The Great Depression in the U.S. (1930’s)
Grade 10 American History, February 12, 2012
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
Why Should We Study the Great Depression?
Worst economic disaster of the 20th century
Causes still unknown
Study contributions to the depression to prevent future depressions
Relevant to current events (2008)
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Relating the Past & Present: Great Depression (1930) vs. Great Recession (2008)
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Contributing Factors to the Great Depression: The Roaring 20’s
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Herbert Hoover (1929-1933)
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31st President during onset of Great Depression Republican
Herbert Hoover
Believed that economy would right itself without gvt. intervention Feared self-reliance would be destroyed
Tried to combat Great Depression with:1. Volunteer Efforts
2. Public Works Projects (Hoover Dam)
3. High Tariffs/Increases in corporate taxes
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Herbert Hoover
Firm believer in balanced budgets Unwilling to run a budget deficit to fund welfare programs
Drought persisted in central U.S. Crop failure (Dust Bowl) Homeless began congregating to Hoovervilles (shanty towns)
Final attempt of Hoover Administration was the Emergency Relief and Construction Act Authorized funds for public works and creation of the
Reconstruction Finance Corporation (RFC)
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Popular Political Cartoons
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Debated Causes of the Depression
Stock Market Crash Thursday,
October 24, 1929 Panic set in
as brokers rushed to unload stocks
October 29, 1929: “Black Tuesday” Market stood
at only half its precash worth
Corporations and Individuals are wiped out
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Causes Continued
Ill-conceived government policies were at fault 1920’s focused on reducing
gvt. interference with economy Lower taxes on wealthy and
reduce spending
Rickety credit and financial system Bank failures were common
Traced to low farm prices and risky loans
Banks were virtually unregulated 04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
Causes Continued
Harding & Coolidge administrations concerned about a strong dollar rather than about stable employment
Possible Channels: Loss of deposits
Decline in expenditures
Customer relationships broken harder to borrow Money supply contraction
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
How Serious Was the Great Depression?
Real output (GDP) fell 29% from 1929 to 1933. • Real GDP: GDP measured at a fixed price level (i.e., inflation
adjusted).
• Unemployment increased to 25%
•Consumer prices fell 25%; wholesale prices 32%
7,000 banks failed Fell from 25,000 in 1929 to 15,000 by 1934
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Bank Panics
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Growing Up in the Great Depression (Video)
“The shared memories of five adults who survived the Depression weave a tapestry that illustrates an aspect of American culture in the 1930s: children maturing quickly and becoming self-reliant at an early age.”
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
Recovery and FDR
Franklin Roosevelt Democrat Elected president in 1933
Beat Hoover for re-election
Created the New Deal with the help of his trusted advisors (the Brain Trust) Shifted from a non-intervention
policy to a gvt. of regulation & relief
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Recovery and The New Deal
Series of economic programs implemented in the United States between 1933 and 1936
Passed by U.S. Congress
Three Goals of The New Deal (The Three R’s):1. Relief (for the unemployed and poor)
2. Economic Recovery
3. Financial Reform
Restored confidence in banking system (FDIC)
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The New Deal (ABC Programs)
FDR expanded Executive Branch using implied power in first 100 days of office Created numerous agencies
Aided Agriculture, Business, and Unemployed (Known as Alphabet Soup)
e.g. AAA, NRA, WPA, PWA, CCC, etc.
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
The New Deal Continued
Pros Did not resolve
Depression Failed to lower the
unemployment rate below 14%
Many argued that ABC programs were unconstitutional
Cons Maintained an average of
17% level the unemployment throughout the 1930s
Political and economic life became more competitive Workers, farmers,
consumers, etc. able to press their demands upon the government in ways that in the past had been available only to the corporate world
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
Recovery and WWII
Recession of 1937 set back recovery Additional measures placed to cope with Depression
Fall of 1937: Roosevelt called for action to isolate the aggressive powers
Congress enacted several neutrality measures between 1935-1939 Prevented nation from trading or giving financial credit to
nations engaged in armed conflict
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
Recovery and WWII
America soon entered WWII
Unemployment finally fell below 10% Massive war spending doubled economic growth rates Either masking the effects of the Depression or essentially
ending the Depression
U.S. Soldiers were paid and some sent money home
Women worked in factories to build airplane's, ships, tanks, etc. WWII created much needed jobs in factories involving the
production of war supplies
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For Further Research About the Great
Depression
NovelsThe Grapes of WrathAuthor: John Steinbeck
Plot Overview: Forced from their home during the Great Depression, the Joad family is lured to California to find work; instead they find disillusionment, exploitation, and hunger.
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Further Information About the Great Depression
Songs of the Great Depression:
1.Brother, Can You Spare a Dime? (1931)-Jay Gorney
2.Life is Just a Bowl of Cherries (1931)-Ray Henderson
3.Heading For Better Times (1931)-Ted Lewis
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“Walk the Plank”
A game of trivia to help test your knowledge about the Great Depression
Walk the Plank
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Review
1. What were the ABC Programs designed to do?
2. Did the New Deal Completely restore the economy? Why or Why not?
3. What novel was inspired by the Great Depression?
4. Who was the Democratic candidate that beat Herbert Hoover in 1933?
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102
ReferencesGoldman, D. (n.d.). Great Depression vs. 'Great Recession' . CNN Money. Retrieved February
9, 2012, from http://money.cnn.com/news/storysupplement/economy/recession_depression/
Herbert Hoover National Historic Site (2011, November 17). Herbert Hoover. NPS. Retrieved February 9, 2012, from http://www.nps.gov/heho/historyculture/herbert-hoover.htm
Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Great Depression and a New Deal. In Of the People. (2nd ed.). (pp. 673-699). New York, New York: Oxford University Press Inc..
Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Second World War. In Of the People. (2nd ed.). (pp. 701-730). New York, New York: Oxford University Press Inc..
Rosenberg, J. (n.d.). Great Depression Pictures. About: 20th Century History. Retrieved February 10, 2012, from http://history1900s.about.com/od/photographs/tp/greatdepressionpictures.htm
Steinbeck, J. (1992). The Grapes of Wrath. New York, New York: Penguin Classics.
The Phoenix Learning Group, Inc. (2008). Growing Up In The Great Depression . Youtube. Retrieved February 11, 2012, from http://www.youtube.com/watch?v=hbEVeKIghCk
Walk the Plank: The Great Depression. (n.d.). School History. Retrieved February 12, 2012, from http://www.schoolhistory.co.uk/games/walk/walk_depression.html
04/22/23 03:56 AMKelsey Wirbicki, EDLT-102