Unit 6

The

Great

Depression

Unit 6: THE GREAT DEPRESSIONUnit 6: THE GREAT DEPRESSION Stock Market Crash: “Black Tuesday”, October Stock Market Crash: “Black Tuesday”, October

29,1929. The Market collapses. People panic. 29,1929. The Market collapses. People panic. The collapse sets off a chain reaction. Business The collapse sets off a chain reaction. Business in the U.S. comes to a stand still.in the U.S. comes to a stand still.

1932: 12 Million people are unemployed.1932: 12 Million people are unemployed. Roosevelt’s New Deal: In the 1Roosevelt’s New Deal: In the 1stst 100 days in 100 days in

Office, Roosevelt's passes 15 major bills to help Office, Roosevelt's passes 15 major bills to help deal with the Depression. The New Deal is a deal with the Depression. The New Deal is a plan to rescue the American Economy.plan to rescue the American Economy.

Eleanor Roosevelt: The 1Eleanor Roosevelt: The 1stst Lady: She is loved by Lady: She is loved by the American people. She is different than other the American people. She is different than other 11stst Ladies because she took on “social Projects” Ladies because she took on “social Projects” to help the poor and disadvantaged.to help the poor and disadvantaged.

Second New Deal: Focuses on reform. Second New Deal: Focuses on reform. This New Deal introduces Social Security- This New Deal introduces Social Security- it gave unions the right to bargain.it gave unions the right to bargain.

Industrial Unions: employees of a Industrial Unions: employees of a particular industry: example: UAW, United particular industry: example: UAW, United Auto WorkersAuto Workers

Craft Unions: employees with a particular Craft Unions: employees with a particular skill- example: Carpenter's Union.skill- example: Carpenter's Union.

The New Deals help to establish the The New Deals help to establish the federal governments duty to help federal governments duty to help Americans.Americans.

Chapter 29: The Wall Street CrashChapter 29: The Wall Street CrashStock Market: where shares of Companies Stock Market: where shares of Companies

are bought and sold.are bought and sold.Speculation: Is where you take a risk with Speculation: Is where you take a risk with

your money in hopes of making a large your money in hopes of making a large profit.profit.

On Margin: is where you buy a large On Margin: is where you buy a large amount of stock with a small down amount of stock with a small down payment, the rest to be paid later. Buying payment, the rest to be paid later. Buying on margin could ruin an investor financially on margin could ruin an investor financially if prices of the stock bought dropped.if prices of the stock bought dropped.

Investors: someone who puts money into Investors: someone who puts money into a business to make a profit.a business to make a profit.

Chapter 29: The Wall Street CrashChapter 29: The Wall Street Crash Panic on Wall Street: Price of stocks drop within Panic on Wall Street: Price of stocks drop within

3 hours, stocks loose 11 billion dollars of their 3 hours, stocks loose 11 billion dollars of their value in minutes. Millions of shares of stock value in minutes. Millions of shares of stock went up for sale- NO Buyers – prices continue to went up for sale- NO Buyers – prices continue to fall and drop. Stocks that once sold for 48 fall and drop. Stocks that once sold for 48 dollars a share are now only worth 1 dollar. dollars a share are now only worth 1 dollar. People panic.People panic.

Margin buyers have to pay up what they Margin buyers have to pay up what they owe:most don’t have cash to pay. They loose owe:most don’t have cash to pay. They loose their down payments, their creditors loose their their down payments, their creditors loose their loans.loans.

Chapter 30: The Dust BowlChapter 30: The Dust Bowl Migrated: to moveMigrated: to move ““Okies” a name given to 1000’s of “migrant” Okies” a name given to 1000’s of “migrant”

workers who went to California for work because workers who went to California for work because of crop failure in the Great Plains. (Oklahoma, N. of crop failure in the Great Plains. (Oklahoma, N. & S. Dakota, Texas, etc.)& S. Dakota, Texas, etc.)

Plowing and Grazing: Rip off the top layer of Plowing and Grazing: Rip off the top layer of grass that protects the soil. Framers and grass that protects the soil. Framers and ranchers never bother to replant the grass. ranchers never bother to replant the grass. They overuse the soil and this makes it unfertile.They overuse the soil and this makes it unfertile.

Dry Wells: Crop prices fall and there is little to no Dry Wells: Crop prices fall and there is little to no rain. Wells and Water holes dry up. Winds rain. Wells and Water holes dry up. Winds come and blow over the dry land. The winds come and blow over the dry land. The winds pick up the top soil and form giant dust clouds. pick up the top soil and form giant dust clouds. The crops fail because of the weather.The crops fail because of the weather.

Chapter 30: The Dust BowlChapter 30: The Dust Bowl Bank take overs: During the boom of the 1920’s Bank take overs: During the boom of the 1920’s

farmers take out huge loans to buy machinery farmers take out huge loans to buy machinery and land, crops fail in the early 1930’s- farmers and land, crops fail in the early 1930’s- farmers can’t pay bank loans, banks take over the farms.can’t pay bank loans, banks take over the farms.

Dust storms: Storms of dusty top soil would blow Dust storms: Storms of dusty top soil would blow for days. Would have to stay inside and stuff for days. Would have to stay inside and stuff rags into any openings to keep the dirt out. Dust rags into any openings to keep the dirt out. Dust could block the sun it was so thick.could block the sun it was so thick.

Evicting: removing tenants from property or Evicting: removing tenants from property or buildings.buildings.

Bankrupt: Unable to pay debts, loans and bills.Bankrupt: Unable to pay debts, loans and bills.

Chapter 30: The Dust BowlChapter 30: The Dust Bowl

Farmers go bankrupt: Between 1934-1939, Farmers go bankrupt: Between 1934-1939, 400,000 people lost their farms and headed west 400,000 people lost their farms and headed west from bankruptcy.from bankruptcy.

Cardboard houses: Homeless shelters for Cardboard houses: Homeless shelters for “Okies”“Okies”

F.S.A.: Farm Security Agency: Set up by the F.S.A.: Farm Security Agency: Set up by the Federal Government to help migrant workers Federal Government to help migrant workers and small farms. Built new migrant –worker and small farms. Built new migrant –worker camps, taught farmers to plant grass to hold camps, taught farmers to plant grass to hold down soildown soil

Chapter 31: Bread Lines and DebtsChapter 31: Bread Lines and Debts

By the Winter of 1932: 1 out of 4 people are By the Winter of 1932: 1 out of 4 people are unemployed.unemployed.

African Americans are hurt the most because:African Americans are hurt the most because:

1) They are victims of prejudice1) They are victims of prejudice

2) The face bigotry which is the attitude 2) The face bigotry which is the attitude and behavior of a narrow minded and behavior of a narrow minded

person.person.

3) They lived in tenements3) They lived in tenements

4) Some denied government assistance.4) Some denied government assistance.

Chapter 31: Bread Lines and DebtsChapter 31: Bread Lines and Debts Looking for work: Non unionized workers left Looking for work: Non unionized workers left

with no financial protection, lost jobs, can’t find with no financial protection, lost jobs, can’t find new ones,new ones,

Employment Agencies: 100’s would go daily to Employment Agencies: 100’s would go daily to agencies but there was no work. Families agencies but there was no work. Families starved. Only 1 member of each family starved. Only 1 member of each family “allowed” to work at a time.“allowed” to work at a time.

Breadlines: people stood in line to get free bread Breadlines: people stood in line to get free bread and soup.and soup.

Selling Apples: A boom in apple crops in the Selling Apples: A boom in apple crops in the West gives the homeless and unemployed a West gives the homeless and unemployed a chance to make some $ by selling the apples for chance to make some $ by selling the apples for 5 cents or less a piece.5 cents or less a piece.

Tax revenues: income from city or state or Tax revenues: income from city or state or national taxes.national taxes.

Chapter 31: Bread Lines and DebtsChapter 31: Bread Lines and Debts Hooverville's: Shanty towns of homeless Hooverville's: Shanty towns of homeless

unemployed men named after Herbert Hoover.unemployed men named after Herbert Hoover. Veterans ask for help: 15,000 veterans march on Veterans ask for help: 15,000 veterans march on

Washington D.C. They ask for the $ promised Washington D.C. They ask for the $ promised them in WWI, early. The Veterans are ordered them in WWI, early. The Veterans are ordered to leave- they won’t go. Hoover calls in the to leave- they won’t go. Hoover calls in the armed forces to remove them. They get rid of armed forces to remove them. They get rid of the veterans using tear gas, then they burn the veterans using tear gas, then they burn down their tents. It is photographed and the down their tents. It is photographed and the nation is horrified at what they are doing to these nation is horrified at what they are doing to these honored veterans who served there country.honored veterans who served there country.

Chapter 31Chapter 31

Schools Closed: Many schools were Schools Closed: Many schools were forced to close because of the loss of forced to close because of the loss of income from people and businesses that income from people and businesses that were unable to pay their taxes. Many were unable to pay their taxes. Many children were forced to quit school so that children were forced to quit school so that they could work to support their families.they could work to support their families.

Chapter 32: A Pioneer of ReformsChapter 32: A Pioneer of Reforms

Frances Perkins 1Frances Perkins 1stst woman to serve as a woman to serve as a member of a member of a President's Cabinet. President's Cabinet. She was named the She was named the Secretary of LaborSecretary of Labor

Chapter 32: A Pioneer of ReformsChapter 32: A Pioneer of Reforms

Triangle Shirtwaist Factory: A factory that Triangle Shirtwaist Factory: A factory that caught on fire. It had very poor working caught on fire. It had very poor working conditions. Many workers are trapped conditions. Many workers are trapped inside because there is no way to escape inside because there is no way to escape because the workers are locked in. 146 because the workers are locked in. 146 people died in the flames, 29 jumped to people died in the flames, 29 jumped to their deaths from windows. The tragedy of their deaths from windows. The tragedy of the fire causes public outrage.the fire causes public outrage.

Racketeers: people involved in organized, illegal Racketeers: people involved in organized, illegal activities. They preyed on young immigrant activities. They preyed on young immigrant women-who ended up working in sweatshops or women-who ended up working in sweatshops or as prostitutes.as prostitutes.

Civilian Conservation Corps: Developed by Civilian Conservation Corps: Developed by Frances Perkins. It is part of FDR’s New Deal Frances Perkins. It is part of FDR’s New Deal Plan. The C.C.C. put 3 million young men to Plan. The C.C.C. put 3 million young men to work. They planted trees, built dams, managed work. They planted trees, built dams, managed fire control, and built bridges and towers.fire control, and built bridges and towers.

Social Security Act: Part of the New Deal. It was Social Security Act: Part of the New Deal. It was to provide weekly payments to the unemployed to provide weekly payments to the unemployed and monthly payments to retired workers.and monthly payments to retired workers.

Committee on Economic Security: Frances Committee on Economic Security: Frances Perkins is appointed head. Its purpose was to Perkins is appointed head. Its purpose was to set up unemployment insurance and insurance set up unemployment insurance and insurance for the elderlyfor the elderly

Chapter 32: A Pioneer of ReformsChapter 32: A Pioneer of Reforms

Chapter 32: A Pioneer of ReformsChapter 32: A Pioneer of Reforms

Fair Labor Standards: Fair Labor Standards: Laws that were Laws that were influenced by Frances influenced by Frances Perkins. IT was passed Perkins. IT was passed in 1938. They provided in 1938. They provided that the work week be that the work week be reduced to 40 hours per reduced to 40 hours per week, set a minimum week, set a minimum wage standard with wage standard with increase and outlaws increase and outlaws child labor in industries child labor in industries engaged in interstate engaged in interstate commerce.commerce.

Chapter 33: Sit Down StrikesChapter 33: Sit Down Strikes Sit-down strikes: When laborers protest against Sit-down strikes: When laborers protest against

management inside their workplace by refusing management inside their workplace by refusing to work or leave the building.to work or leave the building.

General Motors: GM workers are angry because General Motors: GM workers are angry because the only earn 1000 dollars a year. Management the only earn 1000 dollars a year. Management speeds up the assembly line causing them to speeds up the assembly line causing them to work harder but doesn’t increase their pay. The work harder but doesn’t increase their pay. The workers join the UAW which is organized and workers join the UAW which is organized and very large. GM officials refuse to meet with the very large. GM officials refuse to meet with the workers. 3000 workers put their tools away and workers. 3000 workers put their tools away and sit down. They slept on the floor. Their wives sit down. They slept on the floor. Their wives form a women’s brigade that passes food to the form a women’s brigade that passes food to the strikers through windows. Gm shuts off the strikers through windows. Gm shuts off the heat. The strikers won’t leave/ Police rush the heat. The strikers won’t leave/ Police rush the factory- the strikers won’t leave. factory- the strikers won’t leave.

Chapter 33: Sit Down StrikesChapter 33: Sit Down Strikes

GM continued: The strike last 40 days. U.S. GM continued: The strike last 40 days. U.S. Court orders the strikers to leave. The National Court orders the strikers to leave. The National Guard is called in by the Michigan Governor. Guard is called in by the Michigan Governor. The strike moves to 17 GM Plants. GM is order The strike moves to 17 GM Plants. GM is order to talk to the Union by FDR. Weeks later the to talk to the Union by FDR. Weeks later the strike ends when GM agrees to the Unions strike ends when GM agrees to the Unions demands. HUGE VICTORY for Unions.demands. HUGE VICTORY for Unions.

CIO: Congress of Industrial Organizations: CIO: Congress of Industrial Organizations: Organizes all kinds of workers.Organizes all kinds of workers.

Chapter 34: Hollywood's Dream FactoryChapter 34: Hollywood's Dream Factory Movies cost: 25 cents for adults and 10 cents for Movies cost: 25 cents for adults and 10 cents for

kids. 100 million Americans went to the movies kids. 100 million Americans went to the movies each week. It helped them escape their troubles.each week. It helped them escape their troubles.

Movie Palaces: very elaborately decorated Movie Palaces: very elaborately decorated theatres.theatres.

1930’s Movies: Popular movies at the time were: 1930’s Movies: Popular movies at the time were: Gangster movies set during the Prohibition, Shirley Gangster movies set during the Prohibition, Shirley Temple and Charlie Chaplin are big stars.Temple and Charlie Chaplin are big stars.

Full Length “talkies” “little Ceaser” a gangster movie Full Length “talkies” “little Ceaser” a gangster movie was on of the first full length talking movies.was on of the first full length talking movies.

Star System: stars of the time include: James Star System: stars of the time include: James Cagney, Edward G. Robinson, Ruby Keeler, Dick Cagney, Edward G. Robinson, Ruby Keeler, Dick Powell, King Kong, Mickey Mouse and Shirley Powell, King Kong, Mickey Mouse and Shirley Temple.Temple.