” now could not pay
Investors were average people that were now broke
And then….

9. MARGIN CALL BANK CALLS FOR ITS MONEY
1. AT ANY TIME THE BANK CAN DEMAND PAYMENT FOR BORROWED MONEY
2. PEOPLE SHORT MONEY TO PAY BACK LOAN
OCTOBER 29TH, 1929
1. BLACK TUESDAY
2. MARKET HIT ROCK BOTTOM
3. INVESTORS DUMPED STOCK
4. OVER 16 MILLION SHARES SOLD

10. ECONOMIC DESPAIR BANKS CLOSE 1. 1929- 659 BANKS CLOSED
BUSINESSES BANKRUPT
1. 85,000 BUSINESSES GO UNDER
2. MILLIONS LOSE THEIR JOBS
PERCENT UNEMPLOYMENT
PERCENT UNEMPLOYED

11. CAUSES OF GREAT DEPRESSION
1. EASY CREDIT
2. CRISIS IN FARM SECTOR
3. UNEVEN DISTRIBUTION OF INCOME
4. UNBALANCED FOREIGN TRADE
Note: The Stock Market Crashing was NOT a cause of the Great Depression

12. President Hoover Herbert Hoover was president at the start
Philosophy: We’ll make it!
What He Did: Nothing
The poor were looking for help and no ideas on how to correct or help were coming
“Rugged Individualism”

13. What about the people? Farmers were already feeling the effects
Prices of crops went down
Many farms foreclosed
People could not afford luxuries
Factories shut down
Businesses went out
Banks could not pay out money
People could not pay their taxes
Schools shut down due to lack of funds
Many families became homeless and had to live in shanties

14. Many waited in unemployment lines hoping for a job.

15. People in cities would wait in line for bread to bring to their family.

16. Some families were forced to relocate because they had no money.

17. “Hooverville” Some families were forced to live in shanty towns
A grouping of shacks and tents in vacant lots
They were referred to as “Hoovervilles” because of President Hoover’s lack of help during the depression.

18. Hooverville

19. 1920s picts Constructed Response

20. Out of the Dust:
The Midwest
and the
Dust Bowl

21. WHEN RAINS IT POURS GREAT AMERICAN DUST BOWL 1. COULD LIFE GET WORSE?
2. GREAT PLAINS GETS HIT (NORTH DAKOTA TO TEXAS)
DROUGHT
4. DUST STORMS CAUSED EVICTIONS
5. OFF TO CALIFORNIA (OKIES)
6. JOHN STEINBECK –GRAPES OF WRATH

23. “The Dust Bowl”

25. America Story of Us

26. *FDR* When he was inaugurated unemployment had increased by 7 million.
Poor sections (like Harlem) had 50% of the pop. unemployed
“Happy Days are Here Again”- Roosevelt’s Theme Song

27. ROOSEVELT’S PLAN NEW DEAL INTRODUCED 1. RELIEF FOR NEEDY
2. ECONOMIC RECOVERY
3. FINANCIAL REFORM

28. PERCEPTION VS. REALITY GRANDFATHERLY FIGURE 1. SEE THROUGH HARD TIMES
2. COMFORTER
USES FOR POLITICAL PRESSURE
1. CALL OUT SENATORS ON RADIO
2. PEOPLE LISTEN TO HIS URGES

29. ROOSEVELT WORKS TO RESTORE TRUST
BANKS
1. MARCH 6-10TH 1933
2. BANK INSPECTION
3. EVALUATE LENDERS
4. SOUND LOAN PRACTICES
5. STABLE ALLOWED TO REOPEN
TRUST SPEECHES
1. RADIO POWERFUL TOOL
2. FIRESIDE CHATS
3. TRUST THE BANKS

30. FIRESIDE CHATS

31. EXPLAINING BANKS
“First of all let me state the simple fact that when you
deposit money in a bank the bank does not put the
money into a safe deposit vault. It invests your money
in many different forms of credit-bonds, commercial
paper, mortgages and many other kinds of loans. In
other words, the bank puts your money to work to keep
the wheels of industry and of agriculture turning around.
A comparatively small part of the money you put into the bank is kept in currency -- an amount which in normal times is wholly sufficient to cover the cash needs of the average citizen. In other words the total amount of all the currency in the country is only a small fraction of the total deposits in all of the banks.”

32. New Deal Programs aka Alphabet Soup
AAA
CCC
WPA
PWA
TVA
SSA
The list goes on..

33. As you watch the video Write 1 program for each of the 3 R’s
and describe the purpose of the program
Relief:
Recovery:
Reform:
Which program relates specifically to our Humanities class?

34. IMPACT OF DEPRESSION POLITICAL
1. GOV’T MORE INVOLVED IN DAY TO DAY ACTIVITIES OF AMERICANS.
2. GOVERNMENT RESPONSIBLE FOR COUNTRY’S WELL BEING
3. GOV’T GETS LARGER
SOCIAL
1. SOCIETAL DEPRESSION
2. HIGH SUICIDE RATE
3. FEELING OF WORTHLESSNESS
4. LOSS OF SOCIAL STATUS
ECONOMIC
1. HIGH UNEMPLOYMENT RATE
2. BUSINESS CLOSURE
3. LOSS OF PROPERTY

35. IMPACT OF NEW DEAL POSITIVE 1. INCREASED WAGES 2. CREATED LABOR UNIONS
3. PRESERVED NATURAL RESOURCES
4. CARED FOR SICK AND ELDERLY
5. RAISED INCOMES

36. IMPACT OF NEW DEAL NEGATIVE 1. INCREASED NATIONAL DEBT
2. INCREASED SIZE OF FEDERAL GOV’T
3. DOUBLED SIZE OF BUREAUCRACY
4. FAILED TO INCREASE PRIVATE BUSINESSES

37. Photo Analysis Activity