chapter 22 the great depression

132
The Great Depression By Jackie White U.S. History II

Upload: mswhitehistory

Post on 16-Nov-2014

508 views

Category:

Business


3 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Chapter 22 The GReat Depression

The Great Depression

By Jackie White U.S. History II

Page 2: Chapter 22 The GReat Depression

Chapter 22 Section 1 “The Nation’ Sick Economy” Key Question: What caused the Great Depression?

Chapter Objective: Students will be able to identify and describe the causes of the Great Depression.

Page 3: Chapter 22 The GReat Depression

Chapter 22 Section 1 “The Nations Sick Economy”

Learning Objective: Be able to summarize several causes of the Great Depression

Main Idea: As the prosperity of the 1920s ended, severe economic problems gripped the nation.

Why It Matters Now: The Great Depression had lasting effects on how Americans view themselves and their government.

Terms, People, & Events: price support, credit, DOW Jones Industrial Average, speculation, buying on margin, Black Tuesday, Great Depression, Hawley-Smoot Tariff

Page 4: Chapter 22 The GReat Depression

Warm Up:

What would you do if you lost your entire life’s savings and couldn’t find a job?

How might you feel if you couldn’t provide food, clothing, or shelter for your family?

What would happen if you spent more money then you actually had?

What happens when many people and businesses are in that situation?

Page 5: Chapter 22 The GReat Depression

Beginning of Economic Problems

What did American companies do during World War I?

As European countries rebuilt in the 1920s they decreased their dependency on American products.

How will the decline in demand for American goods impact businesses?

If a company is loosing profits, what might the company do?

Page 6: Chapter 22 The GReat Depression

Industry

Some industries suffered from declining demand for goods after WWI

Some industries lost business to foreign competition and new American technologies

Coal industry declines b/c of development of new energy sources

Key industries barely made a profit (railroads, textiles, & steel) & had to lay off workers

New housing starts declined affecting other business that depended on construction

Page 7: Chapter 22 The GReat Depression

What types of industries would be affected by a decline in building new houses?Loggers (cut down trees)

Construction workers

PlumbersLandscapersElectricians

ArchitectsReal Estate Agents

Page 8: Chapter 22 The GReat Depression

Major Industries

What areas of the US will be most affected by the decrease in coal production?

Page 9: Chapter 22 The GReat Depression

Agriculture

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000757&oid=ob_000064&format=wmv

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000749&oid=ob_000064

As you watch the video clips list/identify 3 problems in agriculture.

Page 10: Chapter 22 The GReat Depression

Agriculture After WWI, demand for farm products fell drastically

Farm overproduction lead to a surplus of crops, which lead to a decrease in farm prices.

Many farmers were unable to make a profit to pay off their debts and some lost their farms to foreclosure

Congress passed federal price supports for farm products, but President Coolidge vetoed them

Page 11: Chapter 22 The GReat Depression

Consumer Spending What are some examples of things that people spend money on?

Complete consumer spending worksheet

What was problematic about consumer spending?

By making credit easily available, businesses encouraged Americans to pile up a large consumer debt

Faced with rising prices, stagnant wages, and high levels of debt, consumers decreased their buying, and could not afford to pay off their debt

Page 12: Chapter 22 The GReat Depression

Distribution of Wealth

What percentage of Americans made more than $10,000 annually?

What percentage made less than $1,500 annually?

What was problematic about how wealth was distributed in 1929-1930?http://www.youtube.com/watch?v=QPKKQnijnsM

Page 13: Chapter 22 The GReat Depression

Distribution of Wealth

Nearly half of American families earned the minimum amount needed for a decent standard of living

Unequal distribution meant most consumers had too little money to buy the goods produced by American factories

Page 14: Chapter 22 The GReat Depression

What is the NYSE?NYSE- New York Stock Exchange place to buy and sell stock since 1792

Page 15: Chapter 22 The GReat Depression

Stock Market

What is stock?Stock- a share of a company that entitles you to profits made by the company.

Page 16: Chapter 22 The GReat Depression

Stock Market

What does a stockbroker do?Stockbrokers-take orders from customers to buy and sell shares of stocks in more than 3,000 companies

Page 17: Chapter 22 The GReat Depression

Dow Jones Industrial Average- barometer of stock market health based on the stock prices of the 30 largest firms trading on the NYSE

Page 18: Chapter 22 The GReat Depression

Stock MarketWhy do people invest money into the stock market?

Speculation- buying stock in hopes of making a quick profit

Bull Market- period of rising stock prices

In 1929 only 3% of population owned stock (4 million)

Most were already wealthy, some hoped to strike it rich

Page 19: Chapter 22 The GReat Depression

Black Tuesday

On October 29, 1929 the bottom fell out of the market and the nation lost confidence

Shareholders frantically tried to sell before prices plunged even lower

Millions of shares of stock could not find buyers

People who bought stock on credit were stuck with huge debts

Stock prices plummeted and most lost their savings.

Page 20: Chapter 22 The GReat Depression

Stock Market

Many investors engaged in buying on margin, paying a small percentage of the stocks price as a down payment and borrowing the rest.

Buying on margin fueled the market upward and generated wealth but only on paper

When the market crashed most investors lost their life savings

Page 21: Chapter 22 The GReat Depression

What was the DOW average in 1927?

What was the DOW average in July of 1929?

What happened to the DOW average between 1927-1929?

What do we call that pattern?

When did the market crash?

When did the market reach its lowest point?

Page 22: Chapter 22 The GReat Depression

What does the cartoonist suggest will happen to individuals because of the crash?How does the cartoonist convey a sense of fear and shock?What do the looks on people’s faces indicate about the impact of the crash?

Page 23: Chapter 22 The GReat Depression

Causes of the Great Depression

Key industries barely made a profit cut hours or laid off workers

Agricultural decline post WWI, farmers couldn’t pay off loans, many lost their farms when the banks foreclosed and seized their property as payment for their debt

Americans were buying less b/c of rising prices and low wages

Wealth was not evenly distributed among rich and poor

Availability of easy credit during 1920’s caused many to go into debt

Page 24: Chapter 22 The GReat Depression

Chapter 22 Section 2 “Hardship & Suffering during the Depression”

Learning Objective: Be able to describe how people suffered during the Great Depression & the effect on men, women, & children.

Main Idea: During the Great Depression Americans struggled to survive & overcame adversity.

Why It Matters Now: Since the Great Depression, many Americans have been more cautious about saving, investing, & borrowing.

Terms, People, & Events: shantytown, soup kitchen, breadline, Dust Bowl, direct relief

Page 25: Chapter 22 The GReat Depression

Great DepressionWhat was it like to grow up during the Great Depression of the 1930’s?

How did the Depression alter family roles?

Did Depression hardship strengthen or weaken family bonds?

Page 26: Chapter 22 The GReat Depression

Great Depression

Period of time between 1929-1940 in which the economy plummeted and unemployment skyrocketed

Page 27: Chapter 22 The GReat Depression

How does the American Banking system work?People invest their money in the banks and banks then invest that money in the stock market or to give some of it out in the form of loans for mortgages, cars, & businesses

Page 28: Chapter 22 The GReat Depression

Can all Americans take out all their money at the same time?

No, because the money isn’t sitting in the vault some of it is invested so if everyone tried to take their money out at the same time the banks wouldn’t have enough money to pay everyone.

Page 29: Chapter 22 The GReat Depression

Rush on the Banks

During the Great Depression, people panicked and withdrew their money from banks, but some couldn’t get their money b/c the banks invested it in the stock market

Page 30: Chapter 22 The GReat Depression

Rush on the banks

In 1929, 600 banks closedIn 1933, 11,000 banks failed b/c the government did not insure bank accounts millions lost their savings

Page 31: Chapter 22 The GReat Depression

Protects your savings today up to $250,000

Page 32: Chapter 22 The GReat Depression

Gross National Product GNP- total output of the nation’s goods and services

GNP was cut in half from $104 billion to $59 billion

90,000 business went bankrupt

Page 33: Chapter 22 The GReat Depression

What was the higest percentage of unemployment during the GD?

Page 34: Chapter 22 The GReat Depression

Economic Collapse

Unemployment jumped from:

1.6 million in 1929

4 million in 1930 8 million in 1931 12 1/2 million in 1932

25 million in 1934 25% of nation’s families did not have a single employed wage earner

1 out of 4 people were unemployed

Page 35: Chapter 22 The GReat Depression

Hawley-Smoot Tariff Act

What is GDP? What was the GDP in 1928?

What was the GDP in 1933?

What impact did the Hawley-Smoot Tariff have on US GDP?

How would that impact jobs and business?

Page 36: Chapter 22 The GReat Depression
Page 37: Chapter 22 The GReat Depression

Hawley-Smoot Tariff Act

Passed by Congress in the 1930’s Established the highest protective tariff in U.S. History

Designed to protect American farmers and manufacturers from foreign competition

Had the opposite effect Tariff made unemployment worse in industries that could no longer export goods to Europe

Countries retaliated by raising tariffs

Page 38: Chapter 22 The GReat Depression

Global Effects of the Depression

As the U.S. economy collapsed so did As the U.S. economy collapsed so did EuropeEurope’’ss

WorldWorld’’s nations had become s nations had become interdependentinterdependent

World trade droppedWorld trade dropped World Wide unemployment soaredWorld Wide unemployment soared Germany and Austria were particularly Germany and Austria were particularly hard hithard hit

How might the global depression have How might the global depression have contributed to to Hitlercontributed to to Hitler’’s rise to s rise to power in Germany?power in Germany?

Page 39: Chapter 22 The GReat Depression

Bellwork:What would your life be like if you had no home to live in and no money to buy food or clothes?

What should the role of government be in helping people who are experiencing tough times?

Page 40: Chapter 22 The GReat Depression

Hawley-Smoot Tariff Act

What is GDP? What was the GDP in 1928?

What was the GDP in 1933?

What impact did the Hawley-Smoot Tariff have on US GDP?

How would that impact jobs and business?

Page 41: Chapter 22 The GReat Depression
Page 42: Chapter 22 The GReat Depression

Hawley-Smoot Tariff Act

Passed by Congress in the 1930’s Established the highest protective tariff in U.S. History

Designed to protect American farmers and manufacturers from foreign competition

Had the opposite effect Tariff made unemployment worse in industries that could no longer export goods to Europe

Countries retaliated by raising tariffs

Page 43: Chapter 22 The GReat Depression

Effects of the Great Depression

People lost jobs, were evicted from their homes, & ended up on the streets

Homelessness

Page 44: Chapter 22 The GReat Depression

Effects of the Great Depression

Shantytowns/Hoovervilles-little towns consisting of shacks that sprang up in cities across the U.S.

Page 45: Chapter 22 The GReat Depression

Effects of the Great Depression

Inhabitants blamed Hoover for their plight

Page 46: Chapter 22 The GReat Depression

Effects of the Great Depression

Hoover’s name became an object of ridicule

Page 47: Chapter 22 The GReat Depression

Soup Kitchens- free or low cost soup

Effects of the Great Depression

Page 48: Chapter 22 The GReat Depression

Effects of the Great Depression

Breadlines- Men waiting in line for free bread.

Page 49: Chapter 22 The GReat Depression

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000756&oid=ob_000064

Page 50: Chapter 22 The GReat Depression

Dust Bowl

Drought that began in the early 1930’s

Wreaked havoc on the Great Plains

Page 51: Chapter 22 The GReat Depression

No trees or grass to hold the topsoil in place caused sand and gravel to blow

Plowing removed the thick layer of prairie grasses Farmers exhausted the land from overproduction of crops

Dust Bowl

Page 52: Chapter 22 The GReat Depression

Dust storms hit Kansas, Texas, New Mexico, & Colorado

Dust Bowl

Page 53: Chapter 22 The GReat Depression

Migrant “Oakies” on their way to California

Thousands of families fled to California

Dust Bowl

Page 54: Chapter 22 The GReat Depression

Alendanre Hogue Grew up in West Texas

Part of the regionalist movement of artist who attempted to create unique American art

He believed plowing the land broke a sacred bond

Believed farmers deserved some of the blame for causing the Dust Bowl because of their farming methods

Page 55: Chapter 22 The GReat Depression

Painting Analysis What does the house, cow, the windmill, the dunes, the vulture represent?

What is the feeling of the painting?

Dreary, desolate, destruction, death, no signs of life or relief

Page 56: Chapter 22 The GReat Depression

• Lonely house vast distance between it and the one in the background emphasizes loneliness of life on the Great Plains

Skeletal cow it looks forlornly at the water tank that is empty

Page 57: Chapter 22 The GReat Depression

• Broken windmill the power of nature the wind has broken the blades

• The well has not produced any water and the water tank is filled with dust

The vulture waiting for the cow to die and the fate of life on the plains

Page 58: Chapter 22 The GReat Depression

What sense of the Dust Bowl does this photo give you?

Examine the photograph closely. What details from the photo suggest the impact of dust storms?

What agricultural problems contributed to the problems in the Dust Bowl?

Dust Bowl

http://www.youtube.com/watch?v=YDxvc-BuS5A

Page 59: Chapter 22 The GReat Depression

Why are the people in the photograph standing in line?

Irony involves the indirect presentation of a contradiction between an expression and the context in which it occurs. What was the original intent of the billboard?

What contradictions occur as a result of the line in front of the billboard?

A Relief Center in Louisville Kentucky by Margaret Bourke-White (1937)

Page 60: Chapter 22 The GReat Depression

Effects on Families

Americans believed in traditional values and emphasized the importance

of family Families entertained themselves by staying home and playing board games & listening to the radio

Some families broke apart under the strain to make ends meet

Page 61: Chapter 22 The GReat Depression

Depression Effects on Men

Difficulty coping with unemployment Men walked the streets in search of jobs Some men abandoned their families

Page 62: Chapter 22 The GReat Depression

Depression Effects on Men

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000750&oid=ob_000064

Hoboes- wandered the country, hitched rides on railroad boxcars and slept under bridgesNo federal system of direct relief- cash payments or food provided by the government to the poor

Page 63: Chapter 22 The GReat Depression

Effects on Women

Canned food or sewed clothes to make money

Managed household budgets Many people believed that single women had no right to work when there were men who were unemployed

Cities refused to hire married women as schoolteachers

Were not seen begging or standing in breadlines

Many women starved to death

Page 64: Chapter 22 The GReat Depression
Page 65: Chapter 22 The GReat Depression

Effects on Children

Poor diets, malnutrition, diet related diseases, not enough milk

Rickets- a disease caused by lack of vitamin D which makes bones become soft and prone to bending and structural change

Lack of money for health care led to serious problems, kids didn’t see a doctor or dentist

Page 66: Chapter 22 The GReat Depression

Effects on Children

School year shortened due to insufficient funding

Children went to work in sweatshops

Road the rails in search of adventure, work, escape

Page 67: Chapter 22 The GReat Depression

Social and Psychological Effects

Some people were demoralized & lost their will to survive

Suicide rate rose over 30%

3x more people were admitted into mental hospitals

Page 68: Chapter 22 The GReat Depression

Social and Psychological Effects

People stopped going to doctors & dentists

Many did not go on to college

Some put off getting married & having children

Frugality, never wanted to be poor again

Page 69: Chapter 22 The GReat Depression

Chapter 22 Section 3“Hoover Struggles with the

Depression” Learning Objective: Understand how Hoover’s reluctance to help Americans caused the Depression to worsen.

Main Idea: President Hoover’s conservative response to the Great Depression drew criticism from many Americans.

Why It Matters Now: Worsening conditions caused the government to become more involved in the health and wealth of the people

Terms & Names: Herbert Hoover, Boulder Dam, Federal Home Loan Bank Act, Reconstruction Finance Corporation, Bonus Army

Page 70: Chapter 22 The GReat Depression

Who Won the Election of 1928?

Why might the democratic candidate not have won many states?

Page 71: Chapter 22 The GReat Depression

Herbert Hoover 1928 Campaign pledge, “A chicken in every pot and a car in every garage.”

Page 72: Chapter 22 The GReat Depression

Hoover’s Philosophy of Government

“rugged individualism”- the idea that people succeed through their own efforts. People should take care of themselves and their families and not depend on the government to bail them out. Self reliance, free competition,

individual liberty

Page 73: Chapter 22 The GReat Depression

Hoover’s Philosophy of Government

Opposed any form of federal welfare or direct relief to the needy

Believed handouts weaken people’s self respect Local charities should care for the less fortunate

Page 74: Chapter 22 The GReat Depression

Hoovers Philosophy of Government

The chief function of government was to encourage voluntary cooperation among competing interest groups

Federal government should guide relief measures but NOT directly participate in them

Page 75: Chapter 22 The GReat Depression

Hoover’s Response to Crash

Tried to reassure Americans that the nation’s economy was on sound footing

Remain optimistic Go about business as usual Believed depressions were normal parts of the business cycle

Do nothing and let the economy fix itself

Limited role of government in helping to solve problems

Page 76: Chapter 22 The GReat Depression

Hoover’s Response to Crash

Reacted with caution to stock market crash

Urged key leaders to work together to provide solutions and act in ways that would not make the economic situation worse

Urged businesses not to cut wages or lay off workers

Urged workers not to demand higher wages or go on strike

Page 77: Chapter 22 The GReat Depression

Economic Situation in 1930?

Continued to worsen Unemployment continued to rise More companies went out of business Soup kitchens, shantytowns, & hoboes became common

Misery of ordinary people continued to grow

Republicans lost control of the House of Representatives & Senate

Page 78: Chapter 22 The GReat Depression

Herbert Hoover’s Response

Directed federal funds to public works projects, such as the Boulder Dam, to jump start the economy & create jobs

What measures did Hoover take and what results did he achieve to help the economy?

http://www.youtube.com/watch?v=oj7rdDoJKng

Page 79: Chapter 22 The GReat Depression

Hoover’s Response

Backed a series of federal programs: Federal Farm Board

National Credit Corp Federal Home Loan Bank Act Reconstruction Finance Corp The economy continued to deteriorate

http://www.youtube.com/watch?v=9Z44gRBwLm8&feature=related

Page 80: Chapter 22 The GReat Depression

Patman Bill

Passed by Congress in 1924 authorized the government to pay a bonus to WWI veterans who had not been compensated adequately for their wartime service not to be paid until 1945 in the form of cash and life insurance policy

Wright Patman believed that money should be paid out immediately $500 per soldier

Page 81: Chapter 22 The GReat Depression

Bonus Army March on Washington

10,000-20,000 WWI veterans and their families went to Washington D.C. to demand bonus pay they were promised

Page 82: Chapter 22 The GReat Depression

Hoover Disbands the Bonus Army

Hoover thought they were communists and persons with criminal records so he opposed the legislation

The marchers refused to leave

http://www.youtube.com/watch?v=xu9FxiHp8ss

Page 83: Chapter 22 The GReat Depression

Hoover sent 1,000 soldiers under the command of Dwight D. Eisenhower and Douglas MacArthur to disband the veterans.

They gassed 1,000 people including an 11 month old baby who died & an 8 year old who went blind

Page 84: Chapter 22 The GReat Depression

The New Deal23 The New Deal

HOME

CHAPTER OBJECTIVE

To understand the impetus for FDR’s New Deal legislations and the impact these policies had on the American nation

Page 85: Chapter 22 The GReat Depression

1A New Deal Fights the Depression

OVERVIEW

After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.

Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.

MAIN IDEAMAIN IDEA WHY IT MATTERS NOWWHY IT MATTERS NOW

TERMS & NAMESTERMS & NAMES

HOME

• Franklin Delano Roosevelt

• Glass-Steagall Act

• Federal Securities Act

• National Industrial Recovery Act (NIRA)

• Civilian Conservation Corps (CCC)

• Agricultural Adjustment Act (AAA)

• Huey Long

• deficit spending

• New DealASSESSMENTASSESSMENT

MAP

Page 86: Chapter 22 The GReat Depression

23W I T H H I S T O R YI N T E R A C T

How would you begin to revive the economy?Examine the Issues

It is 1933, the height of the Great Depression. Thousands of banks and businesses have failed, and a quarter of the adult population is out of work. Now a new president takes office, promising to bring relief to the ailing economy.

• What can be done to ease unemployment?• How can the government help failing industries?

HOME

• What would you do to restore public confidence and economic security?• How would you get money to pay for your proposed recovery programs?

The New Deal

Page 87: Chapter 22 The GReat Depression

What Should Be Done to Cure the Depression?

Read each of the following suggested ways to fix the economy.

Pick the top three ideas that you think are best and label them 1, 2, &3

Pick the three ideas you think are the worst and label them 8, 9, & 10.

Page 88: Chapter 22 The GReat Depression

Election of 1932

Franklin Delano Roosevelt

Democratic Candidate

reformer

Herbert Hoover

Republican Candidate

Incumbent (residing) President

Page 89: Chapter 22 The GReat Depression

Who won the Election of 1932?

Who were the two presidential

candidates in the 1932 election?

Who won the election of 1932?

Which political party was the winning candidate apart of?

Why might this candidate have won by such a large majority?

Page 90: Chapter 22 The GReat Depression

Franklin Delano Roosevelt

Thirty-Second President

1933-1945

Suffered from polio & was partially paralyzed from the waist down.

He was able to stand with the help of leg braces.

Campaigned vigorously to prove he could undertake the job of President despite his disability

Page 91: Chapter 22 The GReat Depression

Brain Trust

A group of carefully picked advisers including professors, lawyers, & journalists that helped FDR set policies to alleviate the problems of the Depression.

Page 92: Chapter 22 The GReat Depression

New Deal

Goals of the New Deal:

1. relief for the needy

2. economic recovery 3. financial reform

FDR’s programs designed to alleviate the problems of the Great Depression.

Page 93: Chapter 22 The GReat Depression

First Hundred Days

What month is the president elected in?

When is the president inaugurated (sworn in) into office today?

First 3 months of Roosevelt’s administration (March-June 1933)

A burst of congressional legislation (laws) to address problems of the Depression.

Significantly expanded the federal government’s role in the nation’s economy.

Page 94: Chapter 22 The GReat Depression

A Wise Economist Asks A Question 1. What do

squirrels do with acorns in the summer & fall?

2. Did the man “squirrel” away his money?

3. What happened to his savings?

4. What does this cartoon tell us about Americans faith in the banking system?

5. What can be done to restore Americans confidence?

Page 95: Chapter 22 The GReat Depression

FDR Fireside Chat

How does FDR use the fireside chat?

What type of language does he use?

What was the focus of his first talk?

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000760&oid=ob_000064

http://www1.teachertube.com/viewVideo.php?title=FDR_Fireside_Chat&video_id=89365&vpkey=

Page 96: Chapter 22 The GReat Depression

Banking Reform

Widespread bank failures had caused Americans to loose faith in the banking system.

March 5, 1933 Roosevelt declared a “Bank Holiday”

Closed the banks to prevent further withdrawals & reorganization

Page 97: Chapter 22 The GReat Depression

Exit Ticket

Complete the, “Let’s Make A Deal” Worksheet.

Identify the specific problems Roosevelt will need to address as president.

Brainstorm possible solutions to each problem.

Page 98: Chapter 22 The GReat Depression

1A New Deal Fights the Depression

OVERVIEW

After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.

Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.

MAIN IDEAMAIN IDEA WHY IT MATTERS NOWWHY IT MATTERS NOW

TERMS & NAMESTERMS & NAMES

HOME

• Franklin Delano Roosevelt

• Glass-Steagall Act

• Federal Securities Act

• National Industrial Recovery Act (NIRA)

• Civilian Conservation Corps (CCC)

• Agricultural Adjustment Act (AAA)

• Huey Long

• deficit spending

• New DealASSESSMENTASSESSMENT

MAP

Page 99: Chapter 22 The GReat Depression

Insert make your own fireside chat or new deal program poster.

Page 100: Chapter 22 The GReat Depression

Emergency Banking Relief Act:

Authorized the Treasury Department to inspect the country’s banks. Sound could reopen, insolvent-remain closed

How does this help to cure the economy?

Restored confidence in banks

Page 101: Chapter 22 The GReat Depression

Glass-Steagall Act

Established the FDIC Federal Deposit Insurance Corporation to provide federal insurance for individual bank accounts.

Page 102: Chapter 22 The GReat Depression

Regulating Banking & Finance

Federal Securities Act- required corporations to provide complete information on all stock offerings and made them liable

Securities & Exchange Commission (SEC)-regulate the stock market and prevent insider trading.

Page 103: Chapter 22 The GReat Depression

21st Amendment

Repealed prohibition so that government could raise revenue by taxing alcohol.

Page 104: Chapter 22 The GReat Depression

Rural Assistance

Agricultural Adjustment Act (AAA)- sought to raise crop prices by lowering production which the government achieved by paying farmers to leave a certain amount of land unseeded.

Page 105: Chapter 22 The GReat Depression

Agricultural Adjustment Act (AAA)

Government provided subsidies for limits on production of corn, wheat, cotton, pork, & tobacco

If farmers reduced their supply then prices would increase

Slaughtered 6 million hogs In return for withdrawing land, farmers received “rental” payments from the AAA

Paid $200 million to plow under 10 million acres of cotton

Page 106: Chapter 22 The GReat Depression

Agricultural Adjustment Act

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000759&oid=ob_000064

declared unconstitutional in 1936 Revived in 1938 with modifications to meet Court challenge

Page 107: Chapter 22 The GReat Depression

Tennessee Valley AuthorityTVA Designed to

develop & improve the Tennessee River Valley region

Created thousands of jobs & other benefits to an impoverished region

Which seven states benefit most directly from TVA projects?

Page 108: Chapter 22 The GReat Depression

Built damns to prevent floods

Page 109: Chapter 22 The GReat Depression

Constructed hydroelectric power plants to attract more industry and provide electricity to homes

Power companies didn’t like the government production and sale of power they claimed it was unfair

Page 110: Chapter 22 The GReat Depression

Civilian Conservation Corps

Put almost 3 million young men aged 18-25 to work building roads, developing parks, planting trees, & helping prevent soil erosion and flood control projects. http://www.iptv.org/IowaPathways/artifact_detail.cfm?

aid=a_000755&oid=ob_000064

Page 111: Chapter 22 The GReat Depression

Planted 200 million tress in the Great Plains to prevent another Dust Bowl

Page 112: Chapter 22 The GReat Depression

Public Works Administration

Created in 1933 when Depression was at its most severe and economic system of U.S. was near “complete collapse”

Provided money to states to create jobs chiefly in the construction of schools & community buildings

Funded $3.3 billion to put people to work building roads, public buildings, improving waterways, and other projects

34,000 public projects

Page 113: Chapter 22 The GReat Depression

The poster claims that P.W.A. efforts were aimed at turning relief into what?

What examples of P.W.A. activities are found in Texas?

What primary activity was taking place off the west and east coast of the U.S.?

What public-works activity involved the Mississippi River?

Page 114: Chapter 22 The GReat Depression

National Industrial Recovery Act (NIRA)

Established codes of fair business practices

Set prices of products to ensure fair competition

Established standards for working hours & a ban on child labor

Guaranteed workers rights to unionize and bargain collectively.

Page 115: Chapter 22 The GReat Depression

Home Owners Loan Corp (HOLC)

Provided government loans to homeowners who faced foreclosure because they couldn’t make their loan payments.

Page 116: Chapter 22 The GReat Depression

Federal Housing Administration (FHA)

Furnishes loans for home mortgages and repairs

Page 117: Chapter 22 The GReat Depression

Federal Agency Emergency Relief (FERA)

$500 million to provide direct relief for the needy

Food & clothing for the unemployed, aged, & ill

Page 118: Chapter 22 The GReat Depression

Keynesian Economics

Deficit Spending- spending more money then the government takes in to stimulate the economic recovery by putting money in the hands of consumers to make it possible for them to buy goods & services and thus fuel economic growth

British economist

John Maynard Keynes

Page 119: Chapter 22 The GReat Depression

Opposition to the New Deal

New Deal isn’t doing enough!- liberals

New Deal is doing too much!-conservatives

Opposition from the Supreme Court

Page 120: Chapter 22 The GReat Depression

New Deal Isn’t Doing Enough!

Many Americans were still desperately poor

Worst off were blacks & farmers

Key figures were: Huey Long Father Coughlin Dr. Francis Townsend

Page 121: Chapter 22 The GReat Depression

New Deal Critic: Dr. Francis Townsend

Retired California Physician

Suggested a $200 per month pension for people over 60

Open jobs for younger unemployment

Funded by a national transaction sales tax

Page 122: Chapter 22 The GReat Depression

New Deal Critic: Father Charles Coughlin

Catholic radio priest in Detroit Michigan in 1930’s

10 million listeners Criticized FDR in weekly radio program

Critical of New Deal International conspiracy of bankers

Fascist; Anti-Semitic overtones

Page 123: Chapter 22 The GReat Depression

National Union for Social Justice

Every person capable of work should receive a fair, living, annual wage

Nationalizing some public resources

Private ownership of property but controlling it for public good

Right for workers to form unions & govt support & protection

Human rights over property rights

Father Charles Coughlin

Page 124: Chapter 22 The GReat Depression

New Deal Critic: Huey Long

Governor of Louisiana & U.S. Senator

Populist who championed the working class & the poor

“The Kingfish” Critic of FDR’s New Deal for not doing enough to redistribute wealth

Promoted “Share the Wealth” program

Shot & killed by Dr. Carl Weiss in 1936

http://www.youtube.com/watch?v=hphgHi6FD8k&feature=related

Page 125: Chapter 22 The GReat Depression

“Share Our Wealth” 1. Federal govt give every family an allowance of not less than 1/3 the average family wealth of the country

No family have a fortune more than 100-300 times the average family fortune

Capital levy tax on income over $1 million 2. No person have an income less than $2,000-$2,500 annually

3. Limit/regulate working hours to prevent overproduction and allow workers time for recreation, education, etc.

4. Old Age Pension for people over 60 years old Guarantee all citizens a car, a house, a pension, & an education

Popular with the poor

Page 126: Chapter 22 The GReat Depression

The New Deal is Doing Too Much!

Business Community & Republicans ND too complicated, too many codes & regulations

Govt shouldn’t support unions & wages, that is the job of the market

ND like Stalin’s 5 year Plan Wealthy worked hard, high taxes discourage people from working hard, & gave money to people who did little for it.

Page 127: Chapter 22 The GReat Depression

The New Deal is Doing Too Much!

Govt schemes like TVA unfair competition since private companies aren’t funded by govt

Page 128: Chapter 22 The GReat Depression

What is FDR wearing?

What does his clothing represent?

What is FDR pointing at?

What compass did FDR want to change? Why?

How might the cartoonist feel about FDR’s power as president?

•FDR is behaving like a dictator

Page 129: Chapter 22 The GReat Depression

1A New Deal Fights the

Depression

1. List problems that President Roosevelt confronted and how he tried to solve them.

continued . . .

Massive unemployment

Bank holiday; treasury inspection; deposit insurance

Federal work programs

Paying farmers to slow crop production

Lack of confidence in banks

Low crop prices

HOME

Problems Solutions

MAP

ASSESSMENT

Page 130: Chapter 22 The GReat Depression

1A New Deal Fights the Depression

2. Of the New Deal programs discussed in this section, which do you consider the most important?Think About:

ANSWERANSWER

POSSIBLE RESPONSES:

•The FDIC boosted confidence in banks

•The CCC provided aid for unemployment and helped the environment.

• the type of assistance offered by each program• the scope of each program

• the impact of each program

HOME

ASSESSMENT

continued . . .

MAP

Page 131: Chapter 22 The GReat Depression

1A New Deal Fights the

Depression

3. Do you think Roosevelt was wrong to try to “pack” the Supreme Court with those in favor of the New Deal? ANSWERANSWER

POSSIBLE RESPONSES:

•No: Given the crisis of the Depression, it was necessary for FDR to restructure the Court.

•Yes: FDR’s proposed “Court-packing bill” would violate principles of judicial independence and the separation of powers.

HOME

ASSESSMENT

continued . . .

MAP

Page 132: Chapter 22 The GReat Depression

1A New Deal Fights the

Depression

4. The New Deal has often been referred to as a turning point in American history. Cite examples to explain why.

ANSWERANSWER

The New Deal helped the failing banking system, restored people’s hope in the future, provided assistance to farmers and those in need of housing, and provided people with jobs.

HOME

ASSESSMENT

End of Section 1

MAP