Chapter 24 The Great Depression 1929-1933 Section 1: Prosperity Shattered • Recount why financial experts issued warnings about business practices during the 1920s. • Describe why the stock market crashed in 1929. • Understand how the banking crisis and subsequent business failures signaled the beginning of the Great Depression. • Analyze the main causes of the Great Depression. Objective 1: Recount why financial experts issued warnings about business practices during the 1920s. • Identify the warnings that financial experts issued during the 1920s: • 1 Agricultural crisis • 2 Sick industry • 3 Consumers buying on credit • 4 Stock speculation • 5 Deion is # 1 Objective 1: Recount why financial experts issued warnings about business practices during the 1920s. • Why did the public ignore these warnings: • 1 Economy was booming • 2 People believed it would continue to grow Objective 2: Describe why the stock market crashed in 1929. Factors That Caused the Stock Market Crash 1. Rising interest rates 2. Investors sell stocks 3. Stock prices plunge 4. Heavy sells continue The Crash Objective 3: Understand how the banking crisis and subsequent business failures signaled the beginning of the Great Depression. Depositor withdrawal Banking Crisis Default on loans The Banking Crisis Margin calls and Subsequent Business Failures Unable to obtain resources Business Failures Lay-offs and closings Objective 4: Analyze the main causes of the Great Depression. • Main causes of the Great Depression and how it contributed to the depression: • Global economic crises, the U.S didn’t have foreign consumers. • The income gap deprived businesses of national consumers • The consumers debt led to economic chaos Section 2: Hard Times • Describe how unemployment during the Great Depression affected the lives of American workers. • Compare and contrast the hardships that urban and rural residents faced during the depression. • Analyze how the Great Depression affected family life and the attitudes of Americans. • Explain how popular culture provided an escape from the Great Depression. Objective 1: Describe how unemployment during the Great Depression affected the lives of American workers. • Economically People only spent money on food; African Americans lost their jobs; jobs for women increased; reduced salary and hours • Psychologically -emotional problems; stress, depression Objective 2: Compare and contrast the hardships that urban and rural residents faced during the depression. Rural Urban Crops rot, and kill animals, foreclosures, Hunger, unemployment, immigrants faced homelessness, deportation, share mutual aid, cropping ended (African charitable help Americans), farmers helped by buying neighbors foreclosures, then gave back Objective 3: Analyze how the Great Depression affected family life and the attitudes of Americans. • Suicide rates increased • Low birthrate and marriages • Families doubled-up to live together; children moved in with parents • Divorce rates increased • Guilt, depression, boredom; crime increases • Roles of men and women switched Objective 4:Explain how popular culture provided an escape from the Great Depression. • Reading, playing games at home • Movies; low-ticket prices, double features, cartoons • Radio programs • Books that describes a perfect or imperfect world • Baseball Section 3: Hoover’s Policies • Explain why President Hoover opposed government-sponsored direct relief for needy individuals during the Great Depression. • Outline the Hoover administration’s attempts to solve the economic problems of the depression, and analyze the success of these efforts. • Relate how radicals and veterans responded to President Hoover’s policies. • Analyze why Franklin D. Roosevelt was such a popular candidate in the 1932 election. Objective 1: Explain why President Hoover opposed government-sponsored direct relief for needy individuals during the Great Depression. 1. Individuals and business should support each other. 2. Government relief would create a bureaucracy. People should support the government, but government should not support the people. Objective 2: Outline the Hoover administration’s attempts to solve the economic problems of the depression, and analyze the success of these efforts. The Hoover Administration and The Great Depression EFFORT DESCRIPTION EFFECTIVENESS Public-works programs Poured money into public Failed to affect the construction projects such entrenched depression as the Boulder Dam—later renamed Hoover Dam Agricultural Efforts Created the Federal Farm Helped some farmers take Board; made loans, advantage of cooperatives established cooperatives, and avoid foreclosure, but and bought surplus goods failed to end the farm crisis Reconstruction Finance Loaned taxpayer money to Helped some companies Corporation (RFC) stabilize industries avoid bankruptcy; used money for businesses, not people; aid didn’t trickle down Objective 3: Relate how radicals and veterans responded to President Hoover’s policies. Radicals organized and staged protests, took over government buildings, blamed capitalism for the depression, and EXPOSED RADICAL INJUSTICE. Veterans (the Bonus Army) gathered in Washington, D.C., to demand payment of their pension bonuses Objective 4: Analyze why Franklin D. Roosevelt was such a popular candidate in the 1932 election. • He was different, he just wasn’t Hoover! • He promised a new deal for Americans, make life more fair for everyone • He conveyed confidence and a spirit of optimism, (contrasted with Hoover’s gloom.) • Promised to see a fairer distribution of wealth.