Ch 17, Sec 1-3: The Great Depression

&Ch 18, Sec 1-4

Causes of the Great Depression

• Stock Market Crash of 1929• Downfall of businesses worldwide• Installment plans/overproduction of goods• Failure of banks

First three years

• 9,000 banks closed• 30,000 companies closed• 12 million people unemployed (1/4th of the

population)• 1 million farms failed

Shantytowns• People were kicked out of their

houses/apartments• Shacks on unused or public lands like streets

and parks• Also known as Hoovervilles

Jobs/Food

• People jumped on trains to move around the country for work (illegal)

• Rise in soup kitchens/bread lines to get food

Dust Bowl

• Great Plains farmers took away the prairie grasses for crops

• Drought caused the crops to fail• Nothing to keep the soil in place-became dust• Thicker than snow storms/covered everything

in dirt• Farmers lost their land/had to move west for

work

Entertainment to the rescue!!!

• Movies/actors– Groucho Marx– Walt Disney– 3 Stooges

• Movies allowed people to wish for a better time

• Rise in soap operas on the radio

Photographers

• Took pictures to capture the spirit of Americans during this time

• Wanted to show their struggles and outlooks at life

• Ex: Dorothea Lange• Ex: Margaret Bourke-White

President Hoover’s Ideas

• Tried to get businesses to remain open• Start public works projects ($1.5 billion)• Refused to increase gov’t spending• Had to gov’t give money to start up banks

($238 million)

People fought back

• Hunger marches in Oklahoma City• Farmers revolted by burning their crops to

make prices go up (supply + demand)• WWI soldiers marched to Washington D.C. to

get their bonus checks– Camped out in the city– Military called in to force them out with tear gas/weapons

President Roosevelt Takes Office

• March 4, 1933• Ideas were called the “New Deal”• Fireside chats• Brought in experts in every field to help make

decisions/policy– Big business was to blame– Big business and gov’t needs to work together– Gov’t needs to restore competition but keep it fair

Emergency Banking Relief Act

• All banks would be surveyed• Only banks who were financially sound could

remain open• Stopped the banking problem

Regulations on Banks/Stock Market

• SEC-created to regulate the stock market and to prevent fraud

• Banks were no longer allowed to give loans for stock investments

• FDIC-gov’t insurance to for bank deposits

Federal Agencies: Agricultural Adjustment Administration

• Paid farmers to not raise certain animals and grow certain crops (prices were raised within 2 years)

• Helped big farmers increase wealth• Hurt tenant farmers/African Americans (lost

their jobs/homes)

Federal Agencies: National Recovery Administration

• Helped set new rules for businesses• Set prices• Created minimum wages• Limited hours to work• Failed to help end the depression

Federal Agencies: Civilian Conservation Corps

• Helped unemployed people get jobs• Men 18-25 could plant trees, fight forest fires,

and build reservoirs• Earned $30/month

Federal Agencies: Public Works Administration

• 1/3rd of unemployed worked in construction• Helped to build highways, dams, sewers,

waterworks, schools, and gov’t buildings• Required companies to hire African Americans

Federal Agencies: Works Progress Administration

• Helped build roads, parks, and buildings• Hired artists to create artwork for gov’t

buildings• Hired actors to create films promoting the

govt’s actions to end the depression

Townsend Plan

• Wanted people over 60 to retire• Give them $200 a month• Free up jobs for the unemployed

Social Security Act

• Workers earned the right to receive benefits• Started welfare payments to:– The needy/poor– People with disabilities

• Retirement benefits for people over 65

National Housing Act

• Established the National Housing Authority• Gave $500 million for loans to builders• Turned slums into low-cost housing