Chapter 22 U.S. History 2. The Great Depression Begins 22.1 Causes of the Depression 22.2 Life...
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Transcript of Chapter 22 U.S. History 2. The Great Depression Begins 22.1 Causes of the Depression 22.2 Life...
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Chapter 22U.S. History 2
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The Great Depression Begins
• 22.1 Causes of the Depression• 22.2 Life During the Depression• 22.3 Hoover Responds
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22.1 Causes of the Depression
• The Election of 1928• The Long Bull
Market• The Great Crash• The Roots of the
Great Depression
President Hoover and VP Curtis
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The Election of 1928
• Herbert Hoover ran against democratic candidate Alfred E. Smith, a former governor of New York in 1928.
• Smith was the first Roman Catholic to be nominated for president.
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The Election of 1928
• Prohibition was a major issue in the campaign.–Hoover favored a
ban on liquor sales.–Smith opposed the
ban.
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The Election of 1928
• Many voters disliked Smith because he was a Catholic.
• The Republicans took full credit for the prosperity of the 1920s.
• Hoover won by a landslide.
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The Long Bull Market
• The stock market was established as a system for buying and selling shares of companies.
• A long period of rising stock prices is known as a bull market.
• Many Americans invested heavily in the stock market during the 1920s.
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The Long Bull Market
• Many investors bought stocks on margin, making a small cash down payment.
• This was considered safe as long as stock prices continued to rise.
• If the stock began to fall, a margin call required the investor repay the loan immediately.
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The Long Bull Market
• Speculation occurred when investors bet on the market climbing and sold whatever stock they had in an effort to make a quick profit.
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The Great Crash
• A lack of new investors in the stock market caused stocks to drop and ended the bull market.
• Investors responded by selling their stocks, causing the stock market to plummet further.
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The Great Crash
• The stock market crashed on October 29, 1929, Black Tuesday, losing $10 to $15 billion in value.
• While this did not cause the Great Depression, it undermined the economy’s ability defend itself against other weaknesses.
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The Great Crash
• The stock market crash weakened the nation’s banks.
• Banks lost money on their investments.
• Speculators defaulted on loans.
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The Great Crash
• Customers lost their money if a bank closed.
• Many bank customers withdrew their money at the same time, causing the bank to collapse.
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The Roots of the Great Depression
• Efficient machinery led to overproduction.
• The uneven distribution of wealth in the U.S. added to the country’s economic problems.
• Low consumption added to the economic problems.
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The Roots of the Great Depression
• As sales decreased, workers were laid off, which caused further decreases in sales.
• Many bought on the installment plan, making a down payment and paying the rest monthly.
• The Hawley-Smoot Tariff intensified the Depression by raising the tax on imports.
Hawley and Smoot
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The Roots of the Great Depression
• Americans purchased less from abroad because of the high cost.
• In return, other countries raised tariffs on American products, causing fewer to be sold overseas.
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The Roots of the Great Depression
• Instead of raising interest rates to stop speculation, the Federal Reserve Board made the mistake of lowering the rates.
• This encouraged banks to make risky loans and misled business owners into thinking the economy was still expanding.
Ben Bernanke is the current Chairman of the Federal
Reserve Board.
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AHSGE Exam
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22.2 Life During the Depression
• The Depression Worsens• Escaping the Depression• The Depression in Art
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The Depression Worsens
• By 1933, thousands of banks had closed.
• Millions of American workers were unemployed.
• Charities assisted unemployed workers with free meals through bread lines or at soup kitchens.
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The Depression Worsens• Many Americans lost their homes because
they were unable to pay their mortgage or rent.
• Those unwilling to move had a eviction notice delivered by a court officer or bailiff.
• Many built shantytowns, or “Hoovervilles” because they blamed the Hoover for their troubles.
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The Depression Worsens
• Hobos, or homeless Americans who wandered around, searched for work and a better life.
• As crop prices dropped in the 1920s, many farmers left their fields uncultivated.
• A terrible drought in the Great Plains, beginning in 1932, created the “Dust Bowl.”
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The Depression Worsens
• Many farmers lost their farms.
• Many families moved west hoping to find a better life but still faced poverty and homelessness.
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Escaping the Depression• Americans escaped their
troubles temporarily by going to the movies and listening to the radio.
• Stories tended to be about overcoming hardships and achieving success.
• Walt Disney produced the first feature-length animated film, Snow White and the Seven Dwarfs, in 1937.
Walt Disney
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Walt Disney
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Escaping the Depression• Examples of films that told stories
of triumph over adversity include:– The Wizard of Oz–Mr. Smith Goes to Washington–Gone with the Wind.
• Families listened to the radio daily to hear news, comedians like George Burns, or a dramatic series like the Lone Ranger.
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Escaping the Depression
• Melodramas, called soap operas, became very popular with housewives.• Soap operas received
their name because makers of laundry soaps often sponsored them.
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The Depression in Art
• Homeless and unemployed Americans were portrayed in art and literature during the 1930s.
• Artists and writers tried to capture the real life drama of the Depression.
• Thomas Hart Benton and Grant Wood emphasized traditional American values in their art.
The following slides show examples of Thomas Hart
Benton’s art.
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1934 Lord, Heal the Child
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1934 The Ballad of a Jealous Lover of Greenwich Village
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1938 Roasting Ears
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1938 The Flood
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The Depression in Art
• John Steinbeck’s 1939 novel The Grapes of Wrath told about an Oklahoma family fleeing the Dust Bowl to find a new life in California.
• Steinbeck wrote of poverty, misfortune, and social injustice.
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The Depression in Art
• Novelist William Faulkner used a literary technique called stream of consciousness.
• It revealed characters’ thoughts and feelings before they spoke.
• He exposed attitudes of Southern whites and African Americans in a fictional Mississippi county.
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Read about the Hoover Dam on pages 666-667.
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22.3 Hoover Responds
• Promoting Recovery• Pumping Money
into the Economy• In an Angry Mood
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Promoting Recovery
• Hoover held a series of conferences bringing government and business leaders together.
• Hoover increased public works–government-financed building projects.
• Hoover asked the nation’s governors and mayors to increase public works spending.
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Promoting Recovery
• However, Hoover refused to increase government spending or taxes.
• He feared that deficit spending would actually delay an economic recovery.
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Promoting Recovery
• Americans blamed the Republican Party for the Depression.
• In the midterm congressional elections of 1930, the Republicans their majority in the House.
Hoover and FDR
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Pumping Money into the Economy• Hoover tried to persuade
the Federal Reserve Board to put more currency into circulation.
• The Board refused.• Hoover set up the National
Credit Corporation (NCC).• It created a pool of money
to rescue banks but was not enough to help.
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Pumping Money into the Economy
• By 1932, Hoover felt the government had to provide funding for borrowers.
• Congress set up the Reconstruction Finance Corporation (RFC) to make loans to banks, railroads, and agricultural institutions.
• The economy continued to decline when the RFC was too cautious in its loan amounts.
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Pumping Money into the Economy
• Hoover opposed the federal government’s participation in relief–money that went directly to very poor families.
• He felt relief was the responsibility of state and local governments.
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Pumping Money into the Economy
• In July 1932, Congress passed the Emergency Relief and Construction Act to get money for public works and for loans to the states for direct relief.
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In an Angry Mood
• By 1931,looting, rallies, and hunger marches began.
• During a hunger march at the nation’s capital, police denied protestors food, water, and medical treatment.
• Congress intervened, stressing the marchers’ right to petition their government.
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In an Angry Mood• Congress permitted them to
march on to Capitol Hill. • Between 1930 and 1934,
creditors foreclosed, or took possession of, almost a million farms.
• Some farmers destroyed their crops.
• They hoped a smaller supply would increase prices.
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In an Angry Mood
• In 1924 Congress enacted a $1,000 bonus to be paid to veterans in 1945.
• In 1931, a bill was introduced in the House that authorized early payment of the bonus.
• In 1932, the “Bonus Army” marched to Washington, D.C., to ask Congress to approve the bill.
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In an Angry Mood
• Hoover refused to meet with the Bonus Army.• The Senate voted the
new bonus bill down• Some of the marchers
left.
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In an Angry Mood
• Others stayed, moving into deserted buildings in Washington, D.C.
• Hoover ordered the buildings to be cleared.
• Disputes between the remaining people and the police (and later the army) resulted in several deaths.
Douglas MacArthur in 1945
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Test Tomorrow!