1930

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1930s and the Great Depression
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For most of the 1920s there was a Bull Market
A bull market is when the stock market was doing
well and stock prices were rising
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2 Problems with the stock market

• Buying stocks on margin - buying stocks using
  credit, not cash.
• Speculation - buying stocks in the hope of making
  a profit.

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From 1929 1932 there was a Bear Market A
bear market is when the stock market was NOT
doing well and stock prices fell
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STOCK MARKET CRASH

• Everyone tried to sell their stocks and the
  stocks became worthless.
• When the stock market crashed, people went to the
  banks to get their money, but it was gone.

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Causes of the Great Depression

• Each item below gets its own box on the Chart on
  Page 4
• Installment buying and buying stocks on margin.
• Banks loaned money without any to back it up, so
  when people went to get their savings out of the
  bank it was gone.
• Overproduction of goods and crops. Factories and
  farmers were producing too much, driving down
  prices.

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More Causes

• Cycle of disaster businesses cant get loans
  from banks, so businesses cut wages, hours, and
  laid off workers workers dont have money to buy
  goods, so businesses went bankrupt.
• US made large loans to Europe, but we had to stop
  giving loans, which caused Europes banks to
  close. The same cycle occurred overseas causing a
  worldwide depression.

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Brainpop Causes of the Great Depression

• http//www.brainpop.com/socialstudies/ushistory/gr
  eatdepressioncauses/

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The Dust Bowl

• How were the black blizzards of the Dust Bowl
  Forms? Read paragraph below together for answer
  to 8,9,10, and 11
• Severe drought hit the Great Plains from
  1931-1939. The black blizzards formed from the
  dry soil and 50 mph winds. They destroyed over
  5,000,000 acres of land. It ended when rain
  finally fell consistently and temperatures
  remained steady. During the Dust Bowl,
  temperatures changed 70 degrees in a matter of
  hours. In addition there were record highs of
  120 degrees and no rain for months. The Dust
  Bowl forced hundreds of farmers and their
  families to move west to California to start a
  new life.

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• Cyclic winds rolled up two miles high. This is
  Black Sunday April 14, 1935. This is the dust
  storm that turned day into night. Many believed
  the world was coming to an end.

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Boise City, Oklahoma

• Men, women children stayed in their houses and
  tied handkerchiefs over their noses and mouths.
  When they dared to leave, they added goggles to
  protect their eyes. Houses were shut tight, cloth
  was wedged in the cracks of the doors and windows
  but still the fine silt forced its way into
  houses, schools businesses.

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A family from Oklahoma packed their belongings
and headed for California where they hoped to
find better soil and start a new life. These
migrant families were nicknamed Okies.
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Herbert Hoover was President from 1928-1932.

• 13 Herbert Hoover believed in a laissez faire
  government. He started some programs to help the
  US get out of the Great Depression, but they did
  not apply to the masses of people who were
  unemployed.
• 14 Most people did not believe Hoover was doing
  enough, so the shacks that the poor people lived
  in were called Hoovervilles and the newspapers
  that people covered up with were called Hoover
  blankets.

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Hooverville
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(No Transcript)
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• Children stand near a sign and donation jar that
  reads HOOVERS POOR FARM TOBACCO FUND and
  another sign HARD TIMES ARE STILL HOOVERing
  OVER US.

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Hooverville in Seattle, Washington
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Residents of Seattle watch as the city of Seattle
burns their Hooverville to build a port. The
poor and unemployed used scraps to build homes on
vacant land.
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Bread Line
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Boys waiting for soup at a soup kitchen
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Several men are competing for very few jobs.
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16 WWI veterans nicknamed the bonus army
marched on Washington asking President Hoover to
give them their bonus early. They were to
receive it in 1945, but 60,000 veterans wanted it
in 1932 because of the depression. President
Hoover denied their request, but paid their
passage home by rail.
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• 17 People were fed up with the lack of results
  from Hoovers programs and Franklin Delano
  Roosevelt won a landslide victory in 1932.
  People were happy to see Roosevelts new programs
  started in his first 100 days in office. However
  not everyone was happy. Many republicans
  criticized FDRs approach to taking over
  businesses. This seemed too close to communism
  for some people. Congress didnt pass several of
  FDRs programs, but hundreds of others were still
  passed.
• Lets Watch the Brainpop on FDR
• http//www.brainpop.com/socialstudies/famoushistor
  icalfigures/franklindroosevelt/

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Fireside Chats President Roosevelt spoke to the
American public over the radio. (19) Tonight,
(May 7, 1933) I come to you for the second time
to give you my report -- to tell you about what
we are doing and what we plan to do. (20)

• Here are some examples of what FDR told people to
  make them feel better about their situation
• Congress is about to pass legislation that will
  help homeowners and farmers pay their mortgage.
• A grant of half a billion dollars is to be given
  to care for those who need direct and immediate
  relief.
• Congress authorized the sale of beer in such
  states as desired. This has already resulted in
  job growth and has provided tax revenue.

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FDRS NEW DEAL plan for getting the US out of
the Great Depression

• SSA Social Security Act
• TVA Tennessee Valley Authority
• CCC Civilian Conservation Corporation
• AAA Agricultural Adjustment Agency
• FDIC Federal Deposit Insurance Corporation
• PWA Public Works Administration
• SEC Securities and Exchange Commission
• FERA Federal Emergency Relief Act

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SSA

• It provided pensions, unemployment insurance, and
  aid to the elderly and to the disabled.

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TVA - Federal government built a series of dams
to prevent flooding, brought water supply and
electricity to rural areas. Pictures clockwise
- Dam built in Tennessee the sole water supply
of this section of Wilder, Tennessee electricity
for the barnyard new electric stove in kitchen
in rural Tennessee
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CCC - Sent 250,000 young men to work camps to
perform reforestation and conservation tasks.
Removed surplus of workers from cities, provided
healthy conditions for boys, and provided money
for families

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AAA

• Protected farmers from price drops by reducing
  production, and starting educational programs to
  teach methods of preventing soil erosion.

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FDIC

• Created federally insured bank deposits (2500
  per investor at first) to prevent bank failures.
  Now protects up to 100,000 per investor.

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PWA

• Workers are constructing a new
• high school
• States received 3.3 billion appropriation from
  Congress for public works projects.

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SEC

• Regulated the stock market and restricted margin
  buying.

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FERA

• Distributed millions of dollars of direct aid to
  unemployed workers, including food, clothing,
  shelter, and skills training.
• Top picture shows children wearing new clothes
  made by mothers who learned to use sewing
  machines.
• Bottom picture shows a garden project where
  people work planting food and take home what they
  have produced

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FDRs New Deal programs helped relieve some
problems by giving people jobs, food, and
shelter. It reformed some problems, such as the
banking system (FDIC) and pay for the elderly and
handicapped (SSA). However it did NOT recover
Americas economy from a depression. The SEC,
SSA, and FDIC were so important that they still
exist today.
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Producing goods for WWII is what pulled the US
out of the Great Depression.

• Women welders discuss the production of B-25
  ("Billy Mitchell") bombers and P-51 ("Mustang")
  fighter planes.
• Men and women work side-by-side building bomber
  planes at a factory in Michigan.

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Popular movies of the 1930sGone with the Wind,
Snow White, Wizard of Oz, and King Kong
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Legends and heroes of the 1930s Jesse Owens,
Joe DiMaggio, and Amelia Earhart