The Roaring Twenties was considered roaring because it was time
of prosperity and change in the U.S.
Slide 3
New technological improvements were changing the way people
lived Homes were updated with electricity Radios, refrigerators,
electric appliances and telephones were becoming a part of the
American way of life
Slide 4
Slide 5
Women and American youth found new ways to exert their
independence and broaden their cultural horizons with new fashions,
music and dance
Slide 6
Slide 7
But beginning in 1929 and through the 1930s, the economy
experienced the worst economic downturn in U.S. history- THE GREAT
DEPRESSION
Slide 8
CAUSES OF THE GREAT DEPRESSION
Slide 9
Overproduction
Slide 10
THE PROBLEM: When WWI ended, so did the high demand for
American goods and produce because The war was over, so the
products werent needed in the same large quantities The European
economies struggled during the post-war years, meaning Europeans no
longer had the money to buy American goods This was DEVASTATING for
American farmers who needed to sell the excess of goods they were
producing!!!
Slide 11
1920s Problems Factories making Too Much, Farms growing too
much Factories Fire Workers (Dont need them) Farm Prices fall
(Farmers cant make $$) Farmers & Factory Workers cant pay back
loans to Banks: DEFAULT!! Banks Close because they have no money:
Loans have not been paid back, cant give people their savings BANKS
Have NO $$ PEOPLE LOST SAVINGS & JOBS NO ONE TO HELP!
Slide 12
Most Americans couldnt afford all of the new luxury items of
the 20s, such as cars and radios But the poor and middle classes
wanted to possess these luxuries too Consumer Overspending/
Consumer Credit
Slide 13
Buying on credit offered a solution! Americans went on a
spending spree, buying things they couldnt really afford By the end
of the 1920s, 60% of the cars and 80% of the radios were bought on
installment credit Buying on Credit increased personal debt.
Slide 14
Under-consumption After the Stock Market collapsed in October
1929, consumers quit spending except for absolute necessities,
creating a big surplus of goods in the marketplace This caused
Under-consumption Unable to make a profit, factories were forced to
shutdown- workers lost their jobs
Slide 15
While many Americans prospered during the 1920s, many did not.
Farmers lost income throughout the 1920s as European markets closed
to American farm goods. Coal mining suffered as oil began to
replace coal as a fuel. In general, workers wages failed to keep
pace with prices during the period.
Slide 16
As a result, there developed an unequal distribution of income
that led to the richest 1% of Americans owning approximately 40% of
the countrys wealth.
Slide 17
History Channel: The Crash of 1929
https://www.youtube.com/watch?v=v_P_9T3 DKn0
Slide 18
The Stock Market In increasing numbers, those who could afford
to invested in the stock market The stock market had become the
most visible symbol of a prosperous American economy The health of
the stock market is measured by the Dow Jones Industrial Average
(the Dow)- a measure based on the stock prices of 30 representative
large firms
Slide 19
Slide 20
Throughout the 1920s, stock prices rose steadily and the Dow
reached an all-time high Eager to take advantage of this, Americans
rushed to buy stocks- many of these investors were average
Americans who hoped to strike it rich
Slide 21
Slide 22
Speculation The frequent buying and selling of shares for the
purpose of making a quick profit
Slide 23
Paying a small percentage of a stocks price as a down payment
and borrowing the rest BUT: If the value of stocks declined, people
who bought on margin had no way to pay off the loans
Slide 24
The Problem: Rising stock prices + = The ability of people of
ordinary people to buy on credit Unrestrained buying and selling
that inflated the price of stocks above their actual value And
President Hoover did little to discourage such buying or to
regulate the market
Slide 25
Herbert Hoover Elected POTUS in 1928 He did not have complete
confidence in the stability of the stock market But, in regards to
the economy, he believed it was the governments job to stay out of
the way
Slide 26
THE STOCK MARKET CRASH By September 1929, the U.S. economy was
beginning to show signs of slowing down. Stockholders feared the
economy was falling into a recession This caused investors to panic
and sell their stock
Slide 27
As more and more people sold their stock, more people panicked
and frantically sold their stocks, driving down their prices and
causing a stock market crash Black Tuesday Oct. 29, 1929
Slide 28
16.4 million shares were dumped- additional millions of shares
could not find buyers People who had bought stocks on credit were
stuck with huge debts Others lost most of their life savings. By
November, investors had lost $30 BILLION
Slide 29
The stock market crash signaled the beginning of the Great
Depression- the period from 1929 to 1940 in which the economy
plummeted (A.K.A. economic recession) and unemployment
skyrocketed
Slide 30
The crash alone DID NOT cause the Great Depression, but it
hastened the collapse of the economy and made the depression more
severe
Slide 31
Banking Panic & Failures In addition, others who had lost
their jobs or who had lost their lifesavings were unable to payback
their loans to the bank After the crash, many people panicked and
withdrew their money from the banks
Slide 32
The Result: By 1933, 11,000 of the nations 25,000 banks had
failed Because the government did not protect or insure bank
accounts, millions of people lost their savings accounts
Slide 33
HARDSHIP & SUFFERING
Slide 34
The Dust Bowl
Slide 35
Slide 36
Slide 37
The region that was the hardest hit- Kansas, Oklahoma, Texas,
New Mexico & Colorado- came to be known as The Dust Bowl Many
of the farmers living in this area- known as Okies- migrated to
California in search of work
Slide 38
SOCIAL IMPACT
Slide 39
As profits fell and consumers reduced spending, workers began
to lose their jobs. By 1932, the unemployment rate in the U.S. had
reached 25%.
Slide 40
Shantytowns-Hoovervilles Because they couldnt pay their debts,
many unemployed Americans lost their homes These newly homeless
Americans settled in camps or shantytowns of shacks and tents built
from scrap materials such as packing crates and rusted-out car
bodies
Slide 41
These camps soon earned the title Hoovervilles, named after
President Hoover, who was blamed by many Americans for the onset of
the depression
Slide 42
There was no federal relief system to provide money or food to
the needy While there were some public assistance programs and
private charities, they were quickly overwhelmed by the sheer
number of people who needed help
Slide 43
Many Hooverville residents depended on soup kitchens and bread
lines to survive
Slide 44
Charitable establishments that offer free or low-cost food
Slide 45
Lines of people waiting to receive free food Bread Lines
Slide 46
Women & Minorities Were especially hit hard Women were
often fired because many companies felt jobs should go to men first
African Americans were usually the last to be hired, but first to
be fired
Slide 47
Men Had a difficult time coping with the fact that they could
no longer support themselves or their families Many had to travel
around the country in search of work Some even abandoned their
families out of shame
Slide 48
Were malnourished Many child welfare programs were cut Many
schools were forced to shorten the school year or shut down
completely Thousands had to go to work in sweatshops
Slide 49
Test Essay Question What caused the Great Depression? Be sure
to include: overproduction (why were factories/farming producing so
much & why did this cause a problem later?) Credit (describe
Americans spending habits during the 20s and why this caused
problems later) Underconsumption Stock market speculation &
buying on margin The stock market crash Bank failures
Slide 50
The New Deal
Slide 51
The Election of 1932 By the end of 1932, Americans were ready
for a change. Democratic candidate Franklin Delano Roosevelt (FDR),
beat Hoover in the election by a landslide. Democrats also won
large majorities in the House & Senate.
Slide 52
As soon as FDR entered office, he initiated programs to end the
Depression. These programs became known as the NEW DEAL.
Slide 53
New Deal policies focused on 3 goals: 1.Relief- relief/welfare
for the needy 2.Recovery- economic recovery 3.Reform- financial
reform
Slide 54
Fireside Chats FDR spoke directly to the people in radio talks
called Fireside Chats. He explained the New Deal measures and asked
for public support. These chats did a lot to restore the nations
confidence.
Slide 55
In regards to the problems caused by the Great Depression, he
tried to encourage the American people:
Slide 56
In his first 100 days, Congress quickly passed many important
laws. These laws expanded the federal governments role in the
nations economy.
Slide 57
New Deal Programs: Banking & Finance Reform One of the
first things FDR did in office was declare a bank holiday, closing
the banks to prevent more bank failures
Slide 58
1933: Federal Deposit Insurance Corporation (FDIC) Created by
the Glass-Steagall Act The FDIC protected individual bank accounts
up to $5,000 ($250,000 today), reassuring bank customers that their
money was safe
Slide 59
1933: EMERGENCY BANKING RELIEF ACT (EBRA) Banks were inspected
by the Treasury Department Banks that were deemed stable or healthy
were allowed to reopen.
Slide 60
FDRs bank holiday, the FDIC the EBRA helped restore public
confidence in the banks
Slide 61
1933: Federal Securities Act- required corporations to provide
complete information on all stock offerings and made them liable
for any misrepresentations
Slide 62
1934: Securities & Exchange Commission (SEC)- established
to regulate the stock market and to prevent people from rigging the
market for their own profit
Slide 63
The FDR administration also established programs to provide
relief through work projects
Slide 64
1933: Civilian Conservation Corps (CCC)- put young, unemployed
men to work building roads, developing parks, planting trees and
helping in erosion-control and flood- control projects Provided 3
million men with work and wages between 1933 and 1942 Many of the
projects these men work on were located in the Great Plains states
and were aimed at preventing another Dust Bowl
Slide 65
1933: National Industrial Recovery Act (NIRA)- Provided money
to states to create jobs in the construction of schools and other
community buildings
Slide 66
When the CCC and NIRA failed to make a sufficient dent in
unemployment, FDR established the CWA
Slide 67
1933: Civil Works Administration (CWA)- Provided work in
federal jobs Built 40,000 schools and paid the salaries for 50,000
teachers Built more than a million miles of road Critics of the CWA
claimed that the programs were make- work projects and were a waste
of money
Slide 68
New Deal Programs: Rural Development 1933: Tennessee Valley
Authority (TVA) Established to develop the impoverished Tennessee
River Valley region (which runs through 7 states)
Slide 69
Provided flood control by constructing 20 new dams. Each dam
had its own power plants and parks Provided inexpensive,
hydroelectric power that brought new employment for men and women
to the region with industries such as textile mills At its peak,
the TVA employed 28,000 people
Slide 70
Slide 71
Opposition to the New Deal By the end of the 100 Days, millions
of Americans had benefited from the New Deal programs Public
confidence in the nations future had also rebounded Nevertheless,
the New Deal did not end the Depression and opposition grew among
some groups
Slide 72
FDR reluctantly financed the New Deal through DEFICIT SPENDING
spending more money than the govt received in revenue. Some
liberals felt the ND did not do enough to help the poor. Some
conservatives said it gave the federal govt too much control over
agriculture and business.
Slide 73
The Supreme Court Challenges the New Deal The Supreme Court
found two important parts of the NEW DEAL unconstitutional: NIRA
& AAA (Agricultural Adjustment Act)The Supreme Court found two
important parts of the NEW DEAL unconstitutional: NIRA & AAA
(Agricultural Adjustment Act) This angered FDR so he proposed a
court-packing bill to allow him to appoint more new Supreme Court
justices. Critics claimed FDR was trying to pack the Court with
justices who would support his New Deal policiesThis angered FDR so
he proposed a court-packing bill to allow him to appoint more new
Supreme Court justices. Critics claimed FDR was trying to pack the
Court with justices who would support his New Deal policies
Slide 74
Huey Long The most serious challenge to the New Deal came from
Senator Huey Long of Louisiana. He was an early supporter of the
New Deal, but he turned against FDR because he was eager to win the
presidency for himself He proposed a program called Share Our
Wealth. Under the banner Every man a king, he promised something
for everyone In 1935, at the height of his popularity, Long was
assassinated. This proposed a guaranteed household income for each
American family paid for by high taxes on the wealthiest
Americans.
Slide 75
The Second New Deal
Slide 76
The programs President Roosevelt introduced after his original
New Deal failed to completely fix the American economy. So FDR
started the Second New Deal to provide more extensive relief to
both farmers and workers
Slide 77
Eleanor Roosevelt First Lady of the World He was encouraged to
launch this 2 nd phase of reform by his wife, Eleanor Roosevelt A
social reformer, she was deeply interested in humanitarian causes
and social progress She traveled all over the United States to
observe social conditions so she could keep the president informed
as to the state of the nation.
Slide 78
As a supporter of womens activism, she was also instrumental in
convincing Roosevelt to appoint more women to government positions
She was instrumental in changing the role of the first lady from
being a largely ceremonial to position to an active &
influential one
Slide 79
Election of 1936 The Second New Deal was already under way by
the time of the presidential election of 1936 This helped Roosevelt
win another overwhelming victory
Slide 80
Significance of his victory: Showed that the continuation of
his New Deal programs was supported by the American people It was
the first time most African Americans voted Democratic It was also
the first time that all labor unions supported a single
candidate
Slide 81
National Labor Relations Act (Wagner Act) One of the first
reforms of Roosevelts Second New Deal It established collective
bargaining rights for workers It prohibited unfair labor practices
such as: intimidating workers attempting to keep workers from
organizing unions firing union members Set up a government agency
where workers could testify about unfair labor practices
Slide 82
With this protection, labor union membership grew. By 1945, 37%
of the U.S. work force was unionized.
Slide 83
Rise of Industrial Unionism & the CIO After passage of the
Wagner Act, industrial workers began to unionize. The American
Federation of Labor (AFL) had been hesitant to organize industrial
unionism, because it was committed to craft or skill-based workers
such as carpenters and railroad engineers. As a consequence, the
Congress of Industrial Organizations (CIO) was created to represent
industrial workers who felt they were not being represented by the
AFL. The AFL and CIO clashed on and off before merging in 1955 to
become the AFL-CIO that exists today.
Slide 84
1935: Social Security Act One of the most important
achievements of the ND! This law consisted of three components:
1.Old-age insurance for retirees aged 65 or older and their
spouses; funds come from what workers and employers pay into the
system. 2.Unemployment compensation payments to workers who lost
their jobs; paid by a federal tax on employers and administered by
the state 3.Aid to the disabled & families with dependent
children this helped people who could not be expected to work. All
are still with us today.
Slide 85
By the end of the 1930s, the economy had improved. Industrial
production had reached 1929 levels. Unemployment was still high,
but many felt the worst days of the Depression were behind them.
FDR would not initiate any new programs, as his attention was
increasingly turn to events happening in Europe, particularly the
rise of Adolf Hitler in Germany
Slide 86
Legacy of the New Deal New Deal economic and financial reforms
(the FDIC, the SEC & Social Security) have helped to stabilize
the nations finances and economy Thanks to the ND, there are now
safety nets in place- during economic downturns, peoples savings
are still safe and they can receive unemployment compensation if
they lose their jobs
Slide 87
Legacy of the New Deal One of the most important legacies of
the ND has been that the federal government has assumed some
responsibility for the social welfare of its citizens
Slide 88
The ND expanded the powers of the federal government by:
Creating federal jobs Regulating supply and demand Settling labor
disputes Legacy of the New Deal
Slide 89
The Great Depression, the New Deal, and the upcoming threat to
peace in Europe and Asia helped Franklin D. Roosevelt to be elected
to FOUR CONSECUTIVE TERMS as PRESIDENT.