Friday, January 25

The three questions you will be researching are as follows:

1. What were the causes of the stock market crash of 1929 and the Great Depression? (Ours)

Causes of the Stock Market Crash:

Over-speculation during the 1920's
Overproduction of goods
"Buying on margin"
Uneven distribution of wealth
Too much borrowing from banks due to low interest rates
Stock prices overpriced, did not have real value
Lack of government regulation
Federal Reserve-higher interest

Causes of the Great Depression:

Stock market crashed in 1929
Overproduction of goods.
Over-consumption of goods.
Banks were failing-
- 10,000+/- banks failed under Hoover's presidency.
Reduction in purchasing -
- People lost their jobs, so they didn't have money to buy things.
- The money supply was decreasing.
- Suppliers and Businesses didn't have enough money, so they steeply rose their prices.
American economic policy with Europe-
- More of a consequence than a cause. Smoot- Hawley Tariff.
- Over 20,000 imported goods had record tariffs for European Countries.
- Europe retaliated with their own tariffs.
  - Protect American companies.
- Hurt more than help.
Drought conditions
- During the economic depression there was a drought.
- There was a larger drought on the southwest.
- Farmers couldn't produce anything.
  - So everybody left.

2. What impact did the stock market crash and Great Depression have on the lives of people in the United States?

Homelessness
- Many mortgages on peoples homes were foreclosed and that left millions of people homeless.
- This lead to people building small shacks or shanty homes (Hoovervilles)

Starvation and Illness
- People went to dumpsters to find meals
- Not a lot of people actually starved to death they just had enough to live. Used soup kitchens.

Unemployment
- At its highest 25% in the US, and 33% in other countries.
- Many unemployed workers committed suicide since they had nothing.
Stock Market
- World trade fell
- Economic growth fell
- One cause of the Great Depression
- Bank Failure
- Business Failure
Bank Failures
- People tried to withdraw money that wasn't there.
- 40% of banks collapsed.
- 1933, people lost 140 billion dollars.
Hoovervilles
- Hoovervilles were villages for the unemployed.
- Lived in what they had to build with.
- Floors were made out of dirt.
- Families only had one or two rooms to live in.
Other Countries
- The UK was the most affected.
- All of Europe was tremendously affected and some countries were put into a Great Depression as well
Dust Bowl
- Covered the affected areas with dirt.
- The reason for it was because of the drought in 1934 and farmers didn't conserve the land right.
- People had to wear masks whenever they were outside.
Vicious cycle of the GD
- Companies lose $$ so they lay people off
- Unemployment rate goes up and less people buy goods as income has dropped.
- Companies don't sell as much, so they lay more people off, or close down.
- Cycle repeats.
Breadlines
Apple Venders

3. What did the United States government do to help alleviate the problems the Great Depression brought to our country?

President Herbert Hoover
- Created the Ag. Market Act of 1929.
- Believed local communities should provide relief for unemployment.
- RFC- Agency gave 2 billion dollars to small governments and gave loans to banks, railroads, and other businesses (trickle-down theory). Hayden Planetarium.
- Settlements of shacks were named after him called "Hoovervilles".
- Believed that the government was an umpire, not a player, in the game.
- Laissez faire.
Franklin D. Roosevelt
- FDR was the 32nd president.
- Lead the country through The Great Depression and WWII,
- He served 4 terms in office.
- He helped greatly by shaping the government to help the society.
- He felt it was the government's job to help the American people.
- FDR was the start of the plan called the "New Deal"
- FDR started the New Deal to help the the economy so the depression would not repeat itself.
FDR and the New Deal
- The first New Deal was focused on helping businesses and banks.
- It started in 1933.
- This program was started to help the Great depression.
- It was focused on the 3 R's: relief, recovery, and reform.
- It was a high number of acts and administrations addressing the horrible effects of the Great Depression.
Significant Legislation: FDR
- Home Owner's Loan Corporation:
  - Prevented foreclosing
  - Refinanced home mortgages..
- The Federal Emergency Relief Administration
  - Provided assistance to the unemployed and the families. ($20 million)
  - Provided work.
- Emergency Banking Account
  - Reopened banks.
  - FDR's 100 days.
    - Banking holiday- closing down banks until they were safe to use again.
  - Money was put back into the banks.
  - Many people started using banks again.
  - Emergency Banking Relief Act (EBRA)
    - Passed 5 days after taking office.
    - Making sure the banks were safe.
    - Provided insurance to people's money in the bank.
    - Very successful.
- Tennessee Valley Authority
  - Government dams and hydroelectric plants for electric power.
  - Hired the unemployed.
  - 9Developed new fertilizers and taught farmers how to improve crop yields.
- Agriculture Adjustment Administration
  - Reduced the production of staple crops.
  - Paid farmers to reduce the amount of crops they made.
  - Reduced crop surplus to raise prices.
  - Over 6 million pigs were slaughtered to raise prices.
  - A lot of people didn't like the AAA; they thought what they were doing was cruel.
- Farm Security Administration
  - Gave small farmers to buy farms.
  - Dust bowl and drought forced farmers off their land.
  - FSA provided relief for these people.
- (PWA) Public works Administration
  - Created as many jobs as possible.
  - Paid a lot of money to make a lot of money.
- Federal Crop Insurance Corporation
  - Improved production and marketing of farm products.
  - Started "all-risk" crop insurance.
  - Guaranteed a percentage of your crops if they are damaged.
- Work Progress Administration (WPA).
  - Established in 1935.
  - Largest and most comprehensive New Deal agency.
  - Make work program.
  - Projects primarily inexperienced workers.
  - Helped artists.
- Securities and Exchange Commission (SEC).
  - Makes sure the people in the stock market are following the rules.
  - Will imprison you if you are not (Martha Stuart).
- Federal Securities Act
  - Made the stock market safer for people's money.
  - Prohibited "stock pooling".
- National Industrial Recovery Act (NIRA).
  - Created by the NRA.
  - Established "codes of fair competition" (employers be fair to your employee and vice verse.)
  - Guaranteed workers the right to unionize.
  - Seen as a failure.
- National Youth Administration (NYA).
  - Part of WPA
  - Heavily pushed by Elenore Roosevelt.
  - Provided jobs for young boys.
  - Boys actually stayed home instead and worked from there.
- Social Security Act (SSA).
- Food, Drug, and Cosmetic Act.
- Civilian Conservation Corps (CCC).
  - Members lived in camps.
  - Aimed at young guys.
  - Paid $30 a month $25 dollars went back to family.
- The Indian Reorganization Act (IRA).
The Second New Deal
- This is another part of the New Deal.
- This had a stronger focus on the social reform.
- In April, he created the Works Progress Administration (WPA) to provide jobs for unemployed people.
- WPA focused more on building post offices, schools, bridges, and highways.
- In July 1935 the Wagner Act was created to supervise union elections and businesses from treating the workers unfairly.

4. What long lasting impact did the Great Depression have on the US and world?

Market Crash
- SEC- Enforces security laws and to protect investors and keep markets secure.
- FDIC- Protects money and banks by insuring the money will be there.
Miscellaneous
- Crime rate rose.
- Mass migration.
- Congress passing the Social security act in 1935.
- Hard to get education.
- Sports were used to distract from the depression. Radio was used mostly.
- Providing health care.
Relief programs and tariffs
- Most countries had relief programs.
- People refused to bank.
- Smoot Hawley tariff.
FDR's creations (Still around today.)
- Was considered one of America's greatest Presidents.
- Security and Exchange Commission. (SEC)
- Federal Deposit Insurance Corporation. (FDIC)
- National Labor Relations Board. (NLRB)
- Tennessee Valley Authority. (TVA)
Other
- Fascist, military and communist dictators come to power throughout the world.
- New Deal creates many organizations that are still around today.
- Deficit spending starts
- New Deal programs start-makes the US government much larger.
Radio
- Was big in the great depression.
- Made the US "closer".
- Gave people the ability to listen to sports and world news when they aren't able to make it to the live event.
Electronics
- Klevinator Washer Wringer- First washer and dryer set/
- Tappan Gas Range- first oven.
- New GE refrigerator. - First Fridge where you didn't need ice to keep it cold.
- Radio.
Sports
- Boxing-Joe Louis
- Football- New leather padding
- Baseball- African American players. Record crowds.
- Motorsports- Powerboat and Automobile racing.
Social Security Administration
- RSDI (Retirement, Survivors, Disability Insurance.)
- Supplemental Security Income (SSI)Medicare
  - Criteria
    - Citizenship
    - $2000 (financial resources)
    - $718 (income)
    - Social Security Number
- Medicare

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Friday, January 25

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