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Causes of the DepressionCauses of the Depression

• Stock Market– Buying on margin & stock speculation

– Selling at a loss

– Bank closings

2. BANK FAILURES

Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures

CAUSES OF THE GREAT DEPRESSION

• AGRICULTURAL OVERPRODUCTION

POOR ENVIRONMENTAL POLICIES & PRACTICE

• INDUSTRIAL OVERPRODUCTION

• UNEVEN DISTRIBUTION OF WEALTH

• OVERSPECULATION +MARGIN BUYING

• EASY MONEY (CREDIT)

• POOR MONETARY POLICY

• POOR FISCAL POLICY

• HIGH TARIFFS

Causes of the Great Depression

• The global economic crisis decreased exports.• Unequal distribution of income reduced the

total purchasing power available in the economy.

• Consumer debt undermined individuals and increased economic chaos.

5

Market Causes of the DepressionMarket Causes of the Depression

• Stock Market

–Buying on margin & stock speculation

–Selling at a loss

–Bank closings

Causes of the DepressionCauses of the Depression

• Stock Market Crash– Get out while the getting’s good

– Black Thursday

– Black Tuesday

CLICK TO SEE BLACK TUSEDAY VIDEO

Causes of the DepressionCauses of the Depression

• Government policies on business– Laissez-faire policies

– Unprecedented growth

– Who’s to blame?

CoolidgeCoolidge

HardingHarding

HooverHoover

Reasons for the stock market crash of 1929

• Economic factors such as rising interest rates began to worry investors.

• Investors sold stocks.• Stock prices dropped sharply, fueling panic.• Heavy selling continued.

9

Reasons for the stock market crash of 1929

• Economic factors such as rising interest rates began to worry investors.

• Investors sold stocks.• Stock prices dropped sharply, fueling panic.• Heavy selling continued.

10

Causes of the DepressionCauses of the Depression

• Stock Market Crash– Get out while the getting’s good

– Black Thursday

– Black Tuesday

Causes of the Great Depression

• The global economic crisis decreased exports.• Unequal distribution of income reduced the

total purchasing power available in the economy.

• Consumer debt undermined individuals and increased economic chaos.

12

Buying on Margin VideoBuying on Margin Video

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Hoover’s opposition to government relief during the Great Depression

President Hoover believed that individuals and businesses should be self-reliant and that government help would create a bureaucracy.

14

Radical response to Hoover’s policies

• staged protests• became involved legally

Veterans’ response• gathered in Washington D.C. to demand

payment of their pension bonuses

15

Causes of the DepressionCauses of the Depression

• Unstable economy– Standard of living is up

– Credit

– Rookie stock owners

Events signaling the Great Depression

• Banks failed due to heavy defaults, margin calls, and heavy withdrawals.

• Bank failures deprived businesses of necessary resources and customers.

• Businesses closed and workers lost their jobs.

17

Psychological Impact Psychological Impact

• Responsibility– Self-reliance

– Merit-based rewards

– Self blame & doubt

Psychological ImpactPsychological Impact

• Anxiety– Factories close

– Inflation up

– Foreclosures

– Hunger

Psychological ImpactPsychological Impact

• Depression– Humiliation

• Brother, Can You Spare a Dime?– Expectations

– Help???

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Psychological ImpactPsychological Impact

• Suicide–Numbers climb

–Mostly males

–War effects

Physical ImpactPhysical Impact

• Hunger & Diet– Poor eating = bad health

– Malnutrition is prevalent

Physical ImpactPhysical Impact

• Inadequate medical care

• “Luxury”?

• Long-term effects

• Low priority

Picture from the Franklin D. Roosevelt Library, courtesy of the National Archives

and Records Administration.

Impact on the FamilyImpact on the Family

Women forced to workThe argument versus the

realityWomen were less likely to

lose jobsWomen actually gained jobs

• Children and teens forced to work

• Teenage workers

• Role reversal

Impact on the FamilyImpact on the Family

President Hoover’s PhilosophyPresident Hoover’s Philosophy

• No government help

• Bureaucracy

• Work ethic

• Homerville's

Hoover Video

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President Hoover’s ActionsPresident Hoover’s Actions

• Raising import taxes

• Public worksprograms

• Reconstruction Finance Corporation

Farm Problems Farm Problems

• Farmers suffer too

• Three main causes

Farm ProblemsFarm Problems

• What a pest...– Boll weevil

• Irresponsible– Single-crop farming

Dust BowlDust Bowl

• No more rain

• Dust storms

• Poor plowing techniques

• Lost topsoil

Dust Bowl MapDust Bowl Map

Dust StormsDust Storms

• Black Blizzards

• Black Sunday

• Dust Pneumonia

Conservation EffortsConservation Efforts

• Last Man’s Club

• Hugh Bennett

• The Plow that Broke the Plains

• The ultimate visual aid

BennettBennett

“Okies”“Okies”

• Headin’ West

• California – the Promised Land?

• Route 66

• The Grapes of Wrath

Route 66 MapRoute 66 Map

“Okie” Problems“Okie” Problems

• Unwanted

• Pickers

Socialism???Socialism???

• Emigration

• Huey Long

• “Share the Wealth”

• “Every Man a King”

Long

The People’s ResponseThe People’s Response

• Bonus Army

• 1932 election

FDR—The Common ManFDR—The Common Man

• Happy Days are Here Again!• Polio• Contact with farmers• “Champion of the

Common Man”• “The only thing we have

to fear is fear itself”

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FDR

Fireside ChatsFireside Chats

• Reassurance

• Restoring trust

• Weekly addresses

The New DealThe New Deal

• Reforms to put America back to work

• Alphabet Soup government

• Short-term solution

• Brings government into business

New Deal—Banks are Back!New Deal—Banks are Back!

• Restoring bank confidence

• One-week bank holiday

• Federal Deposit Insurance Corporation (FDIC)

New Deal ProgramsNew Deal Programs

• Tennessee Valley Authority (TVA)

• Agricultural Adjustment Act (AAA)

• Civilian Conservation Corps (CCC)

New Deal ProgramsNew Deal Programs

• Federal Arts Program (FAP)

• Works Progress Administration (WPA)

Labor IssuesLabor Issues

• Power to the owners

• AFL-CIO split

• Presidential support for workers

• Accomplishments

Prohibition RepealedProhibition Repealed

• 21st Amendment

• Violation of personal liberty

• Revenue source

• Political leanings

RadioRadio

• War of the Worlds

• Swing music

• Evangelists

McPhersonMcPherson

WellesWellesSingle click speakers to hear audio clips >>>>

RadioRadio

• Gossip columnists

• Comedy

• Auto advertising

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WinchellWinchell

BennyBenny

Advertisement Benny Burns

Big Band Music of the ’30s

Big Band Music of the ’30s

• Swing music

• Band leaders

DorseyDorsey

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MillerMiller

Miller Ellington

Combo Bands of the ’30sCombo Bands of the ’30s

• Combo bands

• Benny Goodman

GoodmanGoodman

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Folk Music of the ’30sFolk Music of the ’30s

• Folk music

• Woody Guthrie

• Huddie Ledbetter

LedbetterLedbetter

GuthrieGuthrie

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Pop Music of the ’30sPop Music of the ’30s

• Andrews Sisters

• Bing Crosby

• Shirley Temple

Temple & CrosbyTemple & Crosby

Andrews SistersSingle click speaker to hear audio clip >>>>

Musical Movies of the ’30sMusical Movies of the ’30s

• Movie musicals

• Singing cowboys

RogersRogers

Porgy and BessPorgy and Bess

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MoviesMovies

• Golden Age of Hollywood

• Technicolor

• Full-length animation

• Drive-in theaters

Theater VideoTheater Video

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Movie StarsMovie Stars

• Jean Harlow and Greta Garbo

• John Wayne

• Johnny Weissmuller

• Shirley Temple

• Three Stooges/Laurel and HardyHarlowHarlow

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African-American AdvancesAfrican-American Advances

• Jesse Owens

• Joe Louis

• Benny Goodman’s Orchestra

• Marian AndersonLouisLouis

OwensOwens

Notable NamesNotable Names

• Amelia Earhart

• Lindbergh baby kidnapping

LindberghLindbergh

EarhartEarhart

Notable NamesNotable Names

• Lou Gehrig

• Hindenburg

GehrigGehrig

Hindenburg VideoHindenburg Video

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Horse RacingHorse Racing

• Gambling addictions

• Triple Crown

• Seabiscuit

Hardships during the depression

• poverty• diminished expectations• low prices or lack of market for farm products• farm foreclosures• hunger • homelessness• deportation for aliens

63

Great Depression’s effects on family life and attitudes of Americans

• fractured some families, forced others to band together for survival

• divorce rates up• birth rates down• many psychological problems

64

Seabiscuit VideoSeabiscuit Video

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Concluding ThoughtsConcluding Thoughts

• How depressing!

• Alphabet Soup

• Pop culture icons

• Strengthened nation

Hard time killing floor blues (1931)

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