Looming Economic Troubles Troubled Industry Railroads,
textiles, coal mining, auto industry, and consumer goods were
weakening or struggling The number of houses being built declined
Farmers in debt Decline in crop prices lead to debt, foreclosures
on farms and defaults on loans. Congress tried to pass federal
price-supports to buy surplus wheat, corn, cotton and tobacco to
sell on the world market.
Slide 3
Hawley-Smoot Tariff 1930 Highest protective tariff in
peace-time history Made trade from Europe extremely difficult
Slide 4
Consumer debt Prices were rising, wages werent Credit allowed
consumers to spend outside their means plunging them into debt
Businesses encouraged spending on credit, but consumers cut back
spending to counteract debt
Slide 5
Rich got richer, poor got poorer 0.1% of population with
incomes more than $100,000; had 34% of nations savings 71% of
population with incomes less than $2,500, the minimum to provide a
decent standard of living 80% of population had no savings Large
portion of population was in debt because of using credit to
purchase new consumer goods Only 1/ 10 city homes owned an electric
fridge
Slide 6
The Election of 1928 Republican candidate Herbert Hoover
against Democrat Alfred E. Smith Smith was more personable, but he
was a Catholic, pro-alcohol, and from NYC We in America are nearer
to the final triumph over property than ever before. Hoover wins an
overwhelming victory
Slide 7
The Stock Market Most visible symbol of a prosperous American
economy The Dow Jones Industrial Average gauged the markets health
The Dow is a measure based on the stock prices of 30 representative
large firms that trade on the New York Stock Exchange Through the
20s, stock prices rose. Dow reached a high of 381 points, an
increase of 300 points in 5 years
Slide 8
A Bull Market Widespread speculation where people bought stocks
and bonds to make a quick profit Buying on margin where they would
pay a small % of a stocks price as a down payment and borrow the
rest More people began to invest in the stock market, not just the
wealthy If the value of stocks decline, people have no way to pay
off loans Gov. didnt try to regulate the market
Slide 9
Black Thursday September 1929 stock prices reached an all- time
high Wed, October 23, 1929 stock prices declined What would you do?
Thurs, October 24, 1929 Nervous investors began selling stocks
Banks joined together to buy stock to prop up stock prices and the
stock market. This worked, but for just a few days. Mon, October
28, 1929 stock prices started falling again
Slide 10
Black Tuesday Tues, October 29, 1929 Everyone rushed to sell
their stock (get their money out of the stock market) Wide spread
panic led to the dumping of 16.4 million shares of stock Stock
market dropped in value by $16 Billion 211,942,040,062 today The
stock market actually collapsed = The Great Crash Total loss of the
Great Crash = $30 billion 397,391,325,116 today People who used
credit to buy stocks faced huge debts and others lost their
savings.
Slide 11
Financial Collapse The Stock Market Crash signaled the
beginning of the Great Depression Banks Fail People rush to
withdraw $ from banks, but some couldnt because banks had invested
their $ instocks 1929: 600 banks closed 1933: 11,000 banks had
failed Millions lost savings because gov. didnt protect or insure
bank accounts Businesses Fail Between 1929-1932, GNP was cut from
$104 billion to $59 billion 90,000 businesses went bankrupt
including auto and railroad Unemployment in 1929 was 3% compared to
25% in 1933 (thats 1 in 4 people w/o a job)
Slide 12
Slide 13
Effects overseas Many countries still trying to recover from
WWI devastated European economy Made it hard to export Am. Goods
United States passed high tariffs to protect Am. Farmers from
competition
Slide 14
Causes of the Great Depression Tariffs and war debt policies
cut down the foreign market for Am. Goods Overproduction (surplus)
of farm goods The availability of easy credit An unequal
distribution of income
Slide 15
The Depression Hits Home In cities, people lost their jobs and
were evicted from their homes Built shantytowns, little towns made
of shacks Used car bodies, orange crates, piano boxes Poor dug
through garbage cans, begged, or waited in soup kitchens or bread
lines to get cheap or free food
Slide 16
African Americans and Latinos Higher unemployment rates and
they received the lowest pay Faced increased racial violence from
whites competing for jobs 1933: 24 African Americans died by
lynching Mexicans and Mexican Americans faced deportation
Slide 17
The Dust Bowl Between 1929 and 1932, about 400,000 farms were
lost to foreclosure Not only economic damages, but environmental
Land was overworked Drought and dust storms in the Midwest for much
of the 1930s Black Sunday worst dust storm April 14, 1935 Dust
would get into everythingkitchens, bedrooms, hair, nails, mouths
Wrapped faces in damp rags to filter out the grit Nostrils with
Vaseline to keep noses from clogging and bleeding dust pneumonia
Many packed up families and headed west to California along Route
66
Slide 18
Click below for a video! ^ Click for a song
Slide 19
Slide 20
Searching for Jobs HOBOS No federal system of direct
relief
Slide 21
Slide 22
Women and Children Canned food, sewed clothes, managed budget
Many worked outside the home for less wages, but resented for
taking jobs away from men By 1933, 2,600 schools had closed leaving
thousands of children to work in sweatshops Wild boys hopped
freight trains travelling the country for jobs, adventure, and to
escape poverty
Slide 23
Slide 24
Social and Psychological Effects Between1928 and 1932, the
suicide rate rose by 30% Health declined because couldnt afford the
doctor Couldnt afford college, others put off marriage and raising
large families or having kids at all People gave food, clothing,
and shelter to the needy Strengthened communities and family ties
Developed habits of saving and thriftness
Slide 25
President Herbert Hoover After the crash, he tried to convince
public that the economy was on sound footing and to remain
optimistic Opposed any form of federal welfare, or direct relief to
the needy, because it would weaken their self-respect He asked
employers not to cut wages or lay off works, he asked labor leaders
not to demand higher wages or strike
Slide 26
Hoovervilles and Shantytowns
Slide 27
What did Hoover Do? He finally decided he had to do something
He got Congress to approve $2.25 billion for public works projects
Hoover Dam on the Colorado River in Arizona
Slide 28
Reconstruction Finance Corporation 1932 under Hoover Government
lending bank to help smaller, rural banks
Slide 29
Bonus Army of 1932 Veterans marched on Washington DC to demand
their bonus from services during WWI Hoover sent Douglas MacArthur
in to remove the veterans who would not leave using tear gas and
bayonets
Slide 30
ELECTION OF 1932 Herbert Hoover (Republican) Prosperity is Just
Around the Corner Franklin D. Roosevelt (Democrat) Roosevelts theme
song was Happy Days are Here Again He used his Brain Trust of
trusted aides to help write speeches, etc.
Slide 31
March 4, 1933 FDR was inaugurated President, 4 months after the
election Worked with the Brain Trust to provide a New Deal for the
American people during this time
Slide 32
NEW DEAL His first Hundred Days were filled with legislation,
over 15 pieces of major legislation Expanded the role of the
federal government March 6-10 Nationwide Bank Holiday Closed all
banks to prevent withdrawls Passed the Emergency Banking Relief Act
to inspect the countrys banks Banks that couldnt pay debts remained
closed, restored confidence
Slide 33
3 Rs Relief, Recovery, and Reform Relief short range goals
Recovery long range goals Reform deal with current abuses
Slide 34
CONGRESS worked with the President and gave him blank check
powers
Slide 35
Emergency Banking Relief Act of 1933 Power to regulate the
banking system Close and reopen banks Safer to keep money in a
reopened bank than in the back yard!
Slide 36
Fireside Chats Roosevelt used the radio to talk to Americans
Focused on Priming the Pump Click picture for his first fireside
chat during the bank holiday
Slide 37
Glass-Steagall Banking Reform Act FDIC Federal Deposit
Insurance Corporation Insures individuals up to $5,000
Slide 38
Nation taken off the Gold Standard
Slide 39
Civilian Conservation Corps (CCC) Most popular of all the New
Deal alphabet agencies Employment in fresh air government camps for
about 3 million uniformed young men Reforestation, firefighting,
flood control, swamp drainage Paid $30 a month, sent $25 home to
their families
Slide 40
Federal Emergency Relief Act (May 1933) Harry L. Hopkins $3
billion to states for work projects
Slide 41
Agricultural Adjustment Act (AAA) help farmers meet mortgages
& paid farmers to grow less Home Owners Loan Corporation (HOLC)
to refinance mortgages on non-farm homes
Slide 42
Tennessee Valley Authority (TVA) renovated five damns and
constructed 20 new ones. Created jobs, provided flood control,
hydroelectric power
Slide 43
Civil Works Administration (CWA) Provided 4 million temporary
jobs during cruel winter months Built 40,000 schools and half a
million roads
Slide 44
Some people hated the New Deal Didnt go far enough to help the
poor and reform the economic system FDR spent too much on direct
relief and used New Deal to control business and socialize economy
Huey LongShare-Our-Wealth promised Every Man a King Had 7.5 million
members until he was assassinated Father Charles Coughlin Catholic
priest who became anti Semitic Broadcasted on radio economic,
political, and religious ideas
Slide 45
The Supreme Court Struck down two New Deal acts because federal
government overstepped their roles FDR tried to pass a court-reform
bill in 1937 reorganizing the federal judiciary and appoint new
justices Criticized it upset judicial independence and checks and
balances Over next four years, FDR appointed 7 new justices from
resignations
Slide 46
Second Hundred Days (or Second New Deal) Spring 1935 More
relief for farmers and workers Eleanor Roosevelt travelled the
country to remind her husband of the suffering 1936 election FDR
wins overwhelmingly 1 st time African Americans voted solidly
Democratic and labor unions supported a candidate
Slide 47
Works Progress Administration (WPA) 1935 Employment on useful
projects $11 billion spent to give jobs to over 8 million workers
WKUs Cherry Hall was a recipient of the WPA money and workers
Federal Art Project was also started
Slide 48
Chronicling the Depression Artists, Painters, Filmmakers,
Photographers showed a new interest in social problems and
activism. Dorothea Lange Photographic chronicler of the Great
Depression
Slide 49
Wagner Act 1935 Protected right of workers to join unions and
collective bargain Prohibited unfair labor practices like
threatening workers, firing union members, and interfering with
union organizing 1938 Fair Labor Standards Act Set maximum hours at
44 and minimum wage at $0.25 Set rules for 16 and under, and banned
dangerous work for under 18
Slide 50
Social Securities Act 1935 Old-age insurance for retirees 65 or
older and their spouses Unemployment compensation system $15-$18 a
week Aid to families with dependent children and the disabled
Slide 51
Rural Electrification Administration 1935 Brought electricity
to isolated areas In 1935, only 12.6% of American farms had
electricity 48% in 1945, 90% in 1949
Slide 52
New Roles for Women More women working outside of home Frances
Perkins Secretary of labor First woman to head an executive
department Helped create the Social Security system Mary McLeod
Bethune Leader of the Black Cabinet and director of Negro Affairs
in the National Youth Administration Advised FDR on racial issues
and made provided job training and benefits to minority
students
Slide 53
Culture Movies65% of population attending 1x a week Mr. Smith
Goes to Washington Disney Snow White Gone with the Wind The Wizard
of Oz Radio90% of homes had a radio New Type of Music Emerging -
Swing Radio programs such as The Lone Ranger & Orson Welles War
of the Worlds Literature John Steinbecks The Grapes of Wrath Zora
Neale Hurstons Their Eyes Were Watching God Sports Boxing was
hugely popularJoe Louis Why would radio and movies increase in
popularity?
Slide 54
American Gothic by Grant Wood
Slide 55
1937 A Troubled Year Moving Forward Supreme court upheld many
New Deal programs March 1937 upheld a Washington law that granted
Minimum Wage Ruled both, a key part of the Wagner Act and Social
Security constitutional. Farm Tenancy Act - 1937 Gave tenant
farmers and Sharecroppers a chance to buy land of their own
Recovery in Doubt FDR scaled back federal deficit spending 1937 - A
bad year for recovery. Massive drop in stocks and by the end of the
year another 2 million American unemployed.
Slide 56
Impact of the New Deal Relief, Recovery, Reform Which area was
the New Deal most successful? Changing relationships Changed the
link between the American people and the Government New Role for
Government meant a much larger Government. As a result many more
people now looked to the Government for help
Slide 57
End of the New Deal Weakened support 1937 What happened in 1937
to cause loss of support? The 1938 Election Republicans and
Southern Democrats gained seats in the House and the Senate Why did
this happen? After the New Deal After 1938 FDR lacked the support
to pass New Deal Styled programs. Problems in Europe now held the
attention of the American Public. In 1939 and 1940 international
conflict will ultimately do what FDRs programs could not.
