Un it 8 Lesson 6
March 01, 2017
Today is March 1, 2017
March 3 ­ Vocabulary Quiz
UNIT 8 TEST IS TUESDAY, MARCH 7.
Please take out your notes and copy today's essential question.
EQ. Why did many Americans blame the Great Depression on Hoover?
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Un it 8 Lesson 6
March 01, 2017
Review
1. List one cause of the Great Depression.
2. What is difference between the bear market and the bull market?
3. What is buying on margin?
4. In what year the Stock Market Crash?
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Un it 8 Lesson 6
March 01, 2017
Unit 8 Lesson 6
1. What were the events called where people tried to get all of their money out of the bank?
2. What were the veterans who protested in Washington DC called?
3. Who was the President when the Great Depression started?
4. What were the communities of homeless people during the Great Depression called?
5. Who were the only two democrats who won the US Presidency since reconstruction before the depression?
6. Who basically won the presidency because of the Depression, and what were his advisors called?
EQ. Why did many Americans blame the Great Depression on Hoover?
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Un it 8 Lesson 6
March 01, 2017
People began to panic as soon as the stock market began to go down selling all of their stocks causing it to crash even more. Soon everyone that had loaned money to anyone was calling in their loans. 4
Un it 8 Lesson 6
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This calling in of the loans caused the people to begin selling goods extremely quickly, but in order to make sure that they sold quickly they had to lower the price; this caused a world wide drop in prices, effecting farmers the worst. American banks began to call in the debts that foreign countries owed them so the foreign nations raised taxes and cut spending.
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Un it 8 Lesson 6
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By banks becoming involved in the stock market it created another problem. Many banks, after the stock market crash, did not have the money to give to the people who had put money into their banks. This led to many people losing their entire life savings. 6
Un it 8 Lesson 6
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In addition to banks investing money in the stock market they encouraged their customers to invest in the market as well. When the stock market crashed, bank customers were aware that their money was tied up in the stock market and rushed to the bank to withdraw their money before the bank closed permanently. These events were called "runs".
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Banks had two major problems in paying out the deposits. The first problem was that banks are a business and they are intended to make a profit; to do this they loan money to other people and are repaid with interest. The situation now however made it so that many could not repay their loans to the bank which meant the money was not there to give to the original depositor. The second problem is that the banks had also invested in the stock market and the shares they bought were now worth less resulting in a further inability to repay the deposits. 9
Un it 8 Lesson 6
March 01, 2017
Banks problems became businesses problems, as when the banks closed the money that the businesses used to operate daily was gone. Many businesses had to close because they could not afford to pay their workers, others were forced to cancel expansion plans. In 1930 over 26,000 businesses shut down followed by more than 28,000 more in 1931. Unemployment rose from 500,000 in 1929 to 4 million reaching more than 25%.
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Un it 8 Lesson 6
March 01, 2017
In May of 1932 World War I veterans who needed money marched on Washington D.C. demanding the war bonuses they had been promised. They became known as the Bonus Army. Bringing their wives and children with them, they protested trying to gain the money they believed was due to them. President Herbert Hoover saw the Bonus Army as a dangerous mob and turned federal troops out against them. Women and children were gassed with tear gas and veterans were driven back with bayonets. America could not believe that our government had attacked those who once protected our country.
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Un it 8 Lesson 6
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Hoover believed that it was not the governments job to bail out the people of America. He believed that churches and charity organizations should step up and help out the needy. Many charity organizations tried but the need far exceeded the ability to respond. 12
Un it 8 Lesson 6
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In spite of this Hoover did make some attempts at helping the people. He created the Reconstruction Finance Corporation to loan money to banks and big business to keep them operating. He called for lower taxes and loans to business to create public works to stimulate the economy. These efforts were not nearly enough.
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Un it 8 Lesson 6
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The lack of governmental spending actually created more problems because people lost faith in the economy. In America many people who had lost their jobs were living in places called Hoovervilles, named after the president Herbert Hoover whom everyone blamed for the Depression.
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Un it 8 Lesson 6
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Originally many Americans sided with Hoover but as the Depression continued they believed that the government should step in and help them out some how. In 1932 Presidential elections were pretty much a foregone conclusion, Hoover was out and whoever the Democrats ran would win. 15
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The blame on Hoover was so much that there were hitch hikers that held up signs saying give me a ride or I'll vote for Hoover. The Democrats were going to gain control of the presidency for the third time since Lincoln. The other two were Grover Cleveland and Woodrow Wilson. 16
Un it 8 Lesson 6
March 01, 2017
Franklin Delano Roosevelt the governor of New York won easily. Roosevelt when he was nominated by the Democratic convention pledged a "New Deal" to the American people. In November not only did the Democrats win the presidency but both houses of Congress as well. 17
Un it 8 Lesson 6
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F.D.R. now had four months until he would become president. He used this time to plan out with his "Brain Trust" what his policies would be to try and lead America out of the Great depression.
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FDR and his Brain Trust developed many new programs to try to bring the US out from the Great Depression. Answer the following questions by Chapter 13 Section 3 in your SC History Textbook
1. What does CCC stand for and what was the purpose?
2. What does WPA and PWA stand for and what was the purpose of each?
3. What does SSA stand for and what was the purpose?
4. How many workers were hired to complete the Santee Cooper Project? How many acres of timberland were cleared? What two lakes were created? Why were cemeteries relocated?
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