ELECTION OF 1928CANDIDATES•Republican-

•Democratic-

H. HooverAl Smith

ISSUES

•The Republicans took full credit for the prosperity of the 1920s

•The _________ issue led to a smear campaign against Smith.

Catholic

STOCK MARKET CRASHPLAYING THE MARKET

• The __________________was established as a system for buying and selling shares of companies.

• A long period of rising stock prices is known as a_____________________.

• Prosperous times during the 1920s caused many Americans to invest heavily in the stock market.

STOCK MARKET

BULL MARKET

• As the bull market continued to go up, many investors bought stocks on ____________, making a small cash down payment.

MARGIN

• This was considered safe as long as stock prices continued to ______________.

• If the stock began to fall, the broker could issue a margin call demanding that the investor repay the loan immediately.

RISE

•Speculation occurred when investors bet on the market climbing and sold whatever stock they had in an effort to make a quick profit.

•stock prices dropped and the bull market ended.

•Stock prices fell drastically on October 29, 1929, Black__________________,TUESDAY

STOCK MARKET CRASH: EFFECTS•did not cause the Great Depression•The stock market crash weakened the nation’s banks. •Banks lost money on their investments. •Because the government did not insure bank deposits, customers lost their money if a bank closed.

•Bank runs resulted as many bank customers withdrew their money at the same time, causing the bank to collapse

How did the stock market crash weaken the nation’s banks?The stock market crash caused the banks to lose money on their investments, and speculators defaulted on bank loans. Because the government did not insure bank deposits, customers lost their money if a bank closed. Bank runs resulted as many bank customers withdrew their money at the same time, causing the bank to collapse.

The Great Crash

(pages 658–659)

CAUSES OF DEPRESSION

•uneven distribution of wealth- top 5 percent of American households earned 30 percent of the country’s income. •Low consumption

•To much credit- not enough money going back to the business

•Farm surplus

•No banking regulations

•Hawley-Smoot Tariff raised tariffs on imports causing other countries to raise tariffs on US goods, making it difficult to sell US good over seas.

•Worker’s wages did not increase fast enough to keep•As sales decreased, workers were laid off, resulting in a chain reaction that further hurt the economy.

M/C 1-2a

HARD TIME HIT HOME CITIESUnemployed workers often stood at ______________ to receive free food or at ________________ where private charities gave a free meal to the poor.

BREADLINES

SOUP KITCHENS

People lost their homes and had to live in shantytowns called-

HOOVERVILLES

RURAL AREAS

A terrible drought in the Great Plains, beginning in 1932, caused the region to become a _______________DUST BOWL

•People were left homeless.

•Some left the farms and went to Calif. to become migrate workers. These people were called Okies

HOOVER’S RESOLVE•Believed in “rugged individualism”- the ________ should not take care of individual $ problems.

GOVT.

•No direct relief to the people: this should be done by the state and local govt.

•Hoover increased public works–government-financed building projects.- Bolder Dam

•He asked Congress to set up the Reconstruction Finance Corporation (RFC) to make loans to banks, railroads, and agricultural institutions.

•______________________ marched to Washington, D.C., to ask Congress to approve the legislation to get their bonus money early.

BONUS ARMY

Hoover wouldn’t meet w/ them and sent the Army to burn the Hooverville. They didn’t get the money.

ELECTION OF 1932

REP. DEM.

•Had ______________polio•Blamed for the __________________DEPRESSION •Pledged a

________________NEW DEAL

THE NEW THE NEW DEALDEALPRIMEING

THE PUMP

•Put ______ into circulation by creating __________

$

JOBS

GOALS

•RELIEF

•REFORM

•RECOVERY

“THE ONLY THING WE HAVE TO FEAR, IS FEAR ITSELF”

________________- radio speeches by FDR to explain what his plans were and to people’s anxiety.

FIRESIDE CHATS

A CALL TO ACTIONFDR’S ADVISORS

•Wife- ___________________•________________- experts making up his unofficial advisors made up all kinds of people•First female cabinet member; Sec.

of Labor- _______________________

ELEANOR ROOSEVELT

BRAIN TRUST

FRANCE PERKINS

FIRST NEW DEAL

•Closed banks until they were strong enough to reopen-

•Insurance to protect personal bank deposits-

•Govt. agency that regulates the stock market to keep the market more secure-

BANK HOLIDAY

FDIC

SEC

CREATION OF CONSTRUCTION

JOBSPWA

•Hospitals & Schools

•Subways

CWA- hired workers directly and put them on the government’s payroll.

•Roads •Ball parks

Build dams to improve the south-TVA

CCC

•Employed ______________

•Ages ____________•work with the national forestry service planting trees, fighting forest fires, and building reservoirs.

Single men

18-25

AAA•plan that paid farmers not to ___________________ to lower crop ______________________.

•the plan reduced production, increased __________

Raise certain cropproduction

prices

NRA •allowed business, labor, and government to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.

• it urged consumers to buy only from companies who signed agreements with the NRA.

• declared unconstitutional by the Supreme Court in 1935.

NYA

Provide jobs for high school and college students.

• The most important aspect of Roosevelt’s New Deal was the change in the spirit of the American people.

There was enough relief to keep people from starving

• People became hopeful and optimistic, and their faith in America was restored.

• Roosevelt used deficit spending to pay for his programs.

• He abandoned a balanced budget and borrowed money to pay for his programs.

NOT ENOUGH HELPBy 1935 the economy has still not recovered

NEW DEAL CRITICSFather Coughlin

Huey Long-

•Level income, ___________________ for all•proposed taking property from the ________ and dividing it up amongst the _________.

Francis Townsend

•Proposed income for _____________•proposed that the federal government pay citizens over the age of 60 a pension of $200 a month.

HOME AND COLLEGE

RICHPOOR

ELDERLY

MORE PROGRAMS

SECOND NEW DEAL•_____creating jobs for workers

•Its most controversial aspect was offering work to: 1) writers.

•Travel guides for each state

•Interviewed former slaves and mountain people

WPA

2) Artists painted murals for govt. buildings such as post offices, city halls, etc.

3) musicians, and theater people

•___________________-old age pensions, unemployment, aid to families with children

SOCIAL SECURITY

LABOR RELATIONS IMPROVE

•NLRB (Wagner Act)

•FAIR LABOR STANDARDS

COURT PACKING

Several New Deal programs ruled unconstitutional

•AAA, NRA

FDR proposed adding new justices

•Roosevelt feared that the Court would strike down the New Deal.

•court-packing- FDR sent Congress a bill to increase the number of justices on the____________________.

•Seen as a threat to checks and balances by giving the ____________ too much power.

END OF THE NEW DEAL

SUPREME COURT

PRES.

AFRICAN AMERICANS

Mary Bethune- established ____________________

Marian Anderson- concert at the Lincoln Memorial

MOTION PICTURESMOTION PICTURES

S. Temple & Mr. Bowjangles

SNOW WHITE WALT DISNEY

WIZZARD OF OZ

•Americans escaped the hardships of the Depression by going to the movies and listening to radio broadcasts.

GONE WITH THE WIND

JAMES CAGNEY

GRETA GARBO

MARLENE DIETRICH

Stories tended to be about overcoming hardships and achieving success

MARX BROTHERS

_________________- starred in “It’s a Wonderful Life” and “Mr. Smith Goes To Washington”

J. STEWART

RADIO ENTERTAINS THE MASSES

BOB HOPE

_________________- produced a radio program, “War of the Worlds”

ORSON WELLES

•Families gathered around the radio daily to hear news or listen to comedians like George Burns or a dramatic series like the Lone Ranger.

ART AND LITERATURE

Richard Wright

____________ ____________

NATIVE SON

Grant Wood

______________________

AMERICAN GOTHIC

Culture and Traditions In what ways did people seek to forget about the Depression?

Americans looked to radio and motion pictures as an escape.

EFFECT ON AMERICA

• _______________ Failure

•Unemployment ________________

•Farmers lost ________________

•People migrated to the city

BUSINESS

INCREASE

LAND

FDR PLAN

NEW _____________

GOALS:

_________________

_________________

_________________

DEAL

RELEIF

REFORM

RECOVERY

HOOVER

_____________

____________

Theory

No direct relief to the _______

TRICKLE

DOWN

PEOPLE