the great depression
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THE GREAT DEPRESSION. A24 7.3.12. THE GREAT CRASH. GUIDING QUESTION. What caused the Great Depression? the federal government during the 1920s?. STOCK MARKET CRASH. Stock Market Prices, 1921–1932. May 1928-September 1929, prices doubled in value beginning in Sept 1929, gradual slide - PowerPoint PPT PresentationTRANSCRIPT
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THETHE
GREAT GREAT DEPRESSIONDEPRESSION
A247.3.127.3.12
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THE THE GREAT GREAT CRASHCRASH
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GUIDING QUESTIONGUIDING QUESTION
What caused the Great Depression?
the federal government during the 1920s?
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STOCK MARKET CRASHMay 1928-September 1929, prices doubled in valuebeginning in Sept 1929, gradual slide Black Thursday (Oct. 24)
largest sell-off in NYSE history
Black Tuesday (Oct. 29)$40 billion in stock value lost by Dec.
The Great Depression Response of bankers, Hoover and business leaders
Stock Market Prices, Stock Market Prices, 1921–19321921–1932
Black Tuesday Wall Street, Oct. 29, 1929
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UNDERLYING CAUSES OF THE DEPRESSIONOverproduction - Massive business inventories (up 300% from 1928 to 1929)
Lack of diversification in American economy
prosperity of 1920s largely a result of construction & auto industries
Uneven distribution of income and wealth - Poor distribution of purchasing power among consumers
Farm income down 66% in 20s
By 1929 the top 10% of the nation's population received 40% of the nation's disposable income
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UNDERLYING CAUSES OF THE DEPRESSION
Weakness of Banking Industry bank failures in late 1920s (farmers) many had small reserveslow margins encouraged speculative investment by banks, corporations, and individual investors
total money supplyclosing of over 9,000 American banks between 1930 and 1933 Federal Reserve system
Consumer Debt – middle class installment loans; buying on margin Overspeculation in Stock Market – by wealthy and upper middle class
Consumer Debt, 1920–1931
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UNDERLYING CAUSES OF THE DEPRESSIONDecline in demand for American goods in international trade
European industry and agriculture gradually recovered from World War I Germany so beset by financial crises/ inflation that could not afford to purchase US goods High American protective tariffs
international debt structure
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IMPACT IMPACT ON ON SOCIETYSOCIETY
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GUIDING QUESTIONGUIDING QUESTIONHow did the Great Depression alter the American social fabric in the 1930s?
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Effects on Business & Industry
Corporate profits - from $10 billion to $1 billonBusiness failures: 100,000 between 1929 and 1933
GNP – $104 billion in 1929 to $56 billion in 1933Total national income – fell by over 50%
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Effects on Business & IndustryBank failures
about 20% all banks (over 6000) between 1929 and 1933)over 9 million savings accounts lost($2.5 billion)
Bank Failures, 1929-1933Bank Failures, 1929-1933
Depositors gathering outside a bank, April 1933
1932
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Effects of the CrashGreat Crash Investor
s Businesses and WorkersInvestors
lose millions.
Businesses lose
profits.
Consumer spending drops.
Workers are laid off.
Businesses cut
investment and
production Some fail.
Banks
Businesses and workers
cannot repay bank
loans.
Savings accounts
are wiped out.
Bank runs occur
.
Banks run out of money
and fail.
World Payments
Overall U.S.
production plummets.
U.S. investors
have little or no money
to invest.
U.S. investment
s in Germany decline.
German war payments to Allies fall
off.
Europeans cannot afford
American goods.
Allies cannot pay debts to United States.
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Effect on workers and familiesUnemployment ~25% in 1932?
underemploymentpatterns of reemployment and layoffs
hobos“Depression mentality”
Men Lined Up at the New York City Men Lined Up at the New York City Employment Bureau, 1932Employment Bureau, 1932
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Effect on workers and familiesMalnutrition
Disease: tuberculosis, typhoid and dysentery.
City & state relief systems in industrial Northeast and Midwest collapsesoup kitchens and bread lines
Soup kitchen, 1931 (Cleveland)
Soup kitchen, Chicago, 1930
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Dorothea Lange
“White Angel Breadline“
San Francisco1933
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Effect on workers and familiesWomen
Working - 25% moreNew Deal – lower payWomen’s Rights Movement - lowest point in a century
FamiliesHousing Stress - divorceHealth – disease, suicideMigrants - from South and Midwest to West
Women in Workplace 1900-1940Mother and two children living in an abandoned car in Tennessee, 1936
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Effects on Farmers“Dust Bowl” “Okies” Grapes of Wrath
Resettlement Adminstration
Dust BowlDust Bowl
Dust storm, Springfield, CO, 1935
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Dust storm, Elkhart, KS, 1937
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The Dust Bowl Aftermath of
dust storms, South Dakota, 1936
Dust Bowl Farm, Texas, 1938Abandoned house, Kansas, April 1941
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MigrantsA Destitute Family in the Ozark Mountains. 1935 “Okies” migrate
west in 1939
Dorthea Lange, “Covered Wagon Again” 1935
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Migrants Migrants in in
CaliforniaCalifornia
Migrant Auto Camp, California, 1936
"Cheap Auto Camp Housing for Citrus Workers“; Dorothea Lange, Tulare County, California, Feb. 1940
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“Migrant Mother”
Dorothea Lange
1936
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Effects on African AmericansHigh Unemployment – up to 50%: Last hired, first fired
Competition for jobsExclusion from relief programs
Help from the New Deal?labor unionsScottsboro Case
Evicted Sharecroppers along U.S. 60 in Missouri, 1939
African American family during Great Depression in Scott’s Run, Virginia
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Effects on American CultureReactions of most Americans Effects on basic values (capitalism, democracy, individualism)
Alternatives: socialism, communism?Whom to blame?
Popular Culture and Escapism Frank Capra Walt Disney Gone With the Wind
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HOOVER’SHOOVER’S RESPONSERESPONSE
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Federal Response Under HooverHerbert Hoover (1929-1933)
Philosophy: limited government, individualismInitial response?
public works programsHawley-Smoot Tariff (1930) Debt moratoriumInternational Banking Crisis (1931)- gold standardReconstruction Finance Corporation (1932)
"Boulder Dam, 1942“, Ansel Adams
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Evaluation of Hoover’s ResponseContemporary popular opinion“Hoovervilles”
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“Hoover's Farm
Relief”
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Contemporary Political Cartoon
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Response to Hoover’s Response
Farmers“Farmers Holiday Association”
“Bonus Expeditionary Force” Bonus Army camp, 1932
"Bonus Marchers" and police battle in Washington, DC, July 1932
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Evaluation of Hoover’s ResponseModern Evaluations:
reluctance to spend large amounts of federal funds, expand the role of the federal government.
willing to intervene in the economy to an unprecedented degree.
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Bonus Army
Douglas McArthur directing removal of Bonus Army marchers
Bonus Army camp in the Anacostia flats
U.S. Army soldiers guarding Bonus Army camp
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1932 1932 ELECTIONELECTION Misery Sweeps Roosevelt into Office
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1932 ELECTION1932 ELECTIONFranklin D. Roosevelt philosophy“New Deal”
Franklin D. Roosevelt, 1920 Vice Presidential nominee for Democratic Party
Roosevelt Campaigning for Office in Kansas 1932
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1932 ELECTION1932 ELECTIONHoover
“The Worst is Past" "Prosperity is Just Around the Corner"
Results
Electoral Shift, 1928 and 1932
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1932 ELECTION1932 ELECTIONLame-Duck Period (Nov. 1932-March 3, 1933)
banking industry collapse.Twentieth Amendment
Bank Failures, 1929-1933
Franklin D. Roosevelt and Herbert Hoover on the way to FDR's inauguration, March 4, 1933(Library of Congress)
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SOURCESSOURCES
Brinkley, American History: A Survey (10th ed)Wadsworth-Thompson http://www.wadsworth.com/history_d/special_features/image_bank_US/1929_1939.htmlLibrary of Congress American Memory ProjectRutgers Univ. Teaching Politics Image Bank http://teachpol.tcnj.edu/amer_pol_hist/.htmlDivine America Past and Present Revised 7th Ed.Faragher, Out of Many, 3rd Ed.; http://wps.prenhall.com/hss_faragher_outofmany_ap/Kennedy, American Pageant 13e