The (not so) Great Depression

The (not so) Great Depression Mr. Johnson 7th Grade Social Studies

Great Depression Vocabulary • Herbert Hoover • Speculation • Buying on Margin • Black Tuesday • Franklin D. Roosevelt • Fireside Chat • New Deal • Hundred Days • Eleanor Roosevelt • Sit-Down Strikes • Public Works Project • Crash of 1929 • Great Depression • Bonus Army • Social Security Act • Second New Deal • Deficit Spending • Dust Bowl • Congress of Industrial Organizations • Securities and Exchange Commission (SEC) • Liberal • Conservative

Bell Work • Rich or poor, most Americans have homes and possessions, and take for granted the hundreds of big and little conveniences having a home gives them. Imagine NOT having a home and being limited in your possessions to what you can carry with you. Make a list of things you would take with you if you had to migrate on a daily basis, in a car with your family.

Stock Market Mania • A Stock Exchange is a system for buying and selling shares of a corporation. • With the increased economic flow from WWI the value of stocks rose through the 1920’s. • Few people worried about the risk of investing. • By 1929 1 in 10 households had invested in stock • People began to “buy on the margin” or borrow money to buy stocks.

Reasons for the Great Depression • Bank Failures • More than 5,000 banks closed before 1933. • Too much money had been lent out and too many people withdrew money at the same time. • Environmental Disasters • Overused top soil combined with a terrible drought brought on the Dust Bowl. • Farm Failures • Farms were producing too much and product prices were low. • Government Inaction • President Hoover did next to nothing to jump start the economy and kept the Federal Reserve from helping small banks. • Stock Market Crash • Too many people bought “on the margin” and couldn’t pay up once the market crashed. • Too Many Poor People • 40% of families were still living at or below the poverty line by 1929. • America’s new found wealth had only effected a few not the majority.

Check for Understanding • Discuss the following with your table • What does buying on the margin mean? • Name two reasons for the Great Depression. • Be prepared to share with the class

The Market Crash • In September of 1929 some investors began to worry that stock prices were set to fall and began selling stocks. • Lenders got nervous and demanded loans be repaid. • To do this more people sold stock and the more people sold the lower the prices dropped. • For three weeks the market declined then stock prices plunged. • On Oct. 29th investors sold 13 million shares in what became known as Black Tuesday • On Oct. 29th the stock exchange closed to prevent further panic selling.

Minorities Get Shoved Aside • Black people were shoved out of the jobs they had earned during the war. • More than 60 blacks were killed by mob violence during the decade. • Even federal assistance programs blatantly discriminated against blacks paying them less than whites. • Many of them began voting Democrat for the first time after feeling discriminated against by Republicans. • In 1931 nine young black men were arrested for vagrancy on a train near Scottsboro, AL. Then two white women accused them of rape despite mountains of evidence to the contrary. • An all white jury quickly convicted and sentenced 8 of them to death. • A Communist backed law group called International Labor Defense took their case to the Supreme Court where a new trial was ordered. • Five were found guilty in the retrial but again the verdict was thrown out because blacks had been excluded from the jury. • None of them were executed, one escaped and four were paroled after spending years in prison. • In Nov. 2013 they were officially pardoned by the Governor of Alabama

Exit Ticket • Answer the following in your ISN • Why was October 24th, 1929 known as Black Thursday? • Why did minorities begin voting for the Democratic party? • Be prepared to share with the class.

Bell Work • What do you think you are looking at in this picture  • Where do you think it is located? • Why do you think it exists?

Time to Flip the Switch • What did we discuss in our previous lesson? • What does buying “on the margin” mean? • What are two reasons for the Great Depression? • Who were the Scottsboro Boys?

The Great Depression Begins • Over the next two years the country slid into a severe economic crisis. • The GDP went from 104 billion in 1929 to 58 billion in 1932 • Struggling companies cut wages and laid off thousands of workers which only made matters worse. • In 1929 less than 1% of the country owned 33% of the wealth. • Small banks suffered when people could not repay their loans • Big banks suffered when the stock market crashed. • The savings people had stored in the banks were lost.

Economic Woes Spread • President Hoover raised tariffs to make money but this led to other countries buying less goods and raising their own tariffs. • By 1932 about 25% of Americans were out of work. • Those who managed to keep their jobs had wages cut or worked part time. • Soup kitchens opened up and people waited hours for bread or soup • Homeless people gathered in makeshift villages called “Hoovervilles” • Americans wondered why their President was doing so little to help the economy. Notice the men’s clothing while they wait in line

Check for Understanding • Discuss the following with your table • What happened to people’s savings when their bank closed? • What percentage of workers could not find a job in 1932? • Be prepared to share with the class.

Hoover Reacts to the Depression • President Hoover believed the crisis was only temporary and that the economy could not be cured by legislative action or executive order. • Hoover asked charities to help the needy and business owners to not cut workers. • Hoover only tried to help when he was close to re-election and spent money on public works projects to create jobs.

The Bonus Army • In the summer of 1932 about 20,000 desperate WWI veterans marched on Washington D.C. to claim their 1,000 dollar bonuses that were to be paid out in 1946. • Congress refused to move up the payment schedules so the veterans set up camp near the capitol. • When the police tried to remove the veterans two were killed in the fighting. • President Hoover ordered federal troops to remove the veterans. • Gas bombs and bayonets were used but no one was killed this time. • The camp was burned and Americans decided that Hoover was out of touch with the people.

Exit Ticket • Answer the following in your ISN • What did Hoover believe would help the economic crisis? • What happened to the Bonus Army? • Be prepared to share with the class.

Bell Work • If you were President during the Great Depression how would you try to help the American People?

Time to Flip the Switch • What did we discuss during our previous lesson? • What did President Hoover do to help the economic crisis? • What was the Bonus Army?

Another Roosevelt in the White House • Former Governor of NY Franklin D. Roosevelt easily beat incumbent President Hoover.  • FDR was married to his fifth cousin Eleanor Roosevelt who was the niece of Teddy Roosevelt. • FDR was from two of the oldest, most prestigious families in America but was able to relate to the common man. • In 1921 Polio struck FDR and paralyzed both his legs. • Despite this he refused to be hampered by his disability. • Reporters were polite about not taking “awkward” pictures of FDR in his wheelchair or leg braces.

Rebuilding the Nation’s Confidence • The first problem Roosevelt tackled was bank closures. • FDR ordered banks closed for four days while the government inspected the banks. • Only those that passed inspections were allowed to reopen. • This was to rebuild public trust in banks • When FDR told the people about his plans he started doing so over the radio. These became known as fireside chats. • This made people feel as if he were speaking right to them and gained their trust.

Check for Understanding • Discuss the following with your table. • Why do you think reporters didn’t take “awkward” pictures of FDR? • What were the fireside chats? • Be prepared to share with the class.

The Hundred Days • FDR hit the ground running after his inauguration and unleashed a package of programs that came to be called the New Deal. • The programs included • Civilian Conservation Corps (CCC) • A group that employed young men around the country • Tennessee Valley Authority (TVA) • They oversaw the development of dams • Agricultural Adjustment Act (AAA) • This act paid farmers to not produce as much to keep food prices up

Eleanor Roosevelt • Eleanor’s parents died when she was young and she married FDR in 1905. • She had six kids with FDR but learned early on that he was not a faithful husband. • As First Lady she broke tradition and held over 350 press conferences for exclusively female journalists • Eleanor championed civil rights and women’s issues while representing her husband who had difficulty traveling. • After FDR’s death she continued to serve as a delegate to the United Nations and roving ambassador.

Exit Ticket • Discuss the following with your table. • What were two of the New Deal Programs and what did they do? • Why is Eleanor Roosevelt seen as an important figure in history? • Be prepared to share with the class.

Bell Work • Name one problem that is being addressed by three of these programs 

Time to Flip the Switch • What did we discuss during our previous lesson? • What disease did FDR suffer from? • What was his government assistance package called?

The New Deal Takes Shape • President Roosevelt called for direct aid to people in need. • Congress passed the Federal Emergency Relief Act (FERA) which gave money to the states to provide food and assistance to the needy. • The Tennessee River Valley Authority (TVA) built dams to control flooding, generated electricity for over 40,000 people, and employed thousands of people. • The Civil Works Administration (CWA) provided about 4 million jobs building roads, airports, sewers, and schools

New Deal Programs • Congress also passed the National Industrial Recovery Act (NIRA) which FDR called the most important and far-reaching legislation ever. • The goal was to boost the economy by helping business regulate itself by setting a minimum wage and abolishing child labor. • The Public Works Administration (PWA) was established and helped build such things like Fort Knox and NY’s Lincoln Tunnel. • To avoid future banking crises FDR called for banking reform. Congress created the Federal Deposit Insurance Corporation (FDIC) They guaranteed that people’s savings would not be lost if the bank failed.

Check for Understanding • Discuss the following with your table. • What did the TVA accomplish? • What program was the most important to FDR? • Be prepared to share with the class.

Early Impact of the New Deal • Just because FDR had put programs in place did not mean that the country’s hardships were over. • Farmers continued to lose their land and unemployment remained at high levels. • But the people’s faith in the government had been restored and the panic of 1932 and 1933 had subsided. • “Take a method and try it. If it fails, try another. But above all, do something” - FDR • Critics of the new deal said that government spending was an invasion of freedom and would not work.

Early Impact of the New Deal • The national debt was about 22.5 billion when FDR took office • It would double by 1940 and the government increased greatly in size. • In 1935 FDR passed the Social Security Act • This gave people a safety net as they got older • In 1938 FDR passed Fair Labor Standards Act which created a minimum wage of .25 cents and hour and a maximum of a 44 hour work week. • In 1936 FDR was easily re-elected despite conservative misgivings about socialist programs.

Exit Ticket • Answer the following in your ISN • What were the main criticisms of the New Deal? • What did the Fair Labor Standards Act say? • Be prepared to share with the class.

Bell Work • What can you do if you live in a place where nature is unforgiving but you have no money to move away?

Time to Flip the Switch • What did we discuss in our previous lesson? • What was the TVA and what did they do? • What did the FDIC do?

Hard Times Across the Country • Marriage rates dipped for the first time since the 1800s as men left their families to find jobs or because of their shame. • Children were sent to fend for themselves and women tried to find work. • Many people felt women shouldn’t have jobs while so many men were unemployed. • To save money at home women sewed more, baked more bread, and started in home business’s. • Frances Perkins became the first woman to ever serve as a cabinet member as Secretary of Labor.

The Dust Bowl • During the 1930s the Great Plains suffered an environmental disaster. • The soil was overused from years of over production and then a drought struck in 1931. • Crops died and soil blew away in strong prairie windstorms known as “black blizzards.” • The storms continued for years with each one taking away more soil and sometimes piling it so high houses were buried. • Thousands of farmers went bankrupt and had to leave their farms. About 400,000 migrated to California where they were given the nickname “Okies”

Check for Understanding • Discuss the following with your table. • Who was the first female cabinet member? • What was the nickname for the farmers who moved westward? • Be prepared to share with the class.

Radical Ideas • During the Great Depression many new political ideas gained steam with promises of prosperity. • Supporters of Communism also promised an end to racial injustice. • Communism and socialism gained support but not as much as they hoped. • Fascism gained support in Europe as Italy and Germany became Fascist countries. • Fascists blamed Jews, communists, and liberals for the nations problems.

Depression – Era Entertainment • Escapism – The light or romantic entertainment that helps people forget about their problems • Social Criticism – Portraits of injustice and suffering in the US • Both of these types of entertainment became trendy during the Depression. • Walt Disney made Snow White and the Seven Dwarfs and the Wizard of Oz was released during the Depression. • Writers and artists focused on the struggle of American life during the Depression.

Exit Ticket • Answer the following in your ISN • What types of political thinking gained support during the Depression? • What type of art emerged during this period? • Be prepared to share with the class.

Bell Work • Was the New Deal an abuse of government power? Why or why not?

Time to Flip the Switch • What did we discuss in our previous lesson? • What type of art emerged during the Great Depression? • Who was the first woman named to the Presidential cabinet? • What was the nickname given to farmers moving west?

The New Deal Draws Fire • FDR counted on business’s supporting his New Deal program but as time went on many leaders began to criticize the program. • Some business leaders felt that the new programs allowed the government to overstep their bounds. • FDR also drew fire from people who felt that he hadn’t done enough to help the nation • This just proves that no matter what you do people will find a way to be upset.

Second New Deal • In 1935 FDR pushed Congress to pass the Revenue Act which raised taxes on the wealthy. • FDR continued to pass new reforms which were unofficially titled the Second New Deal. • The Works Progress Administration (WPA) was created and provided 2 million jobs until 1941. • The WPA employed artists to paint murals on public buildings, they produced books that told traditions of minority cultures.

Check for Understanding • Discuss the following with your table. • Why did FDR’s programs draw criticism? • How did FDR continue trying to improve the economy. • Be prepared to share with the class.

Labor Movement Grows • General Motors employees began using a new striking technique called sit down strikes. • Workers occupied the plant but refused to work. • After 44 days they won the right to join the United Auto Workers. • The Congress of Industrial Organization was created and aimed to organize industries not just craftsmen. • By 1938 the CIO had 4 million members including many blacks and women.

FDR and the Supreme Court • In 1935 the Supreme Court started declaring parts of the New Deal unconstitutional. • This did not sit well with the population and they showed it by giving FDR 61% of the vote in 1936. • FDR asked Congress to increase the number of Justices from 9 to 15 but this move troubled even his supporters. • When the court ruled in favor of some of his programs FDR gave up his fight but it had cost him some support.

The World Moves Towards War • While the US was trying to climb out of economic depression the rest of the world was warming up for war. • Japan grabbed several French colonies overseas while they were being attacked by Germany. • FDR stopped the sale of gasoline and other resources to Japan and froze all their money in US banks. • At 7:55 AM on Dec 7th, 1941 Japanese planes attacked Pearl Harbor hoping to annihilate the American Pacific Fleet. • More than 2,300 soldiers, sailors, and civilians were killed but most of the fleet was intact. A few days later the US joined the Allies and was officially in World War II.

Exit Ticket • Answer the following in your ISN • What is the CIO and what did they do? • Why did FDR fight with the Supreme Court? • Why did Japan attack Pearl Harbor? • Be prepared to share your answers with the class. FDR as a child 

The (not so) Great Depression