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1930s Ppt 1


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1930s Ppt 1

  1. 1. What do we know about the 1930’s?
  2. 2. The Great Depression Begins An Appearance of Prosperity
  3. 3. The Economy of the 1920’s <ul><li>Bad for farmers </li></ul>
  4. 4. Appearance of Prosperity <ul><li>Nicknamed “Roaring 20’s” for a reason </li></ul><ul><li>A time of high, sustained economic growth </li></ul>
  5. 5. Appearance of Prosperity <ul><li>1922-1928 - Gross National Product rose by 30% </li></ul><ul><ul><li>GNP = total value of goods and services produced in a nation during a specific period of time </li></ul></ul><ul><li>Made people feel optimistic </li></ul><ul><ul><li>Limited knowledge about economy </li></ul></ul><ul><ul><li>Led to reckless spending, investing </li></ul></ul>
  6. 7. Appearance of Prosperity <ul><li>Automobiles </li></ul><ul><ul><li>Increased steel, oil, rubber business </li></ul></ul><ul><ul><li>Employed 4 million workers </li></ul></ul>
  7. 8. Appearance of Prosperity <ul><li>1923 - 1929 unemployment averaged 3% </li></ul><ul><ul><li>November 2006 = 4.4% </li></ul></ul><ul><ul><li>January 2009 = 7.6% </li></ul></ul><ul><li>Slowed growth of organized labor </li></ul><ul><ul><li>Union membership decreased </li></ul></ul><ul><ul><li>Welfare capitalism also helped </li></ul></ul>
  8. 9. Appearance of Prosperity <ul><li>Shorter hours, bigger paychecks </li></ul><ul><li>Led people to buy new products, movie tickets, attend sporting events, leisure activities </li></ul>
  9. 10. Stock Market Expansion <ul><li>Stockmarket: place where stocks are bought and sold </li></ul><ul><li>Stock: ownership in a company sold in shares </li></ul>
  10. 11. Stock Market Expansion <ul><li>Buying share of stock = buying a piece of a company </li></ul><ul><ul><li>Company does well = value rises </li></ul></ul><ul><ul><li>Company does poorly = value falls </li></ul></ul>
  11. 12. Stock Market Expansion
  12. 13. Stock Market Expansion <ul><li>1920 -1929 value of stock’s quadrupled </li></ul><ul><ul><li># of stocks traded 1920 = 318 million </li></ul></ul><ul><ul><li># of stocks traded 1929 = 1 billion </li></ul></ul><ul><li>People thought market would never go down </li></ul><ul><li>Ordinary people started investing </li></ul>
  13. 14. Faith in Business and Government <ul><li>Pro-business presidents </li></ul><ul><ul><li>Harding and Coolidge </li></ul></ul><ul><ul><li>Popular with voters </li></ul></ul><ul><li>Public confidence in federal government and pro-business policies was high </li></ul>
  14. 15. Election of 1928 <ul><li>Coolidge did not to run for reelection </li></ul><ul><li>Republicans chose Herbert Hoover </li></ul><ul><ul><li>Never held public office </li></ul></ul><ul><ul><li>Oversaw America’s WWI food production </li></ul></ul><ul><ul><li>Directed WWI relief efforts </li></ul></ul><ul><ul><li>Harding and Coolidge’s Secretary of Commerce </li></ul></ul><ul><ul><li>Reputation as business-minded leader </li></ul></ul>
  15. 16. 1928 - Hoover vs. Smith <ul><li>AL SMITH </li></ul><ul><li>Outgoing </li></ul><ul><li>Catholic </li></ul><ul><li>Support from Catholics, urban immigrants </li></ul><ul><li>Supported alcohol sales </li></ul><ul><li>HERBET HOOVER </li></ul><ul><li>Quiet, shy </li></ul><ul><li>Quaker </li></ul><ul><li>Support from small towns </li></ul><ul><li>Supported prohibition </li></ul>
  16. 17. Hoover vs. Smith