THE GREAT DEPRESSION

I. Causes of the Great Depression 

A. _____________ ______________ Government. The government did little to restrict risky business practices. Without regulation, once the

economy was out of control, there was little the government could do without dramatic change.

Laissez Faire

B. Farmers feel the pinch of the economy before anyone else.

1. Demand for farm products went ____________ after WWI was over. Due to this, prices for crops went ____________.(OVERPRODUCTION) - R

2. To compensate, farmers tried to produce more. With the use of mechanization (____________________) and the ____________ tipped plow, farmers were able to dig up and cultivate the

____________ ______________.

DownDown

Tractors Steel

Great Plains

3. After removing the topsoil and prairie grass, the farmers, thanks to the winds felt in the great plains, experienced the phenomenon known as the ______________ _______________.

a. Farms were literally covered with inches and feet of ___________

b. The dust fell as far East as __________________ ____ ____.

c. Several farms were taken over by banks. Farmers were forced into ____________________.

d. Many farmers packed everything up and headed West for ____________. They were known as _______________ and ___________. John Steinbeck wrote a book based on this experience of the farmer. The book is entitled ____________ of ___________.-R-

DUST BOWLDUST

Washington D C

Foreclosure

California Oakies Arkies

Grapes Wrath

C. The _______________ _______________ Tariff was one of the highest passed. This was a part of isolationism in America. The tariff backfired when other countries followed by raising their own tariffs. The U.S. could not sell off its _____________________ goods

Hawley Smoot -R-

surplus

D. The primary cause for the Great Depression was the _____________ ________________ _______________.

1. Causes of the Crash. - R -

a. The _______________ ___________ helped cause the _________________ of goods.

b. Get rich ____________ market schemes. Everyone seemed to forget that what goes up must ___________ ___________.

c. ______________________ Buying. People bought now and ___________ later. This made the economy look good, but the economy was not filled with money. It was filled with _________.

d. Buying on _________________. This allowed people to take out loans to pay for stock. People were only asked to pay for 10% of the stock. People hoped that the stock would go up in value so they could make a _____________ after they paid off the loan. What happens if the stock goes down in value?

StockMarket Crash

Assembly LineOverproduction

QuickCome Down

InstallmentPaid

Air

Margin

Profit

***Even people who did not play the stock market lost money that they placed into savings accounts as banks began to fail.***

2. Effects of the Stock Market Crash.

a. Black _______________, October 24, 1929. This is the first time in American History that the Stock Market dropped severely

- The Stock Market lost ___ Billion dollars

-_______________ (The current President) stated that itwould be o.k. “The business of America was on sound

ground.”***Wanted to continue ___________________

-Prominent businessmen and bankers, pooled together money to buy 10’s of millions of dollars in stock to stabilized the economy over the weekend. 

Thursday

3

Hoover

Laissez Faire

b. Black ______________, October 29, 1929 -The Stock Market crashed to its lowest point

-By November 13, the stock market lost _____ billion dollars.

c. There were several ________ on different banks as they ran out of money. This forced banks to close.

d. Millionaires were now _____________.

e. The poor became poorer.

f. The Great Depression also had a ______________ effect as it impacted countries around the world. When the U.S. fell economically, so did Europe (especially _______________). This made European countries, as well as the United States look for strong world leaders to help end the depression. Who rose to power?

Tuesday

30(Eventually a total of 50 billion dollars will be lost)

Runs

Broke

Global

Germany

U.S.A. – England – Italy – Germany – Japan – U.S.S.R. –

F.D.R.Churchill

MussoliniHitler

Hirohito (Tojo )Stalin

II. The Social Effects of the Great Depression 

A. By 1931 – 1932, everyone felt the effects of the __________ ____________. 

B. People felt the Great Depression was largely the President’s fault.

HooverBlankets

Hooverisms

HooverFlags

HooverLeather

Great Depression

And of course…HOOVERVILLES:

C. ____________ became a common sight as homelessness skyrocketed. These were mostly young men and older boys who jumped rail lines in search of work. They were said to be, “On the ______.” D. Even more upsetting to people was that farmers were ______________ their goods in order to ___________________ prices. E. ___________________ rose as jobs became hard to find. Blacks were the ____________ hired and the first _____________. __________________ also found it hard to gain equality even after the _____ Amendment was passed.

Hobos

Bum

DestroyingIncrease

DiscriminationLast Fired Women

19th

III. Hoover vs. Roosevelt (FDR) – The election of _________. 

1932

A. Hoover

1. For the most part, Hoover felt the government should remain somewhat _____________ ______________.

2. Hoover felt the depression was just part of an economic _______. “There is no GREAT DEPRESSION, it will get better.

3. Although Hoover did start sending a little relief to a few people, he felt if the government spent too much on the people, the people would stop ____________________. He felt ________________________would end the depression.

4. He did ask for business ____________________ which went over like a lead balloon.

5. Finally, Hoover committed political suicide with his treatment of the ______________ Army. These were veterans of ___________ who wanted there promised bonus early. When the __________ Army gathered outside the Whitehouse, they were kicked out with tanks, bullets, and fire.

Laissez Faire

Cycle

WorkingR - Rugged Individualism

Cooperation

Bonus WWIBonus

B. FDR

1. FDR felt that if the ____________________ spent a great deal of money, the economy could be charged up again. (________________ economics)

2. FDR felt that the _________________ were responsible for the Great Depression.

3. Felt that the country could start fresh again. Everyone deserved a ___________ _____________.

4. __________________ won the election in 1932 by the 3rd greatest landslide in election history (1st _________________, 9th ________ . His 1944 election ranks 19th amongst greatest landslides)

GovernmentKeynsian

Big Businesses

New Deal

FDR

“A conservative is a man with two perfectly good legs who, however, has never learned how to walk forward.“

FDR

1936 1940

IV. The New Deal  A. R_________________, R____________________, R_______________ 

1. ________________ programs gave people direct aid in the form of ___________ kitchens, menial _______, and money directly to those who needed it. An example of this would be the FERA (__________________ ____________________ _______________ _______________.

2. ________________ programs helped Agricultural and Industrial businesses get back on their feet. An example of this would be the AAA (______________ _________________ ______).

3. ________________ programs helped guarantee that the Great Depression could never happen again. Many of these programs had long lasting

________________ even to this day. An example of this would be the __________________ __________________ Act.

Relief Recovery Reform

ReliefSoup Jobs

Federal Emergency Relief Act

Recovery Agricultural

Adjustment Act

Reform

ImpactSocial Security

R

B. Important programs to remember:

1. FDIC (Reform): Federal Deposit Insurance Corporation: Insures our money in banks up to 5,000 dollars. Today the rate has been recently increased to 250,000 dollars

2. FERA (Relief): Federal Emergency Relief Agency: FDR spent 5 million dollars within the first 2 hours of his presidency (Mostly on FERA). This money went directly to the people through the states, generally in the form of soup kitchens.

CCC (Relief): Civilian Conservation Corps: This program took young men off thestreets of the cities and gave them jobs as “forest rangers” in the field of conservation .

NIRA (Recovery): National Industrial Recovery Administration: This program offered aidto big businesses if they followed certain government standards (Prices, Wages, Conditions, etc. were all regulated. Business did not have to participate if the did not want to.

Why would displaying this in your businesseswindow draw customers?

PWA (Relief and Reform): Public Works Administration: This program gave people jobsCompleting public works projects (dams, roads, bridges, etc.) The jobs create relief while the improved infrastructure will help big businesses.

SEC (Reform): Securities and Exchange Commission: This program was created toregulate the stock market to make sure that all business were reporting their stock pricestruthfully. Also, no more buying stocks _____ ____________On Margin

***It was the SEC that busted Martha Stewart as well as Other big white collar crime Scandals that we hear in theNews.

AAA (Recovery): Agricultural Adjustment Act / Administration: This program attemptedto raise farm prices by having farmer diversify crops, destroy crops, not cultivate land, etc. If farmers joined the program they were given aid as well.

TVA (Relief and Recovery): Tennessee Valley Authority: Once again, this programhelped get people jobs and helped out with the infrastructure of the U.S., helping bigbusiness. This project created dams along the Tennessee River that not only controlledflooding of the area, but also brought electricity to previously unpowered portions of the South.

NLRB (Reform and Relief): National Labor Relations Board: This government agency,For the first time, legalized labor unions and allowed unions to collectively bargain withTheir employers. This does lead to more strikes, especially the new sit-down strike.

Why is a sit down strike (above)more effective than a picket as seen to the right?

Also during this time the WagnerAct was passed creating our firstminimum wage law

SSA (Reform and Relief): Social Security Act: This program was meant to relieve the pressures of the Great Depression on the Eldery and Disabled (those that could notwork. However, it became a reform program as it still exists to this very day servinga similar purpose. Thanks to the baby boom generation we are currently feeling theeffects of the “Graying of America” – more people are taking out of S.S. than are puttingin. Many doubt that your generation will be able to collect S.S. without some majormodifications in the system.

HOLC (Relief): Home Owners Loan Corporation: This program tried to stop the Homeless rate from increasing. People were allowed to decrease their mortgage Payments by lengthening the term of their loan.

FDR was hopingto pump primethe economy with money.

He did this bycreating severaldifferent programs. This is known as his“wild experimentation”

C. FDR’s other actions 1. The First 100 days

a. FDR gives banks a ________________. This Bank ____________ gave FDR a chance to settle the people down, restore their

________________ in banks, and implement ___________.

b. FDR pushed through the ____________ which gave people in need direct aid. Within in the first 2 hours of FDR’s Presidency, FDR had

spent 5 million dollars.

c. Many of the early programs created ________.

Holiday Holiday

Confidence FDIC

FERA

Jobs

2. FDR created a way to communicate to the people almost every week. FDR used the ___________ to hold his ________________ chats with the people.

3. Eleanor Roosevelt also became politically active where her husband did not. Eleanor Roosevelt fought for _________________ ________________ rights.

4. FDR never responded to Blacks needs. FDR wins the 1936 election. He is loved by the __________________ ________.

 

Radio Fireside

African American

***FDR will eventually put together the Supreme Court that will protect African American rights in cases such as Brown v. Board of Education at Topeka Kansas

Common Man

D. Movements against the New Deal

1. The _____________________ ____________ and the Court Packing Incident.

a. Many of FDR’s programs were declared _____________________. In the Court Case Schechter Poultry Corp. v. United States. The Supreme Court found that the NRA gave the __________________ too much power.

b. FDR decided to ___________ the Supreme Court with _____ more justices. How does this help FDR?

c. Even New Deal friendly Democrats felt this violated the system of ________________ and ________________.

d. As it turns out, FDR, during his ________________ Presidency in history, was able to legally replace enough Supreme Court Justices that supported him.

Supreme Court

Unconstitutional

President

Pack 6

Checks Balances

Longest

R

2. ________________________ or people who wanted the government to take more control over major industries felt FDR was not doing enough

3. Huey _________ felt the President should force the wealthy to give over enough money to supply every American with 5,000 dollars. He was the only real challenge to FDR’s Presidency but was _____________________.

4. ___________________ and _____________________ continued in the South.

5. Businessmen tried to paint FDR as a ______________________. They felt like he acted too much like a dictator and a _____________.

6. The biggest problem most people had with the New Deal was the huge ____________ _________ that it created. The government was _________________ more money than it was taking in from _______. 

Socialists

Long

Assassinated

Discrimination Segregation

CommunistSocialist

National DebtSpending Taxes

(This is known as Deficit Spending)

E. Legacies of the New Deal1. The ____________ Act allowed labor to organize and use __________________ ________________. Strikes would increase dramatically. (_____ ______ Strikes became popular.)

2. The National _______, from this time period forward would only rise.

3. Cultural Shifts

a. John _____________ wrote ___________ of ___________ and depicted the Farmers plight during the Great Depression.

b. Comic Books became popular during the 1930’s as Americans looked for heroes.

c. _____________ allowed people to escape the realities of the Great Depression (Shirley __________, Clark ___________, Judy _____________, James _____________, were all famous actors of the time)

WagnerCollective Bargaining

Sit Down

Debt

Steinbeck

***Escapism – Americans wanted to forget about depression

Grapes Wrath

MoviesTemple Gable Garland

Stewart Charlie Chaplin

R

R

V. Did FDR and his New Deal end the Great Depression?

Most historians agree that FDR’s programs helped some peopleSurvive the Great Depression. However, it is truly ___________That gets America out of the Depression

VI. Are there any comparisons between Obama and FDR?

WWII

1. Similar problem in that people borrowed too much (once againunregulated banking)

2. Trying to fix problem with deficit spending

3. Unemployment is on the rise

4. Liberals say Obama isn’t doing enough, and conservatives say he isdoing too much