THE GREAT DEPRESSION

THEGREAT DEPRESSION By Emily Smith, Shane Collins, Nate Elsishans, R.J. Schineller, Dhev Patel, and Corny Morrow *Questions not necessarily in order

STOCK MARKET CRASH Stock Market Prices, 1921–1932 • May 1928-September 1929, prices doubled in value • beginning in Sept 1929, gradual slide • Black Thursday(Oct.24) • largest sell-off in NYSE history • Black Tuesday(Oct.29) • $40 billion in stock value lost by Dec. • The Great Depression • Response of bankers, Hoover and business leaders

Overproduction - Massive business inventories (up 300% from 1928 to 1929) Lack of diversification in American economy prosperity of 1920s largely a result of construction & auto industries Uneven distribution of income and wealth - Poor distribution of purchasing power among consumers Farm income down 66% in 20s By 1929 the top 10% of the nation's population received 40% of the nation's disposable income UNDERLYINGCAUSESOF THEDEPRESSION

Weakness of Banking Industry bank failures in late 1920s (farmers) many had small reserves low margins encouraged speculative investment by banks, corporations, and individual investors total money supply closing of over 9,000 American banks between 1930 and 1933 Federal Reserve system Consumer Debt– middle class installment loans; buying on margin Overspeculation in Stock Market– by wealthy and upper middle class UNDERLYINGCAUSESOF THEDEPRESSION Consumer Debt, 1920–1931

UNDERLYINGCAUSESOF THEDEPRESSION • Decline in demand for American goods in international trade • European industry and agriculture gradually recovered from World War I • Germany so beset by financial crises/ inflation that could not afford to purchase US goods • High American protective tariffs • international debt structure

IMPACT ON SOCIETY

Corporate profits - from $10 billion to $1 billon Business failures: 100,000 between 1929 and 1933 GNP – $104 billion in 1929 to $56 billion in 1933 Total national income – fell by over 50% Effects on Business & Industry

Effects on Business & Industry • Bank failures • about 20% all banks (over 6000) between 1929 and 1933) • over 9 million savings accounts lost($2.5 billion) Bank Failures, 1929-1933

Effect on workers and families • Unemployment ~25% in 1932? • underemployment • patterns of reemployment and layoffs • hobos • “Depression mentality”

Effect on workers and families • Malnutrition • Disease: tuberculosis, typhoid and dysentery. • City & state relief systems in industrial Northeast and Midwest collapse • soup kitchens and bread lines

Women Working - 25% more New Deal – lower pay Women’s Rights Movement - lowest point in a century Families Housing Stress - divorce Health– disease, suicide Migrants - from South and Midwest to West Effect on workers and families

Effects on Farmers • “Dust Bowl” • “Okies” • Grapes of Wrath

Effects on African Americans • High Unemployment – up to 50%: Last hired, first fired • Competition for jobs • Exclusion from relief programs • Help from the New Deal? • labor unions • Scottsboro Case

Effects on American Culture • Reactions of most Americans • Effects on basic values (capitalism, democracy, individualism) • Alternatives: socialism, communism? • Whom to blame? • Popular Culture and Escapism • Frank Capra • Walt Disney • Gone With the Wind

HOOVER’S RESPONSE

Federal Response Under Hoover • Herbert Hoover(1929-1933) • Philosophy: limited government, individualism • Initial response? • public works programs • Hawley-Smoot Tariff (1930) • Debt moratorium • InternationalBanking Crisis (1931)- gold standard • Reconstruction Finance Corporation (1932)

Campaign Mottos • Hoover- A chicken in every pot and a car in every garage • Coolidge- keep it cool with Coolidge • Harding- Cox and cocktails

Legislation • Immigration Act of 1924 • World War Adjusted Compensation Act • Revenue Act of 1924 • Capper-Volstead Act

Neutrality Treaties • Five-Power naval treaty • Nine Power Treaty • Open Door Policy • Spirit of Locarno

Acts of Eleanor Roosevelt • Advocated for the poor • Left Daughters of the American Revolution after they refused to let African American singers perform at Independence Hall • Visited coal mines and factory workers • Served briefly as deputy director of the Office of Civilian Defense

Unconstitutional Laws of the New Deal • Agricultural Adjustment Administration • National Recovery Administration • Frazier-Lemke Act • National Industrial Recovery Act

Critics of Roosevelt • Huey Long – “…too beholden to big business.” • Father Charles E. Coughlin - Turned on Roosevelt over deficit spending and the Federal Reserve.

Coolidge Bio • Born on July 4th 1872 in Vermont. • Only president to be born on Independence Day • At the age of twelve his mother died. Supposedly of tuberculosis. • His sister died at the age of 15. • Attended Black River Academy and Amherst College. • 1905 Married Grace Anna Goodhue • Became a lawyer through apprenticeship at a law group in Massachusetts. • Had 2 sons, John and Calvin Jr. • Elected to the Massachusetts house or representatives in 1906. • In the 1920 elections, he was elected vice-president under Harding • In 1923 he was moved to president after Harding passed while on a speaking tour in California

Brain Trust • an inner circle of unofficial advisors to the head of a government

Black Cabinet • First known as the Federal Council of Negro Affairs, an informal group of African American public policy advisors to United States President Franklin D. Roosevelt. • It was supported by the first lady Eleanor Roosevelt.

First 100 Days • Also known as the honey moon period • Its where the president is getting accustomed to his duties. • Usually during this time the media gives him a break on criticism

First Side Chats • A fireside chat is a Presidential address to the nation characterized by a warm, intimate, and informal tone. • It is designed to build confidence in the President's policies. • The tradition of the fireside chat was begun by President Franklin D. Roosevelt on March 12, 1933, speaking to the nation by radio shortly after his inauguration, in the midst of the Great Depression.

Buying on Margin • Using a portion of existing securities in a person's account to purchase more securities on credit. • Using a portion of existing securities in a person's account to purchase more securities on credit.

Black Tuesday • October 29th, 1929. • This is the date of the most famous stock market crash in history. • Stocks lost 13% of their value on Black Tuesday. • The date is considered the beginning of the Great Depression.

Bull Market • A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. • Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It's difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets.

Packing the Court • An unsuccessful attempt by President Franklin D. Roosevelt in 1937 to appoint up to six additional justices to the Supreme Court, which had invalidated a number of his New Deal laws.

Francis Perkins • DOB Apr 10, 1880. • First woman member of a US presidential cabinet. • Born at Boston, MA, she was married in 1915 to Paul Caldwell Wilson but used her maiden name in public life. • She was appointed secretary of labor by President Franklin D. Roosevelt in 1933, a post in which she served until 1945. Died at New York, NY, May 14, 1965.

THE GREAT DEPRESSION