Homework #5. Read – Chapter 22 Sections 1 & 2. REVIEW MID-TERM EXAM. Concept #2 – Great Depression & New Deal . Lesson Essential Question #1 – How did the Great Depression reflect the interdependence of the American Economy? Vocabulary – On margin Relief Public Work programs Bonus.
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REVIEW MID-TERM EXAM
Public Work programs
3-5. Name three reasons for why prosperity of the 1920s ended.
6. Who emerged as leader in Germany because of the Great Depression?
But then…uh oh…
Oct. 24th, 1929
Selling increased = prices fell = margin calls: everyone who bought on margin loses their money
Big Bankers tried to stabilize the market but failed
Stock Market Crashes!!
People rush the banks to get their money out. Banks can’t handle that and start closing
Banks fall = deposits gone
Americans lose their savings
A worldwide economic downturn that causes hardships for many Americans
What caused the Depression?
1. Stock Market Crash of 1929
2. Bank Failures
a over 9,000
3. Reduction in Purchasing
a. uneven wealth
b. too much production
4. American Economic Policy with Europe
a. hawley smoot tariff
B. debt payments
5. Drought Conditions
a. default on farm loans/mortgages
By the mid 1930’s the Great Depression became a problem for entire American society
Those invested in the stock market
Industrial workers and farmers
Small business owners and employees
Banks close- almost everyone is affected
Homeless: those who couldn’t pay rent became drifters, moved in with relatives, or built make-shift homes “Hoovervilles”
Soup kitchens and bread lines struggled to help large numbers of hungry Americans
Hoover believed that confidence in the economy would fix the country’s problems
Voluntary controls of business to help re-stimulate the economy
Did it work???
Highest import tax in history
Goal: to protect U.S. industries from imports. Buy MADE IN USA
Didn’t work: Brought a slowdown in international trade
Gave government money to banks so they could extend loans
Prosperity at the top helps the economy as a whole
Banks continued to fail
1932: 20,000 jobless WWI vets come to D.C. to demand their pension bonus that was promised to them
Army was called in to force the vets out of Washington
Herbert HooverFranklin Roosevelt
4-6. Name three of the programs that FDR passed during his first 100 days.
7. What was the name given to the people who advised FDR?
Franklin D. Roosevelt, Democrat, wins by a huge margin over Hoover
Promised New Deal
Help jobless, farmers & elderly
Represented hope for some Americans
Finally, deposits > withdrawals!
Use government money for public works programs
These programs gave jobs to the unemployed and built up the nation’s infrastructure at the same time
Federal Emergency Relief Administration (FERA): Provided federal gov. money to those in desperate need
National Industrial Recovery Act (1933): set codes and regulations for businesses to stop falling prices
National Recovery Administration (NRA): blue eagle stamp
Public Works Administration (PWA): hired workers
Agricultural Adjustment Act –
Paid farmers not to grow certain crops
Paid famers to plow under surplus
Rural Electrification Administration (REA) – extended electric lines to rural areas
5-7 What three groups was the Social Security Act setup to help?
Success: Many Americans benefited from the relief and employment programs
Failures: limited success in helping all Americans, did not fix the root economic issues
From the RIGHT
-FDR is a communist! Stop taxing the rich!
From the LEFT
-FDR hasn’t limited poverty! We need to re-distribute income!
Dorothea LangeFranklin L Wright
1-2. What political party had African Americans shown their loyalty to until the Great Depression? Why?
6-7. Name two pieces of literature that were popular during the 1930s.
8-9. What two superheroes were born in the 1930s?
10. What movie came out in 1939 where a poor farm girl from Kansas was taken away over the rainbow by a tornado?
During the 1930’s dust storms and drought plagued the Great Plains
Destroyed the farmland of already suffering American farmers
Severe drought and poor weather + years of over-plowing = destruction of land
conditions in the mid-west led to a migration of farming families westward to California
“Okies” & “Arkies”
Great Depression and New Deal