1929 STOCK MARKET CRASH TO WORLD WAR II UNIT OVERVIEW

US History II -

What we will be studying: STANDARD USII.6d

The student will demonstrate knowledge of the social, economic, and technological changes of the early twentieth century by

d) identifying the causes of the Great Depression, its impact on Americans, and the major features of Franklin D. Roosevelt’s New Deal.VA USH II-ESS Page 153-154

Essential Questions What were the causes of the Great

Depression?

How were the lives of Americans affected by the Great Depression?

What were the major features of the New Deal?

VA USH II-ESS Page 153-154

Essential Skills Make connections between the past and

the present. (USII.1b)  Sequence events in United States

history. (USII.1c)

Interpret ideas and events from different historical perspectives. (USII.1d)

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Essential Understandings 1 of 3 The optimism of the 1920s concealed

problems in the American economic system and attitudes about the role of government in controlling the economy.

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Essential Understandings 2 of 3 The Great Depression had a widespread

and severe impact on American life.

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Essential Understandings 3 of 3 Franklin Roosevelt’s New Deal used

government programs to help the nation recover from the Depression.

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Causes of the Great Depression1 of 3

People overspeculated on stocks, using borrowed money that they could not repay when stock prices crashed.

The Federal Reserve failed to prevent the collapse of

the banking system.

The Federal Reserve failed to monitor banksVA USH II-ESS Page 153-154

Causes of the Great Depression1 of 3

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Causes of the Great Depression2 of 3

Overborrowing

overproduction in factories and farms

uneven distribution of wealth

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Causes of the Great Depression3 of 3

High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade Tariff Act of 1930, popularly called the Hawley-

Smoot Act

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Causes of the Stock Market Crash of 1929 Business was booming, but investments

were made with borrowed money (overspeculation).

There was excessive expansion of credit.

Business failures led to bankruptcies.

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Causes of the Stock Market Crash of 1929 Bank deposits were invested in the

market. When the market collapsed, the banks

ran out of money.

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Consequences of the Stock Market Crash of 1929

Clients panicked Tried to withdraw their money, but there was

nothing to give them.

There were no new investments So banks had no way to give money back to

people.

The Great Depression caused widespread hardships across the entire planet!

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Impact on Americans A large number of banks and other

businesses failed.

One-fourth of workers were without jobs.

Large numbers of people were hungry and homeless.

Farmers’ incomes fell to VERY low levelsVA USH II-ESS Page 153-154

Impact on Americans Unemployment and homelessness

Collapse of the financial system (bank closings)

Decline in demand for goods Political unrest (growing anger of labor

unions) Farm foreclosures and migration

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Major features of the New Deal Created by President FDR Social Security

Federal work programs

Environmental improvement programs

Farm assistance programs

Increased rights for labor

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Major features of the New Deal Created by President FDR The New Deal permanently altered the

role of American government in the economy.

It changes in people’s attitudes toward government’s responsibilities.

Organized labor acquired new rights, as the New Deal set in place legislation that reshaped modern American capitalism.VA USH II-ESS Page 153-154

Summarize Franklin Roosevelt’s New Deal This program changed the role of the

government to a more active participant in solving problems.

Roosevelt rallied a frightened nation in which one in four workers was unemployed. (“We have nothing to fear, but fear itself.”)

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Summarize Franklin Roosevelt’s New Deal Relief measures provided direct

payment to people for immediate help (Works Progress Administration—WPA).

Recovery programs were designed to bring the nation out of the depression over time (Agricultural Adjustment Administration—AAA).VA USH II-ESS Page 153-154

Legacy of the New Deal Influenced the public’s belief in the

responsibility of government to deliver public services

The government should intervene: In the economy Act in ways that promote the general

welfare.

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Any Questions?

Create Your Own New Deal Program You are creating a new 1930’s program

that will help the USA get out of the Great Depression. Here are the parts you must have:

1. Title of the program2. What the program will do (example:

make new roads)3. Who the program will help4. How many people the program will help.