UNIT 6Chapter 22 – Crash and DepressionChapter 23 – The New Deal

THE GREAT DEPRESSION

Presidents of the United States 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)

#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)

America: Pathways to the Present

Chapter 22Crash and Depression(1929–1933)

OBJECTIVESCORE 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.

THEME: When the economy of the high-flying 1920s crashed in 1929, the bleak years of the Great Depression began. Out of the destitution grew a debate over government size and strength that changed forever how Americans look at government.

America: Pathways to the Present

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

Chapter 22: Crash and Depression (1929–1933)

Chapter 22 SECTION 1 –

The Stock Market Crash

In October 1929, panic selling caused the United States stock market to crash. The crash led to a worldwide

economic crisis called the Great Depression

STOCKS CRASHThe 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.

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Great Crash

Investors Businesse

s and Workers

Investors lose millions.

Businesses lose profits.

Consumer spending drops.

Workers are laid off.

Businesses cut investment and production. Some fail.

BanksBusinesses and workers cannot repay bank loans.Savings

accounts are wiped out.

Bank runs occur.

Banks run out of money and fail.

World Payments

Overall U.S. production plummets.

U.S. investors have little or no money to invest.U.S. investments in Germany decline.German

war payments to Allies fall off.

Europeans cannot afford American goods.

Allies cannot pay debts to United States.

Great Crash

Investors

Investors lose millions.

Businesses lose profits.

Great Crash

Investors Businesse

s and Workers

Investors lose millions.

Businesses lose profits.

Consumer spending drops.

Workers are laid off.

Businesses cut investment and production Some fail.

Great Crash

Investors Businesse

s and Workers

Investors lose millions.

Businesses lose profits.

Consumer spending drops.

Workers are laid off.

Businesses cut investment and production Some fail.

BanksBusinesses and workers cannot repay bank loans.Savings

accounts are wiped out.

Bank runs occur.

Banks run out of money and fail.

World Payments

Overall U.S. production plummets.

U.S. investors have little or no money to invest.U.S. investments in Germany decline.German

war payments to Allies fall off.

Europeans cannot afford American goods.

Allies cannot pay debts to United States.

Effects of the Great Crash, 1929

Great Crash

Investors Businesse

s and Workers

Investors lose millions.

Businesses lose profits.

Consumer spending drops.

Workers are laid off.

Businesses cut investment and production Some fail.

BanksBusinesses and workers cannot repay bank loans.Savings

accounts are wiped out.

Bank runs occur.

Banks run out of money and fail.

World Payments

Overall U.S. production plummets.

U.S. investors have little or no money to invest.U.S. investments in Germany decline.German

war payments to Allies fall off.

Europeans cannot afford American goods.

Allies cannot pay debts to United States.

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.

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The stock market crash of 1929 did not cause the Great Depression – it was the result of underlying economic problems.

Causes of the Depression

An Unstable Economy The prosperous economy of the 1920s lacked a firm base. The nation’s wealth was unevenly distributed. 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 cut interest rates to assist economic growth. In 1929, the Federal Reserve limited the money supply to

discourage lending. There was too little money in circulation to help the economy after the Great Crash.

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Chapter 22 SECTION 2

Social Effects of the Depression

By the early 1920s, wage cuts and growing unemployment had brought widespread suffering

across the United States

Poverty Spreads People of all levels of society faced hardships during the Great

Depression. Unemployed laborers, unable to pay their rent, became homeless. Humor was used to cope – many things named after President Hoover

Sometimes the homeless built shacks of tar paper or scrap material. These shanty town settlements came to be called Hoovervilles.

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THE DUST BOWL 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.

The Great Plains, stripped of its natural soil, was reduced to dust, became known as the Dust Bowl.This caused about 60 percent

of Dust Bowl families to lose their farms.

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SOCIETY STRAINS

Impact on Health Some people starved and thousands went hungry.Children suffered from poor diet and 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

minorities Affected groups: African Americans, Hispanics, and Asian Americans. Lynchings increased. Aid programs discriminated against African Americans.

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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

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