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Great DepressionAM Studies III
New technologies Hindered older ones Automobile industry hurt the railroads End of WWI hurt mining and lumber
business Hydro-electric, oil and Natural Gas hurt
Coal Farming
Farmers producing more than they could sell
Price of goods dropped as much as 40% Famers couldn’t pay off debt
Troubles on the Horizon
Uneven distribution of wealth Wealthiest 1% saw an income
increase of 75% while the rest of America saw a 9% increase
Many people could not afford the products that factories were producing
Credit Buying Arrangement in which you pay
later and get goods now Americans were living beyond
their means and could not afford their monthly installments
Troubles on the Horizon
Atmosphere was positive and it appeared like it would lead to an easy win for the Republicans
Republicans were in control during the 1920s where everything was wonderful
Hover was quoted, “We in America are nearer to the final triumph over poverty than ever before.” How wrong he was about to be
Overwhelming Republican victory for Hoover
Hoover – Smith Election of 1928
October 24 the market took a plunge Panicked investors began to pull out
their shares This is known as black Tuesday
Shareholders tried to sell before shares fell more
Millions of shares could not find buyers
People who bought on credit were stuck with huge debts and most lost their savings
Mid November investors lost $30 Billion
BOOOOOOOOM
Bank Failures People began to pull their
money out of the banks Problem was the banks were
investing their money and could not refund everybody's money
600 banks closed in 1929 and by 1933 11,000 of the nations 25,000 banks had failed
Government at the time did not protect or insure peoples bank accounts
Financial Collapse
Other businesses were hurt too
Between 1929 to 32 the gross national product dropped from $104 Billion to $59 billion
About 90,000 businesses went bankrupt
Unemployment leaped from 3% (1.6 mil) to 25% (13 mill)
Financial Collapse
Europe and the United States had complicated each others depression
Europe was trying to rebuild their economy
America’s economy was hurting thus limiting our ability to buy European goods
This hurt Europe even more making it more difficult to buy American goods
Hawley-Smoot Tariff Act of 1930 Eliminated foreign competition thus
reducing the amount that foreign competition could buy from us
Worldwide Shockwaves
Many Factory jobs were lost People lost their homes and ended up
in the streets Shantytowns
Little towns consisting of shacks sprung up everywhere
These were made of whatever they could get their hands on Orange crates, boxes and whatever
else they could get their hands on Mexican Americans and African
Americans were especially hard hit Whites were demanding the
deportation of Latin Americans because they were fighting for the same jobs
City Depression
One major advantage for rural people is they can make their own food
Many lost their farms and were forced to turn to tenant farming
400,000 farms were lost through foreclosure
Rural Depression
Many feared the depression would cause the collapse of the American family
Families would stay home now and play games like Monopoly 1933.
Men had difficulty dealing with unemployment since it was their role to provide for the family
300,000 wandered the country looking for work
Women were in charge of the family budget and some began to find work Paid less than men Became a source of resentment since they
were taking jobs away from men
Family Life
Malnutrition was very common At the same time cities and states were
cutting budgets on everything, including child welfare programs
Towns were forced to shorten the school year and some 2,600 schools shut down
Many teenagers left home looking for work Hoover tourists
Children Suffered
Took the idea that any economy that experienced periods of growth would naturally be followed by a depression
Didn’t believe people want to be given free handouts and that it would be disrespectful
Promoted Cooperation rather than direct government intervention
Democrats win congressional elections in 1930 People were frustrated with the
economy and decided to move away from the Republicans
Hoover struggles
Americans Wanted to get away from the Republicans Blamed them for not fixing the depression
Republicans figured they lost b/c they were blamed for not doing enough to get out of the depression
Franklin Delano Roosevelt (FDR) won nomination for the democrats
Democrats choose him because of his work as governor of NY and was a distant cousin of Teddy Roosevelt
Hoover Roosevelt Election
Roosevelt won the popular vote 23 million to 16 million for Hoover
Senate won 2/3 majority
House had ¾ of the seats
Landslide Victory for Dems
The New Deal Roosevelt’s plan for dealing with the Great Depression
Focused on three general goalsRelief for the needyEconomic RecoveryFinancial Reform
New Deal
March 9 to June 16, 1933 Congress passed more than 15 major pieces
of Legislation These laws and regulations great increased
the power of the federal government Some opponents to the new deal argued that
Federal Government was becoming too large
Controlling business wasn’t going to help us Deficit Spending
Spending more than the government is taking in
The Hundred Days
Trying to help workers and farmers WPA is created
Job was to create as many jobs as possible. 850 airports were built 651,000 miles of roads 125,000 public buildings
Social Security Act in which is still in place today
Pushed to get electricity in rural areas
Second New Deal
No but it did largely two things Allowed people some temporary employment Showed Americans that the Federal
Government was willing to help them Roosevelt easily wins re-election in 1936 Enhanced the lives of Women and minorities Swings the votes of Labor unions and
African Americans for the 1st time
Did the New Deal end the Depression?
Adolf Hitler and Benito Mussolini agree to form a military alliance.
1st November, 1936
Germany and Japan sign an anti-Comintern pact.
25th November,
1936
Nazi’s find Friends
Austria is declared part of the German Reich.
13th March, 1938 German Army occupies the Sudetenland.
1st October, 1938 The German Army invades Czechoslovakia.
15th March, 1939 The German Army reach the city of Brest-
Litovsk on the Polish border with the Soviet Union. 17th September, 1939
Nazi’s take control of Europe
The German Army invades Denmark. 8th April, 1940
The German Army invades Norway. 8th April, 1940
Netherlands surrenders and Queen Wilhelmina flees to England. 14th May, 1940
Belgium surrender to the German Army and Leopold III is arrested. 28th May, 1940
Nazi’s take control of Europe
The German Army enters Paris. 14th June, 1940
Yugoslavia surrenders to the German Army.
17th April, 1941
Nazi’s take control of Europe