1 / 46

The Great Depression: Causes, Effects, and Hoover's Response

Explore the causes and effects of the Great Depression, including the widening gap between the rich and poor, stock market crash, and global depression. Learn about the hardships faced by Americans during this time, such as job loss, homelessness, and the Dust Bowl. Discover how Herbert Hoover's response failed to address the crisis and the beginning of FDR's New Deal.

woolard
Download Presentation

The Great Depression: Causes, Effects, and Hoover's Response

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 21 The Great Depression 1928-1932

  2. Section 1 Causes of the Depression

  3. 1920’s • Prosperity • Consumption increased • Gross national product increased • Stock market increased

  4. Herbert Hoover • Chosen by Republicans as Presidential candidate in 1928 • From Iowa; orphaned as a child • Mining engineer • Head of Food Administration during WWI

  5. Secretary of Commerce for Pres. Harding & Coolidge • Won the election; defeated Alfred E. Smith (Democrat)

  6. Economic Troubles • Farmers: made up ¼ of workforce – had increased farm yields during WWI – bought more land & equipment (huge debts & mortgages) – demand fell after war but production remained high – rural depression

  7. Widening gap between the rich & poor • Overproduction/under-consumption • Installment buying – (buying on credit) small percentage down payment made at purchase with balance paid over a period of months or years

  8. Black Tuesday • Tuesday, October 29, 1929 – stock market crash signaling the beginning of the Great Depression

  9. Great Depression • Period lasting from 1929 to 1941 in which the economy faltered and unemployment soared • 641 commercial banks failed in 1929 • Too little money was in circulation after the stock market crash

  10. Global depression • Germany had been forced to pay war reparations • France & Britain were attempting to rebuild • Business failures, bank collapses & high unemployment

  11. Section 2 Americans Face Hard Times

  12. Effects of Depression • 25% of Americans lost jobs by 1933 • Others saw hours & pay cut • Ate smaller meals: water replaced milk; no meat

  13. Many became homeless developing “Hoovervilles”: makeshift shantytowns of tents & shacks built on public land or vacant lots (So-named for Pres. Herbert Hoover whom they blamed for the Depression) • Many farmers lost their farms & moved

  14. Dust Bowl • Term used for the central & southern Great Plains during the 1930’s when the region suffered from drought & dust storms • Storms killed cattle, birds & fish • Forced many farm families to migrate

  15. Depression Effects (con’t) • Many men deserted their families • Birthrates dropped • Many children quit school • African American poverty in 1932 was near 50%

  16. Section 3 Hoover’s Response Fails

  17. Hoover’s Plan • “Hands-off” – at first • Saw business cycles as natural occurrences • Asked businesses & industries to keep employment, wages & prices at current levels

  18. Called for tax reductions, lower interest rates & public works programs • Wanted wealthier individuals to give more money to charity

  19. Localism • Policy whereby problems could be solved at local & state levels • More jobs & relief measures by state & local governments

  20. Reconstruction Finance Corporation • (1932) – gave $1billion in gov’t loans to railroads & large businesses • Lent money to banks

  21. Trickle-down economics • Economic theory holding that money lent to banks & businesses will trickle down to consumers

  22. Bonus Army • Group of WWI veterans who marched on Washington D.C. in 1932 to demand early payment of a bonus promised by Congress

  23. Chapter 22 The New Deal 1932-1941

  24. Section 1 FDR Offers Relief & Recovery

  25. Election of 1932 • Herbert Hoover vs. Franklin D. Roosevelt • Hoover believed relief should come from state & local gov’ts & private agencies • Roosevelt believed strong action from the federal gov’t was needed

  26. Franklin D. Roosevelt(FDR) • Served in the New York State Senate • Assistant Secretary of the Navy for W. Wilson • Governor of New York • Promised a “New Deal” for all Americans

  27. New Deal • Programs & legislation enacted by FDR during the Great Depression to promote economic recovery & social reform

  28. Brain Trust • Group of professionals & academics who advised FDR in the planning of the New Deal

  29. First Hundred Days • FDR proposed & Congress passed 15 bills as part of the First New Deal to accomplish 3 goals: relief, recovery, & reform • Relief: from the immediate hardships of the depression

  30. Recovery: long-term economic recovery • Reform: to prevent future depressions

  31. Emergency Banking Bill • Gave FDR power to declare a four-day bank “holiday” with the idea that banks would get all accounts in order before reopening.

  32. Fireside chats • Informal radio speeches made to the American people by FDR explaining the measures taken to relieve the depression • Reassured the people that the banks were safe

  33. Federal Deposit Insurance Corporation • FDIC – insured bank deposits up to $5000 to reform the national banking industry

  34. Securities & Exchange Commission • SEC – established by Congress to regulate the stock market & make it a safer place for investments

  35. Agricultural Adjustment Act • AAA – sought to end overproduction of farm crops & raise crop prices • Provided financial aid; paid farmers subsidies not to grow certain crops & to kill excess livestock

  36. Tennessee Valley Authority • TVA – built a series of dams in the Tennessee river valley to control flooding & generate electric power • Replanted forests, built fertilizer plants, created jobs & attracted industry

  37. Civilian Conservation Corps • CCC – provided jobs for young men replanting forests, building trails, digging irrigation ditches & fighting fires

  38. National Industrial Recovery Act • Established the National Recovery Administration (NRA) to develop codes of fair competition to govern whole industries • Established minimum wages & prices

  39. Public Works Administration • Built bridges, dams, power plants & government buildings • Improved the nation’s infrastructure & created millions of new jobs

  40. Section 2 The Second New Deal

  41. Works Progress Administration • WPA – created to administer the $5 billion appropriated for new jobs • Built & improved highways, harbors; promoted soil & water conservation • San Antonio River Walk & Appalachian Trail

  42. Social Security Act • Created a pension system for retirees, established unemployment insurance for workers who lost their jobs, & created insurance for victims of work-related accidents

  43. Rural Electrification Administration • Established to loan money to electric utilities to build power lines & bring electricity to isolated, rural areas

  44. Welfare state • A government that assumes responsibility for providing for the welfare of children, the poor, elderly, sick, disabled and unemployed

  45. FDR’s effect on the Presidency • Increased power of the President & the executive branch • Made mass media an essential tool in advertising & promoting policies • Expanded Presidential role in managing the economy

  46. Expanded Presidential role in developing social policy • Won 3rd & 4th terms which led to the 22nd Amendment

More Related