The Great Depression And Franklin Roosevelt s New Deal
Causes of the Great Depression Lead up to the Great Depression Background: The Election of 1928 Hoover achieves overwhelming victory
Causes of the Great Depression The Long Bull Market The Roaring 20 s was one of the greatest periods of economic prosperity the nation had ever seen. Wages were rising, standard of living increasing, consumer good were everywhere and the Stock Market ( The Market ) was booming. Bull Market a positive, money making market Bear Market a negative, market that looses money Dreams of Riches in the Stock Market The DOW Jones Industrial Average tracks state of stock market it was reaching new heights in the 20 s 1920s, stock prices rise steadily; people rush to buy stocks, bonds Many engage in speculation, buy on chance of a quick profit NYSE Trading Floor in the 20 s
The Long Bull Market Causes of the Great Depression Buying on Margin pay small percent of price, borrow the rest from their stockbroker or local bank (both were engaging in a conflict of interest since they were heavily invested in the Market themselves. The Great Crash Too many people were too eager to get in to the Market and paid high prices for highly overvalued stocks. As fast as people had put money into the market, new investors seemed to stop, sensing trouble, professional investors took their money out of stocks and stock prices plummeted.
Causes of the Great Depression The Great Crash Within two weeks, the Stock Market had collapsed. The worst day was known as Black Tuesday, October 29, 1929. The Stock Market Crash was the 1 st in a series of events/causes of the Great Depression. The worst trouble for America was still on its way.
Causes of the Great Depression The Run on the Banks The 2 nd major event/cause of the Great Depression was the large amount of bank failures that occurred after the collapse of the Stock Market. The Crash had hurt banks in two ways: A) Banks had lent money to Speculators who had in turn lost the money during the Crash B) Banks had invested people savings accounts in the stock market hoping for a higher rate of return on the money then they could make by loaning out the money
Causes of the Great Depression The Run on the Banks As the Stock Market crumbled, people began to worry about their savings. A Run on the Banks started and people ran to their banks only to find banks unable to cover their deposits. By 1931, 3,000 banks had closed, by 1933 nearly 9,000 banks had failed. Many people lost everything they had ever saved.
Lining Up At Soup Kitchens After the Wall Street mayhem which caused the banks to collapse, many people/businesses lost all their savings This caused businesses to go bankrupt, and large-scale unemployment, as much as 12 million in by 1933 Many unemployed families couldn t afford food and shelter hence moving into garages and lined up at soup kitchens Bread line/ soup kitchen
First soup kitchens were created by Charities and churches/religious organizations; No government funds...since under the idea of laissez-faire economics, the government did not intervene in the economic life of America.
Herbert Hoover claimed No one has starved in the early years of The Depression Many others (Capone, William Randolph Hearst) stepped up Homelessness was also a major problem for poor Franklin Delano Roosevelt and his New deal in 1933 tried to decrease the reliance on Soup Kitchens Still exist today to help aid struggling families
Families or individuals could not pay mortgage or rent Were forced to move out Many petrified and humiliated over lost of income and tragedy Could not and would not move out Bailiffs ejected non-paying residents and threw all belongings onto streets =
Newly homeless people put up houses and shacks on public lands called Shantytowns. Blamed the President for their unfortunate situation Referred to such places as Hoovervilles Empty Pockets = Hoover Flags Newspapers = Hoover Blankets Began to wander around hitchhiking and walking = Hobos Would sneak past police to sneak into boxcars on freight trains Camped in hobo jungles near railroads
The Dust Bowl Farmers had been altering/changing soil conditions around their farms. They removed wild grass that held the soil together and replaced it with wheat fields. In the 1920s crop prices dropped leaving many fields uncultivated A drought in 1932 caused the soil to become dust
The Dust Bowl The wind caused the dust to blow around the Great Plains. The Dust Bowl buried crops, livestock, and farmhouses Many families had to abandon their farms and move to California and became known as Okies These families were homeless and impoverished
Famous characters: - Scarlett O Hara - Rhett Butler $3.9 million budget $400 million revenue The plot of the movie: $1.6 billion revenue (adjusted)
Dorothy Judy Garland Toto The Wizard of Oz (1939) Tin Man/Hick Jack Haley Scarecrow/Hunk Ray Bolger Cowardly Lion/Zeke Bert Lahr Auntie Em: Clara Blandick The Wizard of Oz Frank Morgan Wicked Witch/ Miss Gulch Margaret Hamilton Glinda: Billie Burke Uncle Henry:Charley Grapewin The Munchkins Plot: Dorothy and her dog, Toto, are caught in a tornado. Dorothy is hit in the head and wakes up in a land beyond the rainbow. She meets magical friends and evil foes on her journey down the Yellow Brick Road to the Land of Oz. There they are rewarded by the Wizard of Oz: Dorothy goes home to Kansas, and the others receive a brain, heart, and courage.
Significance Dorothy wanted to escape from her troubled world and her neighbor Miss Gulch. The movie, being made during the Great Depression showed the need to escape and be in a trouble-free world, away from the country s problems. Somewhere Over the Rainbow film turns to color when Dorothy enters her dream state in Munchkinland Quotes: "Lions and tigers and bears, oh my!" "We're not in Kansas anymore" "Follow the Yellow Brick Road" "There's no place like home"
Listened to everyday and offered an escaped into a more exciting world and also united people because they listened to the same things Had different genres- Comedy Drama Soap Opera Politics
Comedy Heroes Adventures of the Green Hornet Most popular: the Lone Ranger Dramas Soap Operas- sponsored by laundry soap (hence the name!) News Presidential Fireside Chats by FDR
Depression Literature Homeless and unemployed John Steinbeck Feel sympathy towards his characters Feel angry towards social injustice Steinbeck - The Grapes of Wrath
Depression Art and Photography Homeless and unemployed- Subjects Thomas Hart Benton and Grant Wood American Gothic John Steinbeck- novelist Caused sympathy and indignation The Grapes of Wrath Understanding of fears William Faulkner The Sound and the Fury- Shows Thoughts and feeling before they speak Expose hidden attitudes
Depression Art and Photography Time Magazine begins Henry Luce- Life Magazine Photojournalism Dorthea Lange - Photographer Homeless People Dust Bowl
The Hoover Dam The Dam is named after Secretary of commerce and later Pres. Herbert Hoover. Example of a Public Works project building something good for the nation/public while putting unemployed people to work. Public works projects typically include roads, bridges, airports, schools, etc. It is located 30 miles southeast of Las Vegas on the Colorado River on the border of Nevada and Arizona The Hoover Dam began generating hydroelectric power in 1936
Hunger Marches Feed the hungry, tax the rich. Dec. 5 th, 1932 1,200 marches chanted Police took action Moved crowd to restricted area January 1931 (Oklahoma), 500 people began to riot Hunger, joblessness American Communist Party Started hunger marches Attempt to change American form of gov t Rioters forced to sleep on sidewalks or in trucks Denied food, water or medical attention Received needed attention when Congress members insisted on rioters rights to seek assistance of gov t
Farmer Revolts WWI farmers mortgaged their land Pay for expenses War prices sink Farmers cannot earn anymore money One million farms foreclosed Farmers destroyed crops Attempt to raise prices by reducing supply Nebraska Farmers burned corn to heat homes in winter Shows extreme poverty of famers Iowa Farmers prevented distribution of vegetables, with force Georgia Stopped milk trucks and emptied milk into ditches
Bonus Marchers 1924- Congress promises $ 1,000 for each veteran Texas Congressman Wright Patman- early payment of bonuses Passed in house moved to senate for debate May 1932 several hundred set off from Portland, Oregon to Washington to lobby congress to pass legislation
Once there camped in Hoovervilles Swelled to 15,000 Senate voted bill down angered marchers Some went home some moved to unoccupied building downtown Hoover order building cleared Police panicked killed 2 veterans Called in army caused mass chaos Bonus Marchers
The New Deal Franklin Roosevelt Takes Office
Section 1: Franklin Roosevelt Takes Office The 1932 Election: Hoover vs. FDR Hoover seemed out of touch with America in regards to the election - Plan to get out of the Great Depression was working - Many promoted an expanded economic role of federal government which was something Hoover didn t support
The 1932 Election: Hoover vs. FDR -1932 Election was quiet; Depression made Hoover lose many votes -Franklin Delano Roosevelt Governor of New York becomes Democratic representative for 1932 Election -The New Deal Roosevelt s policies for ending the Depression -Hoover had no plan to match FDR s so - FDR won by a landslide (472 to 59) Gee, thanks FDR! Your New Deal will make my family get out of this depression!
Roosevelt Takes Office A New Deal Fights the Depression President Franklin D. Roosevelt s (FDR) New Deal programs were created to bring the economy out of the worst depression the nation had ever experienced. The New Deal left a lasting, and sometimes controversial mark on American government. From now on, the American government would be involved in the economic lives of all citizens.
Roosevelt Takes Office Franklin Roosevelt Background: Powerful Couple: It wasn t just FDR who is remembered as a strong leader but his wife Eleanor Roosevelt became a role model for all future First Ladies of the White House. FDR faced some of the greatest challenges of any president and he met those challenges from a wheelchair. He was stricken with Polio in the 1920 s. Wealthy upbringing (Hyde Park Estate), related to Teddy Roosevelt What were some of the biggest challenges that America has ever faced? 1. The Great Depression 2. Dealing with Dictators such as Hitler, Mussolini, Stalin, Tojo 3. Lead America through World War II