Warm-Up• Update your Table of Contents

• No homework today for social studies – I will show you an example of your science homework – No homework passes

Date Session#

Activity Page#

2/26 8 The Great Depression & The New Deal 10

From BOOM to BUST

The Roaring 20’s• The new concept of

“credit” – economic boom

• People were buying:– Automobiles

– Appliances

– Clothes

• Fun times reigned– Dancing

– Flappers

– Drinking

1929-1939

Why was this bad?• Credit system

– People didn’t really have the money they were spending

• WWI– The U.S. was a major

credit loaner to other nations in need

– Many of these nations could not pay us back

The Stock Market• People bought stocks

on margins– If a stock is $100 you

can pay $10 now and the rest later when the stock rose

• Stocks fall– Now the person has

less than $100 and no money to pay back

And then….

• With people panicking about their money investors tried to sell their stocks– This leads to a huge decline

in stocks– Stocks were worthless now

• People who bought on “margins” now could not pay

• Investors were average people that were now broke

• Herbert Hoover was president at the start

• Philosophy: We’ll make it! Prosperity is right around the corner!

• What He Did: very little

• The poor were looking for help and no ideas on how to correct or help were coming

• Farmers were already feeling the effects– Prices of crops went down– Many farms foreclosed

• People could not afford luxuries– Factories shut down– Businesses went out

• Banks could not pay out money• People could not pay their taxes

– Schools shut down due to lack of funds

• Many families became homeless and had to live in shanties or shacks

“Hoovervilles”• Some families were

forced to live in shanty towns– A grouping of shacks

and tents in vacant lots

• They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

A drought in the Southern Midwest lead to dust storms that

destroyed crops.

“The Dust Bowl”

Effects of the “Dust Bowl”

• Crops turned to dust=No food to be sent out

• Homes buried

• Fields blown away

• State of emergency – one of the biggest crises of the 20th century

Those in areas most greatly affected by the Dust Bowl, Oklahoma, Texas &

Great Plains areas, migrated to the West Coast in search of work.

Images of the Great Depression

• Take a short gallery walk through the Great Depression

• Choose 1 image that has the most impact on you – why is it the most powerful in your opinion?

1932 Election• Democrat Franklin Delano Roosevelt wins by

a landslide against Republican Herbert Hoover

FDR Restored Confidence• In his inaugural

address, he said “The only thing we have to fear is fear itself….”

• Unemployment rates soared -poor sections (like Harlem) had 50% unemployed

• Banking system had collapsed

FDR – Strong Leadership• He was a practical politician

who practiced the art of the possible.

• He was a charismatic person who exhibited a warmth and understanding of people.

• He knew how to handle press by focusing attention on Washington.

• He provided dynamic leadership in a time of crisis.

• He was willing to experiment – comes up with “New Deal”

Sources of New Deal Ideas• Brains Trust: specialists and

experts, mostly college professors, idea men

• New Economists: government spending, deficit spending and public works, government should pump the economy

• Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationists, anti-inflationists -- often conflicting, compromising, blending ideas

The New Deal(s)• With your group members, use the textbook

pages listed to analyze the components of the New Deal

Purposes of the New Deal

• Relief: for the hungry and jobless

• Recovery: for agriculture, industry

• Reform: To regulate the economy - banks, to abolish child labor, and to conserve farm lands

• Overall objective: to save capitalism

First New Deal (1933-1934)

• Emphasis: reform• Political Position: conservative • Primary aim: economic recovery• Philosophy: economic

nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)

• Objectives: higher prices for agriculture and business

• Beneficiaries: big business and agricultural business

Second New Deal (1934-1941)• Emphasis: reform• Political Position: liberal• Primary aim: permanent reform • Philosophy: international economic

cooperation and economic abundance

• Objectives: increased purchasing power and social security for public

• Beneficiaries: small farmers and labor

Warm-Up• Update your Table of Contents

• Write your homework – leave it to be stamped

• Grab your folder to file your WWI Quiz

• Get a Glogster Project Guide and review the project

Date Session#

Activity Page#

2/28 9 Turn of the Century Glogster Project Guide 11