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The Great Depression. 7. Describe what happens during a depression. . Sales , profits , and investments fall Forcing factories to produce less and lay off some of their workers U nemployment rises, causing demand for new goods to fall. DEFINE : THE GREAT DEPRESSION.
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7. Describe what happens during a depression. • Sales, profits, and investments fall • Forcing factories to produce less and lay off some of their workers • Unemployment rises, causing demand for new goods to fall
DEFINE: THE GREAT DEPRESSION The severe economic depression from 1929 to the outbreak of World War II.
DEFINE: SPECULATING Attempting to make money quickly by buying something at a low price and then selling it at a profit as its value increases.
DEFINE: LAISSEZ-FAIRE The policy of government keeping its hands off business, based on a belief that business can perform best without government regulation.
8. What was the crash of ’29? an enormous drop in stock market prices that occurred in October 1929.
9. What brought it on • It was caused by people speculating in stocks. • Stock prices kept rising and seemed to be an easy way to make a fortune. • Many people invested all their savings and borrowed money, hoping to get rich. • As businesses began to cut back on production, investors realized the price of stocks wouldn’t keep climbing. • As everyone tried to sell their stocks, stock prices dropped to less than what people had originally paid.
10. Many Americans seemed to be prospering in the 1920’s . What were some of the problems of prosperity? • Farmers were poor because they produced more than consumers could use, thus keeping crop prices low • Many industries—such as textiles, mining, and railroads—paid low wages, and workers had little to spend. • Many banks and other businesses were engaging in questionable practices • Industries had overproduced and were being forced to cut back prices and production.
11. How did the government’s laissez-faire policy result in many investors losing their money? • Most Americans believed that government should continue to follow a “hands-off” policy toward business. • As a result, business and the banking industry engaged in unsound and unfair practices. Banks, for example, made loans with little or no security to back them. • When the loans came due and the borrower could not repay them, the bank incurred the loss. • Banks collapsed, and people whose money was deposited in the bank lost everything.
12. How did America’s interdependent economy cause the depression to spread quickly and affect almost everyone? • Americans depended on one another for nearly everything—food, clothing, tools, appliances, cars, roads, electricity, protection, and other services. • Unlike the earlier predominantly agrarian economy, the American economy was linked in such a way that if one part suffered, many parts felt the effects. • For example, if auto sales dropped, the rubber and steel industry also suffered. • Even national, state, and local governments that depended on tax revenues to operate were affected by the depression.
13. How did the depression affect GA state government in 1930? • During the 1920s, the state spent more money than was available from taxes. • In 1930, Georgia could not pay its bills. • School teachers were unpaid. • Richard Russell was elected governor on a campaign promise to reorganize state government and straighten out its finances.
14. What problems did Richard B. Russell face as governor in 1930 and how did he go about solving them? • State government could not pay its bills. • Government had spent more money than it had collected taxes to pay. • With the cooperation of the General Assembly, Russell re organized state government and improved finances. • In the process, he concentrated more power in the governor’s office • especially with respect to the spending of state money.
15. What appeal did Eugene Talmadgehave to rural voters in 1932? • As Georgia’s Commissioner of Agriculture, he was familiar with the problems of the small farmer and championed their causes. • He promised to help them by reducing auto tag fees, property taxes, and state spending. • He also promised to lower utility rates.
16. What tactics did Governor Talmadge use to carry out his campaign promises • To get his way, Talmadge pressured several state officials, threatened to withhold the salaries of others, and suspended still others. • He even imposed martial law and had several officials removed from their offices by the National Guard.
17. What was the reaction of Georgians to those tactics? • Many Georgians were outraged by Talmadge’s open use of threats and rewards to get what he wanted. • Others, however, admired his strong actions.
Chapter 17 Depression Politics in Georgia: 295
1. Some rural families in Georgia didn’t even realize there was a depression going on! Why? • For many Georgians the depression began long before the crash of 1929 • Many families in rural Georgia lived in such poverty anyway they hardly knew there was a depression going on
2. In the late 1920’s, the Georgia General Assembly spent more $ than was available from taxes.
4. How much did the state owe teachers in back pay? $ 4 million
5. What 2 Georgia counties merged and became one to save money? Milton County Campbell County
9. The Georgia government was in financial trouble , and in 1930, Richard B. Russell was elected governoron a promise to reorganize state governmentand straighten out itsfinances!
9. Russell did provide Georgia with a more efficient government. During his time in office, the office of governor gained more POWER-especially over the spending of statemoney.
10. Governor Russell soon left the office of governor and was elected to the U.S. Senate
11. There was an election held to replace Russell and the voters choseEugene Talmadgeto be the new governor of GA.
Look on page 296 for facts about Talmadge: • 1. Commissioner of Agriculture • 2. Champion of the small farmers • 3. He preached ideals of thrift, hard work, and self-reliance. • 4. He was popular with rural white Georgians • 5. He promised to help them • 6. Talmadgeadmired Tom Watson
12. He pledged, “If I am elected governor of Georgia…I will”…….
13. However, when he became governor of Georgia, he found the General Assembly and other state officialsopposedhis changes that he had promised in his campaign.
14. HE WAS A MAN WHO KEPT HIS PROMISES TO THE VOTERS and he was determined to do this so he took several steps to ENFORCE HIS PROMISES:
15. Talmadge ABUSED his powers as governor—especially in finances!16. The voters of Georgia either attacked him or applauded him!!!!
