THETHE

GREAT GREAT DEPRESSIONDEPRESSION

By Emily Smith, Shane Collins, Nate Elsishans, R.J. Schineller,

Dhev Patel, and Corny Morrow

*Questions not necessarily in order

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

UNDERLYING CAUSES OF THE DEPRESSION

Overproduction - 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

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

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

IMPACT IMPACT ON ON SOCIETYSOCIETY

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%

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

Effect on workers and familiesUnemployment ~25% in 1932?

underemploymentpatterns of reemployment and layoffs

hobos“Depression mentality”

Effect on workers and familiesMalnutrition

Disease: tuberculosis, typhoid and dysentery.

City & state relief systems in industrial Northeast and Midwest collapse

soup kitchens and bread lines

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

Effects on Farmers“Dust Bowl”

“Okies”

Grapes of Wrath

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

Effects on American Culture

Reactions 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

HOOVER’SHOOVER’S RESPONSERESPONSE

Federal Response Under HooverHerbert Hoover (1929-1933)

Philosophy: limited government, individualism

Initial response?

public works programs

Hawley-Smoot Tariff (1930)

Debt moratoriumInternational Banking Crisis (1931)- gold standard

Reconstruction Finance Corporation (1932)

Campaign Mottos

Hoover- A chicken in every pot and a car in every garage

Coolidge- keep it cool with Coolidge

Harding- Cox and cocktails

Legislation

Immigration Act of 1924

World War Adjusted Compensation Act

Revenue Act of 1924

Capper-Volstead Act

Neutrality Treaties

Five-Power naval treaty

Nine Power Treaty

Open Door Policy

Spirit of Locarno

Acts of Eleanor Roosevelt

Advocated for the poor

Left Daughters of the American Revolution after they refused to let African American singers perform at Independence Hall

Visited coal mines and factory workers

Served briefly as deputy director of the Office of Civilian Defense

Unconstitutional Laws of the New Deal

Agricultural Adjustment Administration

National Recovery Administration

Frazier-Lemke Act

National Industrial Recovery Act

Critics of Roosevelt

Huey Long – “…too beholden to big business.”

Father Charles E. Coughlin - Turned on Roosevelt over deficit spending and the Federal Reserve.

Coolidge BioBorn on July 4th 1872 in Vermont.

Only president to be born on Independence DayAt the age of twelve his mother died. Supposedly of tuberculosis.His sister died at the age of 15. Attended Black River Academy and Amherst College.1905 Married Grace Anna GoodhueBecame a lawyer through apprenticeship at a law group in Massachusetts.Had 2 sons, John and Calvin Jr.Elected to the Massachusetts house or representatives in 1906.In the 1920 elections, he was elected vice-president under HardingIn 1923 he was moved to president after Harding passed while on a speaking tour in California

Brain Trust

an inner circle of unofficial advisors to the head of a government

Black Cabinet

First known as the Federal Council of Negro Affairs, an informal group of African American public policy advisors to United States President Franklin D. Roosevelt.

It was supported by the first lady Eleanor Roosevelt.

First 100 Days

Also known as the honey moon period

Its where the president is getting accustomed to his duties.

Usually during this time the media gives him a break on criticism

First Side Chats

A fireside chat is a Presidential address to the nation characterized by a warm, intimate, and informal tone. It is designed to build confidence in the President's policies. The tradition of the fireside chat was begun by President Franklin D. Roosevelt on March 12, 1933, speaking to the nation by radio shortly after his inauguration, in the midst of the Great Depression.

Buying on Margin

Using a portion of existing securities in a person's account to purchase more securities on credit.

Using a portion of existing securities in a person's account to purchase more securities on credit.

Black Tuesday

October 29th, 1929. This is the date of the most famous stock market crash in history. Stocks lost 13% of their value on Black Tuesday. The date is considered the beginning of the Great Depression.

Bull Market

A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It's difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets.

Packing the Court

An unsuccessful attempt by President Franklin D. Roosevelt in 1937 to appoint up to six additional justices to the Supreme Court, which had invalidated a number of his New Deal laws.

Francis Perkins

DOB Apr 10, 1880. First woman member of a US presidential cabinet. Born at Boston, MA, she was married in 1915 to Paul Caldwell Wilson but used her maiden name in public life. She was appointed secretary of labor by President Franklin D. Roosevelt in 1933, a post in which she served until 1945. Died at New York, NY, May 14, 1965.