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Causes
• Drop in farm income.
• Low factory wages.
• Worldwide depression.
• Underconsumption.
• Margin buying of stocks.
Hoover’s Response
• Initial “wait and see” attitude.
• Government works programs.
• Reconstruction Finance Corporation
• Bonus March
Election of 1932
• Hoover - Rep.• Roosevelt - Dem.• “Prosperity is just…”• “New Deal for …”• Movement of Black
voters to the Democrats.
The New Deal
• Walked a tightrope between the extreme positions of the left and right.
• Pragmatic.• Piecemeal.• Try anything
approach.
Relief
• “The only thing we have to fear is fear itself.”
• Short range goal to help the immediate concerns of the nation.
Effects of the Great Depression
• “value” of stocks drops from $87 to $19 billion.
• Steel production drops 80%
• All industrial output drops 50%.
• 500,000 homes and farms foreclosed.
• 1931 alone 2500 banks failed.
• Unemployment 33-40%
Psychological aspects, etc.
• Despair/ “Failure”• Mistrust• Hunger • Inadequate medical
care.• Living conditions.• Divorce rate goes
down.
Key legislation & creations
• Emergency Banking Act of 1933.
• Glass-Steagall Act• Agricultural
Adjustment Act of 1933
• National Industrial Recovery Act (NRA)
• Works Progress Administration (WPA)
• Frazier-Lemke Act.• Civilian Conservation
Corp (CCC)• Federal Emergency
Relief Act (FERA)• Home Owners’ Loan
Corporation (HOLC)• Tennessee Valley
Authority (TVA)• Wagner Act (NLRA)