Adriene A. Hoang Cher D. Vo Cody T. Lam Michael H. Ta
AUTHORS___________ Liam Timmons •
Publishing Director
•
Bachelor of Education, Social Studies and English, St.
Francis Xavier University, Antigonish, Nova Scotia, Canada, 2008. Bachelor of Arts, Joint Advanced Major Anthropology & Political Science, St. Francis Xavier University, Antigonish, Nova Scotia, Canada, 2003.
Adriene An Hoang, Writer.
Cher Duyen Vo, Writer.
Cody Trung Lam, Writer.
Michael Huy Ta, Writer.
Brief Contents Unit 6: The 1920s and the Depression Chapter 22: The Great Depression Begins Section 1: The Nation’s Sick Economy Page 1 Reference Section 1 Page 6 Section 2: Hardship and Suffering During the Depression Page 8 Reference Section 2 Page 12 Section 3: Hoover Struggles with Depression Page 14 Glossary Page 19
Introduction At the end of every section, DIY quizzes are given.
What is a DIY Quiz? It is a Do It Yourself Quiz.
What is its purpose? It is used to check your understanding after reading or learning each section. At the end of the chapter, there is a summary of sections included in the chapter as well as a DIY test.
What is a DIY test? It is a Do It Yourself Test.
What is its purpose? It is used to prepare for your tests and exams. It also provides you a general knowledge about the chapter. It can also be used as a source or a sample test/exam. In every section, there will be hyperlinks that provide you side information about the keywords in the section. There are images and videos that were used in the chapter, we cited and copyrighted at the end of the book.
SECTION 1 Pre-reading Do you know who is Herbert Hoover? What is a Stock Market? Have you ever heard of “Black Tuesday?” Does “The Great Depression” give you any ideas what is going on in this period of time? What is “Worldwide Shock Wave?”
After reading this section, you will be able to answer all of those questions above.
Chapter 22: The Great Depression Begins
The Nation’s Sick Economy Economic Troubles on the Horizon 1920s, serious problems threatened economic prosperity. Some Americans became wealthy while many more could not survive. During this period of time, farmers grew more crops and raised more livestock. Both consumers and farmers were steadily going deeper into debt. These slippages in the economy eventually signaled the end of an era.
Industries in trouble Late 1920s, the superficial prosperity shrouded weaknesses that would signal the onset of the Great Depression. Railroads, textiles, and steel had barely made a profit. New forms of transportation appeared such as trucks, buses, and private automobiles. Mining and lumbering were no longer in high demand as in the wartime. Early 1930s, new forms of energy, including hydroelectric power, fuel oil, and natural gas supplied more than half the energy that had once come from coal. At that time, the number of new dwelling being built. Jobs in many related industries such as furniture manufacturing and lumbering also increased.
Farmers need a lift Agriculture suffered the most. Farmers had planted more and taken out
Chapter 22: The Great Depression Begins loans for land and equipment to supply the World War I. However, demand fell after the war. Farmers boosted production in the hopes of selling more crops. Farmers who had gone into debt had difficulty in paying off their loans. Many lost their farms and seized the property as payment for the debt. So Congress decided to help farmers with a piece of legislation called the McNary-Haugen bill. It is the federal price-supports for key products. The government would buy surplus crops and guaranteed prices and sell them on the world market.
Consumers have less money to spend Farmers’ incomes fell; they bought fewer goods and services. Late 1920s, Americans were buying less because of the price rising problem. Production had also expanded much faster than wages ever widening gap between the rich and the poor.
Living on credit Farmers bought goods on credit – on arrangement, in which consumers agreed to buy now and pay later for purchase (Installment). Businesses encouraged Americans to pile up a large consumer debt. People had trouble paying off their growing debts.
Uneven Distribution of Income During the 1920s, the rich got richer, the poor got poorer. More than 70 percent of the nation’s families earned less than $2,500 per year. Even families earning twice that much could not afford many of the household products that manufacturers produced. Only one city home in ten had electric lights. On average, people could only afford one new outfit a year. Many people did not have the money to purchase the goods that factories produced.
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Chapter 22: The Great Depression Begins
Hoover Takes the Nation Economic disaster was around the corner but the election of 1928 still took place in a mood of apparent national prosperity. This election pitted Republican candidate Herbert Hoover against Democrat Alfred E. Smith.
The Election of 1928 Hoover was a mining engineer from Iowa who had never run for public office. Smith was a career politician who had Still, Hoover had once major advantage: he could point to years of prosperity under Republican administrations since triumph over poverty than ever before,� he
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Chapter 22: The Great Depression Begins declared. Most Americans were happy.
Dreams of Riches in the Stock Market. 1929, some economists had warned of weaknesses in the economy. The stock market had become the most visible symbol of a prosperous American economy. The Dow Jones Industrial Average was the most widely used barometer of the stock market’s health. It is the measure based on the stock prices. 1920s, stock prices rose steadily.
Dow Jones Industrial Average Dow Jones Industrial Average was the most widely used barometer of the stock markets health. The Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.
The Stock Market Crashes On October 29, the bottom fell out of the market and the nation’s confidence.
Black Tuesday Shareholders frantically tried to sell before prices plunged even lower. People who had bought on credit had huge debt. Investors had lost about $30 billion.
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Chapter 22: The Great Depression Begins
Financial Collapse Note: Stock market crash collapse of economy great depression. Great Depression: the period from 1929 – 1940 in which the economy plummeted and unemployment skyrocketed. Bank and Business Failures Bank invested people’s money in the stock market and couldn’t give it back. Gross National Product was the nation’s total output of goods and services. GNP was cut in half so thousands of businesses went bankrupt, that leads to a lot of unemployment. Worldwide Shock Waves Hawley-Smoot Tariff Act: established the highest protective tariff in U.S. history. That leads to many negative effects such as: prevented other countries from earning American currency to buy American goods. It continuously increased unemployment because businesses could no longer export to Europe. Other countries responded by raising their own tariffs. Cause of the Great Depression: 1.
Tariffs and war debt policies that cut down the foreign market for American goods.
2.
A crisis in the farm sector
3.
The availability of easy credit
4.
An unequal distribution of income
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Chapter 22: The Great Depression Begins
REFERENCE
Chapter 22: The Great Depression Begins
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Chapter 22: The Great Depression Begins
QYS! – Quiz Yourself! 1. In the election of 1928, who was Herbert Hoover fight against? a.
Gordon Parks
b.
Alfred E. Smith
c.
Frederick Lewis Allen
2. Which of the below is not a cause of the Great Depression? a.
A crisis in the farm sector
b.
The availability of easy credit
c.
A tsunami crashed the coast states
d. An unequal distribution of income 3. Which group suffered the most from the Great Depression? a.
Big business
b.
The government
c.
Farmers
d. Everyone suffered at the same level
1. B; 2. C; 3. C
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SECTION 2 Pre-reading Have you ever heard of “Dust Bowl?” Have you ever think of a situation when your dad doesn’t have a job and you cannot go to school? What do you think of beggars? Have you ever observe a homeless child in the street? What did you see and how do you think of it?
After reading this section, you will be able to answer all of those questions above.
Chapter 22: The Great Depression Begins
Hardship and Suffering during the Depression The Great Depression Devastates The Depression in the cities The Great Depression brought suffering and hardship to many Americans; millions of people lost their jobs, some went hungry or became homeless. People lost their houses because they could not meet the housing payment. Some slept in parks and wrapped themselves up in newspapers to keep warm. Others built shantytowns where they lived in little shacks made from raw materials. The soup kitchens were the charity organization that served meals to the needy. The bread lines provided food for people who could not afford it. African Americans and Latino Americans who lived in the cities had a very hard time. They had a higher unemployment rate than white. If they did have work, they would pay less than the white workers. The whites who were finding jobs didn’t want to compete with these minority groups. They sometimes attacked African Chapter 22: The Great Depression Begins
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Chapter 22: The Great Depression Begins Americans and demanded the Latinos to be sent back to the country where they came from.
The Depression in Rural Areas As the Depression grew deepen, the prices kept going down. Many farming family could not meet their mortgage payment. From 1929 to 1932, about 400,000 farmers lost their land.
The Dust Bowl The long drought hit the Great Plains, which made the situation even worse . There was little rain from Texas to North Dakota. Much of this areas have been grassland where the farmers had cut them
down in order to grow crops. The soil was now exhausted for overfarming. The grass that had once helped the soiling place was gone. When the powerful winds swept across the Great Plains, it blew away the soil. This dry area of blowing soil was called the Dust Bowl. The most damage regions included part of Kansas, Oklahoma, Texas, New Mexico and Colorado. Many Oklahoma farmers backed up their belongings and started for California to look for work. They became migrated workers, moving from place to place to pick crops, they often been called Okies. Chapter 22: The Great Depression Begins
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Chapter 22: The Great Depression Begins
Effects on the American family The Depression put a heavy strain on family life. Many families shared what they earned with their neighbors. Instead for going out for entertainment, parents and children often stayed home. They played board games or listen to the radio. Some families broke apart under the strain of poverty and unemployment.
Men in the streets Many men feel ashamed because they had lost their jobs. Some of them simply left their families, and became hoboes – who wandered around the country to look for jobs.
Women struggle to survive Women also tried to find work but they were usually get paid less than men. Many complained that women should not be hired for jobs. Men should have the jobs instead. These people argued that men were the one who supported the family so therefore it more important to them to have jobs.
Children Suffer Hardships Children suffered horribly from poverty and a break of family. Parents could not afford enough food and health care for the children. Therefore, many suffered from malnutrition and diet related illnesses, like rickets. Many of them ran away from home, hopped aboard freight trains. It was interesting but dangerous. Some got wrapped or killed by criminal or beaten by railroad guards.
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Chapter 22: The Great Depression Begins
Social and Psychological effects During the years of the Great Depression, the federal government didn’t give direct relief –cash or food directly to the poor people. Charities and some cities governments put hard effort in helping but they could not pull the people out of poverty. The cities and states collected less and less tax money since most of people were out of job. They had to cut their budgets for program like child-welfare. Most of places shortened the school year since they merely could afford it. The children had to go to work to support their families. The Great Depression caused great suffering, the rate of suicide and mental illness increased dramatically. Young people gave up their dream of colleges. While the Great Depression caused much suffering, however, it pulled the individual families and the communities together. Many people shared resources with their neighbors or gave food and clothing to the needy.
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Chapter 22: The Great Depression Begins
REFERENCE
Chapter 22: The Great Depression Begins
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[Type the document title]
QYS! – Quiz Yourself! 1. Where did the homeless people live in? a.
Shantytowns
b.
Soup kitchens
c.
Neighbors’’ houses
d. Migrant to another countries
2. What state was not affected by the Dust Bowl? a.
Kansas
b.
Nebraska
c.
New York
d. Colorado
3. How was the life of children during the time of Great Depression? a.
Extra school day hours
b.
Poor nutrition
c.
Be a house-keeper
d. Be beaten by their parents often
1. A; 2. C; 3. B
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SECTION 3 Pre-reading For what you have learned about Herbert Hoover in Section 1, which kind of person do you think he is? Where is Boulder Dam? What is “Bonus Army?� Have you ever contribute anything to your nation?
After reading this section, you will be able to answer all of those questions above.
Chapter 22: The Great Depression Begins
Hoover Struggles with Depressions Hoover Tries to Reassure the Nation Herbert Hoover, philosophy (1874-1964) He born to a Quaker family in Iowa, he was orphaned since he was young. He worked very hard and later made a fortune for mining engineer and consultant in China, Australia, Europe and Africa. He used to work as an engineer. He had a great faith on the power of reason. He was a humanitarian man. Like many other men of that time, he believed that the government has to find out every solution that best for labor and business, the cooperation must be use voluntary instead of using forced. The government is not control cooperation but they have to facilitate and encourage it. On the other hand, he also thought that people have to succeed through their own efforts. They have to take care of themselves and their family rather than waiting on the government to take care all of the problems.
Hoover Takes Cautions Steps Hoover’s political philosophy caused him to have some cautious approach to the Chapter 22: The Great Depression Begins
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Chapter 22: The Great Depression Begins depression. After the stock market crash, he combined key leaders, business men, banking and labor together and work to help American economic and would not make a bad situation worse. But none of these steps change anything. A year after that, the economic still shrinking and unemployment was still rising. A lot of company was out of business, general misery still growing. One of his successful projects is called the Boulder Dam, later called Hoover Dam. With its 726 ft high and 1,244 ft long, Boulder dam is the world’s tallest dam and second largest. This dam was located at Colorado River. This project was successful because it created rage profits from sales the electric that the dam was created.
Democrats win in 1930 Congressional Elections The political tide turned to against Hoover and the Republicans because the country economic can’t able to increase or reach the medium amount. In 1930 election, the Democrats had a bigger advantage thanks to anti-Hoover members have more seats in Congress. Everyone is against Hoover, even the farmers. They refuse to work, they burn all of their crops, and Chapter 22: The Great Depression Begins ]
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Chapter 22: The Great Depression Begins they dumped all of their milk into river or on highway rather than sell it. Many Americans who had though that Hoover was a great leader few years ago, now all they saw him as a cold and heartless leader. However, Hoover ignores all of the public criticism, he still continued to keep his principles, and he refused to support federal welfare. Many Americans were starved and thirst. Criticism about Hoover continued to grow.
The Bonus Army and Hoover Spring 1932, about 10,000 and 20,000 veterans and their family’s member, went to D.C and ask for more cash and they called themselves the Bonus Army. This “army” was led by Walter Waters, one of the unemployed workers from Oregon.
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Chapter 22: The Great Depression Begins They came to D.C to support the Patman Bill. The Patman Bill authorized the government to pay a bonus to WWI who had not been compensated adequately for their wartime service. This bill was approved in 1924 but they won’t pay before 1945. Hoover convince the Bonus Army to go back where that came from and most of them did, but the rest (about 2,000 men) still hoping to meet the president, refused to budge. Hoover afraid that the rest of the Bonus Army will become more violent and won’t obey the government so he has to disband them. On July 28, a force of 1,000 soldiers came to force the veterans leave Washington D.C. After the disbandment, the infantry gassed more than 1000 people including one 11-month-old baby, 8-year-old boy who blinded both of his eyes, 2 were shot and a lot of injury. Most of Americans were shocked at Hoover’s reaction. So once again, Hoover himself has destroyed his image in everyone’s heart.
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Chapter 22: The Great Depression Begins
QYS! – Quiz Yourself! 1. Hoover’s “a chicken in every pot” was trying to improve: a. Nutritious meals b. Return of properious c. Growth of agriculture d. Eat chicken instead of beef 2. What did the Federal home Loan Bank Act not do? a. Lowered mortgage rates for homeowners b. Allowed farmers to refinance their farm loans c. Every citizen must own or rent a house d. Avoid foreclosure 3. Hoover’s failure of the election against Franklin Roosevelt mainly because of: a. Denial of Patman Bill b. Infantry attacked Bonus Army c. Passed the Federal Home Loan Bank Act d. Authorized the construction of Boulder Dam
1. A; 2. C; 3. B
Chapter 22: The Great Depression Begins [Type text]
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Chapter 22: The Great Depression Begins
Glossary Black Tuesday: a name given to October 29, 1929, when stock prices fell sharply. Boulder Dam: a dam on the Colorado River, now called Hoover Dam, that was built during the Great Depression as part of a public-works program intended to stimulate business and provide jobs. Bonus Army: a group of World War I veterans and their families who marched on Washington, D.C., in 1931 to demand to immediate payment of a bonus they had been promised for military service. Buying on margin: The purchasing of stocks by paying only a small percentage of the price and borrowing the rest. Breadline: a line of people waiting for free food. Credit: an arrangement in which a buyer pays later for a purchase, often on an installment plan with interest charges. Direct relief: the giving of money or food by the government directly to needy people. Dow Jones Industrial Average: a measure based on the prices of the stocks of 30 large companies, widely used as a barometer of the stock market’s health. Dust Bowl: the region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s. Federal Home Loan Bank Act: a law, enacted in 1931, that lowered home mortgage rates and allowed farmers to refinance their loans and avoid foreclosure. Great Depression: a period, lasting from 1929 to 1940, in which the U.S. economy was in severe decline and millions of Americans were unemployed. Hawley-Smoot Tariff: a law, enacted in 1930, that established the highest protective tariff in U.S. history, worsening the depression in America and abroad. Price-support: the maintenance of a price at a certain level through government intervention Speculation: an involvement in risky business transactions in an effort to make a quick or large profit. Shantytowns: a neighborhood in which people live in makeshift shacks. Soup kitchen: a place where free or low cost food is served to the needy.
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Chapter 22: The Great Depression Begins
Citation •
"Dust Bowl." Wikipedia, the Free Encyclopedia. 17 May 2010. Web. 18 May 2010. <http://en.wikipedia.org/wiki/Dust_Bowl>.
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Chapter 22: The Great Depression Begins Washington State History. Web. 18 May 2010. <http://www.historylink.org/index.cfm? DisplayPage=output.cfm&File_Id=741>. •
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Chapter 22: The Great Depression Begins
Chapter 22: The Great Depression Begins
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