CH 32- Beginning of the Great Depression

• Analyze the factors that Caused the Great Depression, how American lives were negatively impacted, and Government’s negligence in reacting to help Americans in need

1. ID the 4 factors that caused the Great Depression

2. Use evidence and explain two ways Americans were impacted by the Great Depression

3. Analyze President Hoover’s response to the Great Depression

• ID- The Harding Scandals (747)• Summary 1- What is the cartoon implying about government under

President Harding’s administration?– That the Gov. has been bought/controlled by business

• OI- The Republican “Old Guard” Returns, GOP Reaction at the Throttle• 1) What was Warren Harding’s greatest liability as a President?

– Unintelligent and easily tricked by smarter associates around him• 2) How did government under President Harding’s administration go

beyond the concept of Laissez-Faire?– Gov. would help business (by limiting regulations/rules)

• 3) What types of Progressive legislation did the Supreme Court strip away in the 1920’s– Progressivism- gov. tries to solve problems in society by holding

business accountable for it’s actions (ie Meat Inspection Act)– Ignored- child labor laws, Gov. ability to regulate, limits on the work day,

anti-trust laws• 4) Why would the appointment of the head of the Interstate Commerce

Commission, which insures that RR’s charge fair rates, be a conflict of interest? – New director was a railroad man and supported the RR over the people

• 5) What direction is the government going in the 1920’s? How might this create problems in the future?– Gov is ignoring it’s responsiblity to protect the people from business taking

advantage of workers, Gov. will be unprepared to help if things go bad

• ID- Washington Officials Trying to Outpace the Teapot Dome Scandal (751)• Summary 2- What natural resource was at the center of Tea Pot Dome?

– Oil (reserves/in ground for the Navy in Wyoming)• OI- The Stench of Scandal, “Silent Cal” Coolidge• 6) What was in Charles Forbes background that would imply that he was a

bad appointment for the Veteran’s (Former Soldiers) Bureau? What was he caught doing?– Deserter (ran away) in Army, stole $200 mil. From Veteran’s Bureau

• 7) What was the most devastating scandal of the Harding Administration? Briefly summarize what Albert Fall approved and what he received in return?– Tea Pot Dome (Albert Fall-Sec. of Interior- leased the rights to drill for oil, w. out

Navy’s permission, to two Republicans backers, Fall was found guily for receiving a $400K in bribes, served 1 year in jail

• 8) Why did Harding not run for re-election?– He died in office

• 9) Coolidge said that “the man that builds a factory builds a temple” and that “the man that works there worships there.” What do you think that means?– People that create businesses are more important than the people

that work there• 10) What do you believe was President Coolidge’s attitude towards the

role of government in regards to business and workers?– Government should help business first, if business does well, then

worker will do well• Do you feel that business will take of the workers if business is well?

• ID- Pride Goes Before a Fall (760)• Summary 3- How much money is this seller losing on his car?

Why is he selling it for so little? Why is no one else buying it?– $100, lost his money in the stock market, so did everyone else (no one

can afford to buy a car)

• OI- The Great Crash Ends the Golden Twenties• 11) What happened on “Black Tuesday”?

– Stock Market Crashed (Oct. 29, 1929)

• 12) How much money was lost by the end of 1929?– $40 Billion in value (more than cost of WWII)

• 13) How many workers were unemployed in 1932?– 25% (12 million)

• 14) Why is a bank going out of business such a calamitous event for ordinary people? How many banks went out of business?– If a bank went out of business it took the depositors/peoples money with

the bank (even though those people did nothing wrong, they were now broke!!!)

• ID- “Hooverville” in Seattle (763)• Summary 4- What are these homes made of?

Describe the part of town this shantytown is in?– Junk (discarded wood, steel), by the railroad,

industrial part of town– 16) How did people mock President Hoover by using

his name?• Hoovervilles (name of the shanty towns, Hooverflag (pockets

turned out to show you are broke)

1st Cause of Depression- Farm Problems

• Farm Problems (1/3 of Americans) • Overproduction (grew more food than could be sold)

– What is the problem for farmers with growing too much food? (hint- answer is not that it will spoil)

» price of food dropped• Loans- borrowed money to grow more food (earn money they lost with

low food prices), food prices dropped more– Impact on Farmers- could not pay back loans, lost farms– Impact on US- farmers could not buy new products (truck, tractor), US

industries made less (laid off workers)

2nd Cause of Depression- Middle Class (wages did not go up in 1920’s)

• Credit- Americans borrowed money in 1920’s to keep up their standard of living– Why is borrowing to buy big ticket items (cars, radios,

washing machines) a bad way to fuel your lifestyle?• Americans ended up putting more and more money back

into what they loaned, rather than buying new products• Industries suffered as Americans bought less

3rd Cause of GD- Rich vs. Poor- wealthiest 5% earned 33% of the money, poorest 40% earned

only 10%

• Why would this disparity in wealth hurt ordinary Americans?– $ is not being shared and circulated, so ordinary

Americans have less access to money to buy new products

4th Cause- Industry (made $ in 1920’s, put profits into stock market, not workers salaries)

• What problem will not increasing salaries create?– Overproduction (by 1927 companies made more

goods than were sold because people could not afford those products)

• OI- Rugged Times for Rugged Individualists, Hoover Battles the Great Depression, Routing the Bonus Army in Washington

• 17) Why did President Hoover feel the government should not help out Americans in need?– Gov. aid would make Americans lazy (destroy “Rugged

Individualism”• 18) What was the Reconstruction Finance Corporation (RFC) and

who did it support?– Gov. loaned money to banks and businesses

• How could the RFC been more effective?

Bonus Army

• What do you feel was the attitude that the government had towards Americans in need under Pres. Hoover’s administration?

• Why do you feel the President and Government did not do more to help?

• 19) What did Veterans from WWI want from government?• Bonus Army- WWI Veterans who wanted their retirement/war bonus ealry • 20) How did they protest their demands?

– Camped out in Washington DC• 21) What was Hoover’s response and how did this response inpact

Hoover’s opinion among Americans?– Hoover sent in the Army with tear gas, Hoover looked like he did not

care about ordinary Americans (ensured he would not be re-elected)