Complete the Guided Reading as you view the Power
Point.





Objective 9.01: Elaborate on the cycle of
economic boom and bust in the 1920s and
1930s.
Essential Questions:
• How did the economic, social, and political events
of the early 1900s lead to the economic cycles of
the twenties and thirties?
• How did the variations in the economy in the
1920s cause major changes in that decade and in
the 1930s?
• How did early government reactions to the
economic bust serve to worsen its effects?
Economic
Cycles of the
1920’s and 30’s





In the 1920’s people in America wanted to
return to the security they felt before WWI
Warren G. Harding was elected president in
1920
Harding campaigned on a belief that America
needed to “Return to Normalcy”
Return to Normalcy: a return to isolationism,
less social reform, and increased economic
growth
Harding was popular due to a foreign policy of
isolationism and a domestic economic growth




In 1923 Harding’s presidency was shaken by
scandal
Teapot Dome Scandal: Harding’s Secretary of
the Interior, Albert Fall, took $300,000 in
bribes to allow oil companies drill in California
and Teapot Dome , Wyoming
Harding died a few months later- many believe
the stress killed him
Albert fall went to jail




After Harding’s death Calvin Coolidge became
president
Coolidge supported laissez-faire economics
and big business
Coolidge said “The business of the American
people is business”
He believed the government should stay out of
business and that a natural business cycle
would fix any economic problems






For most of the 1920’s Coolidge was right
The economy did very well
People made money and many people were
successful in the stock market (a place to invest
money)
People bought stocks on speculation: making high
risk investments in hopes of making big profits
Some risk takers invested through a system called
buying on margin: purchasing stocks for a portion
of their value and taking out a loan to pay the
difference
They believed the stock market was doing so well
they could make money while paying off the loan





Advances in technology helped increase the
economy
Henry Ford’s assembly line changed how
companies produced their products
Mechanization: increased use of machinery for
production
Why is it important?
Companies could make products faster and
cheaper so more people could buy them- when
people spend money companies make money and
can hire more people to work- everyone wins






Farmers were one group of people that did not do
well in the booming economy
During WWI farmers did well because their
products were needed to support the country and
the soldiers over seas
After WWI new technology helped farmers
produce more
The increase in production caused prices to drop
and farmers lost money
Buying new technology created debt for farmers
President Coolidge did nothing to help farmers








Herbert Hoover became president in 1929
He too believed in laissez-faire economics
October 29, 1929: Black Tuesday: the stock
market crashed
Prices dropped drastically
Many who bought stocks on speculation or
through buying on margin lost everything
Banks and stock brokers called in loans that
people couldn’t pay back
Why is it important?
It was the beginning of the Great Depression



Hoover thought the economy would fix itself so
he didn’t do much to fix the problem
Things got worse over time
Hoover tried to support U.S. business with the
Hawley-Smoot Tariff, but it turned out to be
a disaster- European countries raised their
tariffs and international trade slowed




People’s opinions of government changed during
the Depression
Before the fall people saw the U.S. as a place
where people depended on their own rugged
individualism: you take care of yourself and
your family
People believed with hard work and devotion
anyone could be a success
People saw government’s role as one to uphold
laws and protect freedom




Why is it important?
With the Depression people believed rugged
individualism was not enough
People felt the nations' government should
provide direct relief: helping those who could
not provide for themselves due to the economic
crisis
They now wanted government to provide
security, protect freedom, and provide
economic security





Objective 9.02: Analyze the extent of
prosperity for different segments of society
during this period.
Essential Questions:
• How were different groups of people
affected by the business cycles of the 1920s
and 1930s?
• How do economic changes impact society?
• Why and how does economic prosperity vary
so much from one segment of society to the
next?
From Prosperity
to
Depression



Before the Depression, the advertising
industry grew in America
Advertisers used the radio, movies, and
magazines to convince people to use their
money to buy certain products
Advertisers convinced people that they not only
wanted these products but that they needed
them as well









Installment plans were invented: producers gave
consumers easy credit that allowed customers to pay a
little at the time instead of all at once (similar to layaway, taking out a car loan, rent to own, etc.)
People bought expensive items like cars and
refrigerators
Sales increased
Why is it important?
America became a consumer society where most people
were buying
People no longer focused on saving money
Social status was measured by the amount you could buy
The economy grew
DEBT grew as people’s savings decreased!!!



People were buying more products, but they
still could not afford to buy them at the fast
rate that they were being produced
Overproduction: when too much of certain
products are produced- too much supply causes
prices to fall
Warehouses were full of overstocked itemsthis was a sign that the good times of the
1920’s might not last forever, but no one paid
attention





Farmers overproduced too
During WWI farmers stripped the land in the
Midwest and left it damaged by poor farming
techniques as they worked to meet the high
demand for food for America and soldiers
They Midwest also suffered a massive drought
that dried up the land and turned the soli to dust
Dust Bowl: a series of storms that hit the Midwest
that blew up enormous clouds of dust
Dust covered cities, towns, farm fields, destroyed
areas and left them unlivable





Why is it important?
Hundreds of thousands of people were homeless or
displaced
Many people moved to California thinking it was a
land of promise where they could start new
John Steinbeck wrote “The Grapes of Wrath”
about a family that moved out of the Dust Bowl to
California looking for new opportunities
Photographer Dorothea Lang became famous for
her work documenting the victims of the Dust Bowl
while she worked for the federal Farm Security
Administration


Dust Bowl
Images







The stock market crash made the economy fall
apart
People rushed to banks and withdrew their money
This high number of withdrawals caused banks to
close due to lack of money
People no longer trusted the stock market and
stopped investing in it- this caused stock prices to
fall even lower
Wealthy people all of a sudden found themselves
with nothing
At one point more than ¼ of the country was out of
work
Many thousands of people were homeless



People had to rely on soup kitchens and
breadlines for food
Homeless people gathered together and lived in
shacks in little villages called “Hoovervilles” –
because they blamed President Hoover for
much of the Depression
1932 Bonus Army March: WWI veterans
marched to Washington D.C. and demanded
payment of a bonus that had been approved in
1924, but was not to be paid until the 1940’s






Why is it important?
The veterans camped in Hoovervilles while they
waited for Congress to debate the issue
When Congress refused to give the bonus early
the veterans refused to leave
President Hoover used federal troops to have
the veterans removed
Several protesters including women and
children were killed and injured
The event made people angry with President
Hoover

Great Depression






Objective 9.03: Analyze the significance of
social, intellectual and technological changes of
lifestyle in the United States.
Essential Questions:
• How do technological and social changes impact
American traditions?
• To what extent should the federal government
attempt to effect economic and social change?
• What should the role of the federal government
be in the economic and social lives of its citizens?
• What long term effects did the New Deal have on
the United States?
Social, Intellectual,
and Technological
Changes
of the Period





Many new inventions became important in the
1920’s and 1930’s
Radio: used for entertainment and
communication
People across the country could enjoy the same
shows and hear the same news reports
Political leaders could not reach more people
and share their ideas and policies
Franklin D. Roosevelt benefited from the use
of radio as a politician


As president Roosevelt used the radio to
broadcast a series of fireside chats to
directly communicate with Americans
This close communication gave Americans a
sense of security and confidence as they heard
the president's voice directly even as they
continued to suffer tough economic times





During the 1920’s transportation changed
More people could afford cars
People were more mobile than ever beforethey could travel more often and farther than
they could when forced to walk everywhere
Airplanes allowed people to travel faster and
more efficiently
Charles Lindbergh was a famous pilot- first
person to fly solo and non-stop across the
Atlantic Ocean by flying from the U.S, to Paris,
France




The Movie Industry grew from silent films to
talking pictures called talkies
1927 The Jazz Singer was the first film to
ever feature sound- starring singer Al Jolson
Fashions and lifestyles in movies helped to
define our national culture
For the first time in our nation we idolized
movie stars- we wanted to be like them, have
what they had, and live like them

Lindbergh Baby Kidnapping





People began to enjoy spectator sports during the
1920’s- they began to like to watch professionals
play sports
Jack Dempsey: boxing heavyweight champion of
the world
Babe Ruth: famous baseball player- played for the
New York Yankees and then traded to the Boston
Red Socks
Jazz became a popular form of music after WWI
as African American musicians moved from New
Orleans and Mississippi to the North
Louis Armstrong: famous jazz musician from New
Orleans

Entertainment in the 1920’s and 1930’s






1919 the 18th Amendment outlawed alcohol
Bootleggers: criminals who sold illegal alcohol
Their name came from the old trick of drinkers
hiding flasks in their boots
Speakeasies: illegal bars during prohibition
Organize crime grew as gangsters controlled
bootlegging and speakeasies
Al Capone: famous gangster


Al Capone- Gangsters
Prohibition






Most people loved to spend, spend, spend during
the 1920’s
Others didn’t see it as a good thing
They saw consumerism and materialism as
destructive
Consumerism: buying what you want even if you
have to go into debt
Materialism: craving material possessions
Many writers criticized this behavior by the
American public



Langston Hughes: African American writer of
poetry and short stories about the African
American experience- reminded African
American of their heritage
Sinclair Lewis: famous writer- first to win
Nobel Prize for Literature
The Lost generation: group of writers that
felt lost in society with so much greed and
moral corruption
◦ F. Scott Fitzgerald: wrote The Great Gatsby
◦ Ernest Hemingway: wrote The Sun Also Rises






Objective 9.04: Describe challenges to
traditional practices in religion, race, and
gender.
Essential Questions:
• How were government programs in the 1920s and
30s a challenge to traditional practices in religion,
race, and gender?
• How does conflict promote change in a nation’s
identity?
• To what degree did America experience social
progress during the 1920s and 30s?
• How was America changed the 1920s and 30s?
Race, Religion,
and the
Role of Women




During the early 1900’s many African
Americans began to support the black
community and speak out for equality
W.E.B. Du Bois: began Niagara Movement and
NAACP
Marcus Garvey: began the Universal Negro
Improvement Association and Back to Africa
Movement
1920’s Harlem, New York African Americans
wrote in support of racial pride




Why is it important?
The Harlem Renaissance began
Period in time when black painters, dancers,
writers, musicians produced great works of art
Zora Neal Hurston: wrote Their Eyes Were
Watching God






During the early 1900’s more and more women began to
work outside of the home because of advances in
technology and the need for money to support their
families
Women worked as secretaries, and telephone operators
Women faced many obstacles
Usually single women were hired because men believed
married women would get pregnant and quit
There was no such thing as maternity leave so most
times women did have to quit when they had a baby
Women were rarely given leadership roles in business





As more women began to work they changed
their clothing and hair styles
Popular hair style called the ear bob- hair cut
to the length of the ears
Women began to go out on dates alone in public
without a chaperone
These new women were called Flappers because
they seemed to be more fun-loving and outgoing
than women of the past
Many traditional men and women looked down on
flappers and their new ideas







Margaret Sanger: New York City nurse believed large
families led to poverty and limited the opportunities of
women
Led a campaign to spread information about birth
control
Believed in eugenics- idea that the human race should
be improved through controlled selective breeding
Viewed nation’s minority population as a source of
poverty and thought it was growing too quickly
Usually located her birth control clinics in minority
areas
Why is it important?
She began American Birth Control league- now called
Planned Parenthood


1920 the 19th Amendment gave women the
right to vote
Many people opposed women's suffrage
because they feared it would challenge
traditional gender roles between men and
women

19th amendment






Many people of religion felt scientific discoveries
challenged their beliefs
Others looked at destruction such as WWI and
questioned the existence of God
During this time a Fundamentalist movement began
They believe that the Bible is literally true and
because it is from God it cannot contain
contradictions or errors
Billy Sunday: famous fundamentalist preacher
Aimee Semple McPherson: preached
fundamentalist beliefs on the radio






1925 Scopes Trial: Science teacher John
Scopes was arrested for teaching Darwin's
Theory of Evolution instead of the Bible’s
story of creation
This violated Tennessee law
William Jennings Bryan prosecuted the trial
Clarence Darrow defended Scopes
Darrow put Bryan on the witness stand and
under oath he admitted even he did not literally
believe everything in the Bible
Scopes lost and the Tennessee law remained







Objective 9.05: Assess the impact of the New Deal
reforms in enlarging the role of the federal
government in American life.
Essential Questions:
• How did the role of the federal government change
during the 1920s ands 30s?
• Is it appropriate for the government to be involved in
social and economic change?
• To what degree did America change positively or
negatively during the 1920s and 30s?
• Why did citizens allow the federal government to
increase its power during the Great Depression, and
how did it impact the future of the
nation?
F.D.R.
and the
New Deal






Elected President in 1932
Represented hope for a better future to much of
the nation
Known as FDR
FDR was willing to try to use the government to
help relieve the Great Depression
Roosevelt’s Brain Trust: a group of smart people
and experts who advised FDR about how to help fix
the economy
Frances Perkins: first female Secretary of Labor
◦ Helped write minimum wage laws
◦ Helped win passage of the Social Security Act





FDR believed the government should provide direct
relief to the people of the U.S.
Those who disagreed told him to leave the economy
alone and let it fix itself
FDR took a risk and began to use deficit spending:
when the government spends borrowed money
(going into debt)
The New Deal: government programs and
legislation intended to provide relief, jobs,
economic recovery, and help to Americans
During the first hundred days of FDR’s
administration he worked to pushed the New Deal
through Congress




Civilian Conservation Corps: employed
unmarried men between ages 17 – 23
Worked in national parks installing electric
lines, building fire towers, planting new trees
Government provided many of their basic needs
Able to send money home to support their
families


Federal Deposit Insurance Program: insured
bank deposits up to $100,000 in case of bank
failure
Intended to stop people from rushing to the
banks and withdrawing money in the event of
another crisis

National Industrial Recovery Act: created to
support industrial prices and prevent business
from failing



Agricultural Adjustment Act: government gave
loans to farmers
Paid them not to grow certain crops to prevent
overproduction
Many didn’t like the policy because so many
people were still without food


Tennessee Valley Authority (TVA): built
hydroelectric dams to create jobs and bring
cheap electricity to parts of the South that
didn’t have power
Helped the southern Appalachian mountain
region prosper

Public Works Administration: provided jobs by
building dams, highways, and bridges



Securities and Exchange Commission (SEC):
created to prevent excessive stock market
speculation
Limited buying on margin practices
Established rules requiring corporations have
clear and honest accounts of their financial
status

Social Security Act: provides retirement
income for all workers at age 65

National Labor Relations Act: Wagner Act:
created aboard to monitor unfair management
practices- like firing workers who join unions



Works Progress Administration: provided jobs
for unskilled workers
Constructed many government buildings



Fair Labor Standards Act: raised minimum
wage to .40 cents an hour
Set maximum work hours at 44 per week
Ended child labor under age 16






Not everyone loved the New Deal
Many thought it gave government too much power
over business
Others thought more changes were needed
Father Charles Coughlin: Catholic priest who
believed in nationalization (government ownership)
and redistribution of wealth (taking money from
the rich and sharing among the whole population)
Had a radio show where he discussed his political
view about the government and religious views
against the Jewish religion
Indicted by a Grand Jury under the Espionage Act
in 1942 for speaking against the president







Huey P. Long: senator from Louisiana
When he was governor of Louisiana he was a boss
of a political machine
He fought for the poor and the underprivileged
Supported the redistribution of wealth
He wanted to give every U.S. family $2,000 a year
Wanted to limit the income to any U.S. citizen to
$1 million a year- the government would take the
rest in taxes
Killed by the son-in-law of one of his political
enemies in Baton Rouge, Louisiana




The Supreme Court struck down many of FDR’s
New Deal ideas
1937 FDR proposed a Court Packing Scheme:
wanted to add more judges to the Supreme
Court to fill the Court with judges who
supported his New Deal programs
Angry opposition forced FDR to withdraw his
court packing plan
Many parts of his New Deal passed and were
very successful