The Great Depression. Chapter 12

Transcription

1 The Great Depression Chapter 12

2 Name the causes of the Great Depression? 1) Maldistribution of Wealth 2) Stock Market Crash 3) Overproduction of Goods 4) Buying on Credit

3 Maldistribution of Wealth oby 1929, the U.S. had 513 families with annual incomes over $1 million and the top fifth controlled nearly 60% of the nation s wealth. o1% of the population got a 63% raise on their annual income. o93% of the population s annual income decreased by 4%. otoo much money in too few hands.

4 Stock Market Crash: Decline in stock Prices onew York Times stock fell from 469 to 221 (By 1932, it fell lower to 58) orca stock fell from $101 to $28. omontgomery Ward fell from 138 to 49. ounion Carbide fell from 138 to 59. orumors circulated around some NYC hotels. Clerks asked their guests if their rooms were for sleeping or jumping.

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6 Overproduction of Goods: Too Much supplies causes lower prices Wheat 1.37/bl 1.02/bl.37/bl Cotton.19/lb..17/lb..07/lb. Corn.92/bl.91/bl.31/bl Beef 9.45/100 lb.9.55/100lb.4.35/100lb.

7 Buying on Credit omargin Buying: the practice of purchasing stock with borrowed money. Example: An investor could purchase stock listed at $100 per share with as little as $10 down and the other $90 on margin, or owed to the stockbroker. If the stock price advance to $150, the investor could sell, pay off the broker, and gain $50 on a $10 investment. (500%)

8 How does President Herbert Hoover respond? o I do not believe that the power and duty of the federal government ought to be extended to the relief of individual suffering. The lesson should be constantly enforced that though the people support the Government the Government should not support the people.

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10 Why did Hoover oppose government support? oit would be too burdensome for the federal budget. orelief should come from private organizations and local governments. oit would wear away the work ethic of Americans and make them lazy.

11 Unemployment rate oin 1929, it was 3%. oby 1930, it was 9%. oby 1931, it was 21%. oby 1932, it was 25%. Utah was 36%. ou.s. Population: 1929: 26,501,443 omultiply 26,501,443 by.25 = 6,625,360. o6,625,360 Americans were unemployed.

12 Between the following occurred: o90,000 businesses failed. ocorporate profits fell 60%. o9,000 banks closed. odepositors lost $2.5 billion. oautomobile purchases dropped 75%.

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14 Between the following occurred: odepression recipes were established: A family of five could feed their family on $8.00/week. owages were as low as 30 cents an day. If working 1 day a week, an 8 hour workday would mean $2.40/week. oin 1931, NY hospitals reported 95 deaths due to starvation.

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17 1932 Presidential Election: New Deal: economic programs implemented in the U.S. Government oroosevelt campaigned as the Democratic nominee. He campaigned saying that the government needed to be concerned about the forgotten man who, through no fault of his own, suffered in the Depression. oroosevelt always appeared confident and cheerful. His smile was the biggest political weapon he had not only against Hoover but also against the Depression. outah voted for FDR even though he was a Democrat.

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20 New Deal: Relief oroosevelt began working with Congress to restore public confidence in the banking system. Congress created the Emergency Banking Act and the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits oon March 13,1932, more than $1 billion deposits flowed into the banking system. oon March 28, he created the Farm Credit Administration to provide low-interest, long-term loans to farmers.

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24 New Deal: Relief othe Depression hit the elderly hard. Unemployment for those over 65 was over 50%, when none had any other source of income. These people had worked to build the U.S. in the early part of the century had nothing to show for it. oin 1935, Roosevelt created a committee to come up with a system to help the elderly citizens of our country. Working Americans would contribute a percentage from their pay checks into a trust fund.

25 New Deal: Relief othe money went into a trust fund that would be used to pay retirees long before the contributors themselves retired. oon January 1, 1937, the Social Security law would take 1 % of their paycheck. othe first recipient of Social Security was Ida May Fuller. She received her check on January owhen he signed the bill, Roosevelt declared it the cornerstone of his administration. It represented his greatest domestic achievement.

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27 New Deal: Recovery oalthough relief was important, Roosevelt knew that is was suppose to be short-termed and that recovery was his long-term goal. oin 1933, the Public Works Administration was created to construct roads and provide jobs. othat same year, the Agricultural Adjustment Act was created to help farmers. The AAA paid farmers to reduce their output of cotton, corn, wheat, hogs, rice, and tobacco.

28 Dust Bowl owinds whipped up clouds of dust, sometimes stretching more than 200 miles across and from 7,000 to 8,000 feet high. odust descended on the Midwest, and winds blew more than halfway across the Atlantic what once had been topsoil. oin 1938, the worst year of the disaster, over 850 million tons of topsoil were lost to erosion.

29 Dust Bowl odust hung in the air and filtered into homes, covering clothing, furniture, food, everything. oone reporter observed that an uncorked jug placed on a sidewalk two hours [was] found to be half filled with dust. odeclining farm prices, drought, and dust destroyed hopes, and many farmers needed help.

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31 How did the Great Depression change life for Utahns? Few people had jobs. Because people didn t have jobs, they couldn t buy things. Because people couldn t buy things, businesses lost sales and had to lay off workers.

32 How did Roosevelt s New Deal help Utahns? To help people get back to work, President Roosevelt created agencies that provided jobs. The Civilian Conservation Corps. (CCC) hired men to build dams, bridges, and campgrounds in Utah. The Works Progress Administration (WPA) hired men to build highways, roads, and other public places.

33 How did Roosevelt s New Deal help Utahns? The Farm Security Administration (FSA) funded camps for migrant workers and gave farmers low interest loans. The Federal Emergency Relief Administration (FERA) helped states in time of need. During a drought in Utah, they provided money to build dams and irrigation ditches.

34 The End Jeopardy is on Wednesday! Chapter 12 Test is on Thursday!