Great Depression

1. The Great DepressionThe Great Depression
1929-19401929-1940

2. Key TermsKey Terms
 ConsumerismConsumerism
 Buying on creditBuying on credit
 Republican Philosophy-Harding, Coolidge, HooverRepublican Philosophy-Harding, Coolidge, Hoover
 Laissez-faire, rugged individualism, trickle downLaissez-faire, rugged individualism, trickle down
theorytheory
 StockStock
 Stock marketStock market
 Dow Jones Industrial AverageDow Jones Industrial Average
 Buying on marginBuying on margin
 Watered stockWatered stock
 Stock poolingStock pooling
 Speculation-with stocksSpeculation-with stocks
 Income inequalityIncome inequality
 Federal Reserve BoardFederal Reserve Board

3. New York Stock ExchangeNew York Stock Exchange

6. Dow JonesDow Jones
 TheThe Dow Jones Industrial AverageDow Jones Industrial Average
((DJIADJIA) is one of several stock market) is one of several stock market
indicators created by Charles Dow.indicators created by Charles Dow.
 Dow compiled the index as a way toDow compiled the index as a way to
gauge the performance of America's stockgauge the performance of America's stock
market.market.
 Today, the average consists of 30 of theToday, the average consists of 30 of the
largest and most widely held publiclargest and most widely held public
companies in the US.companies in the US.

7.  3M Co.3M Co.
 ALCOA Inc.ALCOA Inc.
 Altria Group, Inc.Altria Group, Inc.
 American International Group, Inc.American International Group, Inc.
 American Express Co.American Express Co.
 AT&T Inc.AT&T Inc. (T) (telecom services)(T) (telecom services)
 Boeing Co., TheBoeing Co., The (BA) (aerospace/defense)(BA) (aerospace/defense)
 Caterpillar, Inc.Caterpillar, Inc. (CAT) (farm & construction equipment)(CAT) (farm & construction equipment)
 Citigroup, Inc.Citigroup, Inc. (C) (money center banks)(C) (money center banks)
 Coca-Cola Co.Coca-Cola Co. (KO) (beverages)(KO) (beverages)
 E.I. du Pont de Nemours & Co.E.I. du Pont de Nemours & Co. (DD) (chemicals)(DD) (chemicals)
 Exxon Mobil Corp.Exxon Mobil Corp. (XOM) (major integrated oil & gas)(XOM) (major integrated oil & gas)
 General Electric Co.General Electric Co. (GE) (conglomerates)(GE) (conglomerates)
 General Motors Corp.General Motors Corp. (GM) (auto manufacturers)(GM) (auto manufacturers)
 Hewlett-Packard Co.Hewlett-Packard Co. (HPQ) (diversified computer systems)(HPQ) (diversified computer systems)
 Home Depot, Inc.Home Depot, Inc. (HD) (home improvement stores)(HD) (home improvement stores)
 Honeywell International, Inc.Honeywell International, Inc.
 Intel Corp.Intel Corp.
 International Business Machines Corp.International Business Machines Corp. (IBM) (diversified computer systems)(IBM) (diversified computer systems)
 JPMorgan Chase and Co.JPMorgan Chase and Co. (JPM) (money center banks)(JPM) (money center banks)
 Johnson & Johnson Inc.Johnson & Johnson Inc. (JNJ) ((JNJ) (drug manufacturersdrug manufacturers ))
 McDonald's Corp. (MCD) (restaurants)McDonald's Corp. (MCD) (restaurants)
 Merck & Co., Inc. (MRK) (drug manufacturers)Merck & Co., Inc. (MRK) (drug manufacturers)
 Microsoft Corp. (MSFT) (application software)Microsoft Corp. (MSFT) (application software)
 Pfizer, Inc. (PFE) (drug manufacturers)Pfizer, Inc. (PFE) (drug manufacturers)
 Procter & Gamble Co. (PG) (consumer goods)Procter & Gamble Co. (PG) (consumer goods)
 United Technologies Corp. (UTX) (conglomerates)United Technologies Corp. (UTX) (conglomerates)
 Verizon Communications (VZ) (telecom services)Verizon Communications (VZ) (telecom services)
 Wal-Mart Stores, Inc. (WMT) (discount, variety stores)Wal-Mart Stores, Inc. (WMT) (discount, variety stores)
 Walt Disney Co., The (DIS) (entertainment)Walt Disney Co., The (DIS) (entertainment)

8. Milestones in Dow JonesMilestones in Dow Jones
HistoryHistory

11. Black Tuesday Oct. 29, 1929Black Tuesday Oct. 29, 1929

16. Federal Reserve SystemFederal Reserve System
 Created in 1913 under President WoodrowCreated in 1913 under President Woodrow
WilsonWilson
 Major goal was to stop banking panics(runs)Major goal was to stop banking panics(runs)
 Broke the country into 12 districts each with aBroke the country into 12 districts each with a
Federal Reserve BankFederal Reserve Bank

18. Federal Reserve’s PowersFederal Reserve’s Powers
 Banker’s Bank-stop bank runsBanker’s Bank-stop bank runs
 Controls the amount of money in circulationControls the amount of money in circulation
 Controlling inflation and deflationControlling inflation and deflation
 Controls interests rates for borrowing moneyControls interests rates for borrowing money
 Encourages people to borrow money for bigEncourages people to borrow money for big
purchases-homes, cars, etc.purchases-homes, cars, etc.

19. Income Inequality VideoIncome Inequality Video

22. Causes of the Stock MarketCauses of the Stock Market
Crash-1929Crash-1929
 Stock prices were grossly inflated, did notStock prices were grossly inflated, did not
have real value-watered stock priceshave real value-watered stock prices
 Overspeculation during the 1920’sOverspeculation during the 1920’s
 Led to watered stockLed to watered stock
 ““Buying on margin”Buying on margin”
 Led to people being in debt and watered stockLed to people being in debt and watered stock
pricesprices

23.  Overproduction of goodsOverproduction of goods
 Uneven distribution of wealthUneven distribution of wealth
 Too much borrowing from banksToo much borrowing from banks
 Federal Reserve increased interest ratesFederal Reserve increased interest rates
 Lack of government regulationLack of government regulation

25. Effects of the Stock Market CrashEffects of the Stock Market Crash
 Investors and businesses lose millions $$$Investors and businesses lose millions $$$
 Thousands of banks fail-savings are wiped outThousands of banks fail-savings are wiped out
 Businesses cut production-lay off workersBusinesses cut production-lay off workers
 Unemployment rises-people quit spendingUnemployment rises-people quit spending
moneymoney
 Great Depression sets inGreat Depression sets in
 Depression spreads to Europe and other partsDepression spreads to Europe and other parts
of the worldof the world

26. Causes of the Great DepressionCauses of the Great Depression
 Overproduction of goodsOverproduction of goods
 Underconsumption of goods byUnderconsumption of goods by
consumersconsumers
 Agricultural slump in 1920’s due toAgricultural slump in 1920’s due to
overproductionoverproduction
 High protective tariff policies of the 1920’sHigh protective tariff policies of the 1920’s
 Taxes benefiting the rich-rich got richer,Taxes benefiting the rich-rich got richer,
poor got poorerpoor got poorer
 Stock market crashStock market crash

27. Effects of the Great DepressionEffects of the Great Depression
 New Deal programs start-makes the USNew Deal programs start-makes the US
gov’t much largergov’t much larger
 Deficit spending startsDeficit spending starts
 The New Deal created manyThe New Deal created many
organizations that are still around today-organizations that are still around today-
social security, welfaresocial security, welfare
 Fascist, military and communist dictatorsFascist, military and communist dictators
come to power throughout the worldcome to power throughout the world

28. The Vicious Cycle of theThe Vicious Cycle of the
Great DepressionGreat Depression
 Companies lose $$ so they lay people offCompanies lose $$ so they lay people off
 Unemployment rate goes up and lessUnemployment rate goes up and less
people buy goods as income has droppedpeople buy goods as income has dropped
 Companies profits fall so they have to layCompanies profits fall so they have to lay
more people off or closemore people off or close
 Cycle repeats itselfCycle repeats itself

34. BreadlinesBreadlines

37. Soup KitchensSoup Kitchens

39. Hoboes Hopping Freight TrainsHoboes Hopping Freight Trains

40. Selling ApplesSelling Apples

42. Dust BowlDust Bowl

50. OkiesOkies

52. Hoover Struggles with the GreatHoover Struggles with the Great
DepressionDepression

53. Herbert HooverHerbert Hoover
 Based on our previous discussions,Based on our previous discussions,
why do you think President Hooverwhy do you think President Hoover
struggled dealing with the Greatstruggled dealing with the Great
Depression?Depression?
 Hoover was viewed as uncaring andHoover was viewed as uncaring and
as a President who did very little toas a President who did very little to
help with the Great Depressionhelp with the Great Depression
 This was not actually trueThis was not actually true

54. 1928 Presidential Election1928 Presidential Election
 Herbert Hoover(R)Herbert Hoover(R)
 Al Smith(D)Al Smith(D)

55. Hoover’s PlatformHoover’s Platform
 Efficiency in gov’tEfficiency in gov’t
 Republican record of prosperityRepublican record of prosperity
 Pro-businessPro-business
 Promised to improve conditions for farmersPromised to improve conditions for farmers
 Reform immigration lawsReform immigration laws
 Maintain America's isolationist foreign policyMaintain America's isolationist foreign policy
 Supported Prohibition- an experiment noble inSupported Prohibition- an experiment noble in
purpose"purpose"

56.  "Unemployment in the sense of distress is widely
disappearing. . . . We in America today are nearer
to the final triumph over poverty than ever before in
the history of any land. The poor-house is
vanishing from among us. We have not yet
reached the goal, but given a change to go forward
with the policies of the last eight years, and we
shall soon with he help of God be in sight of the
day when poverty will be banished from this
nation.”
 —Herbert Hoover, speech accepting the Republican
nomination-August 11, 1928

57. 1928 Republican Campaign1928 Republican Campaign
PromisePromise
 ““A chicken in every pot and aA chicken in every pot and a
car in every garage.”car in every garage.”

59. Hoover’s Fight Against theHoover’s Fight Against the
Great DepressionGreat Depression
 Encouraged people to be patient, stay positiveEncouraged people to be patient, stay positive
and volunteer to help each otherand volunteer to help each other
 Federal Farm BoardFederal Farm Board
-stabilize prices and to promote the sale of-stabilize prices and to promote the sale of
agricultural productsagricultural products
 Norris–La Guardia ActNorris–La Guardia Act
-strengthened labor unions-strengthened labor unions

60.  Hoover MoratoriumHoover Moratorium
 One year halt on German war payments to FranceOne year halt on German war payments to France
 One year halt on war payments from Great BritainOne year halt on war payments from Great Britain
and France to the USand France to the US
 Mexican RepatriationMexican Repatriation
 Mexican immigrants were encouraged/forced to goMexican immigrants were encouraged/forced to go
back to Mexicoback to Mexico
 Revenue Act of 1932Revenue Act of 1932
 Increased taxes so US gov’t had $$Increased taxes so US gov’t had $$
 Hawley-Smoot TariffHawley-Smoot Tariff
 Raised tariffs to record levelsRaised tariffs to record levels

61. Reconstruction FinanceReconstruction Finance
Corporation (RFC)-1932Corporation (RFC)-1932
 Gave loans to banks, state and localGave loans to banks, state and local
govt’s, and business’ to creategovt’s, and business’ to create
projects/jobs for peopleprojects/jobs for people
 Gave states loans for emergency reliefGave states loans for emergency relief
needsneeds
 Started under HooverStarted under Hoover
 Not as successful as Hoover had hopedNot as successful as Hoover had hoped
 Dissolved in 1946 after WWIIDissolved in 1946 after WWII

62. Hayden Planetarium-RFCHayden Planetarium-RFC

64. Boulder(Hoover) DamBoulder(Hoover) Dam
 Boulder Dam (now Hoover Dam) isBoulder Dam (now Hoover Dam) is
located near Las Vegaslocated near Las Vegas
 The Hoover Dam project including theThe Hoover Dam project including the
dam, the All-American Canal, the town ofdam, the All-American Canal, the town of
Boulder City, highways, railroads andBoulder City, highways, railroads and
various other works, cost $165 million tovarious other works, cost $165 million to
buildbuild
 Why do you think there were a lot of damWhy do you think there were a lot of dam
projects in the 1930’s?projects in the 1930’s?

69. Bonus Expeditionary ForceBonus Expeditionary Force

73. MacArthur, Eisenhower and PattonMacArthur, Eisenhower and Patton

74. Ch. 15 The New DealCh. 15 The New Deal
Section 1Section 1

75. 1932 Election1932 Election
 Herbert Hoover(R)Herbert Hoover(R)
 Franklin D.Franklin D.
Roosevelt(D)Roosevelt(D)

77. Relief, Reform and RecoveryRelief, Reform and Recovery
 Relief for the needyRelief for the needy
 Economic recoveryEconomic recovery
 Financial reformFinancial reform

78. FDR’s Brain TrustFDR’s Brain Trust
 -Harry Hopkins - Social Worker and the-Harry Hopkins - Social Worker and the
architect of much of the New Deal.architect of much of the New Deal.
 -Henry Morgenthau-Henry Morgenthau
 -Louis Lowe-Louis Lowe
 -Cordell Hull-Cordell Hull
 -Frances Perkins - Sec. of Labor and first-Frances Perkins - Sec. of Labor and first
female in the cabinet.female in the cabinet.
 -Sam Rosenman-Sam Rosenman
 -Raymond Moley-Raymond Moley
 -Rexford Tugwell-Rexford Tugwell

79. Fireside ChatsFireside Chats

80. Fireside Chat LinksFireside Chat Links
 rtsp://streaming.museum.tv/realvideo/mbc/rtsp://streaming.museum.tv/realvideo/mbc/
fdr.rmfdr.rm
 Fireside Chats of Franklin D. RooseveltFireside Chats of Franklin D. Roosevelt

81. Deficit Spending and Priming theDeficit Spending and Priming the
PumpPump

82. Court Packing BillCourt Packing Bill
 http://www.hpol.org/fdr/chat/chat.ramhttp://www.hpol.org/fdr/chat/chat.ram

84. OpponentsOpponents
 Some say FDR went too far. Spent tooSome say FDR went too far. Spent too
much $$.much $$.
 Others say he didn’t do enough. HeOthers say he didn’t do enough. He
needed to do more.needed to do more.

85.  A. What were some of the reasons the NewA. What were some of the reasons the New
Deal was challenged?Deal was challenged?
 1. Created a very powerful president that led1. Created a very powerful president that led
Congress, this was a violation of checks andCongress, this was a violation of checks and
balances.balances.
 2. It was a radical departure from Laissez Faire2. It was a radical departure from Laissez Faire
ideals. Created "big government" .ideals. Created "big government" .
 3. Some acts appeared interfering and at worst3. Some acts appeared interfering and at worst
unconstitutional.unconstitutional.
 4. Heavy debt burden - the United States was4. Heavy debt burden - the United States was
engaged in deficit spending and this wasengaged in deficit spending and this was
unhealthy for the economy in the long run.unhealthy for the economy in the long run.

86. Father Charles CaughlinFather Charles Caughlin

87. Francis TownshendFrancis Townshend

88. Senator Huey LongSenator Huey Long

89. Share-Our-WealthShare-Our-Wealth
 ““Every man a king”Every man a king”
 Shot and killed byShot and killed by
Carl Weiss in 1935Carl Weiss in 1935

90. Ch. 15.2Ch. 15.2
The Second New Deal Takes HoldThe Second New Deal Takes Hold

91. New Deal vs 2New Deal vs 2ndnd
New DealNew Deal
 Restore nation’sRestore nation’s
hopehope
 Help banks andHelp banks and
stock marketstock market
 Provide jobs andProvide jobs and
relief for poorrelief for poor
 Plan and regulatePlan and regulate
the economythe economy
 Pass new labor lawsPass new labor laws
 Create and expandCreate and expand
New Deal agenciesNew Deal agencies
 Establish SocialEstablish Social
Security for olderSecurity for older
people andpeople and
unemployedunemployed

92. Eleanor RooseveltEleanor Roosevelt

93. 1936 Election1936 Election
 FDR(D)-IncumbentFDR(D)-Incumbent  Al Landon(R)Al Landon(R)