Warm Up: Images Notes on: Great Depression Begins Quotes Review

1. Warm Up: ImagesNotes on: Great Depression BeginsQuotesReview

2. IMAGES

7. Election of 1928 -Herbert Hoover “Two cars in every garage” Secretary of Commerce under Harding and Coolidge – attributed with prosperity -20’s marked a reign of prosperity Pointing to the prosperity to get elected – people can get anything they want -Hoover predicts the end of poverty Overwhelming victory – people trusted him to keep the prosperity going. Dow Jones Industrial Average – most widely used barometer of the stock markets – used 30 top large firms to gage the market

8. Stock Market Crash -Warning Signs Speculation – bought stocks and bonds on the chance of a quick profit – doesn’t take risk into account Buying on Margin – Paying a small percentage of a stock price as down payment and borrowing the rest -Stock prices were inflated Bull Market – Period of rising stock prices in which people rush to buy stocks and bonds -Oct 1929 prices begin to fall Margin Calls begin – brokers call for the rest of the money owed on stocks – people couldn’t pay, rush to pull out. -Oct 29, 1929 Black Tuesday Great Crash – Prices plunged – some struck with huge debts – others lost their savings to break even - $30 billion lost

9. Causes of Depression -Overproduction of goods -Assembly line put out too many products to be bought -Too much available credit – Installment plans, speculation, margin – spend without considering repayment -less consumption of goods - rising prices, same wages, uneven distribution of income, initial overbuying = no more spending -farm surplus – too many farmers = too many crops -high tariffs – cause higher market prices – people can’t pay -no banking regulations – no limitations or regulation on banks investing money - speculation -Hawley-Smoot Tariff, 1930 – highest protective tariff in U.S. history – protecting farmers and manufacturers -everything became a chain reaction – creates a Web – where each causes/effects the other

10. Hard Times Hit Home -Rural areas - foreclosure of farms, food supply, Dust Bowl – huge drought turns Great Plains into dust -Cities - shantytowns, soup kitchens, breadlines – lines of people waiting for food provided by charitable organization or common agencies – Shantytowns – shacks built of odds and ends taken from houses -Family Life - men on the move, hardships of women, health of children, M: take to the rails looking for work; W: try to provide for family – budget, can food, ration, sew; C: lack of food, start working in sweatshops when schools close -Social effects - more suicide, mental illness, dreams forsaken, ethics, hardwork – Sacrifice that remains for the rest of their lives

11. -Rugged Individualism – govt. need not get involved – individuals will make it through and solve the Depression -created gov’t agency to help business recover – RFC – Reconstruction Finance Corporation - $2 billion to banks and businesses - gave loans to businesses to prevent business failure – aren’t supposed to lay off workers or cut wages for taking the money -gave no direct relief to the people - giving of food or money directly to needy people from the govt. -Hoovervilles– Shantytowns – tribute to Hoover for “causing” the G.D. -Bonus Army March on Washington Bonus for fighting in WWI – payout in 1945 – asking for it in 1932 – Hoover brings in the Army to get rid of the Veterans -Radicals begin to develop – Calling for govt. to do MORE Hoover’s Resolve

12. Election of 1932 -Franklin Roosevelt – FDR – Reform-minded governor of NY – worked to combat unemployment and poverty -Pledged a New Deal for the people Help for the common man – direct relief and govt. involvement in fixing the Depression -Democrats wins great majority in Congress – Hoover and his party are unpopular with the public -Hoover remain a lame duckfor several months – does nothing toward end of his Presidency - 20th Amendment - Moves inauguration from March to Jan. -Banking system was in a crisis – First issue to tackle

13. “We in America are nearer to the final triumph over poverty than ever before.” President Herbert Hoover • “A chicken in every pot, and two cars in every garage.” Hoover Campaign Slogan in 1928 • “Our first objective must be to provide security from poverty and want…We want to see their savings protected. We want to see them in steady jobs. We want to see more and more of them insured against death and accident, unemployment and old age. We want them all secure.” President Hoover

14. “Here were all these people living in old, rusted out car bodies…There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box…People living in whatever they could junk together.” Shantytown visitor outside Oklahoma City • “The Negro was born in depression…It didn’t mean much to him, The Great Depression…The best he could be is a janitor or a porter or shoeshine boy. It only became official when it hit the white man.” African American viewpoint • “I’ve lived in cities for many months, broke, without help, too timid to get in bread lines. I’ve known many women to live like this until they simply faint in the street…shut up in the terror of her own misery.” Meridel Le Seur

15. Quiz

16. What is the date of Black Tuesday, the day the Stock Market crashed?

17. This is the term for buying stock on the assumption that it will continue to rise in price and make a profit for the buyer?

18. This term referred to the former slogan of the President and combined it with the poverty soon faced by millions of people living in shantytowns?

19. This was a group of WWI veterans who came to Washington DC to ask Congress for their pension?

20. This term describes the situation of having a defeated President who remains in office for several months before the inauguration of the new President?

21. This was the name of the platform on which he ran?

22. He was the reform governor of NY who would be elected President based on a campaign promise of helping the average man?

23. Who became President in 1928?

24. What was his slogan for that campaign that spoke of so much prosperity?

25. This belief was shared by the President and many other people, and it is the belief that a person should help themselves?