The Great Depression

1. The Great Depression November 26, 2012

2. Social Studies Warm-up #12 Vocabulary • Boll Weevil • Drought • Economic Factors • Great Depression • New Deal • Social Security Act (SSA) • Agricultural Adjustment Act (AAA) • Civilian Conservation Corps (CCC) • Rural Electrification [Administration] (REA Lesson Essential Questions: 1. How did the boll weevil and drought impact Georgia? (SS8H8a) 2. What factors led to the Great Depression and how did it impact Georgia? (SS8H8b) 3. How did the New Deal programs impact Georgia and American society? (SS8H8d) 4. How did the political career of Eugene Talmadge impact Georgia?

3. After World War I… • When World War I ended in 1918, a rebellion against the social and moral reforms happened in the U.S. • The 1920s was a decade of huge social changes • It was a struggle between “old” and “new” America • A more modern, urban culture battled against the old rural, traditional culture

4. The Roaring Twenties • The popular image of the 1920s is of prosperity, bootleggers and gangsters, jazz, and dancers • However, the 20s were also a period of deep social unrest • Immigrants (Italians, Irish, etc.) were discriminated against • Racial tensions ran high between blacks and whites • Religious tensions increased with the debate over evolution

5. Georgia in the 1920s • For many Georgians, the 1920s was not a time for abundance • The boll weevil, a type of beetle, was destroying the cotton crop • It destroyed 1000s of acres of Georgia’s cotton fields • Drought also hit in 1924, which ruined many of Georgia’s other crops • Many farms failed and farm-related businesses closed, which caused many farm workers to leave Georgia • This caused Georgia’s economy to sink into a depression

6. Causes of the Great Depression • There were many, many factors that led up to the Great Depression • People had borrowed more money than they could repay • Factories had produced more goods than they could sell • Farmers had overproduced their crops • People had been buying and selling in the Stock Market, making the stocks higher then what they were worth

7. The Stock Market Crashes • On a Thursday in October 1929, a huge wave of sell orders shook the Stock Exchange • Stock prices plunged, but things recovered and got back on track • The next week, prices started falling again on Monday • On Tuesday, Oct. 29, 1929, there was a mad rush to sell as many stocks as possible causing the worst crash in the Stock Market’s history • Because people had borrowed money from banks to buy stock, when the market crashed, they lost their money and could not repay the banks • Banks failed, people lost jobs because businesses closed, then lost their homes because they could not pay their mortgage

8. Franklin D. Roosevelt • In 1932, 3 years after the Depression started, Franklin D. Roosevelt was elected U.S. President • During his campaign, he had promised a “new deal for the American people” • After taking office, he worked to keep that promise by urging Congress to pass a series of laws known as the New Deal that were aimed at bringing economic recovery, relieving suffering of the unemployed, reforming the economy, and improving society

9. Civilian Conservation Corps (CCC) • The CCC was a New Deal program that provided jobs for young single men • They built forest trails, planted trees, and built parks • The CCC was popular in Georgia because it built many of the facilities at our state parks (Kennesaw Mountain, Pine Mountain) • Other CCC projects in Georgia included a seawall at Tybee Island, an airport in Macon, and improving Grady Hospital in Atlanta

10. Agricultural Adjustment Act (AAA) • The AAA paid farmers NOT to plant crops on part of their land • By limiting production, prices would go up based on the principle of supply and demand • This helped Georgia recover from low cotton prices • The drawback was that the payments went to the land owners, not the tenant farmers, and many lost their jobs because of decreased production

11. Rural Electrification Authority (REA) • In the 1920s, power companies had very few lines running to rural areas • The ones that did run there were expensive to maintain, making power bills higher in the rural areas • The REA loaned over $300 million so power lines could be extended in rural areas • This made farm life easier with the use of electric water pumps, lights, milking machines, and appliances

12. Social Security • The Social Security Act, passed in 1935, was designed to provide retirement and unemployment insurance from taxes paid by workers and their employers • It helped reach the people who could not work, like children, the disabled, widows with children, and the elderly • One drawback is that farm workers were not covered by Social Security

13. Government in Georgia • In 1933, Georgians elected a new governor – Eugene Talmadge • He was a conservative white supremacist who did not like federal government intervention or government debts • He really disliked the New Deal programs • Instead of using federal money to help the unemployed, he would build new roads or highways

14. Talmadge’s Second Term • He was re-elected in 1934 • He fired officials who disagreed with him • He refused to follow New Deal regulations and the federal government stepped in and ran the programs in Georgia • Because the Georgia constitution does not allow a governor to serve more than 2 consecutive terms, he ran for U.S. Senate in 1936, but lost

15. Talmadge Returns • In 1940, Talmadge ran for governor again and was elected • He had softened his stance on the New Deal and the economy started growing • Talmadge left with a bad legacy when he refused to allow Georgia’s colleges to integrate (allow all races to attend) • Georgia was cast in a bad light around the country • Talmadge was not re-elected in 1942

16. 1) What struggle was represented in the 1920s? 2) What types of social unrest were present in the “Roaring Twenties”? 3) What destroyed the cotton crop in 1920s Georgia? 4) What came in 1924 that destroyed many of Georgia’s farms? 5) What were 4 causes that led up to the Great Depression? 6) What ultimately caused the Great Depression in 1929? 7) What was the term for Roosevelt’s series of laws that were designed to help the economy? 8) What was the purpose of the CCC? 9) What were some CCC projects in Georgia? 10) What did the AAA do? 11) How did the AAA help Georgia? 12) What was a drawback of the AAA? 13) What did the REA do? 14) What was the Social Security Act designed to do? Questions…

17. More Questions… • 15) What group was not covered by Social Security? • 16) Who was elected as Georgia’s governor in 1933? • 17) How did Talmadge feel about New Deal programs? • 18) What caused Talmadge to leave office with a bad legacy?