CA. Social Science Standard: 11.5
11.5- Students analyze the major political, social, economic, technological, and cultural developments of the 1920's.
11.6- Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government.
11.6- Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government.
Five Facts
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1. The Great Depression caused business' to fail, banks closed, and suffering occurred.
2. Hoover was blamed for the suffering
3. He later began using power of government
4. Buying on margin was also introduced
5. Homeless people were living in Hoovervilles
2. Hoover was blamed for the suffering
3. He later began using power of government
4. Buying on margin was also introduced
5. Homeless people were living in Hoovervilles
Summary
The stock market crash of 1929 revealed weaknesses in the American economy and helped trigger a spreading economic crisis. Buying on margin was buying stocks with loans from stockbrokers. Dust bowls were areas where severe dust storms destroyed topsoil, homes, and farm equipment. By 1933, more than $140 billion in savings had been lost. Many Americans went hungry. By 1933 food prices were about half what they had been in 1929. Smoot-Hawley Tariff Act was a law passed in 1930 that placed in 1930 that placed tariffs on many imported good. Public works were government-funded building projects. FDR convinced people that he knew their hard times and that public works programs would help them. The New Deal was FDR's program for ending the Great Depression.
Original Thought
In my opinion, America back in this time was very bad. Just The Great Depression itself just sounds horrible. I can only imagine how life was just by reading about it and looking at pictures. People had to pretty much live hell on earth for 12 long years! Stock market crashed, all the banks were shutdown, and almost no one had homes to live in. Hoover didn't really do much to help the people, which caused people to blame him for everything. THE STRUGGLE WAS REAL!
The Red Scare
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The Red Scare was the fear of America becoming a communist country. In the 1920, it was said that there was about 150,000 anarchists or communists in the USA. Back then this represented 0.1% of the population. Any bad event that occurred in America, whether large or small, were blamed at the communists. On New Year's Day, over 6000 people were arrested and put in prison. Many of them had to be released in just a few weeks.
3 Links
http://www.historylearningsite.co.uk/red_scare_1920s_America.htm
http://law2.umkc.edu/faculty/projects/ftrials/saccov/redscare.html
http://www.mtholyoke.edu/~lillsie/McCarthyism/background.html
http://law2.umkc.edu/faculty/projects/ftrials/saccov/redscare.html
http://www.mtholyoke.edu/~lillsie/McCarthyism/background.html
Gold Chart
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This chart shows how gold prices back then and now differ. Gold from the 1900-1970 was barely worth anything. That also goes for Americas public debt, there was nearly nothing. After the 1970's everything dramatically started changing. Gold prices flew up and the debt did too. Prices grew, debt grew, all the way to 2012 where we hit our near peak.