GREAT DEPRSSION BEGINS

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GREAT DEPRSSION BEGINS
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ELECTION OF 1928
CANDIDATES

• Republican-
• Democratic-

H. Hoover
Al Smith
ISSUES

• The Republicans took full credit for the
  prosperity of the 1920s

• The _________ issue led to a smear campaign
  against Smith.

Catholic
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STOCK MARKET CRASH PLAYING THE MARKET
STOCK MARKET

• The __________________was established as a system
  for buying and selling shares of companies. ?

• A long period of rising stock prices is known as
  a_____________________. ?
• Prosperous times during the 1920s caused many
  Americans to invest heavily in the stock market.

BULL MARKET

• As the bull market continued to go up, many
  investors bought stocks on ____________, making a
  small cash down payment. ?

MARGIN
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• This was considered safe as long as stock prices
  continued to ______________. ?
• If the stock began to fall, the broker could
  issue a margin call demanding that the investor
  repay the loan immediately.

RISE

• Speculation occurred when investors bet on the
  market climbing and sold whatever stock they had
  in an effort to make a quick profit.

• stock prices dropped and the bull market ended. ?

• Stock prices fell drastically on October 29,
  1929, Black__________________,

TUESDAY
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STOCK MARKET CRASH EFFECTS

• did not cause the Great Depression

• The stock market crash weakened the nations
  banks.
• Banks lost money on their investments.
• Because the government did not insure bank
  deposits, customers lost their money if a bank
  closed.

• Bank runs resulted as many bank customers
  withdrew their money at the same time, causing
  the bank to collapse

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The Great Crash
How did the stock market crash weaken the
nations banks?
The stock market crash caused the banks to lose
money on their investments, and speculators
defaulted on bank loans. Because the government
did not insure bank deposits, customers lost
their money if a bank closed. Bank runs resulted
as many bank customers withdrew their money at
the same time, causing the bank to collapse.
(pages 658659)
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CAUSES OF DEPRESSION

• uneven distribution of wealth- top 5 percent of
  American households earned 30 percent of the
  countrys income.

• Low consumption

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• To much credit- not enough money going back to
  the business
• Farm surplus
• No banking regulations
• Hawley-Smoot Tariff raised tariffs on imports
  causing other countries to raise tariffs on US
  goods, making it difficult to sell US good over
  seas.

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• Workers wages did not increase fast enough to
  keep

• As sales decreased, workers were laid off,
  resulting in a chain reaction that further hurt
  the economy.

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M/C 1-2a
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HARD TIME HIT HOME
CITIES
Unemployed workers often stood at ______________
to receive free food or at ________________ where
private charities gave a free meal to the poor.
BREADLINES
SOUP KITCHENS
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People lost their homes and had to live in
shantytowns called-
HOOVERVILLES
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RURAL AREAS
A terrible drought in the Great Plains, beginning
in 1932, caused the region to become a
_______________
DUST BOWL
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• People were left homeless.
• Some left the farms and went to Calif. to become
  migrate workers. These people were called Okies

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HOOVERS RESOLVE

• Believed in rugged individualism- the ________
  should not take care of individual problems.

GOVT.

• No direct relief to the people this should be
  done by the state and local govt.

• Hoover increased public worksgovernment-financed
  building projects.- Bolder Dam

• He asked Congress to set up the Reconstruction
  Finance Corporation (RFC) to make loans to banks,
  railroads, and agricultural institutions.

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BONUS ARMY

• ______________________ marched to Washington,
  D.C., to ask Congress to approve the legislation
  to get their bonus money early.

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Hoover wouldnt meet w/ them and sent the Army to
burn the Hooverville. They didnt get the money.
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ELECTION OF 1932
REP.
DEM.
polio

• Had ______________

• Blamed for the __________________

• Pledged a ________________

DEPRESSION
NEW DEAL
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THE NEW DEAL

• PRIMEING THE PUMP
• Put ______ into circulation by creating __________

• GOALS
• RELIEF
• REFORM
• RECOVERY

JOBS
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THE ONLY THING WE HAVE TO FEAR, IS FEAR ITSELF
FIRESIDE CHATS
________________- radio speeches by FDR to
explain what his plans were and to peoples
anxiety.
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A CALL TO ACTION

• FDRS ADVISORS
• Wife- ___________________
• ________________- experts making up his
  unofficial advisors made up all kinds of people

ELEANOR ROOSEVELT
BRAIN TRUST

• First female cabinet member Sec. of Labor-
  _______________________

FRANCE PERKINS
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• FIRST NEW DEAL
• Closed banks until they were strong enough to
  reopen-
• Insurance to protect personal bank deposits-
• Govt. agency that regulates the stock market to
  keep the market more secure-

BANK HOLIDAY
FDIC
SEC
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CREATION OF CONSTRUCTION JOBS
PWA

• Hospitals Schools

• Subways

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CWA- hired workers directly and put them on the
governments payroll.

• Roads

• Ball parks

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Build dams to improve the south-
TVA
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• CCC
• Employed ______________
• Ages ____________
• work with the national forestry service planting
  trees, fighting forest fires, and building
  reservoirs.

Single men
18-25
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• AAA
• plan that paid farmers not to ___________________
  to lower crop ______________________.
• the plan reduced production, increased __________

Raise certain crop
production
prices
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NRA

• allowed business, labor, and government to
  cooperate in setting up voluntary rules, known as
  codes of fair competition, for each industry.

• it urged consumers to buy only from companies who
  signed agreements with the NRA.

• declared unconstitutional by the Supreme Court in
  1935.

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NYA Provide jobs for high school and college
students.
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THE SECOND NEW DEAL
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NOT ENOUGH HELP
By 1935 the economy has still not recovered

• The most important aspect of Roosevelts New Deal
  was the change in the spirit of the American
  people.
• There was enough relief to keep people from
  starving
• People became hopeful and optimistic, and their
  faith in America was restored.
• Roosevelt used deficit spending to pay for his
  programs.
• He abandoned a balanced budget and borrowed money
  to pay for his programs.

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• NEW DEAL CRITICS
• Father Coughlin
• Huey Long-
• Level income, ___________________ for all
• proposed taking property from the ________ and
  dividing it up amongst the _________.
• Francis Townsend
• Proposed income for _____________
• proposed that the federal government pay citizens
  over the age of 60 a pension of 200 a month.

HOME AND COLLEGE
RICH
POOR
ELDERLY
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MORE PROGRAMS SECOND NEW DEAL
WPA

• _____creating jobs for workers

• Its most controversial aspect was offering work
  to 1) writers.

• Travel guides for each state
• Interviewed former slaves and mountain people

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2) Artists painted murals for govt. buildings
such as post offices, city halls, etc.
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3) musicians, and theater people
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SOCIAL SECURITY

• ___________________-old age pensions,
  unemployment, aid to families with children

• LABOR RELATIONS IMPROVE
• NLRB (Wagner Act)
• FAIR LABOR STANDARDS

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• COURT PACKING
• Several New Deal programs ruled unconstitutional
• AAA, NRA
• FDR proposed adding new justices
• Roosevelt feared that the Court would strike down
  the New Deal.
• court-packing- FDR sent Congress a bill to
  increase the number of justices on
  the____________________.
• Seen as a threat to checks and balances by giving
  the ____________ too much power.
• END OF THE NEW DEAL

SUPREME COURT
PRES.
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DEPRESSION ERA CULTURE
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AFRICAN AMERICANS Mary Bethune- established
____________________
Marian Anderson- concert at the Lincoln Memorial
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MOTION PICTURES

• Americans escaped the hardships of the Depression
  by going to the movies and listening to radio
  broadcasts.

S. Temple Mr. Bowjangles
SNOW WHITE WALT DISNEY
WIZZARD OF OZ
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Stories tended to be about overcoming hardships
and achieving success
GRETA GARBO
GONE WITH THE WIND
MARLENE DIETRICH
JAMES CAGNEY
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MARX BROTHERS
J. STEWART
_________________- starred in Its a Wonderful
Life and Mr. Smith Goes To Washington
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RADIO ENTERTAINS THE MASSES

• Families gathered around the radio daily to hear
  news or listen to comedians like George Burns or
  a dramatic series like the Lone Ranger.

BOB HOPE
ORSON WELLES
_________________- produced a radio program, War
of the Worlds
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ART AND LITERATURE
Richard Wright ____________ ____________
Grant Wood ______________________
AMERICAN GOTHIC
NATIVE SON
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Culture and Traditions In what ways did people
seek to forget about the Depression?
Americans looked to radio and motion pictures as
an escape.
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HOOVER
EFFECT ON AMERICA
FDR PLAN
TRICKLE DOWN
_____________ ____________ Theory
DEAL
BUSINESS
NEW _____________

• _______________ Failure
• Unemployment ________________
• Farmers lost ________________
• People migrated to the city

GOALS _________________ _________________ _______
__________
RELEIF REFORM RECOVERY
INCREASE
No direct relief to the _______
PEOPLE
LAND