The Great The Great DepressionDepression

I. Economic CrashI. Economic CrashA. Causes:A. Causes:

1. Uneven distribution of Income-Very Rich 1. Uneven distribution of Income-Very Rich & & Very Poor in the U.S.Very Poor in the U.S.

2. Ease of Credit-banks loaned lots of 2. Ease of Credit-banks loaned lots of money for money for stock speculation. When loans stock speculation. When loans could could not be paid back, banks failed.not be paid back, banks failed.

3. Unbalanced Foreign Trade-High tariffs 3. Unbalanced Foreign Trade-High tariffs did did not allow goods into the U.S.not allow goods into the U.S.

4. Mechanization-machines meant that less 4. Mechanization-machines meant that less people were needed in people were needed in

factories.factories.

I. Economic CrashI. Economic CrashB. Effects on AmericansB. Effects on Americans

--Many Americans were homeless, jobless, Many Americans were homeless, jobless, & & starving. Unemployment=25%starving. Unemployment=25%

-Women lost jobs because employers -Women lost jobs because employers believed believed that men needed jobs worse.that men needed jobs worse.

-Children stopped going to school and -Children stopped going to school and looked looked for work.for work.

-Farmers experienced drought and prices -Farmers experienced drought and prices so low so low that they could not cover their that they could not cover their debts. debts.

I. Economic CrashI. Economic CrashBonus Army-about 17,000 WWI Bonus Army-about 17,000 WWI

veterans & veterans & their families camped their families camped out in Washington out in Washington D.C. demanding D.C. demanding their bonus checks. On their bonus checks. On

July 28, 1932, President Hoover July 28, 1932, President Hoover ordered the ordered the Army to drive away Army to drive away the 2,000 that the 2,000 that remained.remained.

I. Economic CrashI. Economic CrashC. Hoover's ActionsC. Hoover's Actions

-Tax cuts, building projects (Hoover Dam), loans -Tax cuts, building projects (Hoover Dam), loans to businesses and industry all came too late.to businesses and industry all came too late.

-He believed that local governments should help -He believed that local governments should help the needy & people should help each other.the needy & people should help each other.

I. Economic CrashI. Economic CrashC. Hoover's ActionsC. Hoover's Actions

-Hoovervilles-groups of shacks made from -Hoovervilles-groups of shacks made from wood and metal scraps popped up wood and metal scraps popped up outside cities.outside cities.

-Hoover was unable to adapt and deal with -Hoover was unable to adapt and deal with the difficult times. His name became the difficult times. His name became associated with all the pain and suffering associated with all the pain and suffering of the Depression.of the Depression.

I. Economic CrashI. Economic CrashD. Election of 1932D. Election of 1932

Franklin Delano Roosevelt Franklin Delano Roosevelt (Democrat) (Democrat) defeated Hoover in a defeated Hoover in a landslide after landslide after pledging a pledging a "new deal" for Americans. "new deal" for Americans.

The economy continued to fall until his The economy continued to fall until his inauguration in March.inauguration in March.

Quote: "The only thing we have to fear is Quote: "The only thing we have to fear is fear itself."fear itself."

II. Roosevelt and the II. Roosevelt and the New DealNew Deal

A. Early Actions-A. Early Actions-FDR made Americans FDR made Americans feel feel better by promising a better future. better by promising a better future.

Bank Holiday-FDR closed all banks for 3 Bank Holiday-FDR closed all banks for 3 days and passed the Emergency Banking days and passed the Emergency Banking Relief Act, ending the bank crisis.Relief Act, ending the bank crisis.

II. Roosevelt and the II. Roosevelt and the New DealNew Deal

B. Fireside ChatsB. Fireside Chats

Roosevelt used these radio addresses to Roosevelt used these radio addresses to explain New Deal reforms. He also explain New Deal reforms. He also calmed and reassured Americans with calmed and reassured Americans with his talks.his talks.

II. Roosevelt and the II. Roosevelt and the New DealNew Deal

C. The New DealC. The New Deal

Roosevelt's recovery plan that affected Roosevelt's recovery plan that affected banking, stocks, industry, agriculture, banking, stocks, industry, agriculture, public works, relief and resources. It public works, relief and resources. It created jobs and agencies:created jobs and agencies:

These agencies helped all Americans & These agencies helped all Americans & brought some stability to the economy.brought some stability to the economy.

Civilian Conservation Civilian Conservation CorpsCorpsEmployed Single Young men on work Employed Single Young men on work

projects all over the U.S. They received a projects all over the U.S. They received a portion of their pay, with the majority of portion of their pay, with the majority of it going home to their families.it going home to their families.

Tennessee Valley Tennessee Valley AuthorityAuthorityBuilt hydroelectric power plants in the Built hydroelectric power plants in the

Tennessee River Valley to provide Tennessee River Valley to provide power to rural areas and develop the power to rural areas and develop the areas resources.areas resources.

Federal Emergency Relief Federal Emergency Relief AdministrationAdministration

Sent federal money to states to help provide Sent federal money to states to help provide for unemployment. First assistance from the for unemployment. First assistance from the federal government towards unemployed. federal government towards unemployed. Many unemployed were aided with camps Many unemployed were aided with camps that taught skills.that taught skills.

Agricultural Adjustment Agricultural Adjustment ActActAided farmers and regulated crop Aided farmers and regulated crop

prices. Very controversial as many prices. Very controversial as many farmers were paid to reduce their farmers were paid to reduce their production.production.

The AAA is eventually ruled unconstitutional by the Supreme Court

National Recovery National Recovery AdministrationAdministration

Allowed industries to create “codes of fair Allowed industries to create “codes of fair competition.” The Administration had the competition.” The Administration had the power to develop voluntary agreements power to develop voluntary agreements with industries regarding work hours, pay with industries regarding work hours, pay rates, and price fixing rates, and price fixing

The NRA was also ruled unconstitutional by the Supreme Court

Public Works Public Works AdministrationAdministrationCreated jobs on government building projects around the U.S. Created jobs on government building projects around the U.S.

It was headed by Harold Ickes, Secretary of the Interior. It was headed by Harold Ickes, Secretary of the Interior. The PWA spent billions of dollars for various projects. The PWA spent billions of dollars for various projects. Including schools, hospitals, post offices, roads and dams. Including schools, hospitals, post offices, roads and dams.

Federal Deposit Insurance Federal Deposit Insurance CorporationCorporation

Created by the Glass-Steagall Act in 1933, it Created by the Glass-Steagall Act in 1933, it guarantees all bank deposits up to $250,000 per guarantees all bank deposits up to $250,000 per depositor at each bank. Initially insured $2500 in depositor at each bank. Initially insured $2500 in 1933, then upped to $5000 in 1935 when it became a 1933, then upped to $5000 in 1935 when it became a permanent agency. Gave people confidence in the permanent agency. Gave people confidence in the banking system again after bank failures.banking system again after bank failures.

Securities and Exchange Securities and Exchange CommissionCommission

Regulates the stock market. Sets standards Regulates the stock market. Sets standards and rules for trading. It can oversee stock and rules for trading. It can oversee stock brokers, traders, exchanges, and the brokers, traders, exchanges, and the companies that list companies that list on the on the exchanges.exchanges.

III. Effects of the III. Effects of the DepressionDepression

A. The Dust Bowl, 1931A. The Dust Bowl, 1931

Farmers had cleared large area of the Farmers had cleared large area of the Great Great Plains for agriculture. Drought Plains for agriculture. Drought struck and struck and prairie winds caused huge prairie winds caused huge dust storms. dust storms. Many farmers lost Many farmers lost everything and left the everything and left the plains. plains.

III. Effects of the III. Effects of the DepressionDepression

B. Social ChangeB. Social Change

1. Women-new heights were reached. 1. Women-new heights were reached. Eleanor Roosevelt became a very Eleanor Roosevelt became a very well known and outspoken first well known and outspoken first lady.lady.

2. Black Americans-many were in New Deal 2. Black Americans-many were in New Deal agencies and gained power as advisors.agencies and gained power as advisors.

3. Native Americans-John Collier, head of 3. Native Americans-John Collier, head of Indian affairs, helped to restore tribal Indian affairs, helped to restore tribal governments and enlarged reservations with governments and enlarged reservations with

the the Indian Reorganization Act of 1934.Indian Reorganization Act of 1934.

Secretary of the Interior Ickes with Indian leaders from the Flathead reservation in Montana, 1935

III. Effects of the III. Effects of the DepressionDepression

B. Social ChangeB. Social Change

4. Hispanics-many had come into the 4. Hispanics-many had come into the American American Southwest to work as farmers. Southwest to work as farmers. They suffered They suffered & many left the U.S.& many left the U.S.

5. Labor Movement-unions became very 5. Labor Movement-unions became very activeactive

NLRA-allowed workers to form unions, NLRA-allowed workers to form unions, also also known as the Wagner Act.known as the Wagner Act.

FLSA-banned child labor FLSA-banned child labor and set minimum wage.and set minimum wage.

III. Effects of the III. Effects of the DepressionDepression

C. Opposition to the New DealC. Opposition to the New Deal

Big business, wealthy, and conservative Big business, wealthy, and conservative Republicans condemned FDR's actions as Republicans condemned FDR's actions as socialist.socialist.

III. Effects of the III. Effects of the DepressionDepression

C. Opposition to the New DealC. Opposition to the New Deal

Big business, wealthy, and conservative Big business, wealthy, and conservative Republicans condemned FDR's actions as Republicans condemned FDR's actions as socialist.socialist.

III. Effects of the III. Effects of the DepressionDepression

D. 1935-2D. 1935-2ndnd New Deal New Deal

WPA-Works Progress Administration-WPA-Works Progress Administration- built more public works built more public works

III. Effects of the III. Effects of the DepressionDepression

D. 1935-2D. 1935-2ndnd New Deal New Deal

SSA-Social Security Act-created Social SSA-Social Security Act-created Social Security, Security, a fund to pay retirement to a fund to pay retirement to workers.workers.

III. Effects of the III. Effects of the DepressionDepressionE. Roosevelt’s Power FadesE. Roosevelt’s Power Fades

1. Supreme Court ruled NRA and AAA 1. Supreme Court ruled NRA and AAA unconstitutional. There were also cases unconstitutional. There were also cases

pending against the TVA, NLRA, pending against the TVA, NLRA, and and Social Security. Social Security.

2. "Court Packing"-FDR requested an 2. "Court Packing"-FDR requested an increase increase in the Supreme Court from in the Supreme Court from 9 justices to 15. 9 justices to 15. He lost a lot of He lost a lot of credibility in trying to do this.credibility in trying to do this.

3. Recession-1937-1938-U.S. 3. Recession-1937-1938-U.S. experienced an experienced an economic slowdown as economic slowdown as FDR cut FDR cut spending.spending.