1 / 7

The Great Depression Begins

The Great Depression Begins. Mr. Fisher United States History. Roaring Twenties. Causes: Calvin Coolidge Kept taxes down Helped to increase credit Moved to the left, more free market economy Little government interference  private enterprise to flourish Results :

yori
Download Presentation

The Great Depression Begins

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. The Great Depression Begins Mr. Fisher United States History

  2. Roaring Twenties • Causes: • Calvin Coolidge • Kept taxes down • Helped to increase credit • Moved to the left, more free market economy • Little government interference  private enterprise to flourish • Results: • Increase in Standard of Living • Increase in wages (35%) • Productivity increase  businesses expanded • Farm production – produced more than what was needed • Growing gap between upper/lower class • Buying Goods on Credit • Installment plan – buy goods over an extended period of time • Banks provided low interest loans • Advertisement pushed these plans • Video – with handout

  3. The Nation’s Sick Economy • (1) Industries in trouble • Many weren’t obtaining any profit • Railroads  automobile • Mining and lumber  less expansion because of no war • Housing market began to fall • (2) Farmers • During war – high prices = more loans for production • After war – prices declined by 40% • Poor farming practices (crop rotation and over production) • Leads to the Dust Bowl • (3) Consumers • Lived on credit (superficial life style) • Buying “stuff” that they did not have the money for up front • Lose your job  can’t pay back loans/credit  declare bankruptcy

  4. (4) Stock Market Crash • Speculation – throwing all savings into stock to make quick profit • Buying on margin - putting a down payment on a stock and borrowing the rest • Black Thursday: (End of the Roaring 20s) • Beginning of the stock market crash • Investors panicked and began to sell stocks • Bank runs • People trying to get out whatever money they had left • (5) Trade barriers • Hawley-Smooth Tariff Act • Raise in tariffs – Aimed at “protecting” American businesses Issues • Business depended on cheap imports • Other countries reciprocated

  5. Effects • (1) Emergence of shantytowns (A.K.A Hoovervilles) • Places for people without homes to live • (2) Stock Market and banking regulations • Securities Exchange Commission (SEC) • Regulate the Stock Market • Federal Deposit Insurance Corporation (FDIC) • Insure people’s deposits • Put trust back into the banks • (3) FDR’s “New Deal” Program (Franklin Delano Roosevelt) • Expanded role of fed. gov’t = movement toward more command eco. • Increase gov’t spending  create prog’s  create jobs  production • (4) Mass Migration • Results of the Dust Bowl (rural areas  urban areas) • (5) Societal change • Wary of banks, suspicious of stock market, hoard food… etc.

  6. Hoover Struggles with the Depression • Hoover: (Picture analysis) • Viewed depressions as “normal” • “Any lack of confidence in the economic future… is foolish.” • Encouraged not to cut wages, and not to lay off workers • Favored a “laissez-faire” policy (Beginning of presidency) • Moved to “command” like economy (Toward end of presidency) • Government ATTEMPTS to aid/stimulate economic growth • Federal Farm Board: • Hold supply off market to drive up price • National Credit Corporation: • Loan money to smaller banks to stave off bankruptcy • Reconstruction Finance Corporation: • Emergency monies for large industries (banks, railroad, insurance companies) • TRIED TO ALLOW MONEY TO “TRICKLE” DOWN TO THE PEOPLE • Hoover: Too little, too late • Bonus Army (further tarnishes Hoover - 1932) • Group of veterans who were promised money to be paid out in 1945 • Put down by the military (right thing to do or not?)

  7. New Deal Fights the Depression • End of Republican rule – beginning of Democrat rule • Election of Franklin Delano Roosevelt (FDR) • Promised a “New Deal for the American people” • New Deal goals: (LARGE MOVEMENT TOWARD COMMAND ECONOMY) • (1) Relief for needy • Federal Emergency Relief Administration (FERA) • Provided direct relief to individual states (money to tickle down to the people) • (2) Economic recovery • Agricultural Adjustment Act (AAA) • Raise crop prices by limiting production (set aside land or plow under crops) • Civilian Conservation Corp (CCC) • Increased jobs (roads, bridges, planted trees, soil-erosion… etc) • Public Works Administration (PWA) • Construction of community buildings and schools • National Youth Administration (NYA) • Helped out young people with work related training (Tech Center) • (3) Financial reform • Bank Holiday – prevent anyone from withdrawing money • Investigated in sound banks – closed others • Federal Deposit Insurance Corporation (FDIC) • Insured deposited monies up to $5,000 (now $250,000) • Creation of Securities Exchange Commission (SEC) • Helped to regulate the Wall Street from fraud and corruption (misleading information)

More Related