The Great The Great DepressionDepression
CausesCauses
Buying on creditBuying on credit Government policiesGovernment policies
Not regulating stock market or businessesNot regulating stock market or businesses
Weak international economyWeak international economy Other countries still recovering from WWIOther countries still recovering from WWI
The Stock Market CrashThe Stock Market Crash
Stock Market CrashStock Market Crash
Buying On MarginBuying On Margin Making down payments and borrowing the Making down payments and borrowing the
restrest
October 29, 1929 – Black TuesdayOctober 29, 1929 – Black Tuesday Rapid selling of stocks Rapid selling of stocks
values drop $14 billionvalues drop $14 billion
DEPRESSION SPREADSDEPRESSION SPREADS
Millions of people lost their jobs.Millions of people lost their jobs. Banks recalled loans.Banks recalled loans. People take money out of banksPeople take money out of banks Banks can’t pay back money so they Banks can’t pay back money so they
closeclose People lose money in banksPeople lose money in banks
THE DUST BOWLTHE DUST BOWL
Drought and dust storms in the Drought and dust storms in the Midwest forced many farmers to Midwest forced many farmers to leave their land and migrate west in leave their land and migrate west in search of jobs.search of jobs.
ImpactImpact
Unemployment – 25%Unemployment – 25% Rural LifeRural Life
Farmers SufferFarmers Suffer Dust Bowl – severe drought Dust Bowl – severe drought ““Okies” – farmers who moved to CaliforniaOkies” – farmers who moved to California
Less Leisure ActivitiesLess Leisure Activities Movies, sports, etc.Movies, sports, etc.
Hoover’s ResponseHoover’s Response
Policies to aid businessesPolicies to aid businesses Business recovers jobs people recoverBusiness recovers jobs people recover
Reconstruction Finance CorporationReconstruction Finance Corporation Gave money to businessesGave money to businesses
Stopped payments of war debtsStopped payments of war debts
““Hoovervilles”Hoovervilles”
The Bonus MarchThe Bonus March
20,000 jobless WWI veterans go to 20,000 jobless WWI veterans go to Washington DC and demand bonus for Washington DC and demand bonus for warwar
Hoover sends in armyHoover sends in army Destroys popularityDestroys popularity
Franklin Delano Franklin Delano RooseveltRoosevelt
President 1932 – 1945President 1932 – 1945 The New DealThe New Deal
Plan to end Great DepressionPlan to end Great Depression ReliefRelief RecoveryRecovery ReformReform End of Laissez-faireEnd of Laissez-faire
ReliefRelief 1933 Bank Holiday to stop collapse1933 Bank Holiday to stop collapse Federal Emergency Relief Act (FERA)Federal Emergency Relief Act (FERA)
Relief to unemployedRelief to unemployed
Public Works Administration (PWA)Public Works Administration (PWA) Built ports, schools, aircraft carriersBuilt ports, schools, aircraft carriers
ReliefRelief
Civilian Conservation Corps (CCC)Civilian Conservation Corps (CCC) Planted trees, built bridges, parksPlanted trees, built bridges, parks
Works Progress Administration (WPA)Works Progress Administration (WPA) Built hospitals, schools, parks, airportsBuilt hospitals, schools, parks, airports
Tennessee Valley Authority (TVA)Tennessee Valley Authority (TVA) Built dams, cheap electric powerBuilt dams, cheap electric power
RecoveryRecovery National Industrial Recovery ActNational Industrial Recovery Act
NRANRA Regulated wages, prices, working conditionsRegulated wages, prices, working conditions
Agricultural Adjustment Act (AAA)Agricultural Adjustment Act (AAA) Paid farmers not to grow certain cropsPaid farmers not to grow certain crops
ReformReform
Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation FDICFDIC Insured savings accountsInsured savings accounts
Securities Exchange Act (SEC)Securities Exchange Act (SEC) Regulated stock exchangesRegulated stock exchanges
Social Security Act (SSA)Social Security Act (SSA) Pensions for elderly, unemployed, Pensions for elderly, unemployed,
handicappedhandicapped
New Deal EffectsNew Deal Effects
LaborLabor Roosevelt takes pro-labor approachRoosevelt takes pro-labor approach Unions increaseUnions increase
Native AmericansNative Americans Indian Reorganization ActIndian Reorganization Act
Attempt to restore Native American cultureAttempt to restore Native American culture
New Deal EffectsNew Deal Effects
African AmericansAfrican Americans Little benefitLittle benefit
LatinosLatinos Many suffered – worked in agricultureMany suffered – worked in agriculture
WomenWomen Little help in workplaceLittle help in workplace
ControversyControversy
Supreme Court finds many laws Supreme Court finds many laws unconstitutionalunconstitutional National Recovery ActNational Recovery Act
Congress can’t regulate intrastate commerceCongress can’t regulate intrastate commerce
Agricultural Adjustment ActAgricultural Adjustment Act Agriculture is a local matter not an interstate Agriculture is a local matter not an interstate
mattermatter
Court-Packing PlanCourt-Packing Plan
Supreme Court continued to veto Supreme Court continued to veto legislationlegislation
FDR asked congress to allow him to FDR asked congress to allow him to increase number of justices from 9 to 15increase number of justices from 9 to 15
Not allowed – separation of powersNot allowed – separation of powers
Political OppositionPolitical Opposition
BusinessBusiness Claimed FDR and government had too much Claimed FDR and government had too much
powerpower
Communists, Socialists gain supportCommunists, Socialists gain support
New Deal EvaluationNew Deal Evaluation
Does not end Great DepressionDoes not end Great Depression WWII doesWWII does
Did help some peopleDid help some people Gave more power to president and Gave more power to president and
governmentgovernment More involvement in business and social lifeMore involvement in business and social life