Timer Ranking the Causes 1. Stock Market Crash Of The Great Depression 2. High Unemployment Rates 3....
-
Upload
blaze-horn -
Category
Documents
-
view
217 -
download
0
Transcript of Timer Ranking the Causes 1. Stock Market Crash Of The Great Depression 2. High Unemployment Rates 3....
Timer
Ranking the Causes
1. Stock Market Crash Of The Great Depression
2. High Unemployment Rates 3. People Stopped Spending Money 4.4. Overproduction of goodsOverproduction of goods5. False Sense Of Prosperity Before The
Great Depression6. Global Crisis / High National Debt7. Speculation And Overleverage in the stock
market8. Bank Failures9. Lack Of Available Credit10.Dust Bowl / Drought conditions on farms
2nd Hour – Review Crews
Velociraptors Eric Robinson Kymberley Leggett John Couperthwaite Ashley Kylman
Triceratops Elijahwan Wilson Carlos Clark Lindsay Lore Virginia Leinonen
Stegosaurus Nathan Spears Erin Douglas Keaton Feil Hunter Cole
T-Rex Zachary Martin Amber Severin Tyler Barlow Chase Duncan
Brachiosaurus Austin Dale Carla Crowe Wesley LaPrarie Abbey Bentley
Allosaurus DaOnjra Patterson John Toth Benjamin Shingles
3rd Hour – Review Crews ManBearPigs
Fairchild, William E Bragenzer, Clayton J Beach, Devin M Hinch, Kelsea E
Lions Gorham, Marissa L Kranz, Jordan A Kibzey, Shyanne M Lopez, Veronica A
Wolves Anderson, Alexa M Baker, Allie H Stewart, Kayla M Belton, MerSadie J
Jaguars Carter, Carlisa R McKean, Matthew M Sackett, Alyssa M Jackson, J'ante D
Bears Walrath, Bryce S Johnson, Kyle A Fowler, Taryn M Jackson, Keion A
Cheetahs Keith Young, Tatyana L Moon, Blair R Akridge, Ryan N Aldridge Jr, Paul E
Leopards Johnson, Lashawn C Townsend, Tanishia R Harris, Arcell H Perkins, Victoria E
Panthers Parker, Amanda N Fluker, Alicia D Inthaphone, James S Schultz, Aaron D
Gorillas Morgan, Jerren Dumas, Xavier C Temple, Alec S Daniel, Makayla N
Tigers Clark, Aujonea V Phillips, Kyron R Gill, Juliet A Jones, Pharoah A
4th Hour Review Crews Lincoln
Martinez, Anthony C Turner, Mycah M Cowan, Daniel M Craig, Hayley E
Mercedes Carr, Brendan DeJesus, Angel L Boone, Briece D Powdhar Curry, Sierra S
Lexus Richards, Jason R Melms, Svan T Hollis, Kendra Daniels, Cynthia K
Chrysler Mcmullen, Gracie J Gaskins, Jacob C Bullock, Jackson T Pope, Ciara L
Jaguar Phillips, Evan H Duceac, Emmanuel Melidosian, Bradley K Butler, Jason A
Ferrari Pohl, Ryan J Jones, Jacoby K Ochs, Trever L Severin, Harley F
Cadillac Morgan, Marquis J Emerson, Kevin S Riggs, Amanda L Tarrow, Matthew A
Lamborghini Kaminski, Noah J Best, Kayla C Young, Tylor D Latham, Mecca C
Bentley Cozart, Chase A Davis, Cornell T Wilson, Emerson A
Porsche La Mothe, Dakota M Nance, Douglas D Banks, Jasmine B
5th Hour Review Crews
Hawks Aldridge, Pharrah E Taylor, Damion Sills, Scott A Chandler, Ashley S
Eagles Johnson, Celika D Bellant, Brandon L Przystup, Tracia Ware, Michael D
Kites Cook, Thomas D McGee, Ashante B Smith, A'Londre A Spencer, Austin R
Ospreys Cushing, Mariah K Scott, Sheridan N Hampton, Tabatha S Lowe, Verniece
Falcons Essex, Theotis K Briske, Trevor L Nowland, Madisen
Buzzards Johnson, Arkalah M Grishaber, Blake L Kirchoff, Marie A
Thesis Question
Should the government invest more money to help ease the recession? The government should invest more
money to help ease the recession. The government should not invest more
money to help ease the recession. State 3 reasons why you have this
opinion…
Causes of the Great Depression
Agricultural overproduction
Industrial overproduction
Unequal distribution of wealth
Over-extension of credit International economic
situation (lack of trade)
Great Depression Overview.Factors of the Great DepressionEconomic factorsGeographic factorsSocial factors
Economic factors
Overproduction Farms and companies were producing more products than
could be sold. More supply than demand leads to low prices.
Uneven economic growth The rich were getting richer and the poor were staying
poor Unsound credit practices
People were buying on credit and not paying it back Stock market speculation
Buying on margin. The stock exchange allowed people to buy stocks assuming they would go up. They would not and the stockholders never paid. This caused the stock market to crash
Deflation The opposite of inflation. A general decrease in the price
of goods.
Geographic factors
Inappropriate farming practices – cultivation of marginal farmland.
Over-farming and exhaustion of topsoil Drought Erosion due to wind and dust storms In the Dust Bowl, drought, wind and
dust eroded millions of acres of topsoil contributing to a 60% percent decline in farm income and one-third of farmers losing their land.
Social factors
uneven distribution of wealth unemployment disruption of family life homelessness due to foreclosures interdependence Herbert Hoover’s belief in laissez
faire capitalism limited his willingness to involve the federal government in direct intervention in the economic crisis.
The Roaring 20’s The new concept
of “credit” People were
buying: Automobiles Appliances Clothes
Fun times reigned Dancing Flappers Drinking
Why was this bad? Credit system
People didn’t really have the money they were spending
WWI The U.S. was a major
credit loaner to other nations in need
Many of these nations could not pay us back
THE STOCK MARKET
By 1929, many Americans were invested in the Stock Market
The Stock Market had become the most visible symbol of a prosperous American economy
The Dow Jones Industrial Average was the barometer of the Stock Market’s worth
The Dow is a measure based on the price of 30 large firms
STOCK PRICES RISE THROUGH THE 1920s
Through most of the 1920s, stock prices rose steadily
The Dow reached a high in 1929 of 381 points (300 points higher than 1924)
By 1929, 4 million Americans owned stocks
New York Stock Exchange
The Stock Market People bought
stocks on margins If a stock is $100
you can pay $10 now and the rest later when the stock rose
Stocks fall Now the person
has less than $100 and no money to pay back
And then….
With people panicking about their money investors tried to sell their stocks This leads to a huge
decline in stocks Stocks were worthless
now People who bought on
“margins” now could not pay
Investors were average people that were now broke
THE 1929 CRASH
In September the Stock Market had some unusual up & down movements
On October 24, the market took a plunge . . .the worst was yet to come
On October 29, now known as Black Tuesday, the bottom fell out
16.4 million shares were sold that day – prices plummeted
People who had bought on margin (credit) were stuck with huge debts
By mid-November, investors had lost about $30 billion
1929-1939 Stock market
crash Didn’t realize
the effect it would have
No money to replenish what was borrowed
Many found being broke humiliating.
Herbert Hoover was president at the start of the Depression
Philosophy: We’ll make it!
What He Did: Nothing The poor were
looking for help and no ideas on how to correct or help were coming
Voluntary Measures
Hoover eventually established two privately-funded organizations: The National Credit Association
provided $1/2 billion to businesses for emergency loans, but it was too under-funded to do much good.
The Organization for Unemployment Relief was a clearing house for relief agencies. However, state and local governments were already in too much debt to benefit from it.
Limited Government Intervention
In the end, Hoover resorted to government intervention: The Reconstruction Finance Corp
gave $1-1/2 billion in federal loans to banks, insurance companies, and industry to prevent bankruptcies, but it was too little, too late.
The Home Loan Bank Act provided federal loans to homeowners to prevent foreclosures, but got bogged down in red tape.
Reasons for Ineffectiveness
Hoover thought business should be self-regulating.
He had a mania for a balanced budget.
He lacked political finesse.
Farmers were already feeling the effects Prices of crops went down Many farms foreclosed
People could not afford luxuries Factories shut down Businesses went out
Banks could not pay out money People could not pay their taxes
Schools shut down due to lack of funds
Many families became homeless and had to live in shanties
Many waited in unemployment lines hoping for a job.
People in cities would wait in line for bread to bring to their family.
Some families were forced to relocate because they had no money.
“Hooverville” Some families were forced to live in shanty towns A grouping of
shacks and tents in vacant lots
They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.
A drought in the South lead to dust storms that destroyed crops.
“The Dust Bowl”
The South Was Buried Soil turned to dust = No
food to sell Homes buried Fields blown away South in state of emergency
Dust Bowl the #1 weather crisis of the 20th century
Two Families During the Depression
A Farm Foreclosure
Some families tried to make money by selling useful crafts like baskets.
REVIEW:Causes of the Great Depression Agricultural
overproduction Industrial
overproduction Unequal distribution of
wealth Over-extension of credit International economic
situation
The New Deal
*FDR* Franklin Delano
Roosevelt When he was
inaugurated unemployment had increased by 7 million.
Poor sections (like Harlem) had 50% of the pop. unemployed
Instated the “New Deal”
Yea! Frankie!
Franklin D. Roosevelt’s Appeal In 1932 presidential
election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”
Norman Thomas, the Socialist candidate, was viewed as a radical.
Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.
A Landslide Victory for FDR
Situation When FDR Entered Office
In March 1933, the country was virtually leaderless and the banking system had collapsed.
FDR Restored Confidence
In his inaugural address, he said “The only thing we have to fear is fear itself….”
He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.
FDR’s Personal Qualities
He was a practical politician who practiced the art of the possible.
He was a charismatic person who exhibited a warmth and understanding of people.
He knew how to handle press by focusing attention on Washington.
He provided dynamic leadership in a time of crisis.
He was willing to experiment
Purposes of the New Deal
Relief: to provide jobs for the unemployed and to protect farmers from foreclosure
Recovery: to get the economy back into high gear, “priming the pump”
Reform: To regulate banks, to abolish child labor, and to conserve farm lands
Overall objective: to save capitalism
Sources of New Deal Ideas Brains Trust: specialists and
experts, mostly college professors, idea men
New Economists: government spending, deficit spending and public works, government should prime economic pump
Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationists, anti-inflationists -- often conflicting, compromising, blending ideas
First New Deal (1933-1934)
Emphasis: reform Political Position:
conservative Primary aim: economic
recovery Philosophy: economic
nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)
Objectives: higher prices for agriculture and business
Beneficiaries: big business and agricultural business
National Recovery Act (NRA) Purpose: recovery
of industry Created a
partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition
1st Agricultural Adjustment Act (AAA)
Purpose: the recovery of agriculture
Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn
Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer
Federal Emergency Relief Admin (FERA) Purpose: relief Gave money to
states and municipalities so they could distribute money, clothing, and food to the unemployed
Civilian Conservation Corp (CCC) Purpose: relief Gave outdoor
work to unemployed men between the ages of 17 and 29
They received $30 per month, but $22 went back to the family
Federal Deposit Insurance Corporation (FDIC)
Purpose: To protect people’s money that has been deposited in banks.
Reason: banks were failing and people would lose their money when a bank went out of business
Practice: Bank accounts would be insured so that the government would replace any money lost if a bank went out of business.
1934 - $2,500 would be insured 2012 - $250,000 would be insured
Second New Deal (1934-1941) Emphasis: reform
Political Position: liberal Primary aim:
permanent reform Philosophy:
international economic cooperation and economic abundance
Objectives: increased purchasing power and social security for public
Beneficiaries: small farmers and labor
Social Security Act
Purpose: reform Gave money to
states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.
National Labor Relations Act
Purpose: reform Put restraints on
employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.
2nd Agricultural Adjustment Act (AAA) Purpose: recovery
for agriculture Paid farmers for
conservation practices, but only if they restricted production of staple crops.
U.S. Housing Authority
Purpose: recovery and reform
Used federal funds to tear down slums and construct better housing.
Securities and Exchange Commission(SEC) Purpose: Regulate the stock
market Reason: people were losing
their investments because traders would sell stocks that were poor
Practice: The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting.
The New Deal on Trial
By 1935, political disunity was evident. There were critics on the right and the left.
NENEW W DEDEALAL
Criticisms of Conservative Opponents Conservative opponents said the New Deal
went too far: It was socialism (killed individualism) It added to the national debt ($35 billion) It wasted money on relief and encouraged
idleness It violated the constitution & states rights It increased the power of the
Presidency FDR was reaching toward dictatorship Congress a rubber stamp Independence of judiciary threatened Separation of powers shattered
Anti-New Deal Organization Conservative
opponents to the New Deal had an organization called the American Liberty League. They had money but were small in numbers, so FDR was not worried.
Moderate Legislation
FDR sponsored moderate legislation to silence radical opposition: Revenue Act of 1935 – Response to Huey Long.
Increased taxes on large incomes and corporations.
Banking Act of 1935 – Response to Coughlin. Extended federal control over private banking practices.
Social Security Act of 1935 Response to Townsend. Included provisions for unemployables (dependent children, the disabled, blind), unemployment insurance, and old-age pensions.
The Election of 1936 The Election of 1936:
Made the Democratic party the majority party
Created a new Democratic coalition composed of both traditional elements and new elements
Showed that the American people rejected radical solutions to depression
The Election of 1936 – Another Landslide
Protection of New Deal Accomplishments Steps FDR took to protect
New Deal accomplishments (both failed): Court-Packing Plan
(proposed increasing Supreme Court from 9 to 15 members, caused in revolt in Dem. Party)
Purge of the Democratic Party in the Election of 1938 (came out strongly in favor of liberal Dem. Candidates, evidence that he interfered in a state campaign, Republicans gained strength in both houses of Congress)
Decline of New Deal Reform after 1937 Reasons for decline of New Deal reform
after 1937: Court-packing plan made Congress irritable. Recession of 1937-38 weakened confidence in
New Deal measures. Republicans gained strength in both houses.
Attempted purge of Democratic party failed. Conservative Democrats were elected to office.
Resentful of attempted party purge, they joined ranks with Republicans to block New Deal legislation.
Increasing focus on foreign affairs.
The Significance of
the New Deal
Physical Rehabilitation of Country Attacked soil erosion Built dams and planted
trees to prevent floods Reclaimed the
grasslands of the Great Plains
Developed water power resources
Encouraged regional reconstruction projects like the TVA and Columbia River project
Human Rehabilitation
Established the principle that government has responsibility for the health, welfare, and security, as well as the protection and education of its citizens
Embraced social security, public health, housing
Entered the domain of agriculture and labor
Revitalization of Politics
Strengthened executive branch
Reasserted presidential leadership
Revitalized political party as a vehicle for the popular will and as an instrument for effective action.
Extension of Democracy
Redefined the concept of democracy so that it included not only political rights but economic security and social justice as well.
Maintenance of a Democratic System
The New Deal maintained a democratic system of government and society in a world threatened by totalitarianism. Increased size and scope of
government to meet needs of the depression
Provided the leadership that enabled Congress to put through the necessary relief, recovery, and reform measures.
Sponsored moderate legislation to neutralize the popularity of radical opponents
Government Expenditures
The total cost of the current bailout now exceeds $4.6 trillion dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation:
Marshall Plan: Cost: $12.7 billion ($115.3 billion) Louisiana Purchase: Cost: $15 million ($217 billion) Race to the Moon: Cost: $36.4 billion ($237 billion) S&L Crisis: Cost: $153 billion ($256 billion) Korean War: Cost: $54 billion ($454 billion) The New Deal: Cost: $32 billion est.($500 billion est.) Invasion of Iraq: Cost: $551billion ($597 billion) Vietnam War: Cost: $111 billion ($698 billion) NASA: Cost: $416.7 billion ($851.2 billion) TOTAL: $3.92 trillion