Warm Up – November 13, 2018

1. Who was responsible for the Teapot Dome

Scandal?
2. What was the Teapot Dome Scandal?
3. What court case went to trial in 1925?
4. What was it about?
5. Who was the prosecuting attorney?
6. Who was the defense attorney?
7. What was the bigger issue addressed by the trial?
8. Why is the 1920s called the “Roaring 20s”?
 Warm Up – November 26, 2018
1. List the 5 causes of the Great Depression.
2. What is the nickname given to the day that the
Stock Market began to fall?
3. What is the name given to the day that the Stock
Market officially crashed?
4. What percentage of people were unemployed?
5. How did people get food for their families?
 November 14, 2018– Warm Up
 What 5 rights are protected by the 1st Amendment?
 What is the 13th Amendment?
 What is the 14th Amendment?
 What is the 15th Amendment?
 What is the 16th Amendment?
 What is the 17th Amendment?
 What is the 18th Amendment?
 What is the 19th Amendment?
 What is the 21st Amendment?
 The Great
Depression
When life sucked for everybody….
 Cause #1 – High Tariffs
1. President Harding put high tariffs (taxes on imports)
to protect American jobs. This led to a decline in
world trade and less demand for American
products.

2. Foreign made products were too expensive b/c of

tariffs, American-made was too expensive b/c of
labor & material costs….people just stop buying
what they don’t need.
Cause #2: Stock Market Speculation
Speculation: Buying stock, predicting that it
will increase in value. People were allowed to
buy on “margin”, paying only 10% of the
stocks’ value up front (like a loan on a bet!). Big
problem!

Companies need the money that people

invest in the stock market. Buying on margin
gave a fake value of what stocks were really
worth.
 Cause #3: Increased Interest Rates
To Review….The Federal Reserve Act (1913) created a
central banking system and allows the issuance of
money (legal tender).
The Federal Reserve System (The “Fed”) loans banks
money, and then the banks loan you that same money.
Increased Interest Rates
In 1929 the Fed raised interest rates (the cost of
borrowing money) in order to try to slow down stock
market speculation, This caused some businesses to
stop borrowing money, and it shrunk the economy.
If you borrow $100, with 20% APR – you will pay back
$200 in the next five years!
Cause #4: Stock Market Crash
October 24, 1929 – Black Thursday
When business started slowing down,
stockholders withdrew their money from
the market, but there wasn’t enough
money to pay everyone. Stocks were not
really worth what people thought, since so
many had bought on margin.
People panicked and sold stocks, causing
the entire market to crash
Cause #5: Bank Failures
When the market crashed (lost value),
people panicked and started withdrawing
money from banks – these are called
bank runs

Banks could not pay everyone either, and

many went broke and closed bc they were
not required to keep money on hand
Banks failed, businesses couldn’t pay
workers, people got laid off, and it spiraled
out of control
 Causes of the Great Depression
 B – Banks failed
 I – Increased Interest
Rates – fewer
people/businesses
borrowed money
 S – Stock Market
Speculation
 H – High Tariffs led to
slower world wide trade
 S – Stock Market Crash
October 1929
 Tuesday November 27, 2018
 New Deal programs were nicknamed ______ ________
because they are known by their initials.
 What caused the Dust Bowl?
 Who gets most of the blame for the Great Depression?
 What program provided medical assistance to the poor
and elderly?
 What program, which is currently for retired persons and
the disabled, was established to assist families with a
deceased parent?
 What happened to European & Mexican immigrants
during the Great Depression?
Wednesday November 28 Warm Up
 What caused banks to fail?
 How many workers were unemployed? (Number or
percentage will work)
 What political response to the Depression wanted to do
nothing and let the economy fix it self?
 What political response to the Depression wanted to
knock down the whole economy and start over with the
government controlling the entire economy?
 What political response to the Depression wanted to
regulate the economy but not control it completely?
 The area of the US that was plagued with drought and
worthless land due to overuse was called the ________
The Great
Depression
and
New Deal
1929-1941
Teapot Dome Scandal
Executive Branch corruption
 Pres. Harding’s Secretary of
the Interior, Albert Fall
illegally sold oil rights on
government land so he
could benefit.
 Some oil rights were in
Teapot Dome, Wyoming
 Fall received kick-backs
such as cash, cattle, and
loans.
 Mr. Fall was sent to jail.
 President Harding died of a
heart attack before the
scandal was known.
Teapot Dome Scandal
 caption:
"The First Good
Laugh They've
had in Years“
The cartoon showed
Democrats’
happiness over the
Teapot Dome
Scandal.
 Stock Market Crash of 1929
 Black Thursday – October 24,
1929 – people started selling
stocks
 Many investors were nervous
about rising interest rates (the
cost to borrow money) and
they quickly began to sell
their shares of stock.
 The dumping of stocks
caused the values to fall.
 People panicked and began
to sell more.
 Too many investors sold out.
 The market crashed -
 Black Tuesday
October 29, 1929

Banking
The crash started a major
Crisis
banking crisis.
 Many people could not repay
their loans, causing some banks
to collapse.
 Other people rushed to withdraw
their money from the banks, but
there wasn’t enough money on
hand to pay everyone.
 Many people lost their savings.
 Federal Reserve System – all US
currency was backed by gold.
When England dropped the gold
standard the prices of imports
and exports were dramatically
impacted.
 There was a huge gap
between rich and poor
people.

 By 1933, 25% of
Americans were
unemployed.
 Currently, about 3.7%
 Goal is about 4%
unemployment
Immigration Restrictions
 What did nativists claim
they feared the most?

 In the 1930’s, the

US Government
started deporting
European and
Mexican
immigrants, in an
attempt to free up
more jobs.
 What makes America a superpower?

 The Depression made America economically

vulnerable on a global scale.

 How could the Great Depression (1930’s) and the

Civil War (1860’s) have a similar impact on the way
other countries view the United States?
 Hunger
 Americans looked for
food from garbage cans.
 The Red Cross and
other agencies set up
breadlines.
Breadline  Families alternated days
to feed each child.
Homelessness
 Many families lost their homes
because they could not pay their
mortgage (loan on a house or
land).

 Homeless often gathered in

shantytowns known as
Hoovervilles, named for
President Hoover.
 These were collections of
shacks built out of boxes,
scrap lumber, iron and other
garbage.
 The Dust Bowl
 A 10 year drought in the
heartland caused much misery.
 Farmers had made things
worse by overusing the land.
Soil has to recover from harvesting, or
else it becomes weak.

 Thousands of acres were useless.

 Dust blew constantly, and caused

many deaths of people and
livestock.
 The Dust Bowl
 Oklahoma was the center of the
Dust Bowl, and included parts of
Texas, New Mexico, Colorado,
and Kansas.

 People moved out of the Midwest

(heartland). Many went to
California, but faced persecution
because they were desperate.

 John Steinbeck wrote

The Grapes of Wrath to tell the
story of these families.
“wrath” is anger
The Dust Bowl
 Political Response to Depression
Radical Response Conservative Response Liberal Response
Government should Government should not Government should
take complete control interfere with the regulate the economy
of economy – knock it economy – sit back and and keep an eye on it,
down and start over see what happens – it but not take control
should fix itself
Relief Efforts: Hoover’s Ideas
 Hoover rejected
government aid.
 He believed private
charities and local
communities should
provide aid.
 He encouraged
“Volunteerism”
 Hoover was defeated in
his 1932 re-election
campaign by Franklin
Delano Roosevelt (FDR)
Roosevelt’s New Deal
 President Franklin Roosevelt’s
programs to improve the
economy was called the New
Deal

 The government would now have

more influence on citizens’ lives
by changing domestic policies
 Roosevelt’s New Deal
 Added many government programs to get people
back to work.
 3 parts of the New Deal
1. Relief (stop hunger and poverty)

2. Reform (change laws)

3. Recovery (getting back to normal)

 Higher taxes on the rich to help pay for social

programs and government debt
 FDR said, “If it is good for business, it is good for
America.”
 New Deal
Entitlement Programs
 Entitlement programs are created by the
government to help specific groups.
 Social Security
 Provides monthly payments to senior citizens and
people with disabilities that cannot work.
 Paid for with Federal Income Tax (16th Amendment )
 Medicare
 Provides medical assistance for poor.

 Social Security is on track to become insolvent (not

enough money) in 2033.
 New Deal
Alphabet Soup programs
 FDIC
 SEC
 AAA
 TVA
 CCC
 Alphabet Soup Foldable
 Full Name
 Date founded
 Purpose
 How did it help people effected by the depression?
 Number of people it employed during Great Depression
 Does it still exist?

When you finish, get a piece of blank white paper from the
bottom, right corner box & create an Employment
Advertisement Poster for one of the following:
 Social Security Administration
 Works Progress Administration
 Public Works Administration
 National Youth Administration
Tennessee River Valley Map
What types of problems does poverty cause?
 Tennessee Valley
Authority (TVA)
1. Designed to a rural 7
state region scarred by
flooding and
deforestation.
2. New dams built.
3. Electricity provided.
4. Combated malaria,
illiteracy, and soil
erosion.
5. Provided jobs for
regional residents.
 Civilian Conservation
Corps (CCC) – federal
jobs for men between
the ages of 18 and 25.
 Federal Securities and
Exchange Commission
(SEC) – regulated sales
of stocks.
Works Progress
Administration (WPA)
1. Designed to help
Americans find work.
2. Employed 8.5 million
people including artists,
bridge builders, steel
workers, etc.
3. White collar jobs for
teachers and
researchers.
 National Youth
Administration (NYA)
1. Designed to help
Americans find work
for high school and
college aged people.
2. Provided part time
jobs to allow kids to
stay in school.
Social Security Administration
(SSA)
1. Designed to provide a
retirement income for older
people.
2. At first provided
unemployment insurance.
Later became a retirement
fund.
3. Still in effect, millions pay
into this savings plan for
retirement
Passing New Deal laws
 FDR had some problems with the legality
(constitutionality) of his new policies
 FDR wanted to raise the number of
Supreme Court justices from 9 to 15 so his
new laws would not be blocked!
 This did not happen, and there are still 9
justices on the Court today
 Why is there an odd number of judges?
Impact of the New Deal on
government
 The programs of the New Deal made the
U.S. Government much more involved in
citizens’ lives (expanded government)
 Many of these programs from 80 years ago are
still being used today (Social Security, Medicare, and others)
 The New Deal changed views on what the
government should do for people
 John F. Kennedy,1961: “Ask not what your
country can do for you. Ask what you can do
for your country.”
 Art of the Depression
 Dorothea Lange was a famous
photographer that captured
images of the Great Depression
 Films during the Depression
 Wizard of Oz (1939), and other
films helped people escape from
their troubles
 DBQ Essay Day
 Pick up your DBQ Packet, outline, & rough
draft from the front boxes (if you turned
them in on Friday)
 Pick up the Essay paper from the front
table.
 Your essay MUST be 5 paragraphs,
mention 5 of the documents, and be at least
1 FULL page long.
 Due at end of class today.