Download - CHAPTER 24 The Great Depression. SECTION 1 Prosperity Shattered

CHAPTER 24CHAPTER 24

The Great DepressionThe Great Depression

SECTION 1SECTION 1

Prosperity ShatteredProsperity Shattered

OBJECTIVESOBJECTIVES

Recount why financial experts issued Recount why financial experts issued warnings about business practices during warnings about business practices during the 1920’sthe 1920’s

Describe why the stock market crashed in Describe why the stock market crashed in 19291929

Understand how the banking crisis and Understand how the banking crisis and business failures signaled the beginning of business failures signaled the beginning of the Great Depressionthe Great Depression

Analyze the main causes of the Great Analyze the main causes of the Great DepressionDepression

Summary of what caused the Summary of what caused the Stock Market to crashStock Market to crash

1. Credit boom in the 1920’s1. Credit boom in the 1920’s 2. Margin buying2. Margin buying 3. Rising interest rates3. Rising interest rates 4. Weakness in banking system4. Weakness in banking system 5. Uneven distribution of wealth5. Uneven distribution of wealth 6. Smooth-Hawley Tariff in 19306. Smooth-Hawley Tariff in 1930

FINANCIAL EXPERTS ISSUE WARNINGS FINANCIAL EXPERTS ISSUE WARNINGS ABOUT BUSINESS PRACTICESABOUT BUSINESS PRACTICES

Farm crisisFarm crisis

““sick” industriessick” industries

Consumer reliance on creditConsumer reliance on credit

Stock speculationStock speculation


Margin buying – purchasing stocks Margin buying – purchasing stocks with borrowed moneywith borrowed money

Gross National Product – total value Gross National Product – total value of all goods and services produced in of all goods and services produced in a given yeara given year

1929 - $123 billion 1933 – $56 1929 - $123 billion 1933 – $56 billionbillion


Bull Market: Upward trend in stock Bull Market: Upward trend in stock pricesprices

Bear Market: Downward trend in Bear Market: Downward trend in stock pricesstock prices

Business cycle: ups and downs of Business cycle: ups and downs of business in a free-enterprise business in a free-enterprise economyeconomy

DESCRIBE WHY THE DESCRIBE WHY THE STOCK MARKET CRASHEDSTOCK MARKET CRASHED

Economic factorsEconomic factors

Investors sell stocksInvestors sell stocks

Stock prices plungeStock prices plunge

Heavy sales continueHeavy sales continue

CRASH !!!!!!!!!!!!CRASH !!!!!!!!!!!!

BANKING CRISISBANKING CRISIS

Banks failed due to heavy defaultBanks failed due to heavy default

Depositors withdrawalsDepositors withdrawals

BUSINESS FAILURESBUSINESS FAILURES

Bank failures deprived businesses of Bank failures deprived businesses of necessary resources and customers necessary resources and customers and forced layoffs and closingsand forced layoffs and closings

MAIN CAUSES OF THE MAIN CAUSES OF THE DEPRESSIONDEPRESSION

U.S. lost foreign consumers through U.S. lost foreign consumers through tradetrade

Consumer debt in the U.S. led to Consumer debt in the U.S. led to individual and economic chaosindividual and economic chaos

SECTION 2SECTION 2

Hard TimesHard Times


Describe how unemployment affected the Describe how unemployment affected the lives of American workerslives of American workers

Compare and contrast the hardships that Compare and contrast the hardships that urban and rural residents facedurban and rural residents faced

Analyze the family life and attitudes of Analyze the family life and attitudes of AmericansAmericans

Explain how popular culture provided and Explain how popular culture provided and escape from the Great Depressionescape from the Great Depression

UNEMPLOYMENT DURING UNEMPLOYMENT DURING THE DEPRESSIONTHE DEPRESSION

Unemployment rose sharply (25%)Unemployment rose sharply (25%)

Created severe financial and Created severe financial and emotional problems for workersemotional problems for workers

URBAN - HARDSHIPSURBAN - HARDSHIPS

Received some aid from charitiesReceived some aid from charities

Experienced hungerExperienced hunger

Experienced homelessnessExperienced homelessness

RURAL - HARDSHIPSRURAL - HARDSHIPS

Lower prices for food productsLower prices for food products

Forced to let crops rot and killed their Forced to let crops rot and killed their livestocklivestock

Faced farm foreclosuresFaced farm foreclosures

Mexican immigrants faced deportationMexican immigrants faced deportation

EFFECT ON FAMILY LIFE EFFECT ON FAMILY LIFE AND ATTITUDESAND ATTITUDES

Depression hurt some families, Depression hurt some families, although it forced other to band although it forced other to band together for survivaltogether for survival

Divorce rates went up, birthrates Divorce rates went up, birthrates downdown

Americans suffered psychological Americans suffered psychological problemsproblems

POPULAR CULTURE OFFERS POPULAR CULTURE OFFERS AND ESCAPEAND ESCAPE

No TV, computers, or video gamesNo TV, computers, or video games

Went to the movies, listen to the Went to the movies, listen to the radio, and read comics and novelsradio, and read comics and novels

SECTION 3SECTION 3

Hoover’s PoliciesHoover’s Policies


Explain why Hoover opposed Explain why Hoover opposed government sponsored direct relief government sponsored direct relief for the needyfor the needy

Outline Hoover’s attempt to solve the Outline Hoover’s attempt to solve the economic problemseconomic problems

Relate how radicals and veterans Relate how radicals and veterans responded to Hoover’s policiesresponded to Hoover’s policies

Analyze why FDR was such a popular Analyze why FDR was such a popular candidate in the 1932 electioncandidate in the 1932 election

HOOVER OPPOSES GOV’T HOOVER OPPOSES GOV’T SPONSORED RELIEFSPONSORED RELIEF

Individuals and businesses were Individuals and businesses were responsible for themselvesresponsible for themselves

Felt government relief would create a Felt government relief would create a bureaucracybureaucracy

HOOVER’S ATTEMPT TO SOLVE HOOVER’S ATTEMPT TO SOLVE THE ECONOMIC PROBLEM THE ECONOMIC PROBLEM

Attempted to create public-works Attempted to create public-works program (example is Boulder Dam)program (example is Boulder Dam)

Poured money into the Boulder DamPoured money into the Boulder Dam

Boulder Dam – 25 miles Boulder Dam – 25 miles southeast from Las Vegassoutheast from Las Vegas

HOOVER’S AGRICULTUREHOOVER’S AGRICULTUREPROGRAMPROGRAM

made loans to farmers made loans to farmers

established cooperatives for farmersestablished cooperatives for farmers

(example: Cenex Cooperative)(example: Cenex Cooperative)

only was a temporary fix for the only was a temporary fix for the

farmersfarmers

VETERAN RESPOND TO VETERAN RESPOND TO HOOVER’S POLICIESHOOVER’S POLICIES

(BONUS ARMY IN 1932)(BONUS ARMY IN 1932)

veterans gathered in Washington, DC veterans gathered in Washington, DC

demanding their WWI pensiondemanding their WWI pension

President Hoover had them removed President Hoover had them removed from Washington D.C.from Washington D.C.

FDR – POPULAR IN FDR – POPULAR IN 1932 ELECTION1932 ELECTION

FDR’s FDR’s optimismoptimism contrasted contrasted

Hoover’s gloomHoover’s gloom

Download - CHAPTER 24 The Great Depression. SECTION 1 Prosperity Shattered

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