Americas Darkest Hours

DefinitionsCredit buy now and pay later in installmentsBull Market rising stock pricesBear Market falling stock pricesSpeculation risky transactions for chance of considerable profitGreat Depression1Start with the 2nd slide because I could not figure out how to get it to work any other way. The buttons had to be tagged and the choices were few. This presentation is intended to inform students about the causes of the Great Depression and Hoovers response. A later lesson or presentation will talk about the effects, the Dust Bowl and the New Deal.

Americas Darkest HoursThe Great DepressionGreat Depression2Animation is obviousTrouble LoomsGap between haves and have-nots widening

Basic industries in troubleTextiles, Steel, Railroads, Coal, etc.New forms of transportationForeign competition1920s boom industries weakenAutos, construction and consumer goodsNew building permits down 25%

Haves Have NotsGreat Depression3Used Auto shapes to create the arrow, then text box to do the words. Other animation obviousFarmersWWI wheat & corn prices soaredTook out loans to buy more equipment and landAfter WWI, prices fell 50%Banks foreclosed when could not repayMany rural banks failed

Great Depression4McNary-Haugen Farm Bill

Tax domestic food sales to make up the difference

Government sells surplus on world market - Below market priceGovernment buys surplus grain - Above market priceGreat Depression5Grouped the words that went with the arrows togetherConsumersIncomes fell, less money to spendStagnant wagesUnbalanced distribution of incomeOverbuying with credit

Great Depression6Button goes to definitions page to define the concepts and then it returns to this pageThe Numbers of US families earned less than $1,500/yearIncome of wealthiest 1% rose 75%Took in 33% of nations incomeAverage income up 9%Lowest 40% took in 10% of national income

Great Depression7Animation obvious added a blues song to emphasize the demise of the middle class1928 ElectionHerbert HooverRepublicanSec of CommerceMining engineerFormal and reservedNever run for public officeWon 58% of popular vote and 444 electoral votes

Alfred E. SmithDemocrat4 term Gov of NYCareer politicianWitty and outgoingRoman CatholicOpposed ProhibitionWon 42% of popular vote and 87 electoral votes

Both from poor familiesBoth worked hard for their successGreat Depression8Tried to do the Venn Diagram but had trouble with the one side of the back circle so I made may the curve out of lines and tried to line it up

Made each come in separately due to the fact that there are lots of words in each one.Stock Market Crash1929 economists warn of weaknessesDow Jones Industrial Average visible symbol of economyBull Market3% of US owned stocks (4 million)Speculation led to wealth on paperReal worth was not equal to dividends paid

Great Depression9More definition buttons and a down soundInvestorsBought on marginUp to 75% of stock priceOK when prices risingBad when decliningCould not pay debtsAverage Americans trying to get rich quickWealthy hoping to increase their worth

Great Depression10Animation obvious

Timeline of DisasterSept 1929 stocks peaked then declinedOct 24th stock plungeOct 29th BLACK TUESDAYDow fell from 381 to 8116 million shares dumped (record)Investors frantically soldMid-Nov - $30 Billion lost by speculators and investorsGreat Depression11Made the picture appear and then go transparent to reinforce the downward slide of the stock marketGreat Depression12Results of CausesFalling demand for consumer goodsMechanized factories produced moreFederal Government kept interest rates lowBorrow money easyBuild up large debtsLittle regulation of markets and speculatorsHoover in denial

Great Depression13Another definition button

Financial CollapsePeople panicked and withdrew money from banksBanks lost due to investments too1929 659 failed1933 over 6,000 failed (1/4)No federal insurance to protect people9 million savings accounts goneGreat Depression14Transparent background againMacroeconomics1929 1932GNP cut in ($104 down to $59 Billion)Ex. Railroads and auto companies failedUnemployment1929 3% (1.6 million workers)1932 25% (13 million workers)Companies made pay cuts and reduced hours

Great Depression15Definition buttonWorldwide Shock Waves1920s Europe suffered due to high debtsGerman war reparationsDestruction from WWIUS limited export goods to EuropeDifficult to sell farm and manufacturing products to Europe from US

Great Depression16Hawley-Smoot Tariff ActProtect US from foreign competitionBackfiredReduced goods coming inEurope prevented from earning US currency to pay for US goodsUS trade abroad reduced

Great Depression17Europes Reaction Retaliated with own tariffsWorld trade down 40%Took selves off gold standardGold of less valueBought US goods with cheaper currencyReparations paid in cheaper currency

Great Depression18Map will swivel for emphasis that it was overseasExpert OpinionsDepression normal part of business cycleDo nothing, fix itselfTreasury Secretary, Andrew Mellonlet the slump liquidate itself. Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate.It will purge the rottenness out of a system.

Great Depression19Hoovers PhilosophyEconomy allowed to function with minimal government interventionGovernment could help solve problemsLimit role and prevent government from taking too much powerBelieved reason could solve all problemsrugged individualismGreat Depression20Inspirational music to go with Hoovers optimistic approach

ExamplesGovernment help business and labor find mutual solutionsPeople take care of selves and familiesDo not depend on governmentOpposed federal welfare or direct reliefWeaken self-respectStifle individual libertiesGreat Depression21Flag goes to the background very patriotic and America points of viewCautious StepsCall industry leaders to find solutionsEmployers not cut wages or lay off workersLabor not demand higher wages or strikeSpecific organizations to help charities generate contributions for poorMade no difference

Great Depression22

1930 Congressional Elections and FrustrationDemocrats won more seatsRepublicans lost majority in House of RepsRep kept majority in Senate by 1 seatFarmers burnt crops, milk on highways, etc.Shantytowns HoovervillesEmpty pockets hanging out Hoover flagsPublic saw Hoover as cold and heartlessGreat Depression23Picture appears and then goes to the background for emphasisHoover Takes ActionFederal funds to projects ($800 million)Public works programsLarge projectsStimulate business and jobs for unemployedFederal Farm BoardProp up crop pricesNational Credit CorporationBig banks loan to smaller banks

Great Depression24

Appealed to CongressBank reformsMortgage relief1933 Glass-Steagall Banking ActBank reformsFederal Home Loan Bank ActReconstruction Finance Corporation$2 Billion in financing for big businessTrickle down theoryGreat Depression25Clip art goes to the backgroundBonus Army10,000 to 20,000 WWI VeteransWanted bonus payment due in 1945Hoover opposed, gave food & suppliesBill failed, Vets asked to leave, refusedSent in the ArmyPublic outraged, image sufferedFranklin D. Roosevelt won 1932 election

Great Depression26Army guy exits and FDR enters symbolizing the fall of Hoover with the failures with the Bonus ArmyAmericas Greatest ChallengeWrite a paragraph describing the situation America was in at this point.What choices did we have?What choices did we make?What programs were used to implement this choice?What effects do we have today due to the choices made by this generation before us?

Great Depression27Assignment to follow the notes

Music Hallelujah chorus just for a little ironyDefinitionsBuying on Margin pay small % as down payment and borrow the balanceDow Jones Industrial AverageStock price of 30 representative large firms on NYSEGNP Gross National ProductNations output of goods and services

Great Depression28Last page of definitions

I could not figure out how to get the definitions and buttons to work except to put them at the beginning and end and then tag them accordingly.