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 economy
Individuals 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?
424-426
What state did most Asian Americans come to? What sort of works did the Chinese
population do? What law kept the chines out of America?
444-447
What was the social Gospel movement and what was on person from it and one
reform?
465-467
What industry were the following people associated with
Andrew Carnegie
Joh Rockefeller
J.P. Morgan
Cornelius Vanderbilt
419-426
If your done with this do the following pgs 633- 635 and 640- 643
What 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.
635,643
What 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.
651-653
What 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 people
The 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 hoovervilles 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 654-659
HOLC
FCA
The AAA
The NRA
The CCC
FERA
PWA
And 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.
Warm-up
• Read and answer the following starting on pages 662-663
668-673
• What is deficit spending? Why is it so controversial when it
comes to FDR?
• Why was the American Liberty party formed?
• Who are Huey Long and Father Coughlin what points of the
new deal are they protesting?
Why is Frances Perkins a key figure during the new deal? What
does this show us about Franklin Delanor Roosevelt’s
presidency
What was FDR’S court packing plan? Why might it be
controversial?
Who is John Meynard Keynes? Why might he be important to
the ideas of the New Deal?
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. As well as the idea that this
spending might send the country into a further
depression.
Opposition to the New deal
American Liberty League: A group formed to organized to
oppose the New Deal. Believing the people’s rights and
property should be protected from the overreach of FDR’s
government. The group may have fractured the
Democratic party and FDR’s power base.
Huey Long: From Louisiana, Long helped those that were
impoverished from his state. The reforms allowed long to
build a powerful political machine in the state but it was
also corrupt. Long captivated the people and created the
share our wealth society meant to redistribute money
from the rich to the poor.
Father Coughlin: Was a Catholic Priest in Detroit who
supported the New Deal but thought the laws did not go
far enough. Coughlin wanted far more liberal reforms.
Second New Deal
In spite of all the critics and the constant threat
of the Supreme Court of finding the New Deal
unconstitutional.
FDR moved forward to create the second new
deal based on more social assistance programs.
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 pensions
Set up a system of unemployment
Provided federal grants for state welfare.
Dust Bowl
Throughout the late twenties and 1930’s farmers
over farming over the decades lead to large
amounts of infertile farm land and loose soil.
The result was large sand storms that created large
dust clouds which cover farms for days
The Dust Bowl as it was referred to normally put
out two to three dust storms a month.
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 profit
C. By barrowing money from a stock broker
D. To invest long term in the future of the
company.
2. ______ most often traveled by hopping
railroad cars.
A.
B.
C.
D.
Photographer
Journalist
The homeless
hobo
3. Herbert Hoover opposed _____, or giving
money directly to needy families.
A.
B.
C.
D.
Foreclosure
Relief
Public Works
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.
B.
C.
D.
On margin, with barrowed money
In companies that they supported
Only after carefully studying a company’s history
Without knowing their stock brokers reputation
5. Which of the following was the root of the
Great Depression?
A.
B.
C.
D.
Prohibiting alcohol
Giving women the right to vote
Uneven distribution of income
End of Federal control of banks
6. Herbert Hoover won the election of 1928 in a
landslide in part, because of
A.
B.
C.
D.
Fears od another world war
prosperity under Calvin Coolidge
Having been vice president
His support of the unions
7. Drought and _____ brought about conditions
that caused the Dust Bowl.
A.
B.
C.
D.
Overgrazing at large cattle farms
Near extinction of the buffalo
Famine
Poor farming choices
8. The people who lost their homes in the Great
Depression sometimes lived:
A. In shanty towns
B. Roadside motels
C. 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 amazing
B. People could not get over the fact that the actors
talked
C. Movies offered an escape from viewers hard lives
D. Theaters were in air conditioned and offered free
popcorn.
10. Hoover was slow to respond to the
economic crisis because:
A.
B.
C.
D.
All public works projects
Deficit Spending
Investing in stock
Private charities
11. The Federal Government began building
Hoover Dam in 1931. What body of water was it
designed to control?
A.
B.
C.
D.
The Pacific Ocean
Lake Powell
The Great Salt Lake
The Colorado River
12. Which State benefited most from the
hydroelectric power of Hoover dam?
A.
B.
C.
D.
Utah
California
Nevada
Arizona
13. The purpose of ______ was to prevent banks
from being closed completely because of bank
runs.
A.
B.
C.
D.
New Deal
Bank Holiday
Gold Standard
Fireside Chats
13. The period of intense congressional activity
after FDR took office was known as the
A.
B.
C.
D.
Square Deal
New Deal
Hundred Days
Securities and exchange commission
14.____ involves barrowing money to pay fro
government programs
A.
B.
C.
D.
Deficit Spending
The gold standard
State’s Rights
Binding Arbitration
15. Roosevelt ran into major opposition to his
___ plan.
A.
B.
C.
D.
Broker state
Gold standard
Recovery
Court packing
16. _____ was created to protect bank deposits
A.
B.
C.
D.
Agricultural Adjustment Act
Home Owners Loan Corporation
Securities and Exchange Commission
Federal Deposit Insurance Corporation
17.To __, the Agricultural Adjustment Act paid
farmers not to grow certain crops.
A.
B.
C.
D.
Raise farm prices
Lower farm prices
Feed the homeless
Let farmers relax
18.The _____ provided work for unemployed
young men, who planted trees and built
reservoirs.
A. Civil Works Administration
B. Public Works Administration
C. Civilian Conservation Corps
D. Federal Emergency Relief Administration
Look at pages 663-667
What groups did the New Deal help and who
were some of the key leaders of these groups.
First Hundred Days