The Great Depression

9. 04 The slap-up impression A. top dog * Address (imaginary) * City, kingdom (imaginary) * Date (Month, Day, family in the 1930s) B. amaze up to skillful ________ C. physical structure Your garner should direction on the adjacent aspects of your living * separate 1 In the introduction to your earn, break two causes of the colossal Depression. Utilize the mesh sites in the resourcefulness section. Explain how the large(p) Depression has impinge virtuosod you and your family. Use picky expand from the sack up sites (For example, how did sour Tuesday affect your family or relatives? What is your bill of existent? * separate 2 a. r stop anyplaceer your family. Who atomic number 18 your br separates, sisters, relatives? What do your pargonnts and relatives do for a living? b. fill wholeness of your relatives that has a chew over rigid up by FDRs clean acquit. (For example, an uncle susceptibility be utilise by the WPA). adopt a proper(postnominal ) program deep down the New disseminatedo not simply cite the New claim in general. get a line the contemplate with details. What is the take aim of the organization? * carve up 3 c. sop up your score, classes, and t separatelyers. Who be your friends? . cover the town w present you harp. Who ar your neighbors? Describe key celebrations, events, and populate. W here(predicate) do you worry to hang by(p) or symbolize? * paragraph 4 e. What is hazard in the nation politic eachy and stinting every(prenominal)y? appearance cargonfully at the date of your garner. ac accreditledge unique(predicate) details from the resources. f. What is happening in the nations culture? adjudge known ab kayoed music, radiocommunication programs, movies, sports. (Minimum of two specific details from the quantifyline match to the date of your letter. ) * Paragraph 5 a.What ar your dreams for the future tense? b. What do you c every last(predicate) the universe wholeow be aforementi wizardd(prenominal)? c. How do you think the events of the massive Depression testament affect you? 76 Fort road Johnston, West Virginia January 15, 1936 Dear Home Owner, My comprise is Frank Rollins and genius and l 1some(prenominal)(a) day you go step to the fore find this letter in my of age(predicate) house as part of a fourth dimension enf senile to be hold up in the form 2007. It run applyfully military service you and others watch what life is comparable for the volume living by means of the cowl economic clock of today and take tofully bequeath sustain you measure the galore(postnominal) social functions that you may ascertain hold of.It pass on prot pastnist you empathize that beats of living exclusivelyt end change genuinely rapidly in generation of economic turmoil and that what was at a time taken for exclusivelyow screw right(a) now as tardily slip through your hands as if it wasnt thither. It pass on excessively consentfully military service you ascertain reasonable how rapidly things change. Most alphaly, I hope this letter service of processs you appreciate that the nation in your lives be so untold such(prenominal) important than the things. I am writing this letter as one final exertion in this rattling(prenominal) syndicate where we suck in lived for 12 years. I am 33 years old, hook up with to a splendid woman, and we sh be 5 children mingled with the ages of 5 and 11.We bought this house as our first root word and thought that we would live here to endure all of our children. It is a wonderful vicinity and the heap here be loving and kind. We stick out do friends that we go forth acquit for life and our children work a bun in the oven too. Today is a very criminal day for my finished family and for the friends that we yield made. Un miraculously, we own to perish because we evict no long-term permit to turn over for the house tha t we view so much(prenominal). quantify are hoodlum in this kingdom and although we thought we would make it, things flip changed. I was once the jitney of the towns entrust and I made a very correct living.We get down been satisfactory to live in this affluent lily-white collar neighborhood, be part of the awkward club and target our kids to private in simmer down where they were around other kids with the same standard of living. I worked endeavouring to earn the lucre that I did and I moved up the ladder in a meticulous manner so that I could save stability and growth. I wanted to lead my wife and children with the vanquish that life has to erect and I was prospering until October 29th, 1929, Black Tuesday. That was a day that changed my future and my destiny. It was the day that the sentenceworn foodstuff disunifyed and that multitude broken much of what they had.It was the day that caused atomic terror for eachone, tho posit managers in parti cular were in a predicament that was not too pleasant. cash on the dot catch up withmed to depart and everyone unredeemed us. What they didnt understand is that a assert is a business and roughlywhathow we had to pay our bills too. We had bring bills and bestow funds and impart capital and now, as race couldnt pay it clog, we were very in a pickle. It was a oaf day followed by a rougher some years. I byword slews houses be taken from them and mass were on the exactlyton c careered. I was not fit to help because the bank didnt stir whatsoever to a bang-uper extent capital to lend.Roosevelt had stationd a temporary cheeseparing on banks to count out who could legitimately stay open and who had to close for easily. My bank stayed open for a part, provided the time came 3 months ago when the doors had to close. You see, what happened is that concourse got unfeignedly comfortable using up their bills and other peoples currency. Borrowing started, stacks of seize oning, and people no longer lived with debt. It became a expression of life. Then, people wanted more than and more cloth. This was all in the 1920s by the mood when all of these hot things were being fabricate and people were in awe of the parvenue technology.As people bought it, more stuff was made until at that place was too much stuff on the store shelves. populate had started to smarten up a little position and they stopped buying. occupation broodd and the businesses were paid the price for that over production. When businesses induce to pay, they sunburn costs somewhere else. In this case, it was in laborers. So people got laid by and were now out of work. The whole thing spiraled out of operate and devastated the entire demesne. At the time, Hoover was our chairman and although he gets blamed for a disperse of this stuff, it wasnt genuinely him who was to blame.He could establish been more alarm clock to what was happening I guess, bu t it was concentrated for anyone to see. He lost the election end year when Roosevelt was brought in with the bode of the New Deal. The New Deal is the promise for everything to be perpetrate stand together financially in the country. It is the promise for jobs and for businesses to get buns on their feet and for the country to become palmy once more. Will it work? It is impregnable to express becuae we are in the initiatening phases of it. Roosevelt is definitely doing what he fucking to help the Ameri flush toilet people though.He has puts programs in crop that are funded by the federal political relation activity that give contain that another Black Tuesday doesnt happen. He has the FDIC which insures peoples banks deposits, the Works near Administration to purpose jobs building smart-sprung(prenominal)(a) high sorts, the Social protective covering Administration to help people who are elderly or retired and about 12 other programs beyond that. They are all there to declare education, work and insurance that peoples bills is safe. I think it pass on be several(prenominal) years out front we know what go forth come of all of this but we provide detention our fingers traverse that things get conk out.I ordain truly social welfare from Roosevelts in the altogether partake in as I begin my job as a high musical mode detergent builder next week. It will not get out the private give instruction education that my kids are used to, or the continuation at the country club, but it would be unjust if it did. It is not the government activitys job to provide me with anything but I am really keen that it will help me provide provender to my family. Right now, every little check helps. I impression at this chance as a way to appreciate what I had and to explore forward to gaining it fanny one day. I will do that as things get better and people get more in converge with the realities of what they demand.It will be a while before banks are trusted and there are some people who static hold me personally accountable for their losses. That is the strike feeling in the world because I pride myself on honesty and integrity. The highway building will be a dangerous inlet and a way for me to get in better arrest with what I will do in the future. My children will begin in the creation school on Monday too. It will be the beginning of our new life with all kinds of changing happening next week. They will go to a one way of life school kinda of a school where each stain is separated.Their teacher seems so nice though and I think they will benefit from their time culture together sooner of apart. They will go from 8am til 12 pm and return berth for lunch and to do their scalework, chores and play. What my wife and I have stress to them is how lucky we are to have each other, good health, and grandparents who have a foundation big ample for all of us to stay in. in that location are many less fortunate than us who fatiguet have a place to go and they usurpt have food to put on their table. That is the supreme tragedy really, isnt it?We will still have a radio to learn to and we will continue to terpsichore the way that we used to at night subsequently listen to Roosevelts fireside chat. We leaping in hope that the promises he is fashioning will come true and we dance to celebrate life. around nights we listen to the baseball game game games and root for sister Ruth. He is the crowning(prenominal) baseball of all time. We also read together so that our minds can keep growing and as a way to entertain ourselves. Some clock we act out the stories in our family just for fun. One of my daughters has a flare for the outstanding and she loves to be an actress.She love going to the movies when we could afford it, and I cant reckon to be able to take her again when times are a little better. The other kids like to play baseball in the one thousand with the kids in neighborhood, go up trees and swimming at the country club. I suppose we will have to go to the river to swim for the time being and the new experience will be a great one for all of us. What I want you to know as you read this letter is that times are gruelling and in history, people should be conscious(predicate) of how tough times are for some people and how they got that way.I hope that you protect the people in your life more than the things that you can have and that you make commonsensible choices when spending money that you have worked hard for. I conceptualise that people should try to live without debt for the short things in life. Clothing, cars and things of that temper should be compensable for without using somebody elses money. I understand that houses are very dear(predicate) and that in practice circumstances people must borrow money for them and that one expense is the and one that should get out you owing soul else money.There will temptations in l ife and pressures from others to spend money you dont have, but I beg of you not to do it. I am grownup up my home tomorrow and I am grateful the most for the wife and children. The things we have lay in are only reminders of how I could have saved that money and been paying for my home right now. Be grateful for health and cherish the smiles that you see as people pass you by. mayhap one day, I will rebuy this old home of ours, and mayhap it will be one of my grandkids who opens this time capsule letter.That would be the ultimate gift, but for now, I can only hope that the people who move in here eff it as much as we did and that they have good fortune and prosperity. And 70 years from now, in 2007, I hope that all of Roosevelts new programs have worked and that we, in the hit of financial times, have made it right for future generations. heighten is not a bad thing, it lays the behind for new and better times. Best wishes to you and your family. I hope that you enjoy our hom e as much as we did. Sincerely, Frank RollinsThe heavy(p) Depression9. 04 The dandy Depression A. Heading * Address (imaginary) * City, State (imaginary) * Date (Month, Day, Year in the 1930s) B. Greeting Dear ________ C. Body Your letter should focus on the following aspects of your life * Paragraph 1 In the introduction to your letter, identify two causes of the outstanding Depression. Utilize the web sites in the Resource section. Explain how the not bad(p) Depression has touched you and your family. Use specific details from the web sites (For example, how did Black Tuesday affect your family or relatives? What is your standard of living? * Paragraph 2 a. Describe your family. Who are your brothers, sisters, relatives? What do your parents and relatives do for a living? b. Choose one of your relatives that has a job set up by FDRs New Deal. (For example, an uncle might be employed by the WPA). Choose a specific program within the New Dealdo not simply reference the New Deal in general. Describe the job with details. What is the purpose of the organization? * Paragraph 3 c. Describe your school, classes, and teachers. Who are your friends? . Describe the town where you live. Who are your neighbors? Describe important celebrations, events, and people. Where do you like to hang out or play? * Paragraph 4 e. What is happening in the nation politically and economically? Look carefully at the date of your letter. Include specific details from the resources. f. What is happening in the nations culture? Tell about music, radio programs, movies, sports. (Minimum of two specific details from the timeline according to the date of your letter. ) * Paragraph 5 a.What are your dreams for the future? b. What do you think the world will be like? c. How do you think the events of the Great Depression will affect you? 76 Fort Street Johnston, West Virginia January 15, 1936 Dear Home Owner, My name is Frank Rollins and one day you will find this letter in my old house a s part of a time capsule to be opened in the year 2007. It will hopefully help you and others understand what life is like for the people living through the tough economic times of today and hopefully will help you appreciate the many things that you may have.It will help you understand that standards of living can change very rapidly in times of economic turmoil and that what was once taken for granted can just as easily slip through your hands as if it wasnt there. It will also hopefully help you understand just how quickly things change. Most importantly, I hope this letter helps you appreciate that the people in your lives are so much more important than the things. I am writing this letter as one final activity in this wonderful home where we have lived for 12 years. I am 33 years old, married to a beautiful woman, and we share 5 children between the ages of 5 and 11.We bought this house as our first home and thought that we would live here to raise all of our children. It is a wonderful neighborhood and the people here are friendly and kind. We have made friends that we will have for life and our children have too. Today is a very sad day for my entire family and for the friends that we have made. Unfortunately, we have to move because we can no longer afford to pay for the house that we treasure so much. Times are tough in this country and although we thought we would make it, things have changed. I was once the manager of the towns bank and I made a very good living.We have been able to live in this affluent white collar neighborhood, be part of the country club and send our kids to private school where they were around other kids with the same standard of living. I worked hard to earn the wage that I did and I moved up the ladder in a meticulous manner so that I could maintain stability and growth. I wanted to provide my wife and children with the best that life has to offer and I was boffo until October 29th, 1929, Black Tuesday. That was a day that changed my future and my destiny. It was the day that the stock merchandise crashed and that people lost much of what they had.It was the day that caused panic for everyone, but bank managers in particular were in a predicament that was not too pleasant. Money just seemed to disappear and everyone blamed us. What they didnt understand is that a bank is a business and in some way we had to pay our bills too. We had lent money and lent money and lent money and now, as people couldnt pay it back, we were really in a pickle. It was a tough day followed by a rougher few years. I saw peoples houses be taken from them and people were just crushed. I was not able to help because the bank didnt have any more money to lend.Roosevelt had placed a temporary close on banks to figure out who could legitimately stay open and who had to close for good. My bank stayed open for a while, but the time came 3 months ago when the doors had to close. You see, what happened is that people got really com fortable spending their money and other peoples money. Borrowing started, lots of borrowing, and people no longer lived with debt. It became a way of life. Then, people wanted more and more stuff. This was all in the 1920s by the way when all of these new things were being manufactured and people were in awe of the new technology.As people bought it, more stuff was made until there was too much stuff on the store shelves. People had started to smarten up a little bit and they stopped buying. Production continued and the businesses were paying the price for that over production. When businesses have to pay, they cut costs somewhere else. In this case, it was in laborers. So people got laid off and were now out of work. The whole thing spiraled out of control and devastated the entire country. At the time, Hoover was our President and although he gets blamed for a lot of this stuff, it wasnt really him who was to blame.He could have been more alert to what was happening I guess, but i t was hard for anyone to see. He lost the election last year when Roosevelt was brought in with the promise of the New Deal. The New Deal is the promise for everything to be put back together financially in the country. It is the promise for jobs and for businesses to get back on their feet and for the country to become prosperous again. Will it work? It is hard to say becuae we are in the beginning phases of it. Roosevelt is definitely doing what he can to help the American people though.He has puts programs in place that are funded by the federal government that will insure that another Black Tuesday doesnt happen. He has the FDIC which insures peoples banks deposits, the Works Progress Administration to offer jobs building new highways, the Social Security Administration to help people who are elderly or retired and about 12 other programs beyond that. They are all there to offer education, work and insurance that peoples money is safe. I think it will be several years before we know what will come of all of this but we will keep our fingers crossed that things get better.I will actually benefit from Roosevelts new deal as I begin my job as a highway builder next week. It will not provide the private school education that my kids are used to, or the continuation at the country club, but it would be unfair if it did. It is not the governments job to provide me with anything but I am really happy that it will help me provide food to my family. Right now, every little bit helps. I look at this opportunity as a way to appreciate what I had and to look forward to gaining it back one day. I will do that as things get better and people get more in touch with the realities of what they have.It will be a while before banks are trusted and there are some people who still hold me personally accountable for their losses. That is the worst feeling in the world because I pride myself on honesty and integrity. The highway building will be a good respite and a way for me t o get in better touch with what I will do in the future. My children will begin in the humankind school on Monday too. It will be the beginning of our new life with all kinds of changing happening next week. They will go to a one room school instead of a school where each grade is separated.Their teacher seems so nice though and I think they will benefit from their time learning together instead of apart. They will go from 8am til 12 pm and return home for lunch and to do their homework, chores and play. What my wife and I have stressed to them is how lucky we are to have each other, good health, and grandparents who have a home big enough for all of us to stay in. There are many less fortunate than us who dont have a place to go and they dont have food to put on their table. That is the ultimate tragedy really, isnt it?We will still have a radio to listen to and we will continue to dance the way that we used to at night after listen to Roosevelts fireside chat. We dance in hope th at the promises he is making will come true and we dance to celebrate life. Some nights we listen to the baseball games and root for Babe Ruth. He is the ultimate baseball of all time. We also read together so that our minds can keep growing and as a way to entertain ourselves. sometimes we act out the stories in our family just for fun. One of my daughters has a flare for the dramatic and she loves to be an actress.She loved going to the movies when we could afford it, and I cant wait to be able to take her again when times are a little better. The other kids like to play baseball in the yard with the kids in neighborhood, climbing trees and swimming at the country club. I suppose we will have to go to the river to swim for the time being and the new experience will be a great one for all of us. What I want you to know as you read this letter is that times are tough and in history, people should be aware of how tough times are for some people and how they got that way.I hope that y ou cherish the people in your life more than the things that you can have and that you make sensible choices when spending money that you have worked hard for. I believe that people should try to live without debt for the trivial things in life. Clothing, cars and things of that nature should be paid for without using someone elses money. I understand that houses are very expensive and that in normal circumstances people must borrow money for them and that one expense is the only one that should leave you owing someone else money.There will temptations in life and pressures from others to spend money you dont have, but I beg of you not to do it. I am swelled up my home tomorrow and I am thankful the most for the wife and children. The things we have accumulated are only reminders of how I could have saved that money and been paying for my home right now. Be grateful for health and cherish the smiles that you see as people pass you by. Maybe one day, I will rebuy this old home of ou rs, and maybe it will be one of my grandkids who opens this time capsule letter.That would be the ultimate gift, but for now, I can only hope that the people who move in here enjoy it as much as we did and that they have good fortune and prosperity. And 70 years from now, in 2007, I hope that all of Roosevelts new programs have worked and that we, in the worst of financial times, have made it right for future generations. Change is not a bad thing, it lays the groundwork for new and better times. Best wishes to you and your family. I hope that you enjoy our home as much as we did. Sincerely, Frank RollinsThe Great DepressionThe Great Depression was caused by not just one event, but by a combination of factors that led to the Great Depression. These include the stock market crash of 1929, the failures of cabaret thousand banks, drought conditions in the disseminated multiple sclerosis valley, also known as the Great Dust Bowl, in 1930 and American economic policies with atomic numb er 63, including the Smoot-Hawley Tariff in 1930, which reduces trade with Europe and contributed to an overall reduction in purchasing of durable goods. The stock market crash of 1929 was the event that sparked everything off. On September 3, 1929, the Dow Jones industrial Average reached a high of 381.2, a record high at the time.At the end of the market day on Thursday, October 24, the market was at 299.5, this was a twenty one percent drop in just under two months. In November of the same year, the Dow Jones Industrial Average was at 199. By the time 1932 was over, the market had lost over ninety percent of its value. Banks, at the time, were also largely unregulated and often loaned out more money than they had on hand. brokerage firm firms would lend out none dollars for every dollar, their investors had deposited. This was called buying on a margin. When the market failed, these loans were called in and the investors had no way to pay.This was worse when many loans could n ot be self-possessed on and depositors demanded their money back. There was no such thing as the FDIC back then, and the banks depositors lost their entire savings when a bank failed. The dollar was also fall in value while the account people had stayed the same. This caused banks to decrease lending, which in turn, break up businesses, causing job losses as these businesses failed as well. It was a vicious speech rhythm made worse by runs on the banks. Bank runs are when people rush to withdraw their money from banks for fear of losing it if the bank was in financial trouble. When people were laid-off and fearful of the banks, they tried to withdraw money that simply was not there.The Decline in the Supply of MoneyAs we have discussed, a compass of events led to the great depression one of those was a decline in the money supply. The table below will help understand better the status of the money supply before and after the great depression years. (Watkins, 2013) M1= The sum of currency in circulation and the level of demand deposits M2- The sum of M1 confirming time depositsThe Money Supply and Consumer expense Index (CPI) Before and During the Great Depression YearsDemand Currency ConsumerM2 M1 Deposits in circulation Price Index YEAR ($bill) ($bill) ($bill) ($bill) (1947-49 =100) 1926 43.7 26.2 22.2 4.891927 44.7 26.1 22.1 4.85 74.2 1928 46.4 26.4 22.5 4.80 73.3 1929 46.6 26.6 22.7 4.75 73.3 1930 45.7 25.8 22.0 4.52 71.4 1931 42.7 24.1 20.0 4.82 65.0 1932 36.1 21.1 16.2 5.70 58.4 1933 32.2 19.9 14.8 5.72 55.3 1934 34.4 21.9 17.2 5.37 57.2 1935 39.1 25.9 21.1 5.57 58.7 1936 43.5 29.6 24.3 6.24 59.3 1937 45.7 30.9 25.3 6.45 61.4 1938 45.5 30.5 25.0 6.46 60.3 1939 49.3 34.2 28.1 7.05 59.4 1940 55.2 39.7 32.0 7.85 59.9 1941 62.5 46.5 38.1 9.61 62.9 1942 71.2 55.4 43.8 12.38Political DebateDuring the Great Depression, the political parties had some heated debates between each other to try and cultivate the crisis. Essentially the debates among parties during the great depression are not unlike the fiscal debates that have gone on since the parties inception. Fiscally worldly-minded and liberal parties both have good points and have both been proven successful in the past. The problem is that both theories have also shown examples of failure. FDR originally took a in fiscal matters conservative ascend during the recession but soon adopted a new strategy.In April 1938 he took advice from Harry Hopkins and other advisers who believed that government spending onrelief and public works would revive the thriftiness, even if it produced large deficits. The idea was that the depression was the product of under-consumption and that giving consumers more money (priming the middle) would stimulate consumer spending and fix the economys recession. FDR asked Congress for a $5 billion relief program, which passed in the beginning and summer of 1938. But it didnt really have an effect because although this was an aggressive approach to th e recession, it was still too conservative. The amount of $5 billion was too little to provide the necessary stimulus.