Summary

• World trade declines, banks fail, high unemployment develops, urban and rural poverty ensues, leading to the construction of the New deal program, which expands role of federal government.

1929-1939• Stock market

crash

• Didn’t realize the effect it would have

• No money to replenish what was borrowed

Many found being broke humiliating.

The Roaring 20’s• The new concept of

“credit” • People were buying:

– Automobiles

– Appliances

– Clothes

• Fun times reigned– Dancing

– Flappers

– Drinking

Why was this bad?• Credit system

– People didn’t really have the money they were spending

• WWI– The U.S. was a major

credit loaner to other nations in need

– Many of these nations could not pay us back

The Stock Market• People bought stocks

on margins– If a stock is $100 you

can pay $10 now and the rest later when the stock rose

• Stocks fall– Now the person has

less than $100 and no money to pay back

And then….

• With people panicking about their money investors tried to sell their stocks– This leads to a huge decline

in stocks– Stocks were worthless now

• People who bought on “margins” now could not pay

• Investors were average people that were now broke

In other words…

• There is relationship between banks and speculators.

• And when speculators could not pay the banks back, they began to run low on funds.

• Since the people did not have the money to provide for themselves, they went to withdraw their money from the banks, creating a “run” on the bank.

• Herbert Hoover was president at the start

• Philosophy: We’ll make it!

• What He Did: Nothing

• The poor were looking for help and no ideas on how to correct or help were coming

• Farmers were already feeling the effects– Prices of crops went down– Many farms foreclosed

• People could not afford luxuries– Factories shut down– Businesses went out

• Banks could not pay out money• People could not pay their taxes

– Schools shut down due to lack of funds

• Many families became homeless and had to live in shanties

Video

• http://www.youtube.com/watch?v=qu2uJWSZkc– What is this?

• http://www.youtube.com/watch?v=sfylLnHjcu0 First 2 minutes– A ________ in banks being able to pay

___________ the amount of poverty

Reasons for the Stock Market crash

• Overproduction- Companies made more goods than could be sold

• Uneven Distribution of Wealth- Not everyone who wanted consumer goods could afford them.

• High Tariffs-Tariffs restricted foreign demand for American products

Reasons continued

• Falling Demand- With too many goods unsold, production was cut back and employees were laid off

• Stock Market Speculation- Low interest rates encouraged borrowing money to speculate, endangering bank solvency.

Activity• Describe three of the five points that

caused the economy to collapse during the Great Depression.

• I do not simply want the title of the cause, I want to know WHY this affected the economy and the American people.

• Connect this with our current economic situation.

• 2 paragraphs-due for HW if not complete.

Video

• https://www.youtube.com/watch?v=qm5ZbjkGV3Y

Warm Up

• Define: relief, recovery, and reform.

• How do these terms relate to the role of the government in economic crisis?

• 5 minutes

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

“Hooverville”• Some families were

forced to live in shanty towns– A grouping of shacks

and tents in vacant lots

• They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

A drought in the South lead to dust storms that destroyed crops.

“The Dust Bowl”

The South Was Buried

• Crops turned to dust=No food to be sent out

• Homes buried

• Fields blown away

• South in state of emergency

• Dust Bowl the #1 weather crisis of the 20th century

*FDR*• When he was

inaugurated unemployment had increased by 7 million.

• Poor sections (like Harlem) had 50% of the pop. unemployed

• Instated the “New Deal”

• Yea! Frankie!

• People everywhere were effected by the depression

• It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

Activity-The New Deal

• Class will divide into six groups and complete a worksheet with their corresponding document.

• Then complete a primary source analysis of the political cartoon.

• Prepare to present.

Closure

• What role should the government play in an economic crisis?

Major Historical Happenings...

• Jim Crow Laws

• Scottsboro Trials

• Recovering from the Great Depression

• Racial Injustice

• Poor South

Jim Crow Laws• After the American Civil War most

states in the South passed anti-African American legislation. These became known as Jim Crow laws.

• These laws included segregation in…– Schools -- Hospitals

– Theaters -- Water fountains

– Restaurants

– Hotels

– Public transportation

– Some states forbid inter-racial marriages

• These laws were instituted in 1896 and were not abolished till the late 1950’s (even then still not completely).

• 9 young African-American men (13-20) accused of raping 2 white girls in 1931

• Immediately sentenced to death

• Trials went on for nearly 15 years before all the men were dismissed

• Started on a train bound for Memphis

• Several white men boarded and picked a fight with the black men

• Whites were forced off train by the 12 black men. The white men reported the the black men had raped two white girls on the train to authorities

• They were immediately arrested and tried in front of an all-white jury.

The trials caused a huge uproar amongst the black community.

• Wrote To Kill a Mockingbird in 1960

• Based the story on her life growing up in Monroeville, Alabama

• TKAM was the only novel she ever wrote

Video

• https://www.youtube.com/playlist?list=PLC2383F4CE69173C2

Activity-Scottsboro Literature

•  Background: Poet Langston Hughes wrote about the lives and experiences of his fellow African Americans. He produced a volume of works based on the Scottsboro case.

• Directions: Read the following poem and answer the following questions.