Chapter 24 The Great Depression

1929-1933

Section 1: Prosperity Shattered

• Recount why financial experts issued warnings about business practices during the 1920s.

• Describe why the stock market crashed in 1929.

• Understand how the banking crisis and subsequent business failures signaled the beginning of the Great Depression.

• Analyze the main causes of the Great Depression.

Learning Target 1: Recount why financial experts issued warnings about business practices during the 1920s.

• Identify the warnings that financial experts issued during the 1920s:

1. Agricultural crisis

2. Sick industry

3. Consumers buying on credit

4. Stock speculation

Learning Target 1: Recount why financial experts issued warnings about business practices during the 1920s.

• Why did the public ignore these warnings:

1. Economy was booming

2. People believed it would continue to

grow

Learning Target 2: Describe why the stock

market crashed in 1929.

Factors That Caused the Stock Market Crash

The Crash

1. Rising interest rates

2. Investors sell stocks

3. Stock prices plunge

4. Heavy sells continue

Learning Target 3: Understand how the banking crisis

and subsequent business failures signaled the beginning of the Great Depression.

The Banking Crisis and Subsequent Business Failures

Banking Crisis

Depositor withdrawal

Default on loans

Margin calls

Business Failures

Unable to obtain resources

Lay-offs and closings

Learning Target 4: Analyze the main causes of the Great Depression.

Main causes of the Great Depression and how it contributed to the depression:

• Global economic crises, the U.S didn’t have foreign consumers.

• The income gap deprived businesses of national consumers

• The consumers debt led to economic chaos

Section 2: Hard Times

• Describe how unemployment during the Great Depression affected the lives of American workers.

• Compare and contrast the hardships that urban and rural residents faced during the depression.

• Analyze how the Great Depression affected family life and the attitudes of Americans.

• Explain how popular culture provided an escape from the Great Depression.

Learning Target 1: Describe how unemployment during the Great Depression affected the lives of American

workers.

• Economically People only spent money on food; African Americans lost their jobs; jobs for women increased; reduced salary and hours

• Psychologically

-emotional problems; stress, depression

Learning Target 2: Compare and contrast the

hardships that urban and rural residents faced during the depression.

Urban Hunger, unemployment,

homelessness, mutual aid,

charitable help

Rural Crops rot, and kill

animals, foreclosures, immigrants faced

deportation, share cropping ended (African

Americans), farmers helped by buying

neighbors foreclosures, then gave back

Learning Target 3: Analyze how the Great Depression

affected family life and the attitudes of Americans.

• Suicide rates increased

• Low birthrate and marriages

• Families doubled-up to live together; children moved in with parents

• Divorce rates increased

• Guilt, depression, boredom; crime increases

• Roles of men and women switched

Learning Target 4: Explain how popular culture provided an escape from the Great Depression.

• Reading, playing games at home

• Movies; low-ticket prices, double features, cartoons

• Radio programs

• Books that describes a perfect or imperfect world

• Baseball

Section 3: Hoover’s Policies

• Explain why President Hoover opposed government-sponsored direct relief for needy individuals during the Great Depression.

• Outline the Hoover administration’s attempts to solve the economic problems of the depression, and analyze the success of these efforts.

• Relate how radicals and veterans responded to President Hoover’s policies.

• Analyze why Franklin D. Roosevelt was such a popular candidate in the 1932 election.

Learning Target 1: Explain why President Hoover

opposed government-sponsored direct relief for needy individuals during the Great Depression.

1. Individuals and business should support each other.

2. Government relief would create a bureaucracy.

People should support the government, but government should not support the people.

Learning Target 2: Outline the Hoover administration’s

attempts to solve the economic problems of the depression, and analyze the success of these efforts.

The Hoover Administration and The Great Depression

EFFORT

DESCRIPTION

EFFECTIVENESS

Public-works programs

Poured money into public construction projects such as the Boulder Dam—later renamed Hoover Dam

Failed to affect the entrenched depression

Agricultural Efforts

Created the Federal Farm Board; made loans, established cooperatives, and bought surplus goods

Helped some farmers take advantage of cooperatives and avoid foreclosure, but failed to end the farm crisis

Reconstruction Finance Corporation (RFC)

Loaned taxpayer money to stabilize industries

Helped some companies avoid bankruptcy; used money for businesses, not people; aid didn’t trickle down

Learning Target 3: Relate how radicals and veterans responded to President Hoover’s

policies.

Radicals organized and staged protests, took over government buildings, blamed capitalism for the depression, and exposed radical injustice.

Veterans (the Bonus Army) gathered in Washington, D.C., to support a bonus bill that was before Congress. After the bill was rejected, remaining supporters clashed with authorities.

Learning Target 4: Analyze why Franklin D.

Roosevelt was such a popular candidate in the 1932 election.

• He was different, he just wasn’t Hoover!

• He promised a new deal for Americans; make life more fair for everyone

• He conveyed confidence and a spirit of optimism, (contrasted with Hoover’s gloom.)

• Promised to see a fairer distribution of wealth