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The Great Depression & the New Deal. 1. What were the causes of the Great Depression?. Stock Speculation Weak Banking System Economic Policies Overproduction of Goods Decline in the Farming Industry.
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1. What were the causes of the Great Depression? Stock Speculation Weak Banking System Economic Policies Overproduction of Goods Decline in the Farming Industry
a. Stock Speculation: People over speculated on stocks, using borrowed money (bought on margin) that they could not repay when stock prices crashed, and the banks demanded payment.
October 29, 1929 • Black Tuesday
b. Weak Banking System: The Federal Reserve Board failed to prevent the collapse of the banking system. - Many people had bought on credit for consumer goods and on margin for stock purchases. These loans could not be repaid. In one of the largest pea camps in California. February, 1936.
c. Economic Policies: When President Hoover enacted tariffs on European goods, these same nations enacted retaliatory tariffs on the goods from the United States. -High tariffs strangled and discouraged international trade. -In addition, President Hoover believed it was not the role of the government to control the economy, and he called on local charities and local governments to help the needy.
Unemployed men vying for jobs at the American Legion Employment Bureau in Los Angeles during the Great Depression
d. Overproduction of Goods: Farmers and factories had been producing a surplus for the war. -Prices for farm products fell so low that it cost farmers more to grow crops than they could make selling them. -Also, the markets were flooded with consumer goods that Americans could no longer afford.
e. Decline in the Farming Industry: Farmers could no longer repay loans because overproduction caused the prices for farm products to fall. In addition, farming techniques no longer supported farming in much of the southern Great Plains.
The grasses that had held the soil together had been "busted" up in order to plant wheat. When the years of drought occurred, the soil could not hold up against the powerful dust storms that moved thousands of acres of topsoil hundreds of miles away. • This area was nicknamed the Dust Bowl, and thousands of farm families were forced off their farms for good.
2. How were Americans impacted by the Great Depression? Squatter's Camp, Route 70, Arkansas, October, 1935.
b. One-fourth of workers were without jobs. Brother can you spare a dime? http://www.youtube.com/watch?v=CVE72Ae82Tw
Brother, Can You Spare a Dime? (1932) Once I built a tower, up to the sun,brick and rivet and lime.Once I built a tower, now it's done --Brother, can you spare a dime? Once in khaki suits, gee, we looked swellFull of that Yankee Doodle-de-dum.Half a million boots went slogging through hell,And I was the kid with the drum. Say, don't you remember they called me Al,It was Al all the time.Why don't you remember, I'm your pal --Say, buddy, can you spare a dime? They used to tell me I was building a dreamAnd so I followed the mob.When there was earth to plow or guns to bear,I was always there, right on the job.They used to tell me I was building a dreamWith peace and glory ahead --Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, Made it race against time.Once I built a railroad, now it's done --Brother, can you spare a dime?
c. Large numbers of people were hungry and homeless. They lived in makeshift communities called "Hoovervilles."
Hoover Takes Action • At first, President Hoover was against offering direct government relief. • Instead, he asked private charities such as the YMCA, to help.
d. Farmers' incomes fell to low levels, and many left their farms for good. This sector of the economy was the hardest hit.
The Bonus Army • World War I veterans were due to be paid a bonus in 1945. • In 1932, over 20,000 jobless veterans protested in Washington, D.C. demanding immediate payment.
World War I veterans block the steps of the Capital during the Bonus March, July 5, 1932seeking early payment of a bonus scheduled for 1945 assembled in Washington to pressure Congress and the White House. Hoover resisted the demand for an early bonus. Veterans benefits took up 25% of the 1932 federal budget. Even so, as the Bonus Expeditionary Force swelled to 60,000 men, the president secretly ordered that its members be given tents, cots, army rations and medical care.
Handpainted sign on Bonus Army truck states: "We Done a Good Job in France, Now You Do a Good Job in America"
In clashes with police, four veterans were killed. • Hoover ordered General Douglas MacArthur to clear out the veterans using cavalry, tanks, tear gas and machine guns. * The brutal treatment of the Bonus Army lowered Hoover’s popularity even further. The nation was poised for a new leader to lead them out of the depression.
The United States Army burned this and similar camps to the ground after routing the many thousands of protestors that were camped out in the national capital with tanks, tear gas, and troops of armed soldiers. (July 28, 1932)
Most people resorted to building residences out of box wood, cardboard, and any scraps of metal they could find. Some individuals even lived in sewer mains.
Great Depression:Impact on Americans All Graphs from: www.digitalhistory.uh.edu/historyonline/us34.cfm
Great Depression:Stock Prices 1. What does this chart tell you about stock prices before and after the stock market crashed?
Great Depression:Unemployment Rate 2. What does this chart tell you about workers?
Great Depression:Bank Failures 3. What does this chart tell you about the number of banks (and businesses) that failed?
Great Depression:Unemployment 4. What does this chart tell you about people’s lives up until 1940?
Great Depression:Family Income 5. What does this chart tell you about families?
Great Depression:Impact on Americans • A large number of banks and businessesclosed. • 25 % of workers were without jobs. • Large numbers of people were homeless and living in poverty. • Household incomes fell to low levels.
In 1932, Franklin D. Roosevelt was Elected President • FDR offered Americans a “New Deal ”.
3. What were the major features of the New Deal? “New Deal Rhythm” –Political Propaganda http://www.youtube.com/watch?v=Vn0QN5zXz9w
President Roosevelt won in a landslide election. -He used government programs to help the nation recover from the Great Depression in his "New Deal for Americans". 1933 - "We're in the Money" http://www.youtube.com/watch?v=UJOjTNuuEVw
$$$ We're in the money $$$ We never see a headline 'Bout breadline, today, And when we see the landlord,We can look that guy right in the eye.Look that guy right in the eye-Look that guy right in the eye-We're in the money Come on, my honey Let's spend it, lend it, send it-Let's spend it, lend it, send itRolling, rolling-Rolling around! Additional VerseGone are my blues,And gone are my tears;I've got good newsTo shout in your ears.The silver dollar has returned to the fold,With silver you can turn your dreams to gold! We're in the money,We're in the money;We've got a lot of what it takes to get along!We're in the money,The sky is sunny;Old Man Depression, you are through,You done us wrong! We never see a headline 'Bout breadline, today, And when we see the landlord,We can look that guy right in the eye .We're in the money Come on, my honey Let's spend it, lend it, Send it rolling around! All: We're in the money,We're in the money;We've got a lot of what it takes to get along!We're in the money,The sky is sunny;Old Man Depression, you are through,You done us wrong!
Hundred Days • In the first one- hundred days, FDR and Congress enacted many programs to directly aid Americans.
Hoover eventually set up public works programs, where the government hired people to construct schools, dams and highways.
The New Deal included these programs: CCCTVAAAANRA SSAFDIC WPA PWA
CCC: Civilian Conservation Corps Provided jobs for young men to plant trees and build bridges.
PWA:Public Works Administration • Built ports, schools, bridges, dams, and aircraft carriers. http://www-tc.pbs.org/wnet/wp-content/blogs.dir/10/files/2009/06/pwa3.jpg
