1. Unit 8 – The Great Depression
SOL’s Covered: USII.6d

2. I. The Great Depression A
I. The Great Depression A. The stock market boom and optimism of the 1920s were generated by investments made with borrowed money. When businesses failed, the stocks lost their value, prices fell, production slowed, banks collapsed, and unemployment became widespread.

3. B. What were the causes of the Great Depression. 1
B. What were the causes of the Great Depression? 1. The Stock market crashed in 1929 and stock prices collapsed. a. People overspeculated on stocks, using borrowed money that they could not repay when stock prices crashed.

4. 2. The Federal Reserve failed to prevent the collapse of the banking system. a. Led to a severe reduction in the nation’s supply of money in circulation. 3. High tariffs discouraged international trade.

5. II. The Stock Market Crash of 1929 A
II. The Stock Market Crash of 1929 A. What caused the stock market crash of 1929? 1. Business was booming, but investments were made with borrowed money. a. Overspeculation 2. Excessive expansion of credit.

6. 3. Business failures led to bankruptcies. 4
3. Business failures led to bankruptcies. 4. Bank deposits were also invested in the market. 5. When the market collapsed, the banks had no money.

7. B. What were consequences of the stock market crash of 1929. 1
B. What were consequences of the stock market crash of 1929? 1. People panicked, attempting to withdraw their money from the banks, but there was nothing to give them. 2. No new investments.

9. II. American Life during the Great Depression A
II. American Life during the Great Depression A. The Great Depression had a widespread and severe impact on American life.

10. B. How were the lives of Americans affected by the Great Depression. 1
B. How were the lives of Americans affected by the Great Depression? 1. A large number of banks and businesses failed. 2. One-fourth of workers were without jobs.

11. 3. Large numbers of people were hungry and homeless. 4
3. Large numbers of people were hungry and homeless. 4. Farmers’ incomes fell to low levels. 5. Demand for goods declined.

13. C. The Dust Bowl 1. The Dust Bowl was a period of severe dust storms causing major ecological and agricultural damage to the Great Plains during the 1930’s. 2. The phenomenon was caused by severe drought coupled with decades of extensive farming without using techniques to prevent erosion.

14. 3. The Dust Bowl caused many farmers to: a. Auction off their farms
3. The Dust Bowl caused many farmers to: a. Auction off their farms. - Some farmers who were forced to auction off their farms protested by destroying their crops. b. Become migrant workers. c. Accept government aid.

15. Dust Storm in Stratford, Texas in 1935.

16. At the start of the Great Depression, Herbert Hoover was the President
At the start of the Great Depression, Herbert Hoover was the President. Also, pictured is one of the many “Hoovervilles” in the 1930’s.

17. Out of gas? Try a Hoover Wagon!!!

19. III. The New Deal A. President Franklin D
III. The New Deal A. President Franklin D. Roosevelt’s New Deal used government programs to help the nation recover from the Depression.

20. B. Roosevelt rallied a frightened nation in which one in four workers was unemployed.
1. Famous quote by Roosevelt, “The only thing we have to fear is fear itself.”

21. C. What were the major features of the New Deal? 1. Social Security.
a. Social Security provides aid to the disabled, dependent children, and the elderly.

23. 2. Federal work programs.

24. 3. Environmental improvement programs.

25. 4. Farm assistance programs.

26. 5. Increased rights for labor.

27. 6. Corrected unsound banking and investment practices. a
6. Corrected unsound banking and investment practices. a. FDIC - Federal Deposit Insurance Corporation. - The FDIC insured bank deposits and helped regain the public’s confidence in the banking system.

28. b. SEC – Securities and Exchange Commission
b. SEC – Securities and Exchange Commission. - The SEC regulates the stock market and investments.

29. D. The legacy of the New Deal influenced the public’s belief in the responsibility of the government to deliver public services, to intervene in the economy, and to act in ways that promote the general welfare.