The_Great_Depression.ppt__1_

The Great Depression (1929-1939)

Essential Questions

• What caused the Crash of 1929?

• How did America respond to the Great Depression?

• What was the “New Deal” – and how did it get America out of the Depression?

• How should the New Deal be evaluated?

• Compare / contrast the 1920s to the 1930s.

Vocabulary

• The “Crash” (of Oct. 1929)

• Hoovervilles: Shantytowns where homeless people lived during the Depression.

• Dustbowl: Severe drought in the 1930s affecting farming in the Great Plains.

• “Oakies” and “Arkies”: Refugees from Oklahoma and Arkansas during the Dust Bowl.

• Smoot-Hawley Tariff: A 1930 act increasing tariffs on imports, worsening the depression.

• “New Deal”: A series of programs and reforms implemented by FDR to combat the Great Depression.

• “Fireside chats”: Informal radio addresses by FDR to communicate directly with the American people.

• SEC: Securities and Exchange Commission, established to regulate the stock market.

• Glass-Steagall Act: A 1933 law that separated commercial and investment banking.

• FDIC: Federal Deposit Insurance Corporation, insures bank deposits.

• Tennessee Valley Authority (TVA): Government agency created to provide navigation, flood control, and electricity generation.

• Civilian Conservation Corps: A public work relief program for young men to work on environmental projects.

• Works Progress Administration (WPA): A New Deal agency that employed millions for public projects.

• Social Security Administration (SSA): A government administration set up to oversee social security programs.

Note-Taking Strategy

• Listen actively and note details supporting broad ideas; avoid merely copying slides.

1930s: Depression and Recovery

• Stock Market Crash (1929): Initiated economic depression.

  • Sequence of economic decline: Stock falls → Businesses fail → Banks fail → Families lose savings → Rising unemployment → Declining consumer spending → More layoffs.

• Tariffs: Imposed to protect domestic economy, leading to retaliatory tariffs against US exports.

Causes of the Depression

• Concentration of Wealth

  • Economic boom of 1920s didn't benefit most.

  • Wealth concentrated in few families and corporations.

• Economic Speculation

  • Stock market speculation led to risky financial practices and overvalued stocks.

  • Buying “on the margin” exacerbated the crash.

• Overproduction

  • Both agricultural and industrial overproduction resulted from increased efficiency and mechanization.

  • Consumer demand sated; products went unsold.

• Lack of Regulation

  • Rise of oligopolies due to lack of regulation allowed for corporate mergers and risky practices.

The Crash and Its Aftermath

• Stock Market Trends

  • Dow Jones crashed on Black Tuesday.

  • Significant decline in stock market value from 1929 leading to financial panic.

• Bank Failures

  • Estimated 4,000 bank failures occurred in 1933 before reforms instituted.

• Social Reaction

  • Rise of Hoovervilles as a representation of poverty and homelessness.

  • Events like breadlines illustrate public suffering.

The Dust Bowl

• Severely impacted farming regions causing mass migrations of displaced families, nicknamed "Oakies" and "Arkies."

Election of 1932

• Significant political shift as Democrats gained control; FDR's election amidst economic crisis signaled demand for change.

The “New Deal”

• Core Principles: RESTORE confidence, REFORM economy, and provide RELIEF to the struggling.

• Emergency Measures: FDR employed immediate actions like the Bank Holiday, SEC creation, and fireside chats.

• Recovery Programs: Repealing Prohibition, establishing TVA, and launching the WPA to create jobs.

• Relief Initiatives: Programs such as SSA and CCC aimed to support the unemployed and stimulate economic recovery.

• Economic Reforms: Laws like the Glass-Steagall Act and FDIC aimed to stabilize the banking system.

Cultural Impact

• Popular culture during the Great Depression reflected societal struggles, as seen in films and performances of the era.