The Great Depression and the New Deal

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The Great Depression and the New Deal
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Lassiez Fairerepublican idealismLet business
be businessSmall Government
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3 Consecutive Lassiez Faire RepublicansWarren
G. Harding (1920)Calvin Coolidge (1924)Herbert
Hoover (1928)
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Low Tax More for the Rich

• More Buy more stock

Stocks go up
More gambling on stock (Credit)
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Speculation Looking for big profits in stocks
and ignoring the risks
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Automobile Appliance Industry Big in the
1920sMore JobsEveryone buying Cars and
AppliancesMany buy with credit
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By late 1920s everyone has a car and
appliancesless production
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Less Production More UnemploymentNo jobs No
spending moneyWhat does government do about it
?Nothing Lassiez Faire
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Richest 1 has 98 of wealth
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Farmers overproducedPrices fallFarms go out of
businessCant pay loans (equipment and
other)Banks shut down
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Industries hurt by changeRailroads face
competitionTextile mills face foreign
competitionJobs LostEmployees and Farmers
cant buy
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Jobs cuts hurt all industries
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Banks lower loans rateMore loansMore stock
bought(Buying on Margin)1925 27 billion
stocks exchanged1929 67 billion
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October 29 1929The Great Stock Market
CrashBlack Tuesday
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As value of companies declinePeople try to sell
stock before value is goneNo buyers leftSome
people lose everything
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(No Transcript)
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Stocks selling for more than they are
worthOverproduction Unemployment
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Stocks dip 40Banks go broke (people not paying
loans)Rushing the BanksNo FDICPresident
Hoover does little
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Effects of the DepressionHealth Poor Soup and
Beans20s Great30s No Hope(more fear of
communism)
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WWI Vets selling ApplesCity Life WorstBanks
closed
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(No Transcript)
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BlacksLast hired, first fired
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ShantytownsTowns made up of shacks
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People ignore healthIgnore dreamsGive up having
kidsMental Hospitals
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Hoover Doesnt Do MuchStart Boulder Dam Project
to create jobs (Hoover Dam)
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Play Depression DVD
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Project 1ABC BookRequirementsFDR Years
Time to Look Up WordsDue February 17

• Q, X, Z
• Silly if all 26

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HHerbert Hoover
No Good

• The 31st President of the United States, elected
  in the year 1928.

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HHerbert Hoover

• The 31st President of the United States, elected
  in the year 1928.
• He was the President when the Great Depression
  started.

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HHerbert Hoover

• The 31st President of the United States, elected
  in the year 1928. He was a Republican.
• He was the President when the Great Stock Market
  Crash Occurred and the Great Depression started.

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HHerbert Hoover

• The 31st President of the United States, elected
  in the year 1928. He was a Republican.
• He was the President when the Great Stock Market
  Crash Occurred and the Great Depression started.
  Since he was a Republican he did little to try
  and end the Great Depression although he was not
  totally to blame for it happening. He did start
  the Hoover Dam to create work.

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1932Election Year

• What do you think the mood was in this election
  year ?

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Franklin D. Rooseveltmakes a run at President

• This is where you get to contribute
• Devise solutions to the problems we listed during
  todays review video follows)
• (group students, review problems faced in review)

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Election of 1932

• Issues Social Security
• Unemployment
• The Depression
• Candidates
• President Herbert Hoover Franklin D. Roosevelt

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(No Transcript)
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By winning 45 of 48 states what percentage of the
states supported President Roosevelt
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To find percentage think of the pie. How may
pieces of the pie did Roosevelt have ?

• 45

How many pieces were there all together ?
48
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Always divide the number of pieces you have by
the total number of pieces there were to start
with. In this case45 divided by 48
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(No Transcript)
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.36 36.07 7.7 70
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FDR winsPromises New Deal

• Play FDR Memorial Home Video

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The Stock Market SolutionFederal Securities Act
(1933)Requires corporations to provide complete
informationSEC (Securities Exchange Commission)
Regulates the market, investigates rigging,
inside trading
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(No Transcript)
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Unemployment

• Civilian Conservation Corps (CCC)
• 18-25 work for families, train
• Public and Civil Work Administrations
• (PWA CWA)
• Money to states for Public Works Jobs
• Schools and Teachers

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Overproduction on the Farm

• AAA Agricultural Adjustment Act
• Paid Farmers not to grow, or slaughter excess
  pigs.
• Less product Higher Prices
• Many upset with policy when Americans are Hungry

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Banking Problems

• Creates FDIC (Insurance for Bank Accounts
  5,000)

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Health and Hunger

• Federal Emergency Relief Administration (FERA)
• 500 Million to the Needy
• Food and Clothing

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New Deal SummaryReliefRecovery Reform
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Play Clip fromSnow WhiteI HoPhiladelphia
Story trailerPride of the Yankees SpeechBela
Legosi Dracula ClipHell Divers story and
laughsduring attendance
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Film becomes very popular during the
depressionEscape from reality
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Radio Becomes More Popular and Important
(News)10 million (1930)30 million (1939)
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Famous Moment in Sports/Radio1932World
SeriesYankees vs. Cubsat Wrigley Field654 of
audio clip
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(No Transcript)
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American GothicGrant WoodPlayArt Institure
DVD Clip
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Lasting Reform of the New DealSocial
SecuritySECBlacks join Democratic PartyCurrent
Political Parties DefinedMore Government
InvolvementProducts of Public WorksFDICEnd of
Prohibition
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Deficit SpendingTo spend more money than is
received
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3 Minutes to list the causesof the Great
DepressionOnly use notes as a last resort
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Class read lists
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How to Study for a TestMr.Mendozas Method
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Take out your notesre-write them but only
include thethings you think will be important
and re write the information in as brief a manner
as possible
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Example
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Banking Problems

• Creates FDIC (Insurance for Bank Accounts
  5,000)

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Becomes FDIC Bank Insurance
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Continue to do this with all of your notes and
assignments
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Once your list is complete then read the list.
The second time you read the list you will cross
off everything you absolutely understand and will
not forget.
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Good Luck on the Test Tomorrow