1 the great depression 2006 2007-1
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1 the great depression 2006 2007-1

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  • Lesson plan for Friday, February 16 th , 2007: Warm-up Question, Hoover video, Great Depression notes
  • Stock market only had about 3 million active buyers & sellers but the spillover into the greater economy led to the Great Depression
  • Economic conditions in Europe, Agricultural decline since 1919, corporate mismanagement, excessive speculation all contributed to the GD as well
  • Boulder Dam was renamed Hoover Dam

1 the great depression 2006 2007-1 1 the great depression 2006 2007-1 Presentation Transcript

    • Essential Question:
      • What caused the Great Depression & how did the federal government respond?
    • Warm-Up Question :
      • What caused the Great Depression?
  • The Great Depression
  • The Great Depression
    • The Depression of the 1930s came as a shock to Americans:
      • The consumer revolution led to confidence that 1920s economic prosperity would continue
      • When the stock market crashed in 1929, businesses closed & millions were unemployed
      • Americans began to look to the gov’t for unprecedented support
    View slide
  • The Great Crash
    • Prelude to the stock market crash
      • In 1927, the economy had a recession but gov’t & business leaders ignored warning signs
      • The Federal Reserve hoped a lowered loan interest rate would stimulate the economy, but this easy credit led speculators to buy stock on-the-margin
    View slide
  • The Great Crash
    • On October 29, 1929 the stock market dropped & investors panicked by selling; led to a plummet in stock prices
    • Banks lent less money, factories produced less, workers were fired or paid less -> consumers had less money to spend -> factories & businesses closed
  • Black Tuesday
  • The Great Crash
    • Reasons for the depression:
      • US factories produced too many goods for people to consume
      • The post-war conditions in Europe decreased foreign trade
      • Unequal distribution of wealth, high consumer debt, stock market over speculation led to a an overall decrease in consumer purchase power
    Consumers already owned durable goods & were not buying more
  •  
  • Unemployment, 1929-1942 Downward spiral continued for 4 years; By 1932 unemployment was at 25%
  • In 1929, the total market debt of the USA was 210% of the value of GDP By 1934, US debt rose to 265% of GDP In 2005, the value of US debt was 303% of GDP
  • Effects of the Great Depression
    • The Depression hit all classes:
      • Many families lost their homes or farms & were forced to live in “Hoovervilles”
      • The US saw unprecedented poverty & suicide rates; fathers abandoned their families; lawlessness ensued
      • The US gov’t offered relief checks to the unemployed
  • Effects of the Great Depression
    • African-Americans who had migrated to North were laid off
    • Mexican immigrants faced competition & deportation from angry Americans
    • The middle class was hit hard:
      • Refused relief checks & charity
      • Many lost their homes
      • Health care declined; doctor & dentist visits were “luxuries”
  • Employment Agencies & Relief-Check Lines
  • Soup Kitchens & Breadlines
  • Mortgage Foreclosures
  •  
  • These 4 potatoes are Christmas Dinner
  • Where’s daddy?
  • “Hoovervilles” & “Hoover Flags”
  • Hoover Struggles to Fight the Depression
  • Hoover and Voluntarism
    • Hoover’s initial response to the Depression was reassurance that prosperity would return
    • Hoover rejected bold gov’t action & called for volunteerism among charities, local gov’t, & business
    • As the depression worsened, Hoover called for gov’t projects like the Reconstruction Finance Corps (RFC) which loaned money to failing businesses
  •  
  • Hoover and Voluntarism
    • In 1932, President Hoover suffered two final blows:
      • When 22,000 WWI veterans marched on Washington DC to demand immediate payment of their bonus checks, Hoover ordered this Bonus Army to be forcibly removed
      • Steady rise of bank failures led to a complete collapse of the US banking system
  • Bonus Army Douglas MacArthur Dwight Eisenhower
  • Bank Failures, 1929-1933
  • Fighting the Depression
    • The inability of Republicans to resolve the economic depression opened the door for a Democratic takeover in politics
    • Once in power, Democrats succeeded in relieving some suffering but created an unprecedented level of gov’t intervention in the process