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Great Depression

“Brother can you spare a dime?”

What was the Great Depression?
• A Depression is a severe downturn in economic activity, which is marked by very high levels of unemployment and low levels of consumer spending and investment.

How did the Great Depression Start?
The Great Depression began on the 24th October 1929 when the stock market on Wall Street crashed. During the boom of the 1920’s many people had invested their savings into shares of companies. By buying these shares at a low price, they hoped to sell them quickly at a higher price.

How did the Great Depression Start? continued . . .
Unfortunately, as large numbers of shares were sold, the price of shares started to fall rapidly. As share prices fell, many people wanted to sell before the share prices dropped to below what they had paid for the shares.

The effect of all this selling was panic! The Stock Market crashed and the prices of shares fell so low that many people lost all their savings!

1929-1939
• Stock market crash • Didn’t realize the effect it would have • No money to replenish what was borrowed

Many found being broke humiliating.

The Roaring 20’s • The new concept of “credit” • People were buying: – Automobiles – Appliances – Clothes • Fun times reigned – Dancing – Flappers – Drinking .

– Credit Loaner – The U.S.S.Why was this bad? • Credit system – People didn‟t really have the money they were spending • U. was a major credit loaner to other nations in need – Many of these nations could not pay us back .

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Farmers Can’t Survive -low prices (can‟t pay loans / make a living) c. Causes of the Depression 1. because it was lent out to bad creditors **5. even more goods are overproduced b.The CAUSES and SPARK of the Great Depression. How did Overproduction affect both farmers and industry? What system collapsed and caused millions to lose their savings? Explain how buying on Margin created the Spark.Workers cannot buy goods. People default on loans (Can‟t pay Back) c. People loose entire LIFE SAVINGS . Bank Failures a. Cause & Spark of the Depression A. Factory Workers begin to get layed-off . Banks cannot cover their deposits.Prices Drop 2. Banks close and loose $$$ b. Supply & Demand. too much stuff (Factories and Farms) a. Overproduction. How did people lose money because of the spark? I.000 banks close between 1929-1932** d.

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can‟t give people their savings Farmers & Factory Workers can‟t pay back loans to Banks: DEFAULT!! .1920‟s Problems Factories making Too Much. Farms growing too much BANKS Have NO $$ PEOPLE LOST SAVINGS & JOBS NO ONE TO HELP! Factories Fire Workers (Don‟t need them) Farm Prices fall (Farmers can‟t make $$) Banks Close because they have no money: Loans have not been paid back.

Supply & Demand Again – Massive Sell-Off and prices begin to ______ 2. Black Thur. 1929 a.Cause & Sparks of Depression B. Summer 1929.stock broker can‟t pay back bank . Sparks of Depression 1. Stock Market Crash. How??? a. stock crashes and you loose your money and can‟t payback stock broker . Buying on Margin (Borrowing $$) . 29.. Investors begin to sell stocks b.Buy stock by just paying a small portion of what the stock is worth ex.100 shares at $10= $1000 only pay $300 still owe $700 -Problem. Oct.

The Stock Market • People bought stocks on margins – If a stock is $100 you can pay $10 now and the rest later when the stock rose • Stocks fall – Now the person has less than $100 and no money to pay back .

And then…. • With people panicking about their money investors tried to sell their stocks – This leads to a huge decline in stocks – Stocks were worthless now • People who bought on “margins” now could not pay • Investors were average people that were now .

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Cause & Sparks of Depression QUICK REVIEW: Causes: 1. Life Savings Lost . Overproduction 2. Unemployment 2. Stock Market Crash Results: 1. Bank Closings Spark: 1.

People are Desperate!!!! B. Jobless / Homeless 1. Say Churches and other groups should help b. people become homeless 3. HOBOS. People name Poor Places after Hoover a. Hatred for President Hoover 1. Say’s it is NOT Government’s job to fix the Poor a. PROBLEM: People too poor to help churches so churches can‟t help as much!!! 2.*Hooverville.Shanty towns / Hoovermobile.look for jobs*Hooverblankets. Houses are lost.newspapers used as traveling the rails blankets by homeless .How the Great Depression affected people. and what did he do to help? Who tried to help the poor and what problems did they have? How did people try to escape the Great Depression? II.cars pulled by mules b. Affects of the Depression A. 1930-1932 – Jobless goes from 4 to 12 million 2. Who was the president when it started.

• Herbert Hoover was president at the start • Philosophy: We‟ll make it! • What He Did: Nothing • The poor were looking for help and no ideas on how to correct or help were coming .

Looking for Work .

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Bonus Army .Affects of the Great Depression 3.

• Farmers were already feeling the effects – Prices of crops went down – Many farms foreclosed • People could not afford luxuries – Factories shut down – Businesses went out • Banks could not pay out money • People could not pay their taxes – Schools shut down due to lack of funds • Many families became homeless and had to live in shanties .

.People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money. .

Comedies. Wizard of OZ OZ *Small girl escaping the Dust Bowl 3.Shirley Temple. Soap Operas of 2.Affects of the Great Depression Wizard C. Movies. Radio. Literature a. Steinbeck. Child Actors a. Grapes of Wrath *About a family of „Okies‟ escaping the Dust Bowl and how horribly they were treated . Snow White (first full-length animation) b. Escaping the Depression 1.

. Results 1. tractors and steel plows tear-up extra sod that was holding onto soil. Treated poorly in Calif. III. *„Oakies‟ & „Arkies‟-Not wanted in West . Many Great Plains farmers move to California. Great Plains suffers a huge Drought (1931) 1. Natural Disaster “The DUST BOWL” A.Banks take Farms 2. . drought turns open soil into sand box 2. New technology. Huge Dust storms cover „Great Plains B.no rain b.S. Drought . during the Great Depression.The natural disaster that affected the U. a. Try to get jobs on large farms b. Can‟t pay banks. Causes: a.

“Hooverville” • Some families were forced to live in shanty towns – A grouping of shacks and tents in vacant lots • They were referred to as “Hooverville” because of President Hoover‟s lack of help during the depression. .

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“The Dust Bowl” .A drought in the South lead to dust storms that destroyed crops.

The South Was Buried • Crops turned to dust=No food to be sent out • Homes buried • Fields blown away • South in state of emergency • Dust Bowl the #1 weather crisis of the 20th century .

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Some families tried to make money by selling useful crafts like baskets. .

unemployed • Instated the “New Deal” • Yea! Frankie! . • Poor sections (like Harlem) had 50% of the pop.*FDR* • When he was inaugurated unemployment had increased by 7 million.

• People everywhere were effected by the depression • It wasn‟t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope .

Experiment and change to fight Depression . The New Deal A. Promised “New Deal” for Americans a.Franklin Roosevelt‟s approach to fixing the Great Depression. Brain Trust.Used professors and experts to develop programs to fight the depression 3. What problem did Roosevelt fix first and how? What was Roosevelt‟s plan called? Name the three major goals of his plan? IV. President Roosevelt Elected (1932) 1. NY Reformer (Governor) 2.

1932 Electoral College Votes .

Fixing Banks!!! 1. Emergency Banking Relief Act.Fixing the Depression “New Deal” A. the rest remained closed 2. Fireside Chat.told Americans by radio that the good banks were safer than $$ in a mattress (30 more „chats‟ that Am. Closed ALL banks/ 4 day “Bank Holiday” b.Passed by Congress. listened to during his presidency) . Declared a banking crisis a. allowed only sound banks to reopen.

Tennessee Valley Authority b. Roosevelt sends bills to Congress 2. Unemployment *CCC. NEW DEAL BEGINS. Reforms to Prevent more Depressions 3. A NEW DEAL!!! 1.Public Works Administration *TVA.Civilian Conservation Corp *PWA.Agricultural Adjustment Admin. Plans for Recovery c. Major New Deal Programs a.Securities and Exchange Commision .Federal Deposit Insurance Corporation (Have you seen this?) *SEC. Prevention Reforms *FDIC.Fixing the Depression “New Deal” C.National Recovery Act *AAA. Recovery Plans *NRA. People Happy. c. Relief for Unemployed b.3 Goals: a.

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Did NOT end the Depression 1. Infrastructure (buildings. electricity. bridges. Ended banking crisis b. schools. Results.Fixing the Depression “New Deal” D. Most of the Businessmen disliked New Deal 2. artwork) . Gave country confidence a. Helped with some Jobs c.

• Jim Crow Laws • Scottsboro Trials • Recovering from the Great Depression • Racial Injustice • Poor South ..Major Historical Happenings..

• These laws included segregation in… – Schools – Theaters – Restaurants – Hotels – Public transportation – Some states forbid inter-racial marriages -.Hospitals -. These became known as Jim Crow laws.Jim Crow Laws • After the American Civil War most states in the South passed anti-African American legislation.Water fountains .

• These laws were instituted in 1896 and were not abolished till the late 1950‟s (even then still not completely). .

• 9 young AfricanAmerican men (13-20) accused of raping 2 white girls in 1931 • Immediately sentenced to death • Trials went on for nearly 15 years before all the men .

The white men reported the the black men had raped two white girls on the train to authorities • They were immediately arrested and tried in front of an all-white jury.• Started on a train bound for Memphis • Several white men boarded and picked a fight with the black men • Whites were forced off train by the 12 black men. .

.The trials caused a huge uproar amongst the black community.

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Alabama • TKAM was the only novel she ever wrote .• Wrote To Kill a Mockingbird in 1960 • Based the story on her life growing up in Monroeville.

• In 1962 the novel was turned into a film starring Gregory Peck. • It received a humanitarian award and several Academy Award nominations .