THE
GREAT
DEPRESSION
By Emily Smith, Shane Collins,
Nate Elsishans, R.J. Schineller,
Dhev Patel, and Corny Morrow
*Questions not necessarily in order
STOCK MARKET CRASH
May 1928-September
1929, prices doubled
in value
beginning in Sept
1929, gradual slide
Black Thursday (Oct. 24)
largest sell-off in NYSE history
Black Tuesday (Oct. 29)
$40 billion in stock value
lost by Dec.
The Great Depression
Response of bankers,
Hoover and business
leaders
Stock Market Prices,
1921–1932
UNDERLYING CAUSES
OF THE
DEPRESSION
Overproduction - Massive business
inventories (up 300% from 1928 to 1929)
Lack of diversification in American
economy
prosperity of 1920s largely a result of
construction & auto industries
Uneven distribution of income and
wealth - Poor distribution of
purchasing power among consumers
Farm income down 66% in 20s
By 1929 the top 10% of the nation's population received
40% of the nation's disposable income
UNDERLYING CAUSES
OF THE
DEPRESSION
Consumer Debt
– middle class
installment loans; buying on margin
Overspeculation in
Stock Market – by wealthy
and
upper middle class
Consumer Debt, 1920–1931
Weakness of Banking Industry
bank failures in late 1920s (farmers)
many had small reserves
low margins encouraged speculative investment by banks,
corporations, and individual investors
total money supply
closing of over 9,000 American banks between 1930
and 1933
Federal Reserve system
UNDERLYING CAUSES
OF THE
DEPRESSION
Decline in demand for American
goods in international trade
European industry and agriculture gradually recovered
from World War I
Germany so beset by financial crises/ inflation that
could not afford to purchase US goods
High American protective tariffs
international debt structure
IMPACT
ON
SOCIETY
Effects on Business & Industry
GNP – $104
billion in 1929
to $56 billion
in 1933
Total national
income – fell by
over 50%
Corporate profits - from $10 billion
to $1 billon
Business failures: 100,000 between
1929 and 1933
Effects on Business & Industry
Bank failures
about 20% all banks
(over 6000) between
1929 and 1933)
over 9 million savings
accounts lost($2.5
billion)
Bank Failures, 1929-1933
Effect on workers and families
Unemployment
~25% in 1932?
underemployment
patterns of reemployment and layoffs
hobos
“Depression mentality”
Effect on workers and families
Malnutrition
Disease:
tuberculosis,
typhoid and
dysentery.
City & state
relief systems in
industrial
Northeast and
Midwest collapse
soup kitchens and
bread lines
Effect on workers and families
Women
Working - 25% more
New Deal – lower pay
Women’s Rights
Movement - lowest
point in a century
Families
Housing
Stress - divorce
Health – disease, suicide
Migrants - from South
and Midwest to West
Effects on Farmers
“Dust Bowl”
“Okies”
Grapes of Wrath
Effects on African Americans
High Unemployment – up to 50%: Last
hired, first fired
Competition for jobs
Exclusion from relief programs
Help from the New Deal?
labor unions
Scottsboro Case
Effects on American Culture
Reactions of most Americans
Effects on basic values
(capitalism,
democracy, individualism)
Alternatives: socialism, communism?
Whom to blame?
Popular Culture and Escapism
Frank Capra
Walt Disney
Gone With the Wind
HOOVER’S
RESPONSE
Federal Response Under Hoover
Herbert Hoover
(1929-1933)
Philosophy: limited
government,
individualism
Initial response?
public works programs
Hawley-Smoot Tariff (1930)
Debt moratorium
International Banking
Crisis (1931)- gold standard
Reconstruction Finance
Corporation (1932)
Campaign Mottos
Hoover- A chicken in every pot
and a car in every garage
Coolidge- keep it cool with
Coolidge
Harding- Cox and cocktails
Legislation
Immigration Act of 1924
World War Adjusted Compensation
Act
Revenue Act of 1924
Capper-Volstead Act
Neutrality Treaties
Five-Power naval treaty
Nine Power Treaty
Open Door Policy
Spirit of Locarno
Acts of Eleanor Roosevelt
Advocated for the poor
Left Daughters of the American
Revolution after they refused
to let African American singers
perform at Independence Hall
Visited coal mines and factory
workers
Served briefly as deputy
director of the Office of
Civilian Defense
Unconstitutional Laws of
the New Deal
Agricultural Adjustment
Administration
National Recovery
Administration
Frazier-Lemke Act
National Industrial Recovery
Act
Critics of Roosevelt
Huey Long – “…too beholden to
big business.”
Father Charles E. Coughlin Turned on Roosevelt over
deficit spending and the
Federal Reserve.
Coolidge Bio
Born on July 4th 1872 in Vermont.
Only president to be born on Independence Day
At the age of twelve his mother died. Supposedly of
tuberculosis.
His sister died at the age of 15.
Attended Black River Academy and Amherst College.
1905 Married Grace Anna Goodhue
Became a lawyer through apprenticeship at a law group in
Massachusetts.
Had 2 sons, John and Calvin Jr.
Elected to the Massachusetts house or representatives in
1906.
In the 1920 elections, he was elected vice-president
under Harding
In 1923 he was moved to president after Harding passed
while on a speaking tour in California
Brain Trust
an inner circle of unofficial
advisors to the head of a
government
Black Cabinet
First known as the Federal
Council of Negro Affairs, an
informal group of African
American public policy advisors
to United States President
Franklin D. Roosevelt.
It was supported by the first
lady Eleanor Roosevelt.
First 100 Days
Also known as the honey moon
period
Its where the president is
getting accustomed to his
duties.
Usually during this time the
media gives him a break on
criticism
First Side Chats
A fireside chat is a Presidential
address to the nation characterized by a
warm, intimate, and informal tone.
It is designed to build confidence in
the President's policies.
The tradition of the fireside chat was
begun by President Franklin D. Roosevelt
on March 12, 1933, speaking to the
nation by radio shortly after his
inauguration, in the midst of the Great
Depression.
Buying on Margin
Using a portion of existing
securities in a person's
account to purchase more
securities on credit.
Using a portion of existing
securities in a person's
account to purchase more
securities on credit.
Black Tuesday
October 29th, 1929.
This is the date of the most
famous stock market crash in
history.
Stocks lost 13% of their value on
Black Tuesday.
The date is considered the
beginning of the Great
Depression.
Bull Market
A financial market of a group of
securities in which prices are rising
or are expected to rise. The term
"bull market" is most often used to
refer to the stock market, but can be
applied to anything that is traded,
such as bonds, currencies and
commodities.
Bull markets are characterized
by optimism, investor confidence and
expectations that strong results will
continue. It's difficult to predict
consistently when the trends in the
market will change. Part of the
difficulty is that psychological
Packing the Court
An unsuccessful attempt by
President Franklin D. Roosevelt
in 1937 to appoint up to
six additional justices to
the Supreme Court, which had
invalidated a number of his New
Deal laws.
Francis Perkins
DOB Apr 10, 1880.
First woman member of a US
presidential cabinet.
Born at Boston, MA, she was
married in 1915 to Paul Caldwell
Wilson but used her maiden name
in public life.
She was appointed secretary of
labor by President Franklin D.
Roosevelt in 1933, a post in
which she served until 1945. Died
at New York, NY, May 14, 1965.