Ch.14 the great depression

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Ch.14 the great depression

  1. 1. Music : Brother can you spare a dime The Great Depression 1929-1940
  2. 3. <ul><li>Single worst economic disaster in the United States </li></ul>
  3. 4. <ul><li>Unemployment rose to 25% </li></ul><ul><li>Those who had jobs took a wage cut or worked less hours </li></ul>
  4. 5. <ul><li>Over Production </li></ul><ul><ul><li>High demand and prices during the war caused farmers to plant more </li></ul></ul><ul><ul><li>Demand and prices fall after the war </li></ul></ul><ul><ul><li>Farmers could not pay back loans and foreclosed </li></ul></ul>
  5. 6. <ul><li>Decrease in consumer spending </li></ul><ul><ul><li>Rising prices, low wages </li></ul></ul><ul><ul><li>Overbuying on credit, large debts that had to be paid off </li></ul></ul><ul><ul><li>Uneven distribution of income – Rich got richer and poor got poorer – many Americans could not afford to buy goods produced </li></ul></ul>
  6. 7. <ul><li>Over speculation </li></ul><ul><ul><li>Stocks and bonds bought on the chance of quick profit </li></ul></ul><ul><ul><li>Buying on Margin – paying a small % of stock’s price and borrowing the rest </li></ul></ul>
  7. 8. <ul><li>October 29, 1929 – Black Tuesday </li></ul><ul><ul><li>Stock market fell to all time low </li></ul></ul><ul><ul><li>Those who bought stocks on credit stuck with huge debts </li></ul></ul>
  8. 9. <ul><li>Banks fail – people withdrew funds </li></ul><ul><li>Banks invested in stock market – could not repay loans </li></ul><ul><li>1933 – 11,000 of nation’s 25,000 banks had failed </li></ul><ul><li>Account not insured – millions lost their savings </li></ul>
  9. 11. <ul><li>People lose jobs </li></ul><ul><li>Businesses close down or lay off </li></ul><ul><li>More people lose jobs </li></ul><ul><ul><li>(higher unemployment) </li></ul></ul>People lose jobs Businesses close down or lay off <ul><li>More people lose jobs </li></ul><ul><ul><li>(higher unemployment) </li></ul></ul>
  10. 12. <ul><li>Shantytowns sprang up – little towns consisting of shacks made out of crates and boxes </li></ul>
  11. 14. <ul><li>Children were malnourished and suffered from disease. </li></ul>
  12. 15. Thousands stood in breadlines or soup kitchens for free food.
  13. 19. <ul><li>Higher unemployment, lowest pay </li></ul><ul><li>Laid off to make room for white workers </li></ul><ul><li>Last hired, first fired </li></ul><ul><li>Many Latinos immigrated or were deported back to Mexico </li></ul>
  14. 20. <ul><li>Transients who wandered the country looking for work or better life </li></ul><ul><li>Rode in railroad boxcars, slept under bridges </li></ul>
  15. 24. <ul><li>Area of the country from Kansas to Texas hit hard by over-farming and drought </li></ul>
  16. 25. <ul><li>Plowing that removed top layer of grass </li></ul><ul><li>Soil is exposed and blown away by wind storms, dust travels hundreds of miles </li></ul>
  17. 29. <ul><li>Families affected by dust bowl that migrated to California looking for work </li></ul>
  18. 31. <ul><li>WWI veterans and their families marched on Washington D.C. </li></ul><ul><li>Demanded bonus that had been promised to war veterans be paid early </li></ul>
  19. 32. <ul><li>Hoover opposed paying bonus early </li></ul><ul><li>Bonus Army erects Shantytown near capitol </li></ul><ul><li>Senate votes down bill to pay out bonuses </li></ul>
  20. 34. <ul><li>Hoover demands Bonus Army leave however many stay </li></ul><ul><li>Sends General Douglas MacArthur and army to remove them </li></ul><ul><li>Violence breaks out and shantytown burns to the ground </li></ul>
  21. 36. <ul><li>Stunned and outraged </li></ul><ul><li>Hoover’s image suffers </li></ul>
  22. 37. <ul><li>Voluntary cooperation from businesses and charities to help needy </li></ul><ul><li>Rugged Individualism – people should succeed through their own efforts </li></ul><ul><li>Opposed any form of direct relief </li></ul>
  23. 38. <ul><li>The Depression became worse and Hoover became unpopular </li></ul>
  24. 39. <ul><li>Hoover Dam (Boulder Dam) – provide electricity and flood control along Colorado River </li></ul><ul><li>Create jobs </li></ul>
  25. 41. <ul><li>Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure </li></ul><ul><li>Direct intervention </li></ul>
  26. 42. <ul><li>$2 Billion in emergency financing for banks </li></ul><ul><li>Money would trickle down to American citizens through job growth and higher wages </li></ul><ul><li>Criticized for benefiting only corporations </li></ul>
  27. 43. <ul><li>Presidential Election 1932 </li></ul><ul><li>Hoover vs. Franklin D. Roosevelt (Democrat) </li></ul><ul><li>FDR wins overwhelmingly – 23 million votes vs. 16 million for Hoover </li></ul><ul><li>Democrats also capture 2/3 rd majority in Senate and ¾ majority in House </li></ul>
  28. 44. <ul><li>People lose jobs </li></ul><ul><li>Businesses close down or lay off </li></ul><ul><li>More people lose jobs </li></ul><ul><ul><li>(higher unemployment) </li></ul></ul><ul><li>Copy the following on the 11R , </li></ul><ul><li>Answer each question, you may ask your classmates for help </li></ul><ul><li>The stock market crashed in the year </li></ul><ul><li>One cause of the Depression was </li></ul><ul><li>The unemployment rate was </li></ul><ul><li>A problem faced by families was </li></ul><ul><li>If my family had to get by with less money the first thing we would cut back on would be </li></ul><ul><li>The last thing would be </li></ul><ul><li>Using the hobo symbols write a message on your paper. If you would like you may write your message on the board as well. (if appropriate) </li></ul>
  29. 45. <ul><li>World War I </li></ul><ul><li>Civil War </li></ul><ul><li>Spanish American War </li></ul><ul><li>Prohibition </li></ul><ul><li>Jamestown is settled </li></ul>

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