The photograph that has become known as "Migrant Mother" is one of a series of photographs that Dorothea Lange made of Florence Owens Thompson and her children in February or March of 1936 in Nipomo, California. Lange was concluding a month's trip photographing migratory farm labor around the state for what was then the Resettlement Administration. In 1960, Lange gave this account of the experience:

“I saw and approached the hungry and desperate mother, as if drawn by a magnet. I do not remember how I explained my presence or my camera to her, but I do remember she asked me no questions. I made five exposures, working closer and closer from the same direction. I did not ask her name or her history. She told me her age, that she was thirty-two. She said that they had been living on frozen vegetables from the surrounding fields, and birds that the children killed. She had just sold the tires from her car to buy food. There she sat in that lean-to tent with her children huddled around her, and seemed to know that my pictures might help her, and so she helped me. There was a sort of equality about it.” (From: Popular Photography, Feb. 1960).

Herbert Hoover v. Alfred SmithElection 1928

Quaker

For Prohibition

Roman Catholic

Against Prohibition

I love business!

Hoover Wins

Republicans were viewed as responsible for economic growth (Roaring 20s)

Many Americans were worried about Smith’s Catholic background…

How did the Depression Happen?

Some basics… Stock Market (def.) a system for buying

and selling shares of companies (stocks). Bull Market – long period of rising stock

prices Jim Cramer

The Problems

Margin – I Can’t Believe It’s Not Butter (def.) Taking out a loan (borrowing money)

to buy stock Investors bought on speculation – (def.)

betting on the market, not on a company What does that mean?

If stock prices fall dramatically, how are you going to pay back the bank

for stocks you bought on speculation?

If you can’t pay back the bank, what can the bank do?

What happens if the bank invested a bunch of money in

the stock market?

Went 2 bank. They were closed – 4EVER! My savings is gone!

The Crash

Black Tuesday – 10/29/29 Within 2 weeks stocks plummet over 1/3 Within 3 years the Dow Jones Industrial

Average (DJIA) fell 89% What is the DJIA?

DJIA Companies 3M Company Alcoa Incorporated Altria Group Incorporated American Express Company American International Group AT&T Incorporated Boeing Corporation Caterpillar Incorporated Citigroup Incorporated Coca-Cola Company DuPont Exxon Mobil Corporation General Electric Company General Motors Corporation Hewlett-Packard Company

Home Depot IncorporatedHoneywell International Inc.Intel CorporationInternational Business MachinesJohnson & JohnsonJ.P. Morgan Chase & CompanyMcDonald’s CorporationMerck & Company, IncorporatedMicrosoft CorporationPfizer IncorporatedProcter & Gamble CompanyUnited TechnologiesVerizon CompanyWal-Mart Stores IncorporatedWalt Disney Company

Tough Luck Herbie

Banks close; people lose their savings. Fear, fear, fear

Dorthea Lange Photos to Bing Crosby

DJIA, S & P 500, and Nasdaq

                                                                                                                                                                                                                                                                                                                                               

Other factors that led to theGreat Depression

Installment plans – paying for goods in monthly installments (payments)

Debt = payments = less $ to spend = less purchases = less sales = cut in salaries = firing of workers = unemployment = not good

What kept it going?

Tariffs Hawley-Smoot Tariff – increased tax on

imports Protects American manufacturers Keeps prices high for consumers

Federal Reserve Money Supply – the amount of money in the

economy

Money Supply

3 Ways to increase or decrease the Money Supply Change interest rates

Interest Rates on automobiles are at 8% and the Fed lowers the rate to 5%.

What’s going to happen? Change the federal reserve ratio

Banks are told to keep 10% of all money loaned out in their vault. The Fed raises this rate to 20%.

What’s going to happen? Buy or sell bonds

Bond – a formal contract to agree to repay a loan with interest

The US Federal Reserve can increase the money supply by selling US Treasury bonds to citizens.

A. True

B. False

The US Federal Reserve can increase the money supply by lowering interest rates.

A. True

B. False

Tariffs help US companies.

A. True

B. False

Who do tariffs hurt?

Hoovervilles - name given to towns constructed by homeless people on unused/public land (shantytowns)

Stats (by 1932)

13 million lost jobs

Unemployment is over 20%

Farm prices down 53%

40% of banks have failed

$2,000,000,000 in deposits have been lost

Today

What is the current unemployment rate?

How is it measured?

You think we have it bad?

Dust Bowl (1931-39)

Dust Bowl

Long period of drought Winds created dust storms Farmers head

west

Bonus Army

Results

2 Dead, Very Bad Press

Franklin Delano Roosevelt

Elected in 1932, 36, 40, & 44 (4 terms)

Franklin Delano Roosevelt

Chapter 18

Roosevelt Response

March of 1933 – 25,000 vets allowed to enroll in the Civilian Conservation Corp

258 killed in

Hurricane

FDR’s Background

Distant Cousin of Teddy Harvard with Columbia Law Degree New York State Senator Wilson’s Asst. Secretary of Navy VP candidate in 1920 Polio in 1921 – paralyzed Governor of New York

Wife Eleanor

Eleanor Roosevelt (1884-1962)

Civil and Woman Rights Leader US Delegate to United

Nations (1945-52)

Chaired the committee that

drafted the UN Declaration

of Human Rights

The First New Deal

Hundred Days 15 major economic laws passed

Fireside Chats – FDR’s radio addresses to the public, designed to ensure confidence

Changes

Emergency Banking Relief Act Securities and Exchange Commission (SEC) Federal Deposit Insurance Corporation (FDIC) Agricultural Adjustment Administration (AAA)

Paying farmers not to grow food Hurt small farmers

Home Owner’s Loan Corporation (HOLC) Civilian Conservation Corps (CCC)

3 million in 1942 Emergency Relief Administration (ERA) Public Works Administration (PWA) Civilian Works Administration (CWA)

Civilian Conservation Corps(CCC)

Public Works Administration (PWA)

Agricultural Adjustment Administration (AAA)

Emergency Relief Administration (ERA)

Denver, CO – 1,250 workers employed

Works Progress Administration

(WPA)

8.5 Million Workers

What did these programs do?

Jobs for the unemployed $$$ for people to spend Businesses make money

Programs put money into the economy

Where did the government get all of this money?

CWA cost $1 billion in first 5 months The choice was borrowing money or

increasing taxes Deficit spending – borrowing money to

pay for programs No more balanced budget

Other Developments

Social Security Act – $$$ for retirees Unemployment benefits Welfare for those in need No Child Labor 40-Hour Work Week 1st Minimum Wage

Government now assumed role of a safety net

Labor Problems

Sit-down strikes

Flint, MI (1937)

Court Packing

Supreme Court declared some New Deal laws unconstitutional (EX: AAA)

Solution = change the Supreme Court 10 yrs and over 70, retire or allow a new justice

to be appointed Challenged Separation of Powers Mixed Results – put pressure on court, but

ticked-off Congress