1920’s/ Great Depression/ New Deal

The student will analyze the cycles of boom and bust of the

1920s and 1930s on the transformation of American

government, the economy and society.

By: Becky Rampey

• The 1920’s - a time of prosperity and cultural change

–Fashion–Music• Jazz age– Jazz is a genre of music based on

improvisation, musicians creatively recombine different forms of music. –Made popular by mostly African American

musicians– Spread with the Great Migration and became

the musical symbol of the roaring twenties

–Consumer revolution• Installment purchases

• BUT it was also a time of growing labor unrest and race issues–Labor unrest after WWI• Causing the first red scare

–1919 “Red Summer”• Resurgence of the Ku Klux Klan• Race riots breaking out all across country–Tulsa Race Riot

–Indian Citizenship Act 1924• Granted full U.S. citizenship to Native Americans

In spite of racial tensions African American culture began to flower in the 1920’s; Harlem Renaissance

• New York City’s Harlem became the focal point for the aspirations of hundreds of thousands of African Americans– 200,000 blacks settled in Harlem (Great Migration)

• Dynamic blend of different cultures• Marcus Garvey- Born in Jamaica, he moved to

Harlem and promoted universal black nationalism. Garvey advocated for separation of the races.

• The idea of “Black Pride” began to spread• Harlem Renaissance- Growth of African American

culture including Novelists, poets, artists, musicians

Economy - Why does it CRASH??• Economy of 1920’s ––End of WWI – U.S. on top economically –

Everyone owes us! –Assembly Line process perfected

allowing companies to make many good quicker and cheaper. • Customers want to buy all the new items

available…– Installment Plans – Buying on Credit!

Stock Market• Companies are making money with all the

new items they have to sell and everyone wants in on the action. – Individuals begin investing in the stock market

like never before (Even your grandma owned stock!!)

– Buying on Margin – Buy the stock at a % of it’s actual worth borrowing the rest of the money from a broker / bank… Inflated the stocks to look like they were worth much more than they were!

The Big CRASH!!• Stocks were so inflated that when

the crash began there was no way to stop it!! –Buyers owed the Brokers –Brokers owed the Banks–EVERYONE was Broke!!–OCTOBER 29, 1929 – BLACK TUESDAY!!

Depression…• Didn’t just hit the business guy… hits everyone. • Farmers – Depression since the 1920’s – Don’t know how to decrease their production in

order to make money!– Over use the Land!

Farmers are so indebt to the banks by the time the REAL depression hits Banks are able to foreclose and begin taking over farms at a rapid rate!

Dust Bowl• Okies – Those who fled the Dust Bowl area

(regardless of what state) for a better opportunity. (usually headed to California)

• Grapes of Wrath and John Steinbeck – Story of a Dust Bowl Family.

What to Do??• Hoover – Trickle Down Economics

– Pump money in at the top and watch it trickle down. –“Hoovervilles”–Bonus Army–Election of 1932 – FDR offers HOPE

FDR’s New Deal• “Fireside Chats”• Illustrates that the federal government does

care about the little guy. – FDIC - Insure Bank Deposits– WPA – Works Progress Administration– TVA – Tennessee Valley Authority – Thousands of

jobs and electricity to 7 rural / poor states. – Social Security Administration – Old age pension

plan.– CCC – Civilian Conservation Corps