Chapter 22-23 Chapter 22-23

Great Depression to WW2Great Depression to WW2

Great DepressionGreat Depression Date of Stock market crash October 29th, 1929 Date of Stock market crash October 29th, 1929 Dow JonesDow Jones-an average of the stock prices of -an average of the stock prices of major industries (sheet)major industries (sheet)Black Tuesday-Black Tuesday- the day of the stock market the day of the stock market crash- 16.4 million shares sold in relation to 4 to 8 crash- 16.4 million shares sold in relation to 4 to 8 million on an average day. million on an average day. FEAR-get out when FEAR-get out when you canyou can

Business cycle-Business cycle-a span in which the economy a span in which the economy grows and contractsgrows and contracts

Ripple Effects Ripple Effects bank runsbank runs cuts in production- cuts in production- business could not borrow business could not borrow

money to produce goods, also people had less money to produce goods, also people had less money to buy thingsmoney to buy things

rise in unemployment- rise in unemployment- due to lack of due to lack of productionproduction

Great Depression Great Depression

Led to Led to Great Depression-Great Depression- lasted from lasted from 1929 1929 to 1941to 1941, why did it end? , why did it end?

World War II World War II

3 Causes 3 Causes

• 1-unstable economy- industry produced more than it could sell

• 2-overspeculation- brokers loans went from 5 billion to 850 billion

• 3-gov’t policies cut interest rates

• In 1929, a bushel of wheat was 1.18, by 1933 it was 49 cents

• The United States GNP in 1929 was 103 billion, by 1933 it was 56 billion. (Gas example)

HoovervillesHoovervilles

• homeless people sometimes built shantytowns, w/ shacks of paper, cardboard, or scarp material.

During the Great Depression soup kitchens, like this one sponsored by Chicago gangster Al Capone, provided meals for the unemployed.

Dust Bowl 2 Reasons Dust Bowl 2 Reasons

• 1-drought no rain

• 2 -farmers plowed topsoil which protected their land

Disease Disease • -because less food was being produced disease

was on the rise. Tuberculosis triple in some inner city areas.

Alcohol and HumorAlcohol and Humor

• 21st Amendment- ended prohibition, except in 8 states why?

Wilson Letaford Wilson Letaford

• 3 bucks a week worked 12 hours 6 days a week delivering ice

• COMPARE TO 5 BUCKS A DAY!!!

• Penny Auctions- farmers would bid mere pennies on land and machines auctioned by the banks in order to help neighbors

The Empire State Building The Empire State Building

• 2,500 to 4,000 people worked on the construction.

The cost of construction was about $41 million.

Discrimination 3 groups of peopleDiscrimination 3 groups of people

• 1-AA (56%)

• 2-LA

• 3-asians

• LA’s and Asians were deported from time to time

Hoover DamHoover Dam

• Took six years to build

• 112 people died while building it

Good Road to Follow Good Road to Follow

Warning: Barking DogWarning: Barking Dog

Not a safe place Not a safe place

If your sick, they will help youIf your sick, they will help you

Policeman Lives herePoliceman Lives here

A beating awaits youA beating awaits you

A man with a gun lives here A man with a gun lives here

Quiet baby sleeping Quiet baby sleeping

The Election of 1932The Election of 1932

• Hawley-Smoot tariff-highest tax import in history in an attempt to protect domestic industries from foreign imports– THIS BACKFIRED BECAUSE EUROS

RAISED TAXES

• Reconstruction Finance Corp (RFC) gov’t gave credit to industries, railroads, and insurance companies

• Hoover for the most part didn’t think the federal government should get involved

Hoover DamHoover Dam

• Took six years to build

• 112 people died while building it

• Bonus army- WWI vets protested in D.C. in 1932 demanding immediate payment of pension’s bonus they had been promised in 1945.

• Lame Duck- power is weakened because they are about to leave office– This happened when FDR was elected and

Hoover was about to leave office.

– FDR “the only thing we have to fear is fear itself”

New Deal-the three R’s relief, recovery, and reform

The First Hundred days-programs that created jobs and stimulated economic recovery

• Bank holiday-to see how banks were doing, lasted 4 days

• Public works programs-government funded projects to build public facilities, roads more in north, parks, schools, post offices, airports, hospitals (4 million jobs)

• Civilian Conservation Corps (CCC)- 2.5 million young men built forests, beaches and parks free food and camps

Agricultural Adjustment Agricultural Adjustment Administration(AAA) Administration(AAA) gave farmers money gave farmers money to raise less crops GOLDto raise less crops GOLD

• Tennessee Valley Authority (TVA)-flood control for electric power (6th grade epoxy)

• Wagner Act-legalized union practices (closed shops) union member only (truck driving and teachers union) what if you guys could do this?

Social SecuritySocial Security

• 1.)money to old people

• 2.)unemployment money

• 3.) aid to people with kids and disabilities

Sit Down StrikesSit Down Strikes• Laborers stop working but refuse to leave

the building

• These happened because FDR had to cut government spending