U.S. History MOD 5 PPT the Great Depression

Overview of the Great Depression

Introduction

• The Great Depression was a severe worldwide economic downturn that lasted from the late 1920s to the late 1930s.

Herbert Hoover

• Political Background

  • Republican

  • Profession: Engineer & Businessman

  • Held various positions:

  • Director of Food Administration under President Woodrow Wilson

  • Secretary of Commerce under Presidents Warren G. Harding and Calvin Coolidge

  • Presidency: Served as the 31st President of the United States from 1929 to 1933.

The Presidential Election of 1928

• Candidates:

  • Herbert Hoover (Republican)

  • Al Smith (Democratic)

• Election Results:

  • Herbert Hoover's electoral votes: 444

  • Herbert Hoover's popular votes: 21,427,123

  • Al Smith's electoral votes: 87

  • Al Smith's popular votes: 15,015,464

• Electoral Vote Breakdown:

  • California (CA): 13

  • Oregon (OR): 5

  • Washington (WA): 5

  • Montana (MT): 5

  • North Dakota (ND): 5

  • Minnesota (MN): 12

  • South Dakota (SD): 13

  • Wyoming (WY): 3

  • Michigan (MI): 15

  • New York (NY): 45

  • Maine (ME): 4

  • Nevada (NV): 3

  • Nebraska (NE): 8

  • Louisiana (LA): 13

  • Pennsylvania (PA): 38

  • Ohio (OH): 3

  • Utah (UT): 5

  • Illinois (IL): 29

  • Indiana (IN): 24

  • Colorado (CO): 9

  • West Virginia (WV): 6

  • Virginia (VA): 10

  • Kansas (KS): 9

  • Missouri (MO): 18

  • Massachusetts (MA): 18

  • Kentucky (KY): 12

  • Rhode Island (RI): 5

  • North Carolina (NC): 12

  • Tennessee (TN): 12

  • Arizona (AZ): 3

  • Oklahoma (OK): 12

  • Connecticut (CT): 7

  • New Mexico (NM): 3

  • Arkansas (AR): 9

  • South Carolina (SC): 9

  • New Jersey (NJ): 14

  • Mississippi (MS): 10

  • Alabama (AL): 12

  • Georgia (GA): 14

  • Delaware (DE): 3

  • Texas (TX): 20

  • Florida (FL): 6

• Outcome: Herbert Hoover wins the 1928 Presidential Election.

Economic Conditions Leading to the Great Depression

The Bull Market of the 1920s

• Characteristics:

  • Prosperity marked by a bull market,

  • Stock prices significantly increased, signaling a thriving economy.

  • Many individuals experienced wealth accumulation through investments.

The Stock Market Crash of 1929

• Date: October 29, 1929 (referred to as Black Tuesday).

• Events:

  • A sudden panic ensued as investors rushed to sell their stocks.

  • Losses amounted to billions of dollars, with thousands of accounts being wiped out.

  • The crash was characterized by unprecedented trading volumes and drastic falls in stock prices.

  • The impact extended beyond Wall Street to affect other exchanges across the country, leading to a massive collapse of security values.

  • This led to widespread economic panic, including a notable near-panic on the Chicago commodities exchange.

• Reporting:

  • Descriptions of the event emphasized the chaos and severity of the situation, noting the complete lack of precedent for such a crash.

Causes of the Great Depression

• Major Factors:

  • Income Inequality: Disparities between the wealthy and poor exacerbated economic instability.

  • Industrial Overproduction: Excess production led to wasted resources and financial strain.

  • Underconsumption: Low demand contributed to further economic decline.

  • Farming Crisis: Agricultural struggles due to overproduction and falling prices affected many farmers.

  • Stock Market Speculation & Crash: Reckless investments culminated in the 1929 stock market crash.

  • Smoot-Hawley Tariff: Protectionist tariff that increased duties on imports, worsened trade relations and economic woes.

  • Federal Reserve’s Tightening of the Money Supply: Impacted liquidity within the financial system, compounding the crisis.

Global Events Contributing to the Great Depression

• Post-Great War European Economy:

  • The effects of World War I severely devastated Europe’s economic infrastructure.

  • Allies struggled with repaying debts to the U.S., placing strain on transatlantic relations.

  • The Smoot-Hawley Tariff further complicated international trade, leading to retaliatory measures.

  • Treaty of Versailles: The harsh conditions imposed on Germany and other nations contributed to instability, fostering the rise of extremist ideologies such as Fascism and Nazism.

Human Impact of the Great Depression

• Unemployment and Social Strain:

  • Widespread job loss led to desperation among families.

  • Signs of distress included job seekers placing ads for work, and families struggling to obtain basic necessities.

  • The desperation for work, sometimes led to creative, yet stark slogans like "An apple a day, eat the Depression away."

Hoover’s Responses to the Great Depression

• Philosophy: Herbert Hoover believed that economic recovery was ultimately up to the individuals involved in the economy, not government mandates.

• Legislative Actions:

  • Revenue Act (1932): Attempted to raise government revenue through increased taxes.

  • Reconstruction Finance Corporation (1932): Provided financial support to banks, railroads, and other industries to promote recovery.

  • Emergency Relief Act (1932): Offered funding for state and local governments to provide relief to the unemployed.

Social Consequences: Hoovervilles

• Definition: Makeshift shantytowns that sprung up during the Great Depression, named derisively after Hoover to highlight his perceived failure to address the economic crisis.

The Bonus Army

• Background: A group of World War I veterans who marched on Washington, D.C., in 1932 to demand payment for service bonuses that were promised but not yet paid.

Franklin D. Roosevelt

• Transition: Franklin Roosevelt is elected in 1932, succeeding Hoover.

• Campaign Promise: Roosevelt's campaign emphasized a "New Deal for the American people."

• Goals of the New Deal:

  • Relief for the needy.

  • Economic recovery.

  • Financial reform.

Conclusion

• The Great Depression represented a critical turning point in American and world history, impacting future economic policy and political philosophy.