Georgia in the 1920’s & 1930’s

Two dramatic events:

  1. What were the two events that led to economic hardship for farmers during the 1920’s?
  2. Boll weevil
  3. Drought throughout western states
  4. Which crop did the Boll Weevil devastate? cotton
  5. Why was the soil in such poor condition following WWI?

The government asked farmers to produce as much as possible to supply troops in the war

  1. What is an extreme drop in the economy called? A depression
  2. List three affects a depression can have on the economy.
  3. Unemployment rises
  4. People stop buying goods and services
  5. Businesses suffer greatly or fail
  6. When did the United States suffer its worst period of depression? 1930s

The Great Depression:

  1. The period before the Great Depression was known as The Roaring 20s
  2. List five things that happened in the “Roaring Twenties” with respect to the U.S. economy.
  3. Many people made many purchases of the new products available to them
  4. When they couldn’t afford items, they put them on credit
  5. Businesses made large profits
  6. Consumers invested in business stocks
  7. Economy grew very quickly (too quickly)
  8. List the events that led up to and followed the stock market crash in October of 1929.
  9. Consumer confidence led to investment
  10. Many people borrowed money to buy stocks
  11. On October 24, 1929, the value of stocks dropped dramatically.
  12. Many people tried to sell their stock at the same time
  13. Soon banks could not collect on the loans people had taken
  14. The banks ran out of money and many lost their savings from their accounts
  15. How did the stock market crash affect investors? People who lost their savings could no longer make payments on their possessions bought on credit
  16. How were businesses affected by the stock market crash? Businesses who survived cut production as fewer people bought goods

Eugene Talmadge:

  1. Eugene Talmadge was both charismaticcontroversial
  2. He served in Georgia government for 20 years.
  3. Some thought he was political hero others thought he was a racist bully.
  4. Began his career as Commissioner of Agriculture
  5. Which segment of Georgia’s population liked him most and why? Farmers because his policies favored farmers and farming
  6. Talmadge was elected governor and used executiveorder to fulfill a campaign promise to lower car tag rates.
  7. What is an “executive order?” an act by governor that does not have legislative approval
  8. He also fired the Public Service Commission when they refused to lower utility prices.
  9. He was opposed to the policies of Franklin D. Roosevelt
  10. He did not like the New Deal
  11. He did what he could to keep New Deal programs out of Georgia
  12. Talmadge ran for U.S. Senate after two terms as governor but was not elected.
  13. He was elected governor again in 1940.
  14. His third term was filled with controversy over his refusal to support the integration of the University of Georgia.
  15. As a result of his interference in the University system of Georgia, all public universities for white people lost their accreditation
  16. Because of this controversy, he lost the next gubernatorial election, but was reelected in 1946, mainly because he opposed a Supreme Court ruling that permitted blacks to vote in primary elections. He died before he could take office.

FDR & the New Deal:

  1. After the Great Depression, people began to believe the only way the economy would prosper again was for the federal government to help states out.
  2. In 1933, Franklin D. Roosevelt took office and set up a plan known as the New Deal.
  3. When Roosevelt took office
  4. U.S. Agriculture was suffering
  5. Unemployment was high
  6. What was the goal of Roosevelt’s New Deal programs? creating new jobs and national relief programs to help the economy grow
  7. Agricultural Adjustment Administration (AAA)
  8. Purpose: to raise the price of staple crops by limiting supply
  9. Farmers were paid to plant less cotton to drive the prices up
  10. Rural Electrification Administration (REA)
  11. Purpose: provided loans to states to improve electric service to rural areas
  12. Within four years, GA was leading the country in the number of REA groups
  13. Civilian Conservation Corps (CCC)
  14. Purpose: to create jobs for young war veterans who were living in poverty
  15. Work included soil conservation, deforestation, fire prevention, and park building
  16. Most of Georgia’s parks were built during this time
  17. Works Progress Administration (WPA)
  18. Purpose: provided jobs for both men and women in construction and education
  19. Example of this program: Georgia public library system
  20. Social Security Act
  21. Purpose: Permanent plan to protect workers from losing their wages
  22. Two insurance programs:
  23. Old-age benefits for retiring workers would support them when they could no longer work (managed by federal government)
  24. Insurance was provided for unemployed and disabled to provide people with a sense of security in their jobs (managed by state & federal government)
  25. The New Deal Programschanged the way people looked at labor
  26. Unions had greater power and began to ask for better wages and working conditions as well as better welfare packages
  27. The New Deal gave those who suffered during the Depression security & power