Unit 4: Great Depression

Causes of the Great Depression (6)

1. Crisis in Farming Sector: After WWI= LESS demand, so farmers lost farms due to debt.

2. Access to Easy Credit: Businesses encourage debt, people spend what don’t have. Less spending = less wages.

3. Unequal Distribution of Wealth: Over 70% Amer. living on less than $2,500/ year while 1% made $10,000 per year.

4. Smooth Hawley Tariff: Est. highest import Tariff. Goal = protect American farm & business but did opposite (hurt trade & increased unemployment.

5. Euro economies struggle due to war reparations

6. Stock Market Crash: Millions lost in single day. 90% of $ traded on Stock Market = borrowed (Buying on margin)

Where Dust Bowl was Located (5)

1. Texas

2. New Mexico

3. Oklahoma

4. Colorado

5. Kansas

Causes of Dust Bowl (2)

1. Drought

2. Power Farming: Plowing happened so frequently that grass was killed so top soil = dry & turned to dust.

Dust Bowl (3)

• Drought areas that suffered severe dust storms.

• Lasted for 10 years & made sky black and air extremely dangerous.

• Killed off livestock & crops

Effects of Dust Bowl (3)

• Drought forced Oklahoma & others to leave land

• Moved to California in hopes of better job opportunities & weather.

• These “Okies” were mistreated due to being seen as a threat to Californians.

Cause of Stock Market Crash

90% of $ traded on Stock Market was borrowed (buying on margin)

Major Effects of Great Depression (6)

• Employment: Many = unempl. for years. Minorities discriminated against in work place.

• Housing: Many lost homes, so they lived on streets & in Shantytowns.

• Race Relations: Increased tensions due to competition of jobs. Led to increased violence.

• Family Life: Some bonds strengthen, men left families, (single moms = common). Children rode rails to look for jobs.

• Physical Health: Poor diets & lack of healthcare = severe increase in health problems nationwide.

• Emotional Health: Suicides & admissions into mental hospitals increased.

President @ start of Great Depression, approach & what beliefs justified his actions. (3)

• Hoover.

• Bailed out big industries in belief that it would “trickle” down to the American people.

• Encouraged Americans to volunteer, help neighbors & maintain positive outlook. PEOPLE BLAMED HIM

How Individuals Saw Hoover (2)

• Blamed him for their poorness & associated him with bad things.

• “Hoover Dictionary”

“Bank-runs” & why they are bad for banks & economy (2)

• When a large group of people fear of their bank closing & try to withdraw money @ same time.

• Banks couldn’t give back enough money & would close down = less banks = worse economy.

Political Candidates & how they differed in opinion on how to deal with Great Depression (2)

• Herbert Hoover: Believed direct relief from fed gov would decrease self-respect of Americans & make gov too big.

• FDR: Believed that large scale problem like Depression needed Fed assistance. Promised Americans “New deal” if elected.

Incumbent

Currently in office when running

Lame Duck

A politician who is serving remainder of their term, but does not have real power.

Fireside Chats & why they were important (2)

• Radio speech that explained in clear, simple language FDR’s actions.

• It communicated to people to remain cooperative & hopeful

FDR’s First priority when he entered office & how he dealt with this specific problem.

Closed all banks (Bank Holiday) to prevent further withdrawls so they could have time to stabilize economy.

3 R’s of FDR’s New Deal (3)

Relief for the Needy

Recovery (Economic)

Financial Reform

New Deal, 3 programs & what they did for America (4)

New Deal: Series of programs, projects & financial reforms with goal of addressing Great Depression.

SSA: Provided income for retired, dependent or old people. Lead to more financial security.

CCC: Help Young Men get jobs & build stuff. Led to more jobs.

FHA: Regulate interest rates & mortgage terms. Alleviated home ownership but caused more segregation in housing market.

Redlining

Places where African Americans were denied mortgages by FHA in white neighborhoods.

Arguments presented against New Deal programs.

Republicans: Did NOT agree. Believed too much money spent on unnecessary jobs & too high level of gov intervention.

Huey Long: Called for FDR to do more. Created “Share Our Wealth” to tax rich & distribute $ to poor.

How Dorothea Lange connects to Great Depression

• Acted as a muckraker to shed light on harsh living conditions of Great Depression.

• BUT was working for gov & pushed biased view of issue.

Why Wild Boys of the Road is significant to the time.

Director was commissioned by NRA (gov) to promote happy ending and how New Deal was going to help Americans. (biased)