Warm-up

What plans do you have for your future?

What would you do if the economy tanked today and by tomorrow and your family could hardly afford anything?

FDR and the Great Depression

In class pgs 628-633

In the election of 1928, what did Herbert Hoover promise the American people?

What is a Bull market? What are speculation and Margin, how do they lead to the constantly growing market?

Why was Black Tuesday Significant to the stock market?

What is a bank run how did the stock market crash lead to Bank Runs?

Why did Hoover Create the Haley Smooth tariff? What is it? Di the tariff work? What happened after it was created?

Election of 1928

Herbert Hoover who was part of the Coolidge administration ran against Alfred E. Smith of the Democratic party.

Hoover said that the wealth and prosperity of the 1920’s was due to the actions of the republican party.This would be how he won the election

CAUSES OF THE GREAT DEPRESSION

• Tariffs & war debt policies

• U.S. demand low, despite factories producing more

• Farm sector crisis• Easy credit• Unequal distribution

of income

Causes of the Depression

The twenties saw a boom in consumer spending.As people began to but more durable good such

as cars, and refrigerators production began to peter off.

Due to the fact that people did not need multiples of these items.

Causing a brief recession in 1920s

Problems continue to build

Not heeding these signs the government continued to make it easier for banks to take out loans.

The hope was to stimulate the economyIndividuals with excess cash began investing in

stock.During the time the market moved in spurts of

success.

SEEDS OF TROUBLE• By the late 1920s, problems

with the economy emerged• Speculation: Too many

Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit

• Margin: Americans were buying “on margin” – paying a small percentage of a stock’s price as a down payment and borrowing the rest

The Stock Market’s bubble was about to break

Bull market

A Bull market is usually defined as a market on the rise.

This rising market only lead more people to invest their money.

THE 1929 CRASH

• In September the Stock Market had some unusual up & down movements

• On October 24, the market took a plunge –”Black Thursday” the worst was yet to come

• On October 29, now known as Black Tuesday, the bottom fell out

• 16.4 million shares were sold that day – prices plummeted

• People who had bought on margin (credit) were stuck with huge debts

If you didn’t finish this After the test answer the following I will collect this in fifteen minutes

Vertical integration and what company and person used it?Horizontal integration and what person and company used it?424-426What state did most Asian Americans come to? What sort of works did the Chinese population do? What law kept the chines out of America?444-447What was the social Gospel movement and what was on person from it and one reform?465-467What industry were the following people associated withAndrew CarnegieJoh Rockefeller J.P. MorganCornelius Vanderbilt

419-426If your done with this do the following pgs 633- 635 and 640- 643What was the point of the Hawley Smoot tariff? Was it successful. Explain.What is a hobo? What is the dust bowl? What is a public works? What did the reconstruction Finance company corporation do?What problem did the Bonus army create for Hoover?

Warm-upyou have the next twenty minutes to complete until I call you up and check this.

635,643What conditions cause the dust bowl? What is the dust bowl?Why does the Bonus army form? What happens once the Bonus army reached Washington D.C.651-653What did Roosevelt do to fix the gold standard problem?What was the purpose of the bank holidays?What was the importance of the first hundred days of Roosevelt’s presidency?What were the Fire side Chats and why did they happen??

Bank Runs

As the stock market crashed people went to the banks to pull their money out of the banks. Do to a fear of a loss of their money.

Banks could not handle so many people pulling money out and did not have enough money to give to peopleThe result was the collapse of banks.

Unemployment

By 1932 the unemployment in the country grew to 25 percent.

The unemployed stood in lines for hours looking for relief check.

Some left the city for the country, but still found little hope.

FARMERS STRUGGLE

• No industry suffered as much as agriculture

• During World War I European demand for American crops soared

• After the war demand plummeted

• Farmers increased production sending prices further downward

Photo by Dorothea Lange

Hoover and Voluntarism

Hoover who had a lot of promise as a President was unprepared for the depression.

He told the public good things are right around the corner as he supported rugged individualism.

Rugged Individualism: the belief that Americans could improve their own standing if they worked hard.

He pushed fro charities to give relief, but refused to provide federal funding when supplies ran out.

Taking action

As Hoover saw his attempts fall apart he began to take action to change the economy.

Loaned money to cooperatives and bought access crops.

Created the RFC (Regulatory Finance corporation)to help banks.

Pushed for the cutting of taxes and built the Hoover dam.

Hoover-villes

As unemployment and homelessness rose in New York citizens began to camp out in central park. These camps were called hoover-villes in mockery of the President

Public works

Hoover developed during the depression the idea of a Public Works project

Where Hoover would take unemployed laborers to make something to help the general public

The finest example being the Hoover Dam

Unfortunately this project employed only a small group of workers for a small period of time.

Hawley smoot Tariff

Hoover wanted increase people buying American goods, to handle this he increased the cost of buying foreign goods with the Hawley Smoot Tariff.

This Failed As European countries bought less American products in reaction to the tariff weakening the U.S. Economy further.

Bonus Army

Only a few weeks before the start of next presidential election veterans of the first world war were supposed to receive money for there service to the country to help deal with the depression

When the government could not pay the workers in time they marched on the capital and set up camp.

The U.S. Army was brought to force the veterans to leave hurting Hoover public image even more.

Roosevelt and the New Deal

1932 the Republicans nominate Herbert Hoover

The Democrats Nominate FDR who proposes the new Deal in his acceptance speech

The New Deal: A name for the policies that Roosevelt would use to end the depression.

Election 1932

Roosevelt’s optimism in the future was a stark contrast to Hoover’s failure.

With this perception Roosevelt won by a land slide.

The Gold Standard

One of the first things Roosevelt did was end the Gold standard

The gold standard equated an once of gold to a certain amount of dollars.

As the dollar value dropped the people began to cash their money in for gold

Confiscating Gold

Roosevelt ended the Gold standard and began to collect people’s gold.

This was to increase the value of the dollar.

It was illegal to have more than a certain amount of Gold.

Bank Holiday

Banks continued to collapse especially due to the end of gold standard.

Governors created the idea of bank holiday. It closed the banks giving them time to seek relief

Roosevelt agreed and would help restructure banks.

The First Hundred Days

The new president sent bill after bill to congress

By the end of the first hundred days the president passed 15 bills to help the economy.

Fireside Chats

As the President worked to restore the banks he used to technology to reassure citizens.

Roosevelt took to the radio explaining to the people what his plans were for banks. As well as reassure the American people.

Warm-up

Define the following new deal organizations starting on page 654-659HOLCFCAThe AAAThe NRAThe CCCFERAPWAAnd the success of the First New Deal

FDIC and SEC

SEC: Securities and Exchange Commission: Existed to manage the stock market and prevent fraud.

FDIC: Federal Deposit Insurance Corporation provide government insurance for bank deposits. Built confidence in the bank system.

HOLC and FCA

HOLC: Home Owners Loan Corporation: Helped homeowners pay their mortgage.

FCA: The Farm Credit Administration: Help farmers refinance their mortgages.

The AAA and NRA

AAA: Agricultural Adjustment Administration, worked to adjust farm prices.

NRA: National Recovery Administration: Lead by Hugh Johnson Business owners signed a pledge to sell government products that pushed fair labor environments.

Unfortunately the NRA was considered unconstitutional by the Supreme Court and was removed.

The CCC and PWA

CCC: The Civilian Conservation Corps: Gave young men age 18-25 the chance to work with the forestry service to plant trees and fight forest fires.

PWA: Public Works Administration:Most of the those unemployed worked in construction. Gave jobs on buildings, sewers, dams, schools, highways.

Critics of the President

Many criticized the new deal for deficit spending.

Essentially they worried that the President had barrowed too much money instead of balancing the budget.

Opposition to the New deal

Floyd Olsen led a group of mid west farming progressives looking for real change in the system

Father Charles Coughlin originally supported the new deal eventually he turned looking to nationalizing the banking system

Huey long: developed the idea of share the wealth clubs.

WPA

The Works Progress Administration: Headed by Harry Hopkins was the largest publics work program of the New Deal

Employed workers to build roads and highways.

Continued Social Reform

When congress came together in 1935 congress was reminded that it had not provided a welfare system for its aged and disabled.

Eventually this would become the social security act

Provided old age pensionsSet up a system of unemploymentProvided federal grants for state welfare.

Wagner Act

As the New Deal expanded it continued to help certain groups such as labor groups

The Wagner act outlawed company unions and unfair labor practices to ensure collective bargaining.

This would lead to the national labor relations board and a fair labor and standards act passed in 1938

5th period games rules.

Students will placed into groups of five.

The students will write down their group number and names on a sheet of paper.

A question will be asked each group will answer it on a scrap of paper with their group number on it. The team to turn the answer in first correctly will receive 4 points. The following teams will receive points based on their order, in other words 3, 2,1.

Any team running to turn their answers in or harassing another team in any way will lose points.

1. In the late 1920’s many investors engaged in speculation or purchasing stock:

A. After considering the companies earnings and profits.

B. And quickly selling the stock for a profitC. By barrowing money from a stock brokerD. To invest long term in the future of the

company.

2. ______ most often traveled by hopping railroad cars.

A. PhotographerB. JournalistC. The homelessD. hobo

3. Herbert Hoover opposed _____, or giving money directly to needy families.

A. ForeclosureB. ReliefC. Public WorksD. Unionization

4. One of the major problems, with the stock market in the late 1920’s was the number of people who bought stocks.

A. On margin, with barrowed moneyB. In companies that they supportedC. Only after carefully studying a company’s historyD. Without knowing their stock brokers reputation

5. Which of the following was the root of the Great Depression?

A. Prohibiting alcoholB. Giving women the right to voteC. Uneven distribution of incomeD. End of Federal control of banks

6. Herbert Hoover won the election of 1928 in a landslide in part, because of

A. Fears od another world warB. prosperity under Calvin CoolidgeC. Having been vice presidentD. His support of the unions

7. Drought and _____ brought about conditions that caused the Dust Bowl.

A. Overgrazing at large cattle farmsB. Near extinction of the buffaloC. Famine D. Poor farming choices

8. The people who lost their homes in the Great Depression sometimes lived:A. In shanty townsB. Roadside motelsC. On the lawn of the U.S. Capitol D. In public libraries opened to them

9. Despite the poverty of the 1930’s more than 60 million people went to the movies weekly. Why were movies so popular?

A. Special effects used in movies then were amazingB. People could not get over the fact that the actors

talkedC. Movies offered an escape from viewers hard livesD. Theaters were in air conditioned and offered free

popcorn.

10. Hoover was slow to respond to the economic crisis because:

A. All public works projectsB. Deficit SpendingC. Investing in stockD. Private charities

11. The Federal Government began building Hoover Dam in 1931. What body of water was it designed to control?

A. The Pacific OceanB. Lake PowellC. The Great Salt LakeD. The Colorado River

12. Which State benefited most from the hydroelectric power of Hoover dam?

A. UtahB. CaliforniaC. Nevada D. Arizona

13. The purpose of ______ was to prevent banks from being closed completely because of bank runs.

A. New DealB. Bank HolidayC. Gold StandardD. Fireside Chats

13. The period of intense congressional activity after FDR took office was known as the

A. Square DealB. New DealC. Hundred DaysD. Securities and exchange commission

14.____ involves barrowing money to pay fro government programs

A. Deficit SpendingB. The gold standardC. State’s RightsD. Binding Arbitration

15. Roosevelt ran into major opposition to his ___ plan.

A. Broker stateB. Gold standardC. RecoveryD. Court packing

16. _____ was created to protect bank deposits

A. Agricultural Adjustment ActB. Home Owners Loan CorporationC. Securities and Exchange CommissionD. Federal Deposit Insurance Corporation

17.To __, the Agricultural Adjustment Act paid farmers not to grow certain crops.

A. Raise farm pricesB. Lower farm pricesC. Feed the homelessD. Let farmers relax

18.The _____ provided work for unemployed young men, who planted trees and built reservoirs.

A. Civil Works AdministrationB. Public Works AdministrationC. Civilian Conservation CorpsD. Federal Emergency Relief Administration

Look at pages 663-667What groups did the New Deal help and who

were some of the key leaders of these groups.

First Hundred Days