Causes of the Great Depression

Lesson 2.1B - Companion

Why was Herbert Hoover popular during his candidacy and early presidency? (slide 2)
Hoover’s first months in office hinted at the reformist, humanitarian spirit that he had
displayed throughout his career. He continued civil service reform by expanding opportunities
for employment throughout the federal government. He directed the Department of Justice to
crack down on organized crime. This led to the arrest and imprisonment of the infamous gang
leader, Al Capone.

Watch the video “Overproduction Leads to Low Prices.” According to the video, what led to
high poverty among farmers in the 1920s? (slide 2 video)
Farmers produced more than was needed, causing prices for agricultural goods to plummet. As
a result, incomes decreased, and many struggled to pay mortgages and other debts.

What was Black Tuesday? What practices caused Black Tuesday to occur? (slide 4)
On Tuesday, October 29, 1929, often referred to as Black Tuesday, prices of stocks at the New
York Stock Exchange fell rapidly.

What were three effects of the market crash? (slide 4/5)

While only 10 percent of households had investments, more than 90 percent of all banks had
invested in the stock market. Many banks failed due to their dwindling cash reserves. Banks,
facing debt and seeking to protect their assets, demanded payment for the loans they had
provided to individual investors. As a result, investors lost not only their stocks but also their
life savings in a matter of minutes. And they were still indebted to the bank. Between
September 1 and November 30, 1929, the stock market lost more one-half its value, dropping
from $64 billion to approximately $30 billion.

How did the policy of protectionism worsen the Great Depression worldwide? (slide 6)
At the same time, the U.S. government took measures to support its own economy. Congress
put tariffs on imported goods to raise their prices to consumers. This was done in an effort to
encourage people to buy American-made products. For example, early on in the Depression,
the U.S.'s 1930 Smoot-Hawley Tariff angered foreign trade partners, who raised their own
tariffs in retaliation. This raised the cost of goods for consumers in all of these nations,
deepening the economic crisis internationally.
 Responses to the Great Depression
Lesson 2.2B - Companion

What was Herbert Hoover’s opinion of government aid during the Great Depression? (slide 2)
The idea of direct government aid, what he considered to be “handouts,” was repellant to him.
He didn’t like the idea. In a 1931 radio address, he said, “The spread of government destroys
initiative and thus destroys character.”

Describe Herbert Hoover’s concept of “rugged individualism.” (slide 2)

He believed that people should be self-reliant and work hard.

How did Herbert Hoover suggest the business community support the economy? (slide 3)
In addition to asking Americans to tighten their belts and work harder, Hoover also asked the
business community to voluntarily help support the economy by continuing production and
keeping employees working. He called a conference of leading industrialists to meet in
Washington, DC, urging them to maintain their current wages while the nation rode out this
brief economic panic. The crash, he assured business leaders, was not part of a greater
downturn; they had nothing to worry about.

How did private charities provide relief during the early part of the Great Depression? (slide 4)
Private relief agencies, including such organizations as the American Red Cross, Community
Chest, and the Salvation Army, distributed food to the poor through soup kitchens and bread
lines.

Cite evidence of the public’s perception of Herbert Hoover in the early 1930s. (slide 5)
Hoover’s resistance to government aid cost him the reelection and has placed him near the top
of the list of the most unpopular presidents in modern American history. His name became
synonymous with the poverty of the era. The shantytowns built and populated by the homeless
quickly earned the nickname “Hoovervilles,” and “Hoover blankets” referred to the
newspapers the homeless used to keep warm.

What was the Bonus Army and what were they fighting for? (slide 5)
One of the most notable protest movements occurred toward the end of Hoover’s presidency in
the spring of 1932. In this protest, some 15,000 World War I veterans calling themselves the
Bonus Expeditionary Force, or Bonus Army, marched on Washington, D.C. They were
demanding early payment of their veteran bonuses, which were not due to be paid until 1945.

How did Hoover’s actions toward the Bonus Army worsen the public’s perception of him? (Slide
5)
He ordered the police to empty the buildings and clear out the camps. In the exchange that
followed, police fired into the crowd, killing two veterans. Fearing an armed uprising, Hoover
ordered General Douglas MacArthur, along with his aides, Dwight Eisenhower and George
Patton, to forcibly remove the veterans.
 Effects of the Great Depression
Lesson 2.3B - Companion

What happened during the Ford Hunger March? (slide 2)

At the Dearborn city limits, local police launched tear gas at the protestors, who responded by
throwing stones and clods of dirt. At the gates of the plant, protestors faced more police, as
well as firefighters and private security guards

What were the goals of the Farm Holiday Association? (slide 2)

The association wanted the federal government to set agricultural prices artificially high
enough to cover the farmers’ costs, as well as to commit to selling any farm surpluses on the
world market.

Give two examples of Hoover’s efforts at government relief. List the effects of each. (slide 3)
By late 1931, as the economy continued to decline, Hoover recognized the need for some
government intervention. He created the President’s Emergency Committee for Employment
(PECE), later renamed the President’s Organization of Unemployment Relief (POUR). In
keeping with Hoover’s distaste of what he viewed as handouts, this organization did not offer
direct federal relief to people in need. Instead, it provided assistance to state and private relief
agencies, such as the Red Cross, Salvation Army, YMCA, and Community Chest. Hoover also
strongly urged people of means to donate funds to help the poor, just as he gave significant
private donations to worthy causes. But these private efforts could not ease the widespread
effects of poverty.

Why did the Great Depression make living conditions even worse for African Americans than
their white counterparts? (slide 4)
Subject to continuing racial discrimination, blacks nationwide fared even worse than their
white counterparts. In rural areas, as the price of cotton and other agricultural products
plummeted, farm owners cut their workers’ pay or simply laid them off. Landlords evicted
sharecroppers, and many African Americans who owned their land outright had to abandon it
when there was no longer any way to earn an income from it.

What was the outcome of the case of the Scottsboro Boys? (slide 5)
There was significant evidence that the women had not been assaulted at all, and one of the
women even retracted her testimony, but the all-white jury quickly convicted the defendants
and sentenced all but one of them to death.

How did the Scottsboro Boys trial reflect racial inequality and injustice in the 1930s? (slide 5)
There was significant evidence that the women had not been assaulted at all, and one of the
 women even retracted her testimony, but the all-white jury quickly convicted the defendants
and sentenced all but one of them to death.

What values of the Great Depression era were reflected in the popular movies of the time? (slide
7)
Then, as now, most Americans went to the movies to be entertained. Movies offered
escapism—a way for people to think about better times. Even though money was tight, many
were willing to pay 25 cents for a chance to escape their troubles for a few hours.
 The Dust Bowl
Lesson 2.4B - Companion

How did unwise practices in response to the agricultural prosperity during WWI set farmers up
for disaster after the war? (slide 2)
Many mortgaged their farms and borrowed money against profits expected from future
production in order to buy more land and equipment to grow more crops. Then the war ended,
and the government no longer needed excess crops. Farm income dwindled rapidly,
particularly during the postwar recession of 1921. Instead of cutting back on production,
though, farmers thought they could recover their losses through economies of scale.

How did farmers’ misuse of land and environmental conditions contribute to the Dust Bowl?
(slide 3)
In their effort to expand production, farmers had plowed under native grasses to plant acre
after acre of wheat. They gave little thought to how this would affect the soil for years to
come.

What were “black blizzards”? (slide 4)

As the dust storms became more frequent and terrifying, people began calling them “black
blizzards” because the clouds of dust were so thick and dark they blocked out the sun.

How did bank closures contribute to farmers losing their land? (slide 5)
Ultimately, the large banks foreclosed on the farms, forcing many farm families from their
homes. The large banks often swallowed up the small country banks in the process.

Who were “Okies” and what actions did they take to find a better life during the Great
Depression? (slide 6)
In hard-hit Oklahoma, thousands of farmers packed up what they could and walked or drove
away from the land they once thought would be their future. They, along with other displaced
farmers escaping the Dust Bowl, became known as Okies. They were given this name by those
who looked down on their plight.
 The Legacy of the Great Depression
Lesson 2.5B - Companion

Why did many Americans have a negative perception of President Herbert Hoover? (slide 2)
As more Americans came to suffer the effects of the deepening depression, however, public
opinion began to turn against Hoover. His steadfast resistance to providing government aid
cost him reelection in 1932 and has since placed him at the forefront of the nation’s most
unpopular presidents.

What was the Smoot-Hawley Tariff and how did it worsen economic conditions? (slide 3)
In an effort to support the American economy during the early stages of the Depression,
President Hoover signed into law the Smoot-Hawley Tariff in 1930. The law, which raised
tariffs on thousands of imports, was intended to increase sales of American-made goods, but,
predictably, it angered foreign trade partners. In response, they raised their tariffs on American
imports, thus shrinking international trade and closing additional markets to desperate
American manufacturers. As a result, the global depression worsened.

Describe the reaction of citizens to Hoover on the campaign trail leading up to the election of
1932. (slide 4)
Everywhere Hoover went, he was met with protestors carrying anti-Hoover signs. Many news
accounts reported that he seemed ill, with an ashen face and shaking hands.

How was Franklin Delano Roosevelt’s election in 1932 a turning point for the Democratic party?
(slide 5)
Historians identify this election as the beginning of a new Democratic coalition, bringing
together African Americans, other ethnic minorities, and organized labor as a voting bloc. The
Democratic Party would rely on this bloc for many of its electoral victories over the next 50
years.

Why was Herbert Hoover incapable of shifting into crisis mode when the prosperous 1920s
deteriorated into the Great Depression of the 1930s? (slide 6)
However, Hoover the president was a product of his time. Back in 1928, Americans had
elected a president they believed would continue the policies of “normalcy.”