Show:
Sick Economy
Stock Market
Depression Life
Misc
Hooverville
100
What was America's impression of the economy befoe Oct 1929?
prosperity
100
How did the problems in agriculture impact the banks?
The banks ended up foreclosing on farms and could not resell them. They were unable to make a profit, limited their cash on hand
100
What was the Pshychological impact?
B/w 1928 and 1932, the suicide rate rose more than 30% and three times more people were admitted to state mental hospitals when compared to normal times - For some, achieving/maintaining financial security became an obsession for them the rest of their lives The divorce rate increases during the Great Depression
100
WHat did bread lines and soup kitchens provide?
Soup Kitchens: offered free or low-cost food (many churches have soup kitchens Breadlines: lines of people waiting to receive food provided by charitable organizations or public agencies
100
What was Hoover's reactin to the Depression?
- “the worst effects of the crash . . . will have passed during the next 60 days.” - “Any lack of confidence in the economic future….is foolish
200
What issue influenced the 1928 election the most? Religion, Prohibition or the economy
Economy
200
WHat is stock speculation?
stocks and bonds or quickly bought and sold hoping to make a quick profit while ignoring the risks presented by the market
200
WHat is a Shantytowns/Hoovervilles?
Shantytowns/Hoovervilles: little towns consisting of shacks made from cardboard, old wood scraps, etc Some slept in sewer pipes or rapped themselves in newspapers to stay warm
200
Hoover thought the best way to fix the economy was
let it fix itself
200
In 1931 Hoover changed course and setup the National Credit Corporation (NCC), passed the federal Home Loan Bank Act and set up the Reconstruction Finance Corporation (RFC). What were the results
To cautious and nothing turned the economy around
300
WHat happened to the distribution of wealth in the 1920s?
B/w 1920 and 1929 the income of the wealthiest 1% of the population rose by 75%, compared with a 9% increase for Americans as a whole
300
Describe the impact of the Hawley-Smoot Tariff Act (1930):
- It was designed to protect U.S. farmers and businesses from foreign competition - Reducing the flow of foreign goods into America, also reduced the ability of foreign countries to acquire American currency, which reduced their ability to purchase American products (countries also responded by raising their own tariffs)
300
Describe the Dust Bowl and its impact.
Terrible drought struck the Great Plains. With neither grass nor wheat to hold the scant rainfall, the soil dried to dust. From the Dakotas to Texas, America’s pastures and wheat fields became a vast “Dust Bowl.” As the drought persisted, the number of yearly dust storms grew, from 22 in 1934 to 72 in 1937
300
How did the Depression impact the elections of 1930 and 1932.
1930: HoR to Dems, 1 vote majority in Sen for R 1932 Overwhleming Dem control of Senate and Dem President
300
How did people react?
- People showed up at rallies and “hunger marches” held by the American Communist Party, which was eager to take advantage of national problems to change the American form of government. - Farmers destroyed crops to try and raise prices
400
How did installment plans wok and how was it bad for the economy?
Businesses encouraged Americans to pile up debt (compares to no interest and/or payments for certain # of years). During the 1920s many Americans bought high cost items, such as refrigerators and cars, on the installment plan
400
What is buying on the margin and a margin call?
buying on the margin, meaning they made only a small cash down payment—as low as 10 percent of the price. - The problem came if the stock price began to fall. To protect the loan, a broker could issue a margin call,
400
Describe Entertainment and its purpose in the 1930s
- The Hollywood Fantasy Factory: An Escape From Their Struggles - Gangster films were popular, which portrayed men beating the odds - Snow White and the Seven Dwarfs, in 1937. & two years later The Wizard of Oz - Gone with the Wind - Movie cartoons brightened the 1930s :Walt Disney’s Mickey Mouse and Donald Duck - Radio: was popular because it provided free entertainment - Lone Ranger, Orphan Annie, and the Shadow - Literature: -- Magazines and comic books offered cheap entertainment -- Novels also offered an escape from reality
400
Discuss what the Bonus Amry was and what happened to them?
- Congress in 1924 had enacted a $1,000 bonus for each veteran, to be distributed in 1945 - In 1931 Texas congressman Wright Patman introduced a bill in the House of Representatives that authorized early payment of the veterans’ bonuses. The bill later passed the House and moved to the Senate for debate. - Veterans marching for this were dubbed the Bonus Army and they swelled to 15,000 - The bill failed and many went home but many stayed and some moved from camps to unoccupied buildings downtown - In late July, Hoover ordered the buildings cleared. The police tried and failed and killed two veterans. - Army chief of staff Douglas MacArthur (and aide Major Eisenhower) left the camps alone and sent cavalry, infantry, and tanks to clear the veterans from the city. - They used gas and 1,000 people were gassed and an 11mo old baby was killed
400
What types of action did Hoover take to remedy the effects of the Depression during 1930? WHat effect did they have
- He organized a series of conferences, bringing together the heads of banks, railroads, and other big businesses, as well as labor and government official - He won a pledge from industry to keep factories open and to stop slashing wages. - Hoover’s next step was to increase public works—government-financed building projects. The resulting construction jobs could replace some of those lost in the private sector - The Boulder Dam or now the Hoover Dam was one of them
500
What was wrong with industry and agriculture during the late 1920s?
Key industries, such as railroads, textiles, and steel barely made a profit Farmers continued boosting production in hopes of selling more to make up for the low prices, which further reduced prices. As farmers defaulted on their loans, rural banks closed
500
What are Black Thursday and Black Friday
- In September professional investors sensed danger and began to sell off their holdings. Prices slipped. - Black Thursday: October 24, 1929 a. Those with large investments suddenly began selling their shares b. Investors grew scared and prices plunged (too much stock flooded the market) Black Tuesday: October 29, 1929 a. Prices sank to a shocking low and investors dumped over 16 million shares on the market b. Brokers quickly demanded cash from borrowers to cover loans a. Investors sold shares at huge losses and were wiped out b. Value of stock was cut in half and $30 billion was lost
500
Describe the Scottsboro Boys case.
Exposed racial injustice in an all-white jury in Scottsboro, Alabama a. Sentenced eight blacks, ages 17 – 21, to death for raping two white girls hitching a ride on a train b. Mass demonstrations occurred in an effort to overturn the conviction and money was raised to provide legal defense
500
How did the stock market crash weaken banks?
- The market crash severely weakened the nation’s banks in two ways. First, many banks had lent money to stock speculators. Second, many banks had invested depositors’ money in the stock market, hoping for higher returns than they could get by using the money for conventional loans
500
Why didn't Hoover do more to imapct the economy after the Stock Market crash of 1929?
- self-government in which decentralized local responsibility is the very basis of our govmt - It would have meant the undermining of the individual initiative and enterprise through which our people have grown to unparalleled greatness.” - He wanted to foster cooperation between business and workers and private organizations and charities would care for people - - He believed that only state and city governments should dole out relief. By the spring of 1932, however, they were running out of money