Causes of the Great Depression and the Great Depression (Chapter 22)
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Transcript of NEXT Children in Monroe County, Georgia, during the Great Depression. The Great Depression and the...
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Children in Monroe County, Georgia, during the Great Depression.
The Great Depression andthe New Deal, 1928–1940
The strong economy of the 1920s collapses, leaving many without jobs or homes. The federal government launches ambitious programs to help Americans recover.
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The Great Depression andthe New Deal, 1928–1940
SECTION 1
SECTION 2
SECTION 3
The Great Depression
The New Deal in the South
Life During the Depression
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The Crash of 1929 and the Great Depression
The Great Depression
Black Tuesday• President Herbert Hoover opposes government
interference in business• More people invest in stock market in 1920s than
ever before• Stock market begins to drop, September 1929;
drop believed temporary• Market crashes on October 29, 1929—Black
Tuesday- some investors lose millions, companies and
banks go bankrupt• Crash is start of Great Depression—long period
of economic problems
SECTION
1
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1
Many Factors Involved• Great Depression and Black Tuesday are results
of several factors- most wealth held by few people; many lack
money to buy things- consumers not buying enough goods; prices
too high on some items- farmers producing too much, lowering farming
prices- falling demand hurts industries; business,
public debt too large - government not monitoring banks, economy, or
controlling cash flow
Causes of the Depression
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SECTION
1
Agriculture• Georgia farmers in serious trouble by 1930s• Boll weevil ruins cotton crops; 3 million acres
abandoned• Cotton prices drop, textile mills close • Many landowners lose farms, kick sharecroppers,
tenants off farms
Impact of the Crash on Georgians
Continued . . .
Industry and Business• Depression wipes out Georgia’s industrial gains of
1920s • Many lose jobs; small businesses hit especially
hard
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1
Unemployment• At Depression’s height, 25% of working-age
Americans unemployed • In 1932, employed people face pay cuts up to
50%• People rely on churches, community
organizations for food• Many live in “Hoovervilles,” communities of
makeshift shacks
continued Impact of the Crash on Georgians
Image
Banks• Thousands of banks close doors, lack cash to pay
customers• Many banks invest in companies that go broke at
Depression’s start
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SECTION
1
Slow Response• Hoover tries to balance U.S. budget; cuts
spending, raises taxes- pulls cash out of economy; economists believe
it worsens slump• By 1932, Hoover sets up public works programs
to create jobs
Hoover Reacts Conservatively
Time for Revolution?• Communist Party in U.S. is small; sees crisis as
chance to revolt• Communist Angelo Herndon organizes 1932
march on Atlanta city hall • City boosts emergency relief, but Herndon
convicted of insurrection
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1
Roosevelt Promises Action• Hoover’s response to crisis is slow; people want
action• Franklin D. Roosevelt runs against Hoover in
1932, vows change• Roosevelt elected; creates Brain Trust before
inauguration• Brain Trust—group of experts with plans to fight
Depression
The 1932 Presidential Election: “Try Something”
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“A New Deal for the American People”
The New Deal in the South
The Hundred Days• Roosevelt takes office March 4, 1933, sets New
Deal in motion• New Deal—government programs designed to
fight the Depression • Hundred Days are session of Congress beginning
March 9, 1933• During Hundred Days, Roosevelt proposes new
federal agencies- legislation based on “three Rs”—relief, recovery,
reform• New Deal tries to attack all aspects of Depression,
rebuild economy
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2
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Talmadge Resists the New Deal
Resistance to Job Programs• Eugene Talmadge elected Georgia governor,
1932; opposes New Deal- fears people will not work on farms if job
programs pay more• U.S. keeps wages similar to local pay, programs
stop at harvest • Talmadge appeals to small farmers, workers; is
reelected in 1934• Voters eventually want New Deal help, elect
Eurith D. Rivers, 1936• Rivers’s administration called “Little New Deal”
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2
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New Deal Programs in Georgia
Agricultural Adjustment Administration (AAA)• New Deal programs are national; affect Georgia
along with U.S.• AAA pays farmers to reduce crop, herd sizes;
reducing supplies• Many tenant farmers and sharecroppers no
longer needed• Program hurts African Americans, poor whites;
landowners benefit
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2
Continued . . .
ImageCivilian Conservation Corps (CCC)• Over 100 CCC camps in Georgia, 15 for African
Americans- create environmental projects, buildings in
national, state parks
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Federal Deposit Insurance Corporation (FDIC)• By 1933, many people are afraid to use banks • FDIC guarantees bank account safety, restores
confidence in banks
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2
continued New Deal Programs in Georgia
National Industrial Recovery Act (NIRA)• NIRA, gives workers right to unionize, encourages
minimum wage• Other laws set better working conditions, limit work
hours• Southern textile mill workers strike in Uprising of ’34• 75% of Georgia textile workers walk out, National
Guard ends strike
Continued . . .
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Tennessee Valley Authority (TVA)• TVA builds dams in Tennessee River Valley to
generate electricity• Brings electricity to rural areas in seven states
SECTION
2
continued New Deal Programs in Georgia
Rural Electrification Administration (REA)• Wires rural areas for electricity, supplies nearly
300,000 families
Continued . . .
African Americans and the New Deal• African Americans benefit less than whites from
New Deal - get average of $19.29 relief per month
(whites get $32.66)- still support Roosevelt, New Deal
programs, Democrats
Image
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Women in the New Deal• First lady Eleanor Roosevelt champions African
Americans- backs social reforms, women’s and children’s
issues• More women hold positions in Roosevelt
presidency than ever before• Secretary of Labor Frances Perkins is first female
cabinet member- supports minimum wage, child labor laws,
unemployment compensation
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2
continued New Deal Programs in Georgia
Image
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The Second New Deal
The Second New Deal in Georgia• Second New Deal replaces New Deal programs
found unconstitutional• Works Progress Administration (WPA) creates
Federal Writers Project- funds public art projects; murals painted for
Georgia post offices- collects data on history and culture of each
U.S. state• Soil Conservation Service teaches farmers to
rotate crops- introduces plants to control erosion—one,
kudzu, becomes problem
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2
Chart
Section 3
Life During the DepressionDuring the Depression, people suffer great hardships but find ways to survive.
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Living with the Depression
Life During the Depression
Jobs• New Deal unemployment still high—9 million out of
work in 1936• Georgia landowners hire few workers; people
wander, seek land, work• Erskine Caldwell, Georgia author, writes Tobacco
Road, 1932- novel about white sharecroppers is negative,
depicts hopelessness • Many rely on New Deal programs for work; often
whole families work• Many families cannot afford to pay mortgages; lose
homes
SECTION
3
Continued . . .
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Places to Live• Hoovervilles grow in size, number; most city
people live in slums• In Atlanta, 39% in substandard housing—mostly
African Americans• Public Works Administration (PWA) put in
place to clean up slums- builds public housing—Techwood Homes
(1935) for whites• University Homes (1937) for African Americans
SECTION
3
continued Living with the Depression
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Forgetting One’s Troubles• People find ways to briefly forget troubles; sports,
movies popular• Fishing, games, window shopping are
inexpensive entertainment
SECTION
3
Entertainment During the Depression
Gone With the Wind• Atlanta premiere of Gone with the Wind movie,
December 15, 1939• Based on best-seller by Margaret Mitchell;
premiere tickets are $10
Radio• People gather to hear radio shows, similar to
watching TV today• Sports attendance drops, many people listen to
games on radio
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Some Georgians Leave• New Deal does not solve problems overnight• Farmers still have poor soil, little money, low crop
prices• Some Georgians leave state, hitchhiking or
jumping on trains• U.S. buys Georgia land, builds military facilities,
1939–40• Many American leaders know U.S. is headed for
war in Europe
SECTION
3
Seeking a Better Life
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