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UNIT 5 Chapter 22 – Crash and Depression Chapter 23 – The New Deal

UNIT 5 Chapter 22 – Crash and Depression Chapter 23 – The New Deal. THE GREAT DEPRESSION. Presidents of the United States. #21 - … Chester A. Arthur; Republican (1881) Grover Cleveland; Democrat (1884) Benjamin Harrison; Republican (1888) Grover Cleveland; Democrat (1892)

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UNIT 5 Chapter 22 – Crash and Depression Chapter 23 – The New Deal

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  1. UNIT5Chapter 22 – Crash and DepressionChapter 23 – The New Deal THEGREAT DEPRESSION

  2. Presidents of the United States • #21 - … • Chester A. Arthur; Republican (1881) • Grover Cleveland; Democrat (1884) • Benjamin Harrison; Republican (1888) • Grover Cleveland; Democrat (1892) • William McKinley; Republican (1896) • Theodore Roosevelt; Republican (1901) • William Howard Taft; Republican (1908) • Woodrow Wilson; Democrat (1912) • Warren G. Harding; Republican (1920) • Calvin Coolidge; Republican (1923) • Herbert Hoover; Republican (1928) • Franklin D. Roosevelt; Democrat (1932) George Washington; Federalist (1788) John Adams; Federalist (1796) Thomas Jefferson (1800) James Madison (1808) James Monroe (1816) John Quincy Adams (1824) Andrew Jackson; Democrat (1828) Martin Van Buren; Democrat (1836) William Henry Harrison; Whig (1840) John Tyler; Whig (1841) James K. Polk; Democrat (1844) Zachary Taylor; Whig (1848) Millard Fillmore; Whig (1850) Franklin Pierce; Democrat (1852) James Buchanan; Democrat (1856) Abraham Lincoln; Republican (1860) Andrew Johnson; Democrat (1865) Ulysses S. Grant; Republican (1868) Rutherford B. Hayes; Republican (1876) James Garfield; Republican (1880)

  3. America: Pathways to the Present Chapter 22 Crash and Depression (1929–1933)

  4. OBJECTIVES • CORE OBJECTIVE: Analyze the causes and effects of the Great Depression • Objective 6.1: What were the main causes of the Great Depression? • Objective 6.2: Describe the social problems and struggles created by poverty during the Depression. • Objective 6.3: How did Americans pull together to survive the Great Depression? • Objective 6.4: Analyze the differences between President Hoover’s response to the Great Depression and Franklin Roosevelt’s promise for change. • THEME:

  5. America: Pathways to the Present Chapter 22: Crash and Depression (1929–1933) Section 1: The Stock Market Crash Section 2: Social Effects of the Depression Section 3: Surviving the Great Depression Section 4: The Election of 1932

  6. Chapter 22SECTION 1 – The Stock Market Crash When the economy…

  7. The Market Crashes • The market crash in October of 1929 happened very quickly. • In September, the Dow Jones Industrial Average, an average of stock prices of major industries, had reached an all time high of 381. • On October 23 and 24, the Dow Jones Average quickly plummeted, which caused a panic. • On Black Tuesday, October 29, 1929, the stock market set a record for loss in value • most people sold their stocks at a tremendous loss. • 16.4 million shares were sold • This collapse of the stock market in October 1929 is called the Great Crash. Overall losses totaled $30 billion. • The Great Crash was part of the nation’s business cycle, a span in which the economy grows, and then contracts. WRITE THIS DOWN!

  8. Great Crash Great Crash Great Crash Great Crash Great Crash World Payments World Payments World Payments Investors Investors Investors Investors Investors Businesses and Workers Businesses and Workers Businesses and Workers Businesses and Workers Overall U.S. production plummets. Overall U.S. production plummets. Overall U.S. production plummets. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Investors lose millions. Banks Banks Banks Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Businesses and workers cannot repay bank loans. Consumer spending drops. Consumer spending drops. Consumer spending drops. U.S. investors have little or no money to invest. U.S. investors have little or no money to invest. U.S. investors have little or no money to invest. Consumer spending drops. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Allies cannot pay debts to United States. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses lose profits. Businesses cut investment and production Some fail. Businesses cut investment and production. Some fail. Businesses cut investment and production Some fail. Savings accounts are wiped out. Savings accounts are wiped out. Savings accounts are wiped out. Businesses cut investment and production Some fail. Banks run out of money and fail. Banks run out of money and fail. Banks run out of money and fail. Workers are laid off. Workers are laid off. Workers are laid off. Workers are laid off. Europeans cannot afford American goods. Europeans cannot afford American goods. Europeans cannot afford American goods. U.S. investments in Germany decline. U.S. investments in Germany decline. U.S. investments in Germany decline. Bank runs occur. Bank runs occur. Bank runs occur. German war payments to Allies fall off. German war payments to Allies fall off. German war payments to Allies fall off. Effects of the Great Crash, 1929

  9. The Great Depression • The economic contraction that began with the Great Crash triggered the most severe economic downturn in the nation’s history—the Great Depression. • The Great Depression lasted from 1929 until the United States entered World War II in 1941. • The stock market crash of 1929 did not cause the Great Depression. • Rather, both the Great Crash and the Depression were the result of deep underlying problems with the country’s economy. WRITE THIS DOWN!

  10. HOW THE CRASH SPREAD • Risky loans– Banks earn profit from loans, to earn profit they made risky loans • Consumer borrowing– citizens borrowed to purchase goods; when loans were due they could not pay • Bank runs • Bank failures • Savings wiped out • Production cuts • Rise in unemployment • Further production cuts

  11. Underlying Causes of the Depression • An Unstable Economy • The prosperous economy of the 1920s lacked a firm base. The nation’s wealth was unevenly distributed. • Those who had the most tended to save or invest rather than buy goods. • Industry produced more goods than most consumers wanted or could afford. • Overspeculation • Speculators bought stocks with borrowed money and then pledged those stocks as collateral to buy more stocks. • The stock market boom was based on borrowed money. • Government Policies • During the 1920s, the Federal Reserve System cut interest rates to assist economic growth. • In 1929, it limited the money supply to discourage lending. • As a result, there was too little money in circulation to help the economy after the Great Crash. WRITE THIS DOWN!

  12. Chapter 22SECTION 2 – Social Effects of the Depression When the economy…

  13. Poverty Spreads • People of all levels of society faced hardships during the Great Depression. • Unemployed laborers, unable to pay their rent, became homeless. • Sometimes the homeless built shacks of tar paper or scrap material. These shanty town settlements came to be called Hoovervilles. • Farm families suffered from low crop prices. • As a result of a severe drought and farming practices that removed protective prairie grasses, dust storms ravaged the central Great Plains region. • This area, stripped of its natural soil, was reduced to dust and became known as the Dust Bowl. • The combination of the terrible weather and low prices caused about 60 percent of Dust Bowl families to lose their farms.

  14. The Extent of Erosion in the 1930s

  15. Poverty Strains Society WRITE THIS DOWN! • Impact on Health • Some people starved and thousands went hungry. • Children suffered from poor diet and inadequate medical care. • Stresses on Families • Living conditions declined as families crowded into apartments. • Men felt like failures because they couldn’t provide for families. • Working women were accused of taking jobs away from men. • Discrimination Increases • Competition for jobs produced a rise in hostilities against African Americans, Hispanics, and Asian Americans. • Lynchings increased. • Aid programs discriminated against African Americans.

  16. Social Effects of the Depression—Assessment What factors contributed to disaster for farming families living in the Dust Bowl? (A) Drought (B) Farmers plowing under prairie grasses (C) Decreased prices for agricultural goods (D) All of the above The shanty towns made up of temporary shacks were called: (A) Roosevilles (B) Hoovervilles (C) Greenspans (D) Simpson towns

  17. Social Effects of the Depression—Assessment What factors contributed to disaster for farming families living in the Dust Bowl? (A) Drought (B) Farmers plowing under prairie grasses (C) Decreased prices for agricultural goods (D) All of the above The shanty towns made up of temporary shacks were called: (A) Roosevilles (B) Hoovervilles (C) Greenspans (D) Simpson towns

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