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The 1920s • The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

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Page 1: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

The 1920s

• The 1920s became known as the “Jazz Age” or “Roaring 20’s”

Louis Armstrong

Page 2: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

The 1920s

• During and after WWI the U.S. was experiencing incredible social and economic growth

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The 1920s

• Businesses were experiencing record growth.

• New products were being invented on a scale never before seen.

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The 1920s

• Government regulation, labor unions and the Progressive movement improved working conditions and the quality of life in cities.

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The 1920s

• The average US citizen became more wealthy and was more likely to own their own home than ever before.

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Herbert Hoover

• Hoover was elected President in 1928

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Herbert Hoover

• He was a Republican and believed that the government should not use laws to regulate the economy

• However, economic growth during the 1920’s was dangerously rapid and unstable

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The Stock Market Crash of 1929

•From 1925-1929 the average value of all stocks tripled

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CAUSES OF THE GREAT DEPRESSION

Cause # 1 = Over-Speculation

Cause # 2 = Increasing Consumerism

Cause # 3 = Failures of the Federal Reserve

Cause #4 = High Protective Tariffs

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Cause # 1 = Over-Speculation

• “Speculation” - engaging in a risky business venture on the chance that a quick or sizable profit can be made

• Many people during the 1920s began to heavily speculate in the stock market

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Cause # 1 = Over-Speculation

• Many investors commonly bought stock ‘on margin’. They only paid for part of the stock and borrowed the rest

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Cause # 1 = Over-Speculation

• People who brought stocks on margin did so because they knew the price of the stock would go up

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Cause # 1 = Over-Speculation

• Over speculation became very popular and stock brokers and banks were lending out huge sums of money and this made the stock market and the economy very unstable

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Cause # 1 = Over-Speculation

• In 1929 the stock market crashed. The prices of stocks plummeted and barrowed money could not be paid back and many banks failed

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Cause # 1 = Over-Speculation

• Many American banks also paid unsafe loans to Europeans so they could pay off their debts from WWI

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Cause # 2 = Increasing Consumerism

• The Industrial Revolution caused the invention and mass production of many new products.

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Cause # 2 = Increasing Consumerism

• Following the gloomy period of WWI, people were more willing to spend money to enjoy life.

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Cause # 2 = Increasing Consumerism

• New advertising methods attracted consumers to buy products they might not want or need.

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• Salesmen were willing to sell products on installment plans (pay some now, pay the rest later), which caused many consumers to over-spend.

Cause # 2 = Increasing Consumerism

=

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Cause # 3 = Failures of the Federal Reserve

• The Federal Reserve (The FED.) was established as a federal agency to control and regulate the nation’s banking system and the economy

• The Federal Reserve failed to prevent banks and stock brokers from lending out too much money during the 1920s

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Cause # 3 = Failures of the Federal Reserve

• This led to the failure and foreclosure of one forth of the banks in the US.

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Cause # 3 = Failures of the Federal Reserve

This also led to a severe contraction in the nation’s supply of money in circulation

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Cause # 4 = High Protective Tariffs

• Tariffs - taxes that are added to imported goods. They are designed to protect industries and businesses in the U.S.

TRADE

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Cause # 4 = High Protective Tariffs

• In response to the U.S. tariffs, the countries of Europe raised their own tariffs

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Cause # 4 = High Protective Tariffs

• Tariffs interfered with world trade because they destroyed foreign markets for American products

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• The Hawley Smoot Tariff was passed in 1930 and was one of the highest tariffs in U.S. history

• This tariff only made the Depression worse because countries could not help each other

Cause # 4 = High Protective Tariffs

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The Great Depression

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IMPACT OF THE GREAT DEPRESSION

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Black Monday

• October 28th, 1929

• A combination of factors prompt a record 16.4 million shares to be sold in one day.

• Over the next two days, the stock market was down by 25%.

• By July of 1932, the market was down 90%.

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The Stock Market Crash of 1929

• Many investors lost their life savings

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1) Bank Failures

• When the Stock Market crashed people rushed to the banks to withdraw money

• Because the banks loaned out so much money they could not pay everyone when they came to withdraw their money

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1) Bank Failures

• Much of the money was invested in people’s houses and businesses.

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1) Bank Failures

• Banks begin to foreclose on people’s mortgages to get the money back.

• “Foreclose” – when banks take people’s property when they can’t pay their debts.

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BANK FAILURES 1929-1933

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1) Bank Failures

• This caused thousands of banks to close and many Americans lost their life-savings

• The U.S. financial system collapsed because the Federal Reserve failed to regulate banks and the stock market

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2) Unemployment and Homelessness

• At the height of the Depression 25% of Americans were unemployed

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2) Unemployment and Homelessness

• The unemployed soon were unable to pay their rents and were evicted from their homes

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2) Unemployment and Homelessness

• Cities and towns throughout the country established soup kitchens and bread lines as local governments tried to feed the poor

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2) Unemployment and Homelessness

• The number of homeless multiplied and they began to move into makeshift towns made out of scrap wood and tin shelters

• (These were called Hoovervilles)

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3) Political Unrest and Unions

• Drastic increases in poverty and unemployment led to the growing militancy and political unrest of labor unions during the 1930s

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3) Political Unrest and Unions

• Example – Support for the Communist and Socialist parties began to rise during the Depression

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3) Political Unrest and Unions

• Example – The Bonus Army – unemployed veterans of WWI protested outside the White House demanding that they should be paid their income “bonus” early

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3) Political Unrest and Unions

• President Hoover used the military to forcefully remove the Bonus Army protestors

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The Bonus Army

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4) Farm Foreclosures and Migration

• The Great Depression hit the farmers in rural America the worst

• (crop prices were actually lower than what it cost to transport them to market)

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4) Farm Foreclosures and Migration

• Many farmers destroyed crops in protest rather than sell them for such low prices

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4) Farm Foreclosures and Migration

• The banks foreclosed 10% of the nation’s farms and many farmers were forced to migrate

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4) Farm Foreclosures and Migration

• Many migrated to cities and coastal areas to seek other work

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5) The Dust Bowl

• In the mid 1930’s a horrible environmental disaster struck the farmers of the Great Plains

• During WWI American farmers began to over-farm the Plains

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5) The Dust Bowl

• The grasslands were now plowed instead of being filled with cattle herds

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5) The Dust Bowl

• When severe drought struck, the topsoil blew away as huge dust storms that filled the skies

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5) The Dust Bowl

• The farmers of the Dust Bowl left as migrants and many went to California to work

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Class Puzzle

Each of you have received a piece

of the class puzzle when given the “go” begin to

complete your puzzle…

remember you want to beat the other

classes!

Page 67: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

Great Depression Journal Entry

Directions: Look at the pictures-select one picture and assume the role of someone in the picture. Write a diary entry about your life during the Great Depression.

Page 68: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

“Brother Can You Spare A Dime”

• http://www.npr.org/templates/story/story.php?storyId=96654742

• While song plays please write down a minimal of 5 references to things we have studied in regards to the Great Depression.

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The Election of 1932

Herbert Hoover VS. Franklin D. Roosevelt

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Herbert Hoover

1) Republican

2) Passed the Hawley Smoot Tariff

3) Hoover would not use the government to control big businesses (believed in Voluntary Control)

4) Hoover would not use the federal government to help the poor (believed in Voluntary Aid)

Page 71: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

Herbert Hoover

• President 1928-1930• The “Do Nothing

President”• Limited Reforms

– Construction of Boulder Dam

– Reconstruction Finance Corporation provided government loans to banks & large industries

• Reforms were ineffective because they were not comprehensive

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Franklin D. Roosevelt

1) Democrat

2) Rallied a frightened nation by saying “We have nothing to fear but fear itself.”

3) Believed in increasing the size and power of the federal government to regulate big business and the economy

4) Believed in using government funds to aid the poor

Page 73: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

Election of 1932•Republican:

Herbert Hoover

•Democrat: Franklin Delano

Roosevelt

•FDR won in a landslide with 472 to

59 electoral votes

Page 74: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

Franklin D. Roosevelt

• Franklin Roosevelt rallied the frightened nation by saying:

• “The only thing we have to fear is fear itself”

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FDR won by 7 million votes

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Election of 1932• Franklin Delano Roosevelt

• “a New Deal for the American People”

• THREE GOALS:

–Relief

–Recovery

–Reform•Speech

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The New Deal• Bank Holiday – closed banks

• Government expected and allowed financially secure banks to reopen

• EFFECT: boosted American’s confidence in banks

• Government offered loans to those banks that needed help

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Fireside Chats• PURPOSE: calm the fears of

American citizens• METHOD: FDR addressed the

nation using the radio• CONTENT: Explained in clear and

simple language how the New Deal programs were going to fix the economy

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Page 82: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

Relief Programs

• PURPOSE: help those in immediate need

• Alphabet Organizations

• Peopled referred to them by the letters of their titles

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Recovery Programs

• PURPOSE: bring the nation out of depression over time through long-term projects

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Reform Programs

• PURPOSE: make the necessary changes so another Great Depression does not occur

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Franklin Roosevelt’s “New Deal” • The New Deal = FDR created and

passed many new laws and social programs that were funded by the federal government to pull the country out of the Depression

ALPHABET SOUP – WALK AROUND

Page 86: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

A) Emergency Banking Act

• To help slow the banking crisis, FDR closed all banks in the U.S. for three days

• He gave banks federal funds so they could reopen

Page 87: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

B) Federal Deposit Insurance Corporation (FDIC)

• This law insured the money that people deposited in the banks

• FDR did this to restore public trust and confidence in the bank and to reform unsound banking laws

Page 88: The 1920s The 1920s became known as the “Jazz Age” or “Roaring 20’s” Louis Armstrong

C) The Works Progress Administration The Civilian Conservation Corps (CCC)

• These were government relief measures designed to provide direct payment to people for immediate government aid

• These programs did this by giving millions of unemployed men jobs

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C) The Works Progress Administration The Civilian Conservation Corps (CCC)

• They worked in national parks and other public works projects like dams and roads

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The Civilian Conservation Corps (CCC)

• Responsible for the construction of many parks as well

• Skyline Drive

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Tennessee Valley Authority

• Built dams and power plants to provide electricity to rural areas.

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DAM!

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D) Agricultural Adjustment Act (AAA)

• Over-Production of crops made prices drop very low

• FDR used federal funds to pay farmers to NOT produce crops

• This was a recovery program that was designed to bring the county out of depression over time

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E) Social Security Act

•This new program was designed to offer safeguards for workers

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E) Social Security Act

• Social Security is a system that taxes workers so it can repay them later in life to ensure that workers can retire

• Social Security also provided “Unemployment Insurance”

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Success of the New Deal

• New Deal programs did help provide relief to workers and they lessened the effects of the Depression

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Success of the New Deal

• The United States did not fully come out of the Depression until WWII

• (Wars have a tendency to do that)


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