The Great Depression in the U.S. (1930’s)

The Great Depression in the U.S. (1930’s)

Grade 10 American History, February 12, 2012

04/22/23 03:56 AMKelsey Wirbicki, EDLT-102

Why Should We Study the Great Depression?

Worst economic disaster of the 20th century

Causes still unknown

Study contributions to the depression to prevent future depressions

Relevant to current events (2008)


Relating the Past & Present: Great Depression (1930) vs. Great Recession (2008)


Contributing Factors to the Great Depression: The Roaring 20’s


Herbert Hoover (1929-1933)


31st President during onset of Great Depression Republican

Herbert Hoover

Believed that economy would right itself without gvt. intervention Feared self-reliance would be destroyed

Tried to combat Great Depression with:1. Volunteer Efforts

2. Public Works Projects (Hoover Dam)

3. High Tariffs/Increases in corporate taxes


Herbert Hoover

Firm believer in balanced budgets Unwilling to run a budget deficit to fund welfare programs

Drought persisted in central U.S. Crop failure (Dust Bowl) Homeless began congregating to Hoovervilles (shanty towns)

Final attempt of Hoover Administration was the Emergency Relief and Construction Act Authorized funds for public works and creation of the

Reconstruction Finance Corporation (RFC)


Popular Political Cartoons


Debated Causes of the Depression

Stock Market Crash Thursday,

October 24, 1929 Panic set in

as brokers rushed to unload stocks

October 29, 1929: “Black Tuesday” Market stood

at only half its precash worth

Corporations and Individuals are wiped out


Causes Continued

Ill-conceived government policies were at fault 1920’s focused on reducing

gvt. interference with economy Lower taxes on wealthy and

reduce spending

Rickety credit and financial system Bank failures were common

Traced to low farm prices and risky loans

Banks were virtually unregulated 04/22/23 03:56 AMKelsey Wirbicki, EDLT-102

Causes Continued

Harding & Coolidge administrations concerned about a strong dollar rather than about stable employment

Possible Channels: Loss of deposits

Decline in expenditures

Customer relationships broken harder to borrow Money supply contraction


How Serious Was the Great Depression?

Real output (GDP) fell 29% from 1929 to 1933. • Real GDP: GDP measured at a fixed price level (i.e., inflation

adjusted).

• Unemployment increased to 25%

•Consumer prices fell 25%; wholesale prices 32%

7,000 banks failed Fell from 25,000 in 1929 to 15,000 by 1934



Bank Panics


Growing Up in the Great Depression (Video)

“The shared memories of five adults who survived the Depression weave a tapestry that illustrates an aspect of American culture in the 1930s: children maturing quickly and becoming self-reliant at an early age.”


Recovery and FDR

Franklin Roosevelt Democrat Elected president in 1933

Beat Hoover for re-election

Created the New Deal with the help of his trusted advisors (the Brain Trust) Shifted from a non-intervention

policy to a gvt. of regulation & relief


Recovery and The New Deal

Series of economic programs implemented in the United States between 1933 and 1936

Passed by U.S. Congress

Three Goals of The New Deal (The Three R’s):1. Relief (for the unemployed and poor)

2. Economic Recovery

3. Financial Reform

Restored confidence in banking system (FDIC)


The New Deal (ABC Programs)

FDR expanded Executive Branch using implied power in first 100 days of office Created numerous agencies

Aided Agriculture, Business, and Unemployed (Known as Alphabet Soup)

e.g. AAA, NRA, WPA, PWA, CCC, etc.


The New Deal Continued

Pros Did not resolve

Depression Failed to lower the

unemployment rate below 14%

Many argued that ABC programs were unconstitutional

Cons Maintained an average of

17% level the unemployment throughout the 1930s

Political and economic life became more competitive Workers, farmers,

consumers, etc. able to press their demands upon the government in ways that in the past had been available only to the corporate world


Recovery and WWII

Recession of 1937 set back recovery Additional measures placed to cope with Depression

Fall of 1937: Roosevelt called for action to isolate the aggressive powers

Congress enacted several neutrality measures between 1935-1939 Prevented nation from trading or giving financial credit to

nations engaged in armed conflict


Recovery and WWII

America soon entered WWII

Unemployment finally fell below 10% Massive war spending doubled economic growth rates Either masking the effects of the Depression or essentially

ending the Depression

U.S. Soldiers were paid and some sent money home

Women worked in factories to build airplane's, ships, tanks, etc. WWII created much needed jobs in factories involving the

production of war supplies


For Further Research About the Great

Depression

NovelsThe Grapes of WrathAuthor: John Steinbeck

Plot Overview: Forced from their home during the Great Depression, the Joad family is lured to California to find work; instead they find disillusionment, exploitation, and hunger.


Further Information About the Great Depression

Songs of the Great Depression:

1.Brother, Can You Spare a Dime? (1931)-Jay Gorney

2.Life is Just a Bowl of Cherries (1931)-Ray Henderson

3.Heading For Better Times (1931)-Ted Lewis


“Walk the Plank”

A game of trivia to help test your knowledge about the Great Depression

Walk the Plank


Review

1. What were the ABC Programs designed to do?

2. Did the New Deal Completely restore the economy? Why or Why not?

3. What novel was inspired by the Great Depression?

4. Who was the Democratic candidate that beat Herbert Hoover in 1933?


ReferencesGoldman, D. (n.d.). Great Depression vs. 'Great Recession' . CNN Money. Retrieved February

9, 2012, from http://money.cnn.com/news/storysupplement/economy/recession_depression/

Herbert Hoover National Historic Site (2011, November 17). Herbert Hoover. NPS. Retrieved February 9, 2012, from http://www.nps.gov/heho/historyculture/herbert-hoover.htm

Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Great Depression and a New Deal. In Of the People. (2nd ed.). (pp. 673-699). New York, New York: Oxford University Press Inc..

Oakes, J., McGerr, M., Lewis, J. E., Cullather, N., & Boydston, J. (2011). A Second World War. In Of the People. (2nd ed.). (pp. 701-730). New York, New York: Oxford University Press Inc..

Rosenberg, J. (n.d.). Great Depression Pictures. About: 20th Century History. Retrieved February 10, 2012, from http://history1900s.about.com/od/photographs/tp/greatdepressionpictures.htm

Steinbeck, J. (1992). The Grapes of Wrath. New York, New York: Penguin Classics.

The Phoenix Learning Group, Inc. (2008). Growing Up In The Great Depression . Youtube. Retrieved February 11, 2012, from http://www.youtube.com/watch?v=hbEVeKIghCk

Walk the Plank: The Great Depression. (n.d.). School History. Retrieved February 12, 2012, from http://www.schoolhistory.co.uk/games/walk/walk_depression.html


Documents

The Great Depression in the U.S. (1930’s)