chapter 26: the great depression begins
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Chapter 26: The Great Depression Begins. The Nation’s Economy Crashes Hoover’s Policies Have Little Effect Roosevelt Faces a Difficult Challenge. THE GREAT DEPRESSION. The Stock Market crash signaled the beginning of the Great Depression - PowerPoint PPT PresentationTRANSCRIPT
Chapter 26: The Great Depression Begins The Nation’s
Economy Crashes Hoover’s Policies
Have Little Effect Roosevelt Faces a
Difficult Challenge
THE GREAT DEPRESSION The Stock Market
crash signaled the the beginning of the beginning of the Great DepressionGreat Depression
The Great Depression is generally defined as the period from 1929 – 1940 in which the economy economy plummeted and plummeted and unemploymentunemployment skyrocketed
The crash alone did not cause the Great Depression, but it hastened its arrival
Alabama family, 1938 Photo by Walter Evans
Great Depression
The period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed.
The stock market crash was not the only cause.
The Nation’s Economy Crashes 4 Causes to the depression
Mechanization of Industrial base Unequal distribution of income Farm crisis
Unfavorable balance of trade Hawley-Smoot Tariff Act
Easy credit Installment Plan Buying on margin
Four Causes of Great Depression
1. Tariffs and war debt policies that cut down the foreign market for American goods.
2. Crisis in the farm sector. 3. Availability of easy credit. 4. Unequal distribution of income.
Income
There was an uneven distribution of income.
Over 70% of Americans lived below the standard of living.
Less than 1% were elite. (extremely rich)
Credit Consumers agree to buy now and
pay later.
Would pay monthly payments with interest.
Credit was too easy to get in the 1920s.
HAWLEY-SMOOT TARIFF
The U.S. was not the only country gripped by the Great Depression
Much of Europe suffered Much of Europe suffered throughout the 1920sthroughout the 1920s
In 1930, Congress passed the toughest tariff in U.S. history called the Hawley- Smoot Hawley- Smoot Tariff- Tariff- designeddesigned to protect American farmers and businesses from foreign competition.
The tariff made unemployment worse in America b/c no one wanted to buy our goods.
Worst depression in American history
Other countries enacted their own tariffs and soon world world trade fell 40%trade fell 40%
Economy Crashes - continued Depression
devastates people’ lives National income Direct suffering Shantytowns Soup kitchen
Bread Lines Dust Bowl Bonus Army
Hardship and Suffering
HARDSHIPS DURING DEPRESSION
The Great Depression brought hardship, homelessnesshomelessness, and hunger to millions
Across the country, people lost their jobs, and their homes
Some built makeshifts shacks out of scrap material
Before long whole shantytowns (sometimes called HoovervillesHoovervilles in mock reference to the president) sprung up
SOUP KITCHENS
One of the common features of urban areas during the era were soup kitchens soup kitchens and bread linesand bread lines
Soup kitchens and bread lines offered free or low-cost food for people
Unemployed men wait in line for food – this particular soup kitchen was
sponsored by Al Capone
CONDITIONS FOR MINORITIES
Conditions for African Americans and Latinos were especially difficult
UnemploymentUnemployment was the highest among minorities and their paypay was the lowestlowest
Increased violenceIncreased violence (24 lynchings in 1933 alone) marred the 1930s
Many Mexicans were “encouraged” to return to their homeland
As conditions deteriorated, violence against blacks
increased
RURAL LIFE DURING THE DEPRESSION
While the Depression was difficult for everyone, farmers did have one advantage; they could grow food they could grow food for their familiesfor their families
Thousands of farmers, however, lost their lost their landland
Many turned to tenant farming and barely scraped out a living
Between 1929-1932 almost ½ million farmers lost their land
THE DUST BOWL A severe droughtsevere drought
gripped the Great Plains in the early early 1930s1930s
Wind scattered the topsoil, exposing sand and grit
The resulting dust dust traveledtraveled hundreds of miles
One storm in 1934 picked up millions of tons of dust from the Plains an carried it to the East Coast Kansas Farmer, 1933
Dust storm approaching Stratford, Texas - 1934Dust storm approaching Stratford, Texas - 1934
THE DUST BOWL
Storm approaching Elkhart, Kansas in 1937
Dust buried cars and wagons in South Dakota in 1936
HARDEST HIT REGIONS
Kansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust Bowl
Many farmers Many farmers migratedmigrated to California and other Pacific Coast statesBoy covers his mouth to avoid
dust, 1935
Photographer Dorothea Lange captures a family headed west to escape the dust storms
HOBOES TRAVEL AMERICA
The 1930s created the term “hoboes”“hoboes” to describe poor drifterspoor drifters
300,000 transients – or hoboes – hitched rides around the country on trains and slept under bridges (thousands were teenagers)
Injuries andInjuries and death was common on railroad property; over 50,000 people were hurt or killed
EFFECTS OF DEPRESSIONEFFECTS OF DEPRESSION Suicide rate roseSuicide rate rose more
than 30% between 1928-1932
Alcoholism roseAlcoholism rose sharply in urban areas
Three times as many people were admitted to state mental hospitalsstate mental hospitals as in normal times
Many people showed great kindness to kindness to strangersstrangers
Additionally, many people developed habits of savings & thriftinesssavings & thriftiness
Hoover’s Policies
Hoover’s Policies
Democrats control Congress (1930) Hoover fails to adapt
Too cautious Inflexible Sends troops against Bonus Army Moratorium
Allied War Debts German Reparations
Hoover’s Policies Have Little Effect Herbert Hoover Solutions to late
Boulder (Hoover Dam) Reconstruction Finance Corporation (RFC) Home Loan Bank Act
Hoover was a Humanitarian Rugged Individualism Hoovervilles “Cinderella Man”
HOOVER STRUGGLES WITH THE DEPRESSION
After the stock market crash, President Hoover tried to reassure Americans
He said, “Any lack of confidence in the economic future . . . Is foolish”
He recommended business as usual Herbert
Hoover
HOOVER’S PHILOSOPHY
Hoover was not quick to Hoover was not quick to reactreact to the depression
He believed in “rugged “rugged individualism”individualism” – the idea that people succeed through their own efforts
People should take care of themselves, not depend on governmental hand-outs
He said people should “pull themselves“pull themselves up by their bootstraps”Hoover believed it was the individuals job to
take care of themselves, not the governments
HOOVER’S SUCCESSFUL DAM PROJECT
Hoover successfully organized and authorized the construction of the Boulder DamBoulder Dam (Now called the Hoover Dam)
The $700 million project was the world’s world’s tallest damtallest dam (726 feet) and the second largest (1,244 feet long)
The dam currently provides electricity, flood control and water for 7 western states
Any dam questions?
HOOVER TAKES ACTION: TOO LITTLE TOO LATE
Hoover gradually softened his position on government intervention in the economy
He created the Federal Federal Farm BoardFarm Board to help farmers
He also created the National Credit Organization that helped smaller banks
His Federal Home Loan Federal Home Loan Bank ActBank Act and Reconstruction Finance Reconstruction Finance CorpCorp were two measures enacted to protect people’s homes and businesses
Hoover’s flurry of activity came too late to save the economy or
his job
BONUS ARMY
A 1932 incident further damaged Hoover’s image
That spring about 15,000 World War I vets arrived in Washington to support a proposed bill
TheThe Patman Bill would have authorized Congress to pay a bonus to WWI vets immediately
The bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOWvets wanted it NOW
BONUS ARMY TURNED DOWN
Hoover called the Bonus marchers, “Communists and criminals”
On June 17, 1932 the Senate voted Senate voted down the down the Putnam BillPutnam Bill
Thousands of Bonus Army soldiers protest – Spring 1932
BONUS MARCHERS CLASH WITH SOLDIERS
Hoover told the Bonus marchers to go home– most did
2,000 refused to leave2,000 refused to leave Hoover sent a force of
1,000 soldiers under the command of General Douglas Douglas MacArthurMacArthur and his aide DwighDwight Eisenhower
AMERICANS SHOCKED AT TREATMENT OF WWI VETS
MacArthur’s 12MacArthur’s 12thth infantry gassed more than 1,000 infantry gassed more than 1,000 marchers, including an 11-month old baby, who died
Two vets were shot and scores injured Americans were outraged and once again, Hoover’s Hoover’s
image sufferedimage suffered
Hoover had little chance to be re-elected in 1932
FDR pledges a New Deal
Election of 1932 FDR vs. Hoover Dramatic landslide
for FDR Brain Trust
20th Amendment “Lame Duck” Meanwhile,
conditions got worse
Franklin D. Roosevelt
Roosevelt defeated Hoover in the 1932 election.
Roosevelt wanted the government to help with the Great Depression.
New Deal
Roosevelt’s plan to help deal with the Great Depression.
He wanted to do the following:1. Help the needy2. Economic recovery3. Financial reform
Roosevelt Faces a Difficult Challenge FDR installs
confidence Fireside Chats “We have nothing
to fear, but fear itself”
Physical problems Polio Wheelchair
Eleanor Roosevelt
Eleanor Roosevelt
FDR’s wife, who was a social reformer
Humanitarian and had great political skills.
She urged the president to appoint women into government positions.
One of the most powerful First Ladies in American History.
Frances Perkins First female cabinet member. Mary McLeod Bethune: An African
American woman who was appointed to a gov’t position by Roosevelt.
Roosevelt did not favor full civil rights of African Americans, he did not want to anger white, Democrats in the South.
Key People
FDR’s 100 Days
Bank Holiday Emergency Banking Relief Act F.D.I.C.
Federal Securities Act S.E.C.
Reasons for Bank Failures Panic Banks invest your money Savings Accounts
FDR supplies optimism
Movies Were an escape
from reality. Wizard of Oz Gone with the
Wind Snow White & the
Seven Dwarfs (1st Disney animated film)
Dust Bowl
The region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s.
Why/How it happened Drought- lack of rainfall or moisture
in the soil. Farmers would plow fields which
would not leave grass to cover soil. The soil would not hold moisture Wind storms would carry dust and
create dust storms. Impossible to grow crops in these
conditions.
Dust Storm
Farmland Covered in Dust
Car Stuck in Dust
Farmers
Left the land due to storms and evictions.
Most went to California and other Pacific Coast states.
Most migrants were called Okies b/c most were from Oklahoma.
They would work as farmhands to make money.
Migrant farmers