CHAPTER 24 The Great Depression. SECTION 1 Prosperity Shattered

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<ul><li><p>CHAPTER 24The Great Depression</p></li><li><p>SECTION 1Prosperity Shattered</p></li><li><p>OBJECTIVESRecount why financial experts issued warnings about business practices during the 1920sDescribe why the stock market crashed in 1929Understand how the banking crisis and business failures signaled the beginning of the Great DepressionAnalyze the main causes of the Great Depression</p></li><li><p>Summary of what caused the Stock Market to crash</p><p>1. Credit boom in the 1920s2. Margin buying3. Rising interest rates4. Weakness in banking system5. Uneven distribution of wealth6. Smooth-Hawley Tariff in 1930</p></li><li><p>FINANCIAL EXPERTS ISSUE WARNINGS ABOUT BUSINESS PRACTICESFarm crisis</p><p>sick industries</p><p>Consumer reliance on credit</p><p>Stock speculation</p></li><li><p>FINANCIAL EXPERTS ISSUE WARNINGS ABOUT BUSINESS PRACTICES</p><p>Margin buying purchasing stocks with borrowed money</p><p>Gross National Product total value of all goods and services produced in a given year</p><p>1929 - $123 billion 1933 $56 billion</p></li><li><p>FINANCIAL EXPERTS ISSUE WARNINGS ABOUT BUSINESS PRACTICES</p><p>Bull Market: Upward trend in stock prices</p><p>Bear Market: Downward trend in stock prices</p><p>Business cycle: ups and downs of business in a free-enterprise economy</p></li><li><p>DESCRIBE WHY THE STOCK MARKET CRASHEDEconomic factors</p><p>Investors sell stocks</p><p>Stock prices plunge</p><p>Heavy sales continueCRASH !!!!!!!!!!!!</p></li><li><p>BANKING CRISIS</p><p>Banks failed due to heavy default</p><p>Depositors withdrawals</p></li><li><p>BUSINESS FAILURES</p><p> Bank failures deprived businesses of necessary resources and customers and forced layoffs and closings</p></li><li><p>MAIN CAUSES OF THE DEPRESSION</p><p>U.S. lost foreign consumers through trade</p><p>Consumer debt in the U.S. led to individual and economic chaos</p></li><li><p>SECTION 2Hard Times</p></li><li><p>OBJECTIVESDescribe how unemployment affected the lives of American workersCompare and contrast the hardships that urban and rural residents facedAnalyze the family life and attitudes of AmericansExplain how popular culture provided and escape from the Great Depression</p></li><li><p>UNEMPLOYMENT DURING THE DEPRESSION</p><p>Unemployment rose sharply (25%)</p><p>Created severe financial and emotional problems for workers</p></li><li><p>URBAN - HARDSHIPS</p><p>Received some aid from charities</p><p>Experienced hunger</p><p>Experienced homelessness</p></li><li><p>RURAL - HARDSHIPS</p><p>Lower prices for food products</p><p>Forced to let crops rot and killed their livestock</p><p>Faced farm foreclosures</p><p>Mexican immigrants faced deportation</p></li><li><p>EFFECT ON FAMILY LIFE AND ATTITUDES</p><p>Depression hurt some families, although it forced other to band together for survival</p><p>Divorce rates went up, birthrates down</p><p>Americans suffered psychological problems</p></li><li><p>POPULAR CULTURE OFFERS AND ESCAPE</p><p>No TV, computers, or video games</p><p>Went to the movies, listen to the radio, and read comics and novels</p></li><li><p>SECTION 3Hoovers Policies</p></li><li><p>OBJECTIVESExplain why Hoover opposed government sponsored direct relief for the needyOutline Hoovers attempt to solve the economic problemsRelate how radicals and veterans responded to Hoovers policiesAnalyze why FDR was such a popular candidate in the 1932 election</p></li><li><p>HOOVER OPPOSES GOVT SPONSORED RELIEF</p><p>Individuals and businesses were responsible for themselves</p><p>Felt government relief would create a bureaucracy</p></li><li><p>HOOVERS ATTEMPT TO SOLVE THE ECONOMIC PROBLEM </p><p>Attempted to create public-works program (example is Boulder Dam)</p><p>Poured money into the Boulder Dam</p></li><li><p>Boulder Dam 25 miles southeast from Las Vegas</p></li><li><p>HOOVERS AGRICULTUREPROGRAM</p><p>made loans to farmers </p><p>established cooperatives for farmers(example: Cenex Cooperative) only was a temporary fix for the farmers</p></li><li><p>VETERAN RESPOND TO HOOVERS POLICIES(BONUS ARMY IN 1932)</p><p>veterans gathered in Washington, DC </p><p>demanding their WWI pension</p><p>President Hoover had them removed from Washington D.C.</p></li><li><p>FDR POPULAR IN 1932 ELECTION</p><p>FDRs optimism contrasted Hoovers gloom</p></li></ul>