Splash Screen

1. Splash Screen

2. Chapter Introduction Section 1:The Causes of the Great Depression Section 2:Life During the Depression Section 3:Hoover Responds to the Depression Visual Summary Chapter Menu

3. What Causes Depressions? In the 1930s, the Great Depression caused high unemployment, business failures, and farm foreclosures. Many people lost their homes and savings and became willing to vote for politicians who offered new approaches to solving the crisis. • What kind of political and social problems do you think depressions cause? • Why do you think the Great Depression was worse than other economic slowdowns? Chapter Intro

4. Chapter Timeline

5. Chapter Timeline

6. The Causes of the Great Depression What factors led to the Great Depression? Chapter Intro 1

7. Life During the Depression How did people cope with life’s struggles during the Great Depression? Chapter Intro 2

8. Hoover Responds to the Depression How did Hoover’s policies attempt to lessen the Great Depression? Chapter Intro 3

9. Chapter Preview-End

10. Big Ideas Economics and SocietyStock speculation on an unregulated stock market put investors and banks at risk in the 1920s. Section 1-Main Idea

11. Content Vocabulary • stock market • bull market • margin • margin call • speculation • bank run • installment Academic Vocabulary • collapse • invest • sum Section 1-Key Terms

12. People and Events to Identify • Alfred E. Smith • Black Tuesday • Hawley-Smoot Tariff Section 1-Key Terms

13. A B Do you think that playing the stock market is too risky? A. Yes B. No Section 1-Polling Question

14. The Long Bull Market A strong economy helped Herbert Hoover win the 1928 election, but increasing speculation in the stock market set the stage for a crash. Section 1

15. The Long Bull Market (cont.) • Herbert Hoover, a Republican, and Alfred E. Smith, a Democrat, both ran for president in 1928. • Smith was the first Roman Catholic to win a majority party’s nomination for president. • Hoover defeated Smith, and promised a bright future for the country. Hoover and “Rugged Individualism” Section 1

16. The Long Bull Market (cont.) • Sometimes the stock market experiences a long period of rising stock prices, or a bull market. • In the late 1920s a prolonged bull market convinced many people to invest in stocks. • As the market continued to soar, many investors began buying stocks on margin, making only a small cash down payment. Section 1

17. The Long Bull Market (cont.) • To protect the loan, a broker could issue a margin call, demanding the investor repay the loan at once. • Buyers, hoping for a quick windfall, engaged in speculation. Section 1

18. A B C D What was Smith’s biggest challenge during the election of 1928? A.Being a Roman Catholic B.Republicans taking credit for the nation’s prosperity C.His stance on taxes and the current economic situation D.His past Section 1

19. The Great Crash Rising stock process led to risky investment practices; when the stock market crashed, banks were in trouble. Section 1

20. The Great Crash (cont.) • By the latter half of 1929, the market was running out of new customers. • In September, professional investors sensed danger and began to sell off their holdings. • Prices continued to fall. Section 1

21. The Great Crash (cont.) • On October 24, a day that came to be called Black Thursday, the market plummeted further. • On October 29, a day that was later dubbed Black Tuesday, prices took the steepest dive yet. • By mid-November, stock prices had dropped by more than one-third. Stock Prices, 1920–1932 Section 1

22. The Great Crash (cont.) • The market crash severely weakened the nation’s banks in two ways: • First, by 1929 banks had loaned nearly $6 billion to stock speculators. • Second, many banks had invested depositor’s money in the stock market, hoping for higher returns than they could get by using the money for loans. Bank Failures, 1928–1933 Section 1

23. The Great Crash (cont.) • When the stock market collapsed, banks lost money on their investments, and speculators defaulted on their loans. • Many banks then cut back drastically on the loans they made. • Consumers and businesses were not able to borrow as much money. • This helped send the economy into a recession. Bank Failures, 1928–1933 Section 1

24. The Great Crash (cont.) • More than 10 percent of the nation’s banks had closed by 1932. • If a bank collapsed, all customers lost their savings. • Some depositors made bank runs, causing the banks to collapse. Unemployment, 1928–1938 Section 1

25. A B The stock market crash was the major cause of the Great Depression. A.Yes B.No Section 1

26. The Roots of the Great Depression An uneven distribution of income, tariff policies, and the Federal Reserve Board’s mistakes contributed to the Great Depression. Section 1

27. The Roots of the Great Depression (cont.) • The roots of the Great Depression were deeply entangled in the economy of the 1920s. • Most economist agree that overproduction was a key cause of the Great Depression. • Most Americans did not earn enough to buy up the flood of goods they helped produce. Causes of the Great Depression Section 1

28. The Roots of the Great Depression (cont.) • During the 1920s, many Americans had purchased high-cost items on the installmentplan. • Paying off such debts eventually forced some buyers to stop making new purchases. • Because of the decrease in sales, manufacturers in turn cut production and laid off employees. • A chain reaction ensued—when one company shut down, many others were affected. Section 1

29. The Roots of the Great Depression (cont.) • Many jobs might have been saved if American manufacturers had sold more goods abroad. • The Hawley-Smoot Tariff raised the average tariff rate to the highest level in American history. • However, it failed to help American business because foreign countries responded by raising their own tariffs. • By 1932 exports were about one-fifth of what they had been in 1929. Section 1

30. The Roots of the Great Depression (cont.) • Instead of raising interest rates to curb excessive speculation, the Federal Reserve Board kept its rates very low throughout the 1920s. • The Board’s failure to raise interest rates helped cause the Depression in two ways: • First, by keeping rates low, it encouraged member banks to make risky loans. Section 1

31. The Roots of the Great Depression (cont.) • Second, its low interest rates led business leaders to think the economy was still expanding. • The Board made another mistake after the Depression hit—they raised interest rates, tightening credit. Section 1

32. A B C D In 1929, the top 5 percent of all American households earned what percent of the nation’s income? A.10 percent B.30 percent C.50 percent D.70 percent Section 1

33. Section 1-End

34. Big Ideas Past and PresentAs the Great Depression and the drought worsened, thousands of people tried to find work and shelter in other places. Section 2-Main Idea

35. Content Vocabulary • bailiff • hobo • soap opera Academic Vocabulary • suspend • colleague • technique Section 2-Key Terms

36. People and Events to Identify • Dust Bowl • Walt Disney • John Steinbeck • William Faulkner • Grant Wood Section 2-Key Terms

37. A B Can movies provide an escape from life? A. Yes B. No Section 2-Polling Question

38. The Depression Worsens Hunger and homelessness became severe problems by the early 1930s; then, a terrible drought devastated the Great Plains. Section 2

39. The Depression Worsens (cont.) • Throughout the country, newly homeless people put up shacks on unused or public lands, forming communities called shantytowns, or Hoovervilles. • Many had been thrown out of their homes by bailiffs. • In search of work or a better life, many hobos began to wander around the country. Section 2

40. The Depression Worsens (cont.) • Farmers left many of their fields uncultivated due to a drop in crop prices. When a drought struck the Great Plains, the exposed soil turned to dust. • From the Dakotas to Texas, America’s wheat fields became a vast“Dust Bowl.” Section 2

41. A B C D To where did most people from the Great Plains migrate in hopes of a better future? A.Mexico B.Canada C.California D.Florida Section 2

42. Art and Entertainment Movies and radio shows were very popular during the 1930s, a period that also produced new art and literature. Section 2

43. Art and Entertainment (cont.) • The hard times of the 1930s led many Americans to prefer entertainment that let them escape their worries. • In the late 1930s, the “superhero” genre was born with the printing of the first tales of Superman in 1938 and Batman in 1939. Section 2

44. Art and Entertainment (cont.) • During the 1930s, more than 60 million Americans went to the movies each week. • Walt Disney produced the first feature-length animated film, Snow White and the Seven Dwarfs, in 1937. Section 2

45. Art and Entertainment (cont.) • While movies captured the imagination, radio offered information and entertainment as near as the living room. • Radio dramas, nicknamed soap operas, also became popular. Section 2

46. Art and Entertainment (cont.) • Writers and artists tried to portray life around them, using the homeless and unemployed as their subjects in stories and pictures. • John Steinbeck and William Faulkner were two influential novelists. Section 2

47. Art and Entertainment (cont.) • Photographers roamed the nation with the new 35-millimeter cameras, seeking new subjects. • The striking pictures of photojournalists Dorothea Lange and Margaret Bourke-White showed how the Great Depression had affected average Americans. • Painters in the 1930s included Thomas Hart Benton and Grant Wood, whose styles were referred to as the regionalist school. Section 2

48. A B C D Which book did John Steinbeck write? A.The Sound and the Fury B.Huckleberry Finn C.The Grapes of Wrath D.The Scarlet Letter Section 2

49. Section 2-End

50. Big Ideas Government and SocietyPresident Hoover’s ideas about government shaped his response to the Great Depression, making the government slow to respond. Section 3-Main Idea