Splash Screen Section 1-8 Click the mouse button or press the Space Bar to display the information....

Splash Screen

Section 1-8

Click the mouse button or press the Space Bar to display the information.Click the mouse button or press the Space Bar to display the information.

The Long Bull Market• The stock market was established as a system for buying

and selling shares of companies.

-A long period of rising stock prices is known as a bull market.

-Prosperous times during the 1920s caused many Americans to invest heavily in the stock market.

-people bought stocks on margin

-Speculation occurred when investors bet on the market climbing and sold whatever stock they had in an effort to make a quick profit.

(pages 531–532)(pages 531–532)

http://www.tarvol2.glencoe.com/

Section 1-12


The Great Crash• By late 1929, a lack of new investors in the stock market

caused stock prices to drop and the bull market to end.

-As stockbrokers advised their customers of margin calls, customers responded by placing their stocks up for sale, causing the stock market to plummet further.

-Stock prices fell drastically on October 29, 1929, Black Tuesday, resulting in a $10 to $15 billion loss in value.

(pages 532–533)(pages 532–533)


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• While this did not cause the Great Depression, it did undermine the economy’s ability to hold out against its

other weaknesses. -The stock market crash weakened the nation’s banks.

-Banks lost money on their investments, and speculators defaulted on loans.

-Because the government did not insure bank deposits, customers lost their money if a bank closed.

-led to “runs on the banks”

(pages 532–533)(pages 532–533)


AV1


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The Roots of the Great Depression-Efficient machinery led to overproduction, and Americans could not

afford to buy all the goods produced.

-The uneven distribution of wealth in the United States added to the country’s economic problems.

• In 1929 the top 5 percent of American households earned 30 percent of the country’s income.

• More than two-thirds of the nation’s families earned less than $2,500 a year.

(pages 533–534)(pages 533–534)


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-Low consumption added to the economic problems.

-Worker’s wages did not increase fast enough to keep up with the quick production of goods.

-As sales decreased, workers were laid off, resulting in a chain reaction that further hurt the economy.

(pages 533–534)(pages 533–534)


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End of Section 1

• QUESTION:

How would Americans react to another depression?

(HINT: think how we have responded to the recent recession)


Section 2-5


The Depression Worsens


• By 1933 thousands of banks had closed and millions of American workers were unemployed.

-Unemployed workers often stood at bread lines to receive free food or at soup kitchens where private charities gave a free meal to the poor.

(pages 535–537)(pages 535–537)

Social Effects-people could not eat properly so many developed health problems-family problems- men left families because they could no longer support them; people postponed weddings


Section 2-6

--Americans unable to pay their mortgage or rent lost their homes.

-Many of the homeless built shacks in shantytowns, which they referred to as “Hoovervilles” because they blamed the president for their financial trouble.

-Hobos, or homeless Americans who wandered around hitching rides on railroad cars, searched for work and a better life.


(pages 535–537)(pages 535–537)


Section 2-7

• As crop prices dropped in the 1920s, many American farmers left their fields unplowed

-A terrible drought in the Great Plains, beginning in 1932, caused the region to become a “Dust Bowl.”

-Many Midwestern farmers and Great Plains farmers lost their farms.

-Many families moved west to California hoping to find a better life, but most still faced poverty and homelessness.

“Okies”


(pages 535–537)(pages 535–537)


Section 2-10

Escaping the Depression


• Americans escaped the hardships of the Depression by going to the movies and listening to radio broadcasts.

-Stories tended to be about overcoming hardships and achieving success.

-Walt Disney produced the first feature-length animated film, Snow White and the Seven Dwarfs, in 1937.

-Other films, like The Wizard of Oz, Mr. Smith Goes to Washington, and Gone with the Wind, contained stories of triumph over adversity and visions of a better life.

(pages 537–538)(pages 537–538)


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• Families gathered around the radio daily to hear news or listen to comedians like George Burns or a dramatic series like the Lone Ranger.

-Melodramas, called soap operas, became very popular with housewives.

-Soap operas received their name because makers of laundry soaps often sponsored them.


(pages 537–538)(pages 537–538)


Section 2-13

The Depression in Art


• Homeless and unemployed Americans were the subjects of art and literature during the 1930s.

-Artists and writers tried to capture the real life drama of the Depression.

-Thomas Hart Benton and Grant Wood emphasized traditional American values in their art.

(pages 538–539)(pages 538–539)


Section 2-14

• John Steinbeck’s 1939 novel The Grapes of Wrath told the story of an Oklahoma family fleeing the Dust Bowl to find a new life in California.

-look on page 389

-Steinbeck, like many writers of this time, wrote of poverty, misfortune, and social injustice.

-Photographers also took pictures of the tragic effects of the depression


(pages 538–539)(pages 538–539)


Moment in History 2

Click the Speaker button to listen to the audio again.

Click the Speaker button to listen to the audio again.

“Migrant Mother” by Dorothea Lange


• Hoover's reaction to the depression

-many believed that he did not do enough to end the depression

-He believed that if the government gave tax breaks to the rich that they would put the money back into the economy

-He opposed direct relief by the government

-Summer 1932- ( known as the "Bonus Army) 20,000 WW I veterans and their families came to Washington, D.C. to demand payment of their pension bonus early (instead of getting it in 1945)


-Hoover decided to use force to make them leave

-sent in General Macarthur and he used the military

-tear gas (killed one baby from it), guns, and tanks

-veterans only had sticks, stones, and bricks• Election of 1932-

Republican Herbert Hoover

Democrat Franklin Delano Roosevelt

FDR won overwhelmingly.


Part Four:FDR and the New Deal


• FDR believed that the nation needed government's help.

-New Deal- programs designed to solve the problems of the depression

• 3 main goals

1. relief to the poor

2. recovery from the depression

3. restructuring of the economy


• He closed all of the banks and passed the Emergency Banking Act (so that the government can inspect them)

-then he created the Federal Deposit Insurance Corporation (FDIC)

• Next he wanted to create jobs and set up relief

-Federal Emergency Relief Administration (FERA)- sent funds to agencies to help people directly by providing them with government works jobs (building public facilities, etc.)


-Civil Works Program (CWP)- improving roads, airports

-Civilian Conservation Corps (CCC)- gave men jobs restoring the wooded areas and beaches and other natural resources

-National Industrial Recovery Board (NIRA)- set up increase industrial prices and help put people back to work

-Public Works Administration (PWA)- planned sewage systems, redoing government buildings


-Agricultural Adjustment Act (AAA)- to raise farm prices by providing farmers with a subsidy to reduce the amount of crops they produced each year

-Tennessee Valley Authority (TVA)- created to help control flooding problems, create jobs, and to produce hydroelectric power for the region

- Social Security – (1) est a system that provided old-age pensions for workers; (2) survivor's benefits for victims of industrial accidents; (3) unemployment insurance; (4) aid for dependent mothers and children


EXIT SLIP

1. Name 3 of the programs created by the New Deal.

2. Tell what the primary area of concern for each of them.


• Election of 1936- Roosevelt versus Alfred Landon.-Roosevelt defeated taking 60% of the vote

• The New Deal had its critics-some believed the idea to be socialist, where the government controls every area of life (ex. the wealthy)-some felt that it made the government give too much to the people-some even accused it of not going far enough to help people

ex. Huey Long


• Cultural life-John Steinbeck's The Grapes of Wrath (1939)

-Margaret Mitchell's Gone with the Wind (1936)

-Walt Disney created his Mickey Mouse cartoons

-Snow White and the Seven Dwarfs (1937)

-The Wizard of Oz (1939)

-Federal Art Program hired artists to paint murals on public buildings

-Federal Theatre Project that used drama to create an awareness of social problems


• Court Packing Scheme (1937)-

-After the depression began to get better, the Supreme Court began to look at just what type of programs FDR had put into work

-deemed unconstitutional, ex. AAA, NRA

-FDR decided to fix the court that he called "a bunch of old conservative men" (they were very old men)

-add one justice for every justice over 70 (6 new justices) {"pack the court“}

-Congress would not pass the bill that would let him do it

Despite this, his popularity continued

For now things were looking up, but worse times were just around the corner.


Splash Screen Section 1-8 Click the mouse button or press the Space Bar to display the information....

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