Boom to Bust

1. Boom to Bust • Many U.S. businesses did well (prospered) in the 1920s, except for farming. • Crop prices fell, causing banks to go out of business because farmers couldn’t pay their debts. • Coal miners, railroad, and textile workers did not make much money either.

2. Stock Market • Many people invested in stocks (ownership in a corporation, divided into shares). • More on stocks: companies sell shares to raise money to buy equipment and grow. • Stockholder: owner of stock. If company does well, they get money back. • Speculate – buying and selling in hopes of profiting from changes in the market.

3. Stock Market • Some people would speculate on the stock market. • They risked their money hoping that prices would rise and they could sell their stock for a quick profit. • Others used credit to buy stocks they couldn’t afford. They hoped their quick profits would pay for the stocks.

4. Stock Market Crash of 1929 • Thursday, October 24th, investors sold more than 13 million shares of stocks. • Prices dropped sharply. • To help the market recover, banks bought stocks to level out the market on Friday and Saturday. • Monday, prices dropped again. • Tuesday, so much money was lost, it was known as Black Tuesday.

5. Aftermath of Black Tuesday • During the weeks after Black Tuesday, $26 billion dollars were lost. • Prices fell so low that the stocks weren’t worth the money people borrowed to pay them. • Result: Many debts were left unpaid. • Banks ran out of money because they couldn’t collect the debts owed.

6. Aftermath of Black Tuesday • The government did not insure banks in those days, so people lost their savings. • People didn’t have money, so factories and stores closed. • Thousands of people lost jobs. This began the Great Depression.

7. Great Depression • Lasted from 1929 to the beginning of World War II. • People lost their homes and farms. • They roamed from place to place searching for jobs. • Built temporary shacks to live in. • One-fourth of all workers were out of a job. • It was the longest and worst depression in U.S. History.

8. Great Depression

9. Video - Brother Can you spare a dime Primary Source in song

10. Primary Sources in Song • "Brother, Can You Spare a Dime?" lyrics by Yip Harburg, music by Jay Gorney (1931)They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread?Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?

11. Texas and the Depression • At first, the depression didn’t affect Texas as much because many people did not invest in stocks. • More farmers than industrial workers, so fewer people lost their jobs. • Texas was a poor state before the stock market crash, so it didn’t experience a big change.

12. Texas and the Depression • The Depression spread worldwide, affecting European markets for Texas goods. • 1931, cotton crop was the largest in Texas. • Cotton went from selling at 18 cents a pound to 5 cents a pound. • Demand for other crops dropped, causing Texas businesses to close.

13. The Dust Bowl • Mid-1930s, terrible drought hit Texas and other states in the Great Plains. • Also, from 1925 to 1930, millions of acres of grassland had been plowed under to grow crops. • Once the prairie grasses were gone, there was nothing left to hold the Texas soil. • Soon, the dust began to grow.

14. Dust Bowl

15. Dust Bowl • Fierce dust storms with enough force to blast the paint off a car. • Clouds of Texas soil could block the sun for hours. Destroyed crops and damaged eyes and lungs. • 1935 – 1937: many families in the Texas panhandle packed up and left. • Texas, Kansas, Colorado, and Oklahoma were all part of the Dust Bowl.

16. Dust Bowl

17. Video – The Dustbowl

18. Fdr and The New Deal Who is this man? Name two things he did for America.

19. Fdr and The New deal -Franklin D. Roosevelt: President of the U.S. during the Great Depression and WWII -Created the “New Deal”

20. New Deal • Program created by Roosevelt to help create jobs and save the economy

21. Works Progress Administration (wpa)

22. Works Progress Administration (wpa)Hoover dam and electrification video Alternative Video

23. TEXAN - John Nance Garner • Texan, Vice-President to F.D.R., but didn’t always agree with his policies, especially the NEW DEAL

24. World War II • The Great Depression made life hard in all parts of the world, leading to the rise of dictators- who promised to make life better • Once in power these dictators began attacking neighboring countries and the world went to war • Allies are against the Axis Powers • Allies (Great Britain, France, U.S., and Soviet Union) • Axis Powers (Germany, Italy, and Japan) • To bring the U.S. into war Japan bombed Pearl Harbor on December 7, 1941

25. Texas and the 2nd World War • Airplanes rolled off assembly lines in Dallas and Fort Worth • Shipyards along the Texas Gulf Coast launched warships and cargo vessels • Texas oil helped fuel airplanes, tanks, and trucks. • Texas became a training ground for the armed services • New bases and camps came to Texas (15 major bases and 40 airfields) • Texas had more than 40 prisoner of war camps and more than 50,000 prisoners

26. Famous Texans during the War • Doris “Dorie” Miller: African American soldier who is noted for his bravery at Pearl Harbor during WWII. • Audie Murphy: Most decorated American soldier of World War II. Became a big Hollywood movie star After the war.

27. Famous Texans during the War • Oveta Culp Hobby: Was the first commanding officer of the Women’s Air Corps. • Chester W. Nimitz: A German Texan, who was a Admiral in the Navy and was in-charge of the Pacific Fleet

28. Texas after the war • Business was booming • Huge demand for oil, tools, and aircraft gave need to increase many Texas cities • Texas was able to pay $42 million in debt from the depression • Continued migration to urban areas • Economy now depended on industry • African Americans, Mexican Americans, and women want equal rights