1930s ppt 1

What do we know about the 1930’s?

The Great Depression Begins

An Appearance of Prosperity

The Economy of the 1920’s

• Bad for farmers

Appearance of Prosperity

• Nicknamed “Roaring 20’s” for a reason

• A time of high, sustained economic growth


• 1922-1928 - Gross National Product rose by 30%– GNP = total value of goods and services

produced in a nation during a specific period of time

• Made people feel optimistic– Limited knowledge about economy– Led to reckless spending, investing


• Automobiles– Increased steel, oil, rubber business– Employed 4 million workers


• 1923 - 1929 unemployment averaged 3%– November 2006 = 4.4%– January 2009 = 7.6%

• Slowed growth of organized labor– Union membership decreased– Welfare capitalism also helped


• Shorter hours, bigger paychecks

• Led people to buy new products, movie tickets, attend sporting events, leisure activities

Stock Market Expansion

• Stockmarket: place where stocks are bought and sold

• Stock: ownership in a company sold in shares


• Buying share of stock = buying a piece of a company– Company does well = value rises– Company does poorly = value falls


• 1920 -1929 value of stock’s quadrupled – # of stocks traded 1920 = 318 million– # of stocks traded 1929 = 1 billion

• People thought market would never go down

• Ordinary people started investing

Faith in Business and Government

• Pro-business presidents– Harding and Coolidge– Popular with voters

• Public confidence in federal government and pro-business policies was high

Election of 1928

• Coolidge did not to run for reelection• Republicans chose Herbert Hoover

– Never held public office– Oversaw America’s WWI food production – Directed WWI relief efforts– Harding and Coolidge’s Secretary of

Commerce– Reputation as business-minded leader

1928 - Hoover vs. Smith

AL SMITH• Outgoing• Catholic• Support from

Catholics, urban immigrants

• Supported alcohol sales

HERBET HOOVER• Quiet, shy• Quaker • Support from small

towns• Supported

prohibition

Hoover vs. Smith