The Roaring 20s • After the war the American economy exploded • Many people became extremely wealthy • Stock market showed no signs of stopping growth.
Blue skies smiling at meNothing but blue skies do I seeBluebirds singing a songNothing but bluebirds all day longNever saw the sun shining so brightNever saw things going so rightNoticing the days hurrying byWhen you're in love, my, how they flyBlue days, all of them goneNothing but blue skies from now on(Blue skies smiling at meNothing but blue skies do I see)Never saw the sun shining so brightNever saw things going so right
Illusion of wealth • In reality many people were living below the poverty line • More and more people were buying goods on credit • People engaged in speculation, which is buying and selling risky stocks
Stock Market crashes • On October 29, 1929 many stocks lost 75% of their value • Becomes known as Black Tuesday • Creates panic in America
Bank runs • So many loans are defaulted on that banks are low on money • People panic and mob banks trying to get money • Banks are forced to close, many people lose everything
1920’s Problems Factories making Too Much, Farms growing too much BANKS Have NO $$ PEOPLE LOST SAVINGS & JOBS NO ONE TO HELP! Factories Fire Workers (Don’t need them) Farm Prices fall (Farmers can’t make $$) Banks Close because they have no money: Loans have not been paid back, can’t give people their savings Farmers & Factory Workers can’t pay back loans to Banks: DEFAULT!!
Banks Close Banks have no money to give people + = People Default on Loans People Loose savings
Cause & Sparks of Depression TOO MUCH STUFF! BLACK TUESDAY QUICK REVIEW: Causes: 1. Overproduction 2. Bank Closings Spark: 1. Stock Market Crash Results: 1. Unemployment 2. Life Savings Lost
Hoover responds • Herbert Hoover is known for his knowledge of economics • He trusts the economy will return on its own and does nothing • Urges private organizations and charities to help those in need (voluntarism) • The nation sees Hoover do nothing and blames him for their troubles
The Bonus Army • WWI veterans were promised a bonus to be paid in the 40s • Needing the money now the veterans marched on congress • After congress refused, the veterans camped in Washington, D.C.
Hoover ordered the “Bonus Army “ removed • General Douglas Macarthur attacked the bonus army with cavalry, tear gas and bayonets • The images of the event outraged the American populace
People are queer, they're always crowing, scrambling and rushing about; Why don't they stop someday, address themselves this way? Why are we here? Where are we going? It's time that we found out. We're not here to stay; we're on a short holiday. Life is just a bowl of cherries. Don't take it serious; life's so mysterious. You work, you save, you worry so, But you can't take your dough when you go, go, go. So keep repeating it's the berries, The strongest oak must fall, The sweet things in life, to you were just loaned So how can you lose what you've never owned? Life is just a bowl of cherries, So live and laugh at it all. Life is just a bowl of cherries. Don't take it serious; it's too mysterious. At eight each morning I have got a date, To take my plunge 'round the Empire State. You'll admit it's not the berries, In a building that's so tall; There's a guy in the show, the girls love to kiss; Get thousands a week just for crooning like this: Life is just a bowl of . . . aw, nuts! So live and laugh at it all!
They used to tell me I was building a dreamAnd so I followed the mobWhen there was earth to plow or guns to bearI was always there right on the jobThey used to tell me I was building a dreamWith peace and glory aheadWhy should I be standing in lineJust waiting for breadOnce I built a railroad, I made it runMade it race against timeOnce I built a railroad, now it's doneBrother, can you spare a dimeOnce I built a tower up to the sunBrick and rivet and limeOnce I built a tower, now it's doneBrother, can you spare a dime? Once in khaki suits, gee we looked swellFull of that Yankee-Doodly-dumHalf a million boots went slogging through HellAnd I was the kid with the drumSay, don't you remember, they called me "Al"It was "Al" all the timeWhy don't you remember, I'm your palSay buddy, can you spare a dimeOnce in khaki suits, ah gee we looked swellFull of that Yankee-Doodly-dumHalf a million boots went slogging through HellAnd I was the kid with the drumOh, say, don't you remember, they called me "Al"It was "Al" all the timeSay, don't you remember, I'm your palBuddy, can you spare a dime
Dust Bowl • The Great Plains suffered through several years of drought • Wind storms blew walls of dust around the region • By 1940 2.5 million people had fled to California
Unemployment • Unemployment rose as high as 26% • Many families lost their home and were living in boxes or rusted cars • Children had to drop out of school to help • Many ran away to avoid being a burden
FDR • President Roosevelt Elected (1932) • Promised “New Deal” for Americans • Experiment and change to fight Depression
Bank Holidays • FDR closes all banks in America • Ensures they all have adequate money supplies • reopens and ensures Americans they can be trusted
Major New Deal Programs • Civilian conservation Corps (CCC)- provided Jobs to young men doing various conservation jobs • Works Progress Administration (WPA)- Hired writers and researchers • Tennessee Valley Authority (TVA) – Built Dams in the Tennessee Valley • Social Security Act (SSA) – provides a source of income for the Elderly
Fixing the Depression “New Deal” D.Results- Did NOTend the Depression 1. Most of the Businessmen disliked New Deal 2. Gave country confidence a. Ended banking crisis b. Helped with some Jobs c. Infrastructure (buildings, schools, bridges, electricity, artwork)