During the 1920s people invested much of their money in the Stock Market.People take their money and invest it in shares of certain companies.On October 29, 1929 the Stock Market had its worst day in history known as “Black Tuesday” Tuesday
People tried to sell stocks that nobody wanted.Banks ran out of money as people withdrew funds to cover their losses.Many Americans were forced to sell everything they owned.Factories closed as nobody bought goods, forcing workers to be laid off.
When the economy suffered few people had money to spend.Factories produced too many goods (surplus).Farmers grew more than people could buy.There was too much debt.Banks were poorly managed.
Stocks lost 90% of their value.11,000 banks failed.Unemployment reached 25%The depression lasted 10 yrs.President Franklin Roosevelt set up a national plan of recovery, “The New Deal”
Cotton prices dropped as textile factories closed.Sharecroppers lost their homes as landowners could not sell their crops.Unemployment hit as high as 70% in some urban areas.
U.S. President 1932-1945Longest serving U. S. President.Created “The New Deal”Persuaded congress to pass the Social Security Act.Spent many days at the “Little White House” in Warm Springs, GA.
1. Stock Market2. Great Depression3. Surplus4. Subsidy5. New Deal6. Labor union7. Relief8. strike
Created jobs for thousands of out of work young men.Work included reforestation, soil conservation, and building parks and roads.Georgia’s first state parks were built such as Indian Springs State Park.
Created to raise the price of crops by limiting supply.Farmers were paid to plant less cotton in order to drive up the price.Landowners benefited from it but they needed fewer tenant farmers and sharecroppers.The AAA worked to improve soil conservation.
Provided loans to states to improve electrical service to rural areas.Before 1935 very few areas in rural Georgia and the US had electricity.Power plants and power lines were built throughout the U.S.Georgia led the country in the number of REA programs.
Gave working people a permanent plan to protect their wages.Two parts:Old Age Retirement benefits to support people when they could no longer work.Unemployment and disability benefits if injured or loss of their job.
One of Georgia’s most controversial politicians.Governor 1933-37, 1941-43He was a strong governor who fired those who did not agree with him.Outspoken critic of Roosevelt and the New Deal.Had a reputation as a racist.
Eugene Talmadge tried to have University of Georgia Dean of Education Walter Cocking fired for supporting racial integration.UGA’s teachers threatened to quit if Cocking was fired.Talmadge used the newspapers to attack Cocking for his views.UGA’s reputation was seriously damaged by Talmadge.
Write:1. What was Social Security created to do?2. Do people rely too much on it?3. Should we raise the age when you can collect it?Please write a good paragraph on this issue.
10Q Review Match the correct term to the proper statement CCC REA AAA Black Tuesday Herbert Hoover Surplus Subsidy Eugene Talmadge New Deal Franklin Roosevelt1. Helped land owners but hurt farmers.2. Governor of Georgia during the Depression.3. Having more of something than you need.4. The stock market crashed.5. Young men built roads and parks.6. President at the time of the stock market crash.7. A National plan of recovery.8. Set up a home in Warm Springs Georgia.9. Brought electricity to rural Americans.10. A grant of money from the government.