Unit 4

Flow Chart
● Model T is invented by Henry Ford
● 1909: $850
○ Too pricey for middle class
● He creates the assembly line which helps make model T more
affordable
○ 1920s ($290)
● People still need payment options
○ Installment plans are created
■ Sales went frome 8mil to 26 mil
■ Kichen Applinces, Furniture, and Radios all started doing
the same thing
● Marketing Departments
○ Planned Obsolescence
○ Advertising
■ Money spent went from 500 mil to 3 bil
■ Magazines, Newspapers, Radio, and Billboards
● Auto- Touring
○ Family Vacations, Suburb Living, and Teenage Culture
The Roaring Twenties
The Roaring Twenties in Art and Architecture
● The “War to End All Wars” was over
● Americans attempted to return to life as usual.
○ Society witnessed rapid changes, especially in the visual arts.
● Women were especially changed in the 1920s.
○ Home from the wartime factories
○ Gained the right to vote
○ The economic prosperity of the times led to greater household
spending
■ Washing machines
■ Vacuum cleaners
■ Refrigerators
 ● Women went from being quiet and subservient, dressing in Victorian
fashions…
Flappers
● Young women in the 1920s who challenged social tradition with their
dress and actions.
○ Assertive
○ Outspoken
Leisure Activities
● Flagpole sitting was a popular pastime for teenage thrill seekers.
Dance Marathons
● Couples would compete for prizes to see who could dance the most
Causes to the Stock Market Crash
Industries in Trouble
● Prosperity of the 1920s was superficial
○ Masked many problems
● Basic industries not profiting
○ Railroad, textile, steel
○ Large layoffs in workforce
● End of wartime lowers demand
○ Coal
○ Lumber
● Real estate prices climb
○ Too expensive for most americans
○ People stop buying
Farmers Need a Lift
● Crop prices fall by 40% after WWI
○ Deflation
○ Demand also falls
● Farmers took out loans to increase production
○ Lowered prices further
○ Lost farms when they could not pay loan
● Coolidge vetoes two attempts at price supports for crops
Uneven Income
● Gap grows between rich and poor
 ○ Wealthiest 1% =75% increase in income
○ Americans as a whole = 9% increase
○ Most families make less than $2500 a year
○ Most families can’t afford household items
Causes of the Great Depression
Many investors lost most or all of their money, leaving numerous unpaid
debts
● Bank Failure
○ People are unable to repay their loans,
■ Resulting in a lack of funds for banks
○ Bank runs - many people at one time come to withdraw money
out of a bank
■ Leaving no cash in the bank
■ Banks forced to close
● Business Failure
○ People are not buying products
■ No income
■ Installment Plans are not getting paid
● Global Depression
○ Countries are not buying American products
■ Protective tariffs
■ Resulting in job losses
● Credit Crisis/Consumer Debt
○ 1920s: everything was bought on credit
■ Farmers and other investors cannot repay their loans to
banks
● The Bonus Army
○ The bonus army was a gathering of WWI vets who wanted
payment and were protesting in washington.
○ The army used tear gas to disband them
● There is an event called the dust bowl in the midwest
○ Caused by overproduction of farmers
○ An unusually dry year
○ High winds
 ● Results
○ Top soil was gone
○ Massive dust storms
○ Lung issues
○ Dirt got into homes on a large scale
○ A lot of people left and went to California
Election of 1932

Directions:

● Predict whether each statement sounds true or false

● Use the textbook, pgs. 770-773 (flag book) to determine if they are true or

false

● For each FALSE statement provide an explanation for why it is false

First letter is my prediction second letter is answer

1. ___FF__ Franklin Roosevelt was a physically strong and healthy

candidate just like his cousin, Teddy Roosevelt. He was paralysed

2. __TF___ Eleanor Roosevelt was disinterested in politics and did not

want FDR to run for president. She flew everywhere helping run the

campaign she was all for it

3. ___TT__ FDR gained popularity in New York by sponsoring heavy

spending to relieve the suffering of the depression.

4. __TF___ FDR promised sweeping economic reforms as the

Republican nominee in 1932. Democrat not Republican

5. ____FT_ A New Deal for the “forgotten man” was the core of FDR’s

campaign promises in 1932.

and individualism in order to sway voters. He didn’t

7. __TF___ Black voters remained loyal to the Republican party during,

the election, as they had ever since the Civil War. They became anti-

Republican Hoover and pro-Democrat Roosevelt

8. __TF___ Hoover won the election after a very close race but FDR

became a nationally known name. Roosevelt won by a landslide

9. _TF____ During the “lame duck” period, Hoover was able to

accomplish quite a bit before he exited office. He wasn’t able to do

much without Roosevelts cooperation

1. How does FDR describe the effect of "fear" on nation and economy? Fear can

and will destroy the nation if it isn’t controlled. Fear is making people not do

what is needed to happen.

2. Who does FDR ask the people to put faith in to help them? How does this differ

from approaches to economic problems? He asked them to put faith in him

3. What is the overall purpose/main idea of the speech? What evidence supports

that? To build confidence that help is coming

1. What is the purpose of this radio address? Why do you think FDR believed this

to be necessary? To restore trust in banks and explain how banks work. He

banks

2. How does FDR try to restore trust in banks in this address? Provide evidence.

By explaining how banks work. He explains that he is going to inspect the banks

on a regular basis.

3. What evidence from BOTH videos demonstrates how the

government/presidency is going to change under FDR? In the first speech he

said to put your trust in him. He says that he needs congress to give him the

power to do this stuff

FDR & The New Deal

The New Deal

● New Deal:

○ FDR’s program and plan to alleviate problems of the Great

Depression

○ Three main goals:

■ Relief for the needy

■ Economic recovery

■ Financial reform

The Hundred Days

● Hundred Days

○ Passed more than 15 major pieces of New Deal legislation

■ Expanded the govt’s role in the economy

● Emergency Banking Relief Act- authorized Treasury to inspect all

banks

○ Closed all banks nationwide for “Bank holiday” to accomplish

○ Could reopen if they passed inspection

Regulating Banking and Finance

● Federal Deposit Insurance Corporation (FDIC)

○ Created by the Glass-Steagall Act of 1933

○ Insured all bank accounts up to $5000

● Federal Securities Act of 1933

○ Corporations required to provide complete info on all stock

offerings

■ Liable for misrepresentation

○ Securities and Exchange Commission (SEC)

■ Create to regulate stock market

■ Enforce Securities Act

● Automotive culture

● Luxury Items

● Flapper dresses

● Lack of food and money

● People losing money in the stock market

● Crowds forming around potential jobs and them only selecting a

certain amount of them

● “He’s been living in the Hoover towns” a Hooverville is a shantytown

a bunch of hard built crappy buildings and poor people.

Legacy of the New Deal

Positives of the New deal

● People had a sense of self worth now that they had a job

○ Families now had some disposable income to spend, to help

boost the economy

income

● Minimum wage and better working conditions

Critics of the New Deal

● Americans will become dependent on the government

○ Welfare state

● Deficit spending

○ The New Deal cost the government more than it was pulling in

yearly

● Government was becoming too involved in the economy

○ This goes against the Free-Enterprise Capitalistic economic

system

Did the New Deal Work?

● It did help many Americans survive during the Depression

○ Financially

○ Literally

● The economy, however, would not fully recover until the United

States entered WWII

● 1920s
 ○ Understand the major concepts surrounding the consumer

economy of the 1920s

○ Immigration Act of 1924 and Nativist sentiment in the 1920s

○ 18th & 21st amendments & Prohibition era

○ Scopes Trial

○ Why did Jazz music become so popular in the 1920s?

○ Know the major concepts of the 1920s teen culture

○ What was the Harding admin known for?

○ What was the Coolidge admin known for?

○ What was the significance of the Harlem Renaissance

● Great Depression

○ What was Hoover’s response to the Great Depression?

○ Why did the Stock Market Crash?

○ What was the significance of the Bonus Army?

○ What were the major causes of the Great Depression?

○ What were Hoovervilles? What is their significance?

○ Give the pros and cons of the New Deal

○ What are the overall goals of the New Deal?

○ Know the specifics of the following New Deal Programs (CCC,

WPA, FDIC, PWA, AAA, SEC, Social Security Act)

○ What were the major problems with farmers during the

Depression?

Road to War

Isolationism

● The U.S. wanted no part of world affairs that would lead them to war

after WWI

○ Never joined League of Nations

○ Reject Treaty of Versailles

● A period of disarmament (downsizing the military) was called for by

many nations

○ To prevent future wars.

○ This was followed for short time, but soon abandoned by most

nations

War Debts

● The Allies owed money to the U.S. from money lent during WWI

○ The only way to pay back the debt was to collect from Germany

● German economy suffers after WWI

○ Printed too much paper money

■ Hyperinflation
 ○ Industrial regions taken after WWI

● The German people become bitter and angry towards the Allies and

U.S.

Rise of Militarism

● Many countries in Europe after WWI were devastated

○ By the War

○ Global economic depression

● Led to takeover by militaristic, totalitarian dictators in many of

Europe’s nations

○ Totalitarian= total control of people’s lives by one party or

person

Benito Mussolini

● Benito Mussolini took control of Italy in 1922

● He set up a fascist state,

○ Military dominated government

○ Controls all aspects of society.

○ Demands blind devotion to state

● Ruthless dictator, arresting and killing those who opposed fascism

○ Promise to revive Roman Empire

Joseph Stalin
 ● The Soviet Union (Russia during WWI) was a communist nation.

● Joseph Stalin took power after the death of Vladimir Lenin,

● He set up a totalitarian state,

○ Government has complete control.

● Stalin converted all private farms into state run farms.

○ Led to wide-spread famine.

● He used Red Army to scare people into complying with his rules.

● Stalin killed as many as 30 million who opposed his rule.

Adolf Hitler

● Hitler was thrown in prison after WWI

○ Plotting to overthrow the new German Government.

■ Weimar Republic

● While in jail he wrote the book Mein Kampf,

○ Blamed German problems on Jews, communists, and

politicians.

● Desperate Germans accept this message when he gets out of jail.