The Depression

DON”T WRITE

Great Depression in the United States, worst and longest economic collapse in the history of the modern industrial world, lasting from the end of 1929 until the early 1940s. Beginning in the United States, the depression spread to most of the world’s industrial countries, which in the 20th century had become economically dependent on one another.

CausesBig Business and Fading IndustriesLittle government regulation

By the end of the 1920s about 200 corporations controlled half the nation’s corporate wealth

Little diversity in economy

By 1929 the top 10% of the nation's population received 40% of the nation's disposable income

Many in the US could not afford automobiles Decline in demand for American goods.

(Tariffs discouraged trade)

Lay off s caused further decline in consumer spending and production

Crisis in Agriculture

WWI boosted agricultural production in wheat and corn. After WWI prices for wheat and corn dropped by 50%

American farmers faced stiff competition from European marketsMany farmers had taken out loans to

buy new farm equipment. Many defaulted on the loans.

Hoover's Response

A. Rejected direct relief (the dole) as undermining to character and rugged individualism

B. Urged Americans to turn to community and church resources (Salvation Army, Community Chest, Red Cross) to meet needs of the poor

C. Gradually used federal agencies to address issues 1. Met with business and labor leaders to reduce layoffs and strikes

2. Financed federal work projects, such as massive dams in the West (Boulder, Hoover, and Grand Coulee)

3. Set up RFC (Reconstruction Finance Corporation) in 1932 to make loans to stimulate economy in a "trickle-down" manner

4. Raised tariffs 33% by signing the Hawley-Smoot Tariff in attempt to keep foreign goods off the U.S. market.

Refugees

Refugees

Hooverville

POP QUIZ – HOOVER AND ZINN

1. Departing from the American system would result in what?

2. What connection is there between the Revolution in Russian in 1917 and what was happening in America during the early 30s?Or is there a connection? Why or Why not?

VOCAB

FallowIncipientThe Bonus Army

FDR became President at the height of the depression, 1933came in when 1/4 of the population were out of work, industrial production had fallen by 50% and 2 million were homeless.

The First New Deal 19331st 100 Days 1.Declared a "bank holiday" states were ordered to close banks. Banks were then analyzed. If they were sound then they could reopen. Special legislation gave him control over all banks in the U.S. ( be careful) 19,000 banks were closed, some 4000 never to reopen. 2. FDIC Federal Deposit Insurance Corporation 3. Federal Emergency Relief Administration           a. 250,000 young men in  rural local projects           b. Agricultural Adjustment force higher prices. Gave subsidies to farmers to NOT farm      

READ HAND OUT ON MORE ALPHEBET SOUP PRGRAMS 

The Great Depression Recovery SimulationYou are members of the U.S. government. (prior to 1933)Assign your group members to the positions below. Write their names next to the

positions. Discuss what each could do to alleviate the crisis of the depression. You will need to record your ideas and present them to the class. We will then debate on the effectiveness of each.

President- Sec. of Treasury- economic advisor to the presidentSec. of State- supervise foreign affairsSec. of Agriculture- concerned about farming and food qualitySec. of Commerce- supervisor of business and industrySec of Labor- occupational safety, wage and hour standards. to improve

working conditionsPresidential Advisor- gives general advice (Pretty vague, I know.)Make sure that you address the following problemsBank failuresUnemploymentFarming crisis (to farm or not to farm)Foreign debtForeign tradeHousingInsuranceStimulate consumption of goods

Critics of the New Deal -limited business-too many regulations-destroying individual freedoms-leading the nation towards dictatorship 1935- Social Security-before you took care of your own-monthly pension for people over 65-based on the number of years worked-provided care for children and the disabled-provided unemployment insurance Flaws of S.S.-pay was low-did not cover self employed-domestic servants 60% of African American women were not covered-farm workers 

1. Why was FDR's administration labeled the "New Deal" do you think? What were its three goals?

Help the people hurt by the Depression Bring the U.S. out of the Depression Make changes for the better

2. What was the principal feature of New Deal farm policy? 

3. What were the goals of the TVA?  How did the New Deal try to reform banking?

4. Identify the three areas covered by the original Social Security Act

The Rise of Dictatorship Communism in Russia-Russia becomes the Union of Soviet Socialist Republics-Lenin suppresses all opposition-Campaign to wipe out private property-Lenin dies 1924. Joseph Stalin becomes leader-Under Stalin the USSR becomes a major economic and military power-Collective Farming- 5 to 10 million die of starvation-The Great Purge: Campaign to get rid of political rivals. Estimates 20 million killed by execution, starvation and disease

Fascism in Italy-Italians faced hard times, poverty, strikes and riots-Italians wanted a strong leader-Benito Mussolini was the founder/leader of the Italian Fascist Party 1922-Promise to crush communism and end economic hard times-Mussolini oppressed all media and set up a secret police force

Nazism in Germany-Extreme economic conditions in Germany made it easy for a well organized and structured party to gain support-1933 6 million unemployed-1933 Hitler is appointed chancellor of Germany-Once in power Hitler oppressed all political rivals, banned non-Nazi media and labor unions.-Hitler begins to secretly build up the German military-1935 Hitler begins a campaign against the Jews.   

POP Quiz- LewisohnThe Revolt Against Civilization

• Pagan

• Dervish

• Apotheosis

• The Gauls

• Vulgar

• Demagogues