Timer

Ranking the Causes

1. Stock Market Crash Of The Great Depression

2. High Unemployment Rates 3. People Stopped Spending Money 4.4. Overproduction of goodsOverproduction of goods5. False Sense Of Prosperity Before The

Great Depression6. Global Crisis / High National Debt7. Speculation And Overleverage in the stock

market8. Bank Failures9. Lack Of Available Credit10.Dust Bowl / Drought conditions on farms

2nd Hour – Review Crews

Velociraptors Eric Robinson Kymberley Leggett John Couperthwaite Ashley Kylman

Triceratops Elijahwan Wilson Carlos Clark Lindsay Lore Virginia Leinonen

Stegosaurus Nathan Spears Erin Douglas Keaton Feil Hunter Cole

T-Rex Zachary Martin Amber Severin Tyler Barlow Chase Duncan

Brachiosaurus Austin Dale Carla Crowe Wesley LaPrarie Abbey Bentley

Allosaurus DaOnjra Patterson John Toth Benjamin Shingles

3rd Hour – Review Crews ManBearPigs

Fairchild, William E Bragenzer, Clayton J Beach, Devin M Hinch, Kelsea E

Lions Gorham, Marissa L Kranz, Jordan A Kibzey, Shyanne M Lopez, Veronica A

Wolves Anderson, Alexa M Baker, Allie H Stewart, Kayla M Belton, MerSadie J

Jaguars Carter, Carlisa R McKean, Matthew M Sackett, Alyssa M Jackson, J'ante D

Bears Walrath, Bryce S Johnson, Kyle A Fowler, Taryn M Jackson, Keion A

Cheetahs Keith Young, Tatyana L Moon, Blair R Akridge, Ryan N Aldridge Jr, Paul E

Leopards Johnson, Lashawn C Townsend, Tanishia R Harris, Arcell H Perkins, Victoria E

Panthers Parker, Amanda N Fluker, Alicia D Inthaphone, James S Schultz, Aaron D

Gorillas Morgan, Jerren Dumas, Xavier C Temple, Alec S Daniel, Makayla N

Tigers Clark, Aujonea V Phillips, Kyron R Gill, Juliet A Jones, Pharoah A

4th Hour Review Crews Lincoln

Martinez, Anthony C Turner, Mycah M Cowan, Daniel M Craig, Hayley E

Mercedes Carr, Brendan DeJesus, Angel L Boone, Briece D Powdhar Curry, Sierra S

Lexus Richards, Jason R Melms, Svan T Hollis, Kendra Daniels, Cynthia K

Chrysler Mcmullen, Gracie J Gaskins, Jacob C Bullock, Jackson T Pope, Ciara L

Jaguar Phillips, Evan H Duceac, Emmanuel Melidosian, Bradley K Butler, Jason A

Ferrari Pohl, Ryan J Jones, Jacoby K Ochs, Trever L Severin, Harley F

Cadillac Morgan, Marquis J Emerson, Kevin S Riggs, Amanda L Tarrow, Matthew A

Lamborghini Kaminski, Noah J Best, Kayla C Young, Tylor D Latham, Mecca C

Bentley Cozart, Chase A Davis, Cornell T Wilson, Emerson A

Porsche La Mothe, Dakota M Nance, Douglas D Banks, Jasmine B

5th Hour Review Crews

Hawks Aldridge, Pharrah E Taylor, Damion Sills, Scott A Chandler, Ashley S

Eagles Johnson, Celika D Bellant, Brandon L Przystup, Tracia Ware, Michael D

Kites Cook, Thomas D McGee, Ashante B Smith, A'Londre A Spencer, Austin R

Ospreys Cushing, Mariah K Scott, Sheridan N Hampton, Tabatha S Lowe, Verniece

Falcons Essex, Theotis K Briske, Trevor L Nowland, Madisen

Buzzards Johnson, Arkalah M Grishaber, Blake L Kirchoff, Marie A

Thesis Question

Should the government invest more money to help ease the recession? The government should invest more

money to help ease the recession. The government should not invest more

money to help ease the recession. State 3 reasons why you have this

opinion…

Causes of the Great Depression

Agricultural overproduction

Industrial overproduction

Unequal distribution of wealth

Over-extension of credit International economic

situation (lack of trade)

Great Depression Overview.Factors of the Great DepressionEconomic factorsGeographic factorsSocial factors

Economic factors

Overproduction Farms and companies were producing more products than

could be sold. More supply than demand leads to low prices.

Uneven economic growth The rich were getting richer and the poor were staying

poor Unsound credit practices

People were buying on credit and not paying it back Stock market speculation

Buying on margin. The stock exchange allowed people to buy stocks assuming they would go up. They would not and the stockholders never paid. This caused the stock market to crash

Deflation The opposite of inflation. A general decrease in the price

of goods.

Geographic factors

Inappropriate farming practices – cultivation of marginal farmland.

Over-farming and exhaustion of topsoil Drought Erosion due to wind and dust storms In the Dust Bowl, drought, wind and

dust eroded millions of acres of topsoil contributing to a 60% percent decline in farm income and one-third of farmers losing their land.

Social factors

uneven distribution of wealth unemployment disruption of family life homelessness due to foreclosures interdependence Herbert Hoover’s belief in laissez

faire capitalism limited his willingness to involve the federal government in direct intervention in the economic crisis.

The Roaring 20’s The new concept

of “credit” People were

buying: Automobiles Appliances Clothes

Fun times reigned Dancing Flappers Drinking

Why was this bad? Credit system

People didn’t really have the money they were spending

WWI The U.S. was a major

credit loaner to other nations in need

Many of these nations could not pay us back

THE STOCK MARKET

By 1929, many Americans were invested in the Stock Market

The Stock Market had become the most visible symbol of a prosperous American economy

The Dow Jones Industrial Average was the barometer of the Stock Market’s worth

The Dow is a measure based on the price of 30 large firms

STOCK PRICES RISE THROUGH THE 1920s

Through most of the 1920s, stock prices rose steadily

The Dow reached a high in 1929 of 381 points (300 points higher than 1924)

By 1929, 4 million Americans owned stocks

New York Stock Exchange

The Stock Market People bought

stocks on margins If a stock is $100

you can pay $10 now and the rest later when the stock rose

Stocks fall Now the person

has less than $100 and no money to pay back

And then….

With people panicking about their money investors tried to sell their stocks This leads to a huge

decline in stocks Stocks were worthless

now People who bought on

“margins” now could not pay

Investors were average people that were now broke

THE 1929 CRASH

In September the Stock Market had some unusual up & down movements

On October 24, the market took a plunge . . .the worst was yet to come

On October 29, now known as Black Tuesday, the bottom fell out

16.4 million shares were sold that day – prices plummeted

People who had bought on margin (credit) were stuck with huge debts

By mid-November, investors had lost about $30 billion

1929-1939 Stock market

crash Didn’t realize

the effect it would have

No money to replenish what was borrowed

Many found being broke humiliating.

Herbert Hoover was president at the start of the Depression

Philosophy: We’ll make it!

What He Did: Nothing The poor were

looking for help and no ideas on how to correct or help were coming

Voluntary Measures

Hoover eventually established two privately-funded organizations: The National Credit Association

provided $1/2 billion to businesses for emergency loans, but it was too under-funded to do much good.

The Organization for Unemployment Relief was a clearing house for relief agencies. However, state and local governments were already in too much debt to benefit from it.

Limited Government Intervention

In the end, Hoover resorted to government intervention: The Reconstruction Finance Corp

gave $1-1/2 billion in federal loans to banks, insurance companies, and industry to prevent bankruptcies, but it was too little, too late.

The Home Loan Bank Act provided federal loans to homeowners to prevent foreclosures, but got bogged down in red tape.

Reasons for Ineffectiveness

Hoover thought business should be self-regulating.

He had a mania for a balanced budget.

He lacked political finesse.

Farmers were already feeling the effects Prices of crops went down Many farms foreclosed

People could not afford luxuries Factories shut down Businesses went out

Banks could not pay out money People could not pay their taxes

Schools shut down due to lack of funds

Many families became homeless and had to live in shanties

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

“Hooverville” Some families were forced to live in shanty towns A grouping of

shacks and tents in vacant lots

They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

A drought in the South lead to dust storms that destroyed crops.

“The Dust Bowl”

The South Was Buried Soil turned to dust = No

food to sell Homes buried Fields blown away South in state of emergency

Dust Bowl the #1 weather crisis of the 20th century

Two Families During the Depression

A Farm Foreclosure

Some families tried to make money by selling useful crafts like baskets.

REVIEW:Causes of the Great Depression Agricultural

overproduction Industrial

overproduction Unequal distribution of

wealth Over-extension of credit International economic

situation

The New Deal

*FDR* Franklin Delano

Roosevelt When he was

inaugurated unemployment had increased by 7 million.

Poor sections (like Harlem) had 50% of the pop. unemployed

Instated the “New Deal”

Yea! Frankie!

Franklin D. Roosevelt’s Appeal In 1932 presidential

election, FDR was perceived as a man of action.

Hoover was viewed as a “do-nothing president.”

Norman Thomas, the Socialist candidate, was viewed as a radical.

Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.

A Landslide Victory for FDR

Situation When FDR Entered Office

In March 1933, the country was virtually leaderless and the banking system had collapsed.

FDR Restored Confidence

In his inaugural address, he said “The only thing we have to fear is fear itself….”

He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

FDR’s Personal Qualities

He was a practical politician who practiced the art of the possible.

He was a charismatic person who exhibited a warmth and understanding of people.

He knew how to handle press by focusing attention on Washington.

He provided dynamic leadership in a time of crisis.

He was willing to experiment

Purposes of the New Deal

Relief: to provide jobs for the unemployed and to protect farmers from foreclosure

Recovery: to get the economy back into high gear, “priming the pump”

Reform: To regulate banks, to abolish child labor, and to conserve farm lands

Overall objective: to save capitalism

Sources of New Deal Ideas Brains Trust: specialists and

experts, mostly college professors, idea men

New Economists: government spending, deficit spending and public works, government should prime economic pump

Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationists, anti-inflationists -- often conflicting, compromising, blending ideas

First New Deal (1933-1934)

Emphasis: reform Political Position:

conservative Primary aim: economic

recovery Philosophy: economic

nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)

Objectives: higher prices for agriculture and business

Beneficiaries: big business and agricultural business

National Recovery Act (NRA) Purpose: recovery

of industry Created a

partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

1st Agricultural Adjustment Act (AAA)

Purpose: the recovery of agriculture

Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn

Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

Federal Emergency Relief Admin (FERA) Purpose: relief Gave money to

states and municipalities so they could distribute money, clothing, and food to the unemployed

Civilian Conservation Corp (CCC) Purpose: relief Gave outdoor

work to unemployed men between the ages of 17 and 29

They received $30 per month, but $22 went back to the family

Federal Deposit Insurance Corporation (FDIC)

Purpose: To protect people’s money that has been deposited in banks.

Reason: banks were failing and people would lose their money when a bank went out of business

Practice: Bank accounts would be insured so that the government would replace any money lost if a bank went out of business.

1934 - $2,500 would be insured 2012 - $250,000 would be insured

Second New Deal (1934-1941) Emphasis: reform

Political Position: liberal Primary aim:

permanent reform Philosophy:

international economic cooperation and economic abundance

Objectives: increased purchasing power and social security for public

Beneficiaries: small farmers and labor

Social Security Act

Purpose: reform Gave money to

states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

National Labor Relations Act

Purpose: reform Put restraints on

employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.

2nd Agricultural Adjustment Act (AAA) Purpose: recovery

for agriculture Paid farmers for

conservation practices, but only if they restricted production of staple crops.

U.S. Housing Authority

Purpose: recovery and reform

Used federal funds to tear down slums and construct better housing.

Securities and Exchange Commission(SEC) Purpose: Regulate the stock

market Reason: people were losing

their investments because traders would sell stocks that were poor

Practice: The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting.

The New Deal on Trial

By 1935, political disunity was evident. There were critics on the right and the left.

NENEW W DEDEALAL

Criticisms of Conservative Opponents Conservative opponents said the New Deal

went too far: It was socialism (killed individualism) It added to the national debt ($35 billion) It wasted money on relief and encouraged

idleness It violated the constitution & states rights It increased the power of the

Presidency FDR was reaching toward dictatorship Congress a rubber stamp Independence of judiciary threatened Separation of powers shattered

Anti-New Deal Organization Conservative

opponents to the New Deal had an organization called the American Liberty League. They had money but were small in numbers, so FDR was not worried.

Moderate Legislation

FDR sponsored moderate legislation to silence radical opposition: Revenue Act of 1935 – Response to Huey Long.

Increased taxes on large incomes and corporations.

Banking Act of 1935 – Response to Coughlin. Extended federal control over private banking practices.

Social Security Act of 1935 Response to Townsend. Included provisions for unemployables (dependent children, the disabled, blind), unemployment insurance, and old-age pensions.

The Election of 1936 The Election of 1936:

Made the Democratic party the majority party

Created a new Democratic coalition composed of both traditional elements and new elements

Showed that the American people rejected radical solutions to depression

The Election of 1936 – Another Landslide

Protection of New Deal Accomplishments Steps FDR took to protect

New Deal accomplishments (both failed): Court-Packing Plan

(proposed increasing Supreme Court from 9 to 15 members, caused in revolt in Dem. Party)

Purge of the Democratic Party in the Election of 1938 (came out strongly in favor of liberal Dem. Candidates, evidence that he interfered in a state campaign, Republicans gained strength in both houses of Congress)

Decline of New Deal Reform after 1937 Reasons for decline of New Deal reform

after 1937: Court-packing plan made Congress irritable. Recession of 1937-38 weakened confidence in

New Deal measures. Republicans gained strength in both houses.

Attempted purge of Democratic party failed. Conservative Democrats were elected to office.

Resentful of attempted party purge, they joined ranks with Republicans to block New Deal legislation.

Increasing focus on foreign affairs.

The Significance of

the New Deal

Physical Rehabilitation of Country Attacked soil erosion Built dams and planted

trees to prevent floods Reclaimed the

grasslands of the Great Plains

Developed water power resources

Encouraged regional reconstruction projects like the TVA and Columbia River project

Human Rehabilitation

Established the principle that government has responsibility for the health, welfare, and security, as well as the protection and education of its citizens

Embraced social security, public health, housing

Entered the domain of agriculture and labor

Revitalization of Politics

Strengthened executive branch

Reasserted presidential leadership

Revitalized political party as a vehicle for the popular will and as an instrument for effective action.

Extension of Democracy

Redefined the concept of democracy so that it included not only political rights but economic security and social justice as well.

Maintenance of a Democratic System

The New Deal maintained a democratic system of government and society in a world threatened by totalitarianism. Increased size and scope of

government to meet needs of the depression

Provided the leadership that enabled Congress to put through the necessary relief, recovery, and reform measures.

Sponsored moderate legislation to neutralize the popularity of radical opponents 

Government Expenditures

The total cost of the current bailout now exceeds $4.6 trillion dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation:

Marshall Plan: Cost: $12.7 billion ($115.3 billion) Louisiana Purchase: Cost: $15 million ($217 billion) Race to the Moon: Cost: $36.4 billion ($237 billion) S&L Crisis: Cost: $153 billion ($256 billion) Korean War: Cost: $54 billion ($454 billion) The New Deal: Cost: $32 billion est.($500 billion est.) Invasion of Iraq: Cost: $551billion ($597 billion) Vietnam War: Cost: $111 billion ($698 billion) NASA: Cost: $416.7 billion ($851.2 billion) TOTAL: $3.92 trillion