the great depression · vs. hoover (u.s. president/r) fdr won •roosevelt promised roosevelt...
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The Great The Great The Great The Great DepressionDepressionDepressionDepressionThe Great The Great The Great The Great DepressionDepressionDepressionDepression
Black Tuesday & the Great Black Tuesday & the Great Black Tuesday & the Great Black Tuesday & the Great CrashCrashCrashCrash
•bull market bull market bull market bull market –––– rising stock prices rising stock prices rising stock prices rising stock prices (way too fast) (way too fast) (way too fast) (way too fast) ���� plummeted to bear plummeted to bear plummeted to bear plummeted to bear market market market market –––– falling stock pricesfalling stock pricesfalling stock pricesfalling stock prices– business community with big profitsbusiness community with big profitsbusiness community with big profitsbusiness community with big profits
• investors tried to sell their stocks investors tried to sell their stocks investors tried to sell their stocks investors tried to sell their stocks before prices fell any lower before prices fell any lower before prices fell any lower before prices fell any lower ���� too too too too many sellingmany sellingmany sellingmany selling
• stock market collapsed!stock market collapsed!stock market collapsed!stock market collapsed!•Dropped $30 billionDropped $30 billionDropped $30 billionDropped $30 billion
The BankThe BankThe BankThe Bank
• loans busted because of stock loans busted because of stock loans busted because of stock loans busted because of stock investments investments investments investments ���� banks closingbanks closingbanks closingbanks closing
•people panicked & rushed to people panicked & rushed to people panicked & rushed to people panicked & rushed to withdraw their money withdraw their money withdraw their money withdraw their money ���� banks banks banks banks dondondondon’’’’t keep a lot on hand, they t keep a lot on hand, they t keep a lot on hand, they t keep a lot on hand, they ran out of money ran out of money ran out of money ran out of money ���� banks banks banks banks closedclosedclosedclosed
Business FailuresBusiness FailuresBusiness FailuresBusiness Failures
•when banks closed, many when banks closed, many when banks closed, many when banks closed, many businesses lost their corporate businesses lost their corporate businesses lost their corporate businesses lost their corporate savings & operating accounts savings & operating accounts savings & operating accounts savings & operating accounts ���� businesses closed or cutback businesses closed or cutback businesses closed or cutback businesses closed or cutback on production & workforce on production & workforce on production & workforce on production & workforce
•Unemployment increases (rate Unemployment increases (rate Unemployment increases (rate Unemployment increases (rate = 25%)= 25%)= 25%)= 25%)
Causes of the Great Causes of the Great Causes of the Great Causes of the Great DepressionDepressionDepressionDepression
•overproduction overproduction overproduction overproduction –––– production production production production exceeded consumption & exceeded consumption & exceeded consumption & exceeded consumption & surpluses piled upsurpluses piled upsurpluses piled upsurpluses piled up
•global trade problems global trade problems global trade problems global trade problems ––––world trade declined world trade declined world trade declined world trade declined (Europe recovering from (Europe recovering from (Europe recovering from (Europe recovering from WWI) WWI) WWI) WWI) ���� not a lot of aidnot a lot of aidnot a lot of aidnot a lot of aid
• the Dust Bowlthe Dust Bowlthe Dust Bowlthe Dust Bowl
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President HooverPresident HooverPresident HooverPresident Hoover• thought that relief and recovery thought that relief and recovery thought that relief and recovery thought that relief and recovery should come largely through should come largely through should come largely through should come largely through voluntary cooperation rather voluntary cooperation rather voluntary cooperation rather voluntary cooperation rather than federal effortsthan federal effortsthan federal effortsthan federal efforts
• created the RFC (Reconstruction created the RFC (Reconstruction created the RFC (Reconstruction created the RFC (Reconstruction Finance Corporation) Finance Corporation) Finance Corporation) Finance Corporation) –––– direct direct direct direct relief to unemployed; loaned relief to unemployed; loaned relief to unemployed; loaned relief to unemployed; loaned money to railroads and banksmoney to railroads and banksmoney to railroads and banksmoney to railroads and banks
• lowered taxes to stimulate the lowered taxes to stimulate the lowered taxes to stimulate the lowered taxes to stimulate the economyeconomyeconomyeconomy
•did not realize how severe the did not realize how severe the did not realize how severe the did not realize how severe the depression wasdepression wasdepression wasdepression was
FarmersFarmersFarmersFarmers• as prices bottomed out, many as prices bottomed out, many as prices bottomed out, many as prices bottomed out, many farmers could not sell their cropsfarmers could not sell their cropsfarmers could not sell their cropsfarmers could not sell their crops
• without income, they could not without income, they could not without income, they could not without income, they could not repay their house and land loansrepay their house and land loansrepay their house and land loansrepay their house and land loans
• banks foreclosed on their homes & banks foreclosed on their homes & banks foreclosed on their homes & banks foreclosed on their homes & landlandlandland
• If things weren’t bad enough, If things weren’t bad enough, If things weren’t bad enough, If things weren’t bad enough, drought struck!drought struck!drought struck!drought struck!
• Dust Bowl Dust Bowl Dust Bowl Dust Bowl –––– dust storms on the Great dust storms on the Great dust storms on the Great dust storms on the Great PlainsPlainsPlainsPlains
• families migrated west for a new lifefamilies migrated west for a new lifefamilies migrated west for a new lifefamilies migrated west for a new life
Family LifeFamily LifeFamily LifeFamily Life
•divorce rates increase, divorce rates increase, divorce rates increase, divorce rates increase, marriage & birth rates marriage & birth rates marriage & birth rates marriage & birth rates decreaseddecreaseddecreaseddecreased
•men left their families (some men left their families (some men left their families (some men left their families (some in search of jobs)in search of jobs)in search of jobs)in search of jobs)
• children dropped out of children dropped out of children dropped out of children dropped out of school to help make moneyschool to help make moneyschool to help make moneyschool to help make money
• food lines (food lines (food lines (food lines (a.k.aa.k.aa.k.aa.k.a soup soup soup soup kitchens) kitchens) kitchens) kitchens) –––– fed the poorfed the poorfed the poorfed the poor
Election of 1932Election of 1932Election of 1932Election of 1932
• FDR (NY governor/D) FDR (NY governor/D) FDR (NY governor/D) FDR (NY governor/D) vs. Hoover (U.S. vs. Hoover (U.S. vs. Hoover (U.S. vs. Hoover (U.S. President/R) President/R) President/R) President/R) ���� FDR FDR FDR FDR wonwonwonwon
• Roosevelt promised Roosevelt promised Roosevelt promised Roosevelt promised relief, recovery, and relief, recovery, and relief, recovery, and relief, recovery, and reformreformreformreform
• A new deal for the A new deal for the A new deal for the A new deal for the American people American people American people American people with federal helpwith federal helpwith federal helpwith federal help
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The New DealThe New DealThe New DealThe New Deal
• federal govt. approved and federal govt. approved and federal govt. approved and federal govt. approved and financed programs that financed programs that financed programs that financed programs that battled the depressionbattled the depressionbattled the depressionbattled the depression
•How did they afford this? How did they afford this? How did they afford this? How did they afford this? – Raise taxesRaise taxesRaise taxesRaise taxes– InflationInflationInflationInflation
Social Security• set up to help the elderly, disabled,
children, and unemployed
•1. created a pension for retired
workers (65+)
•2. offered unemployed short-term
benefits while they looked for
work
•3. provided payments to women
with dependent children or to
disabled people
Frances Perkins
• Secretary of Labor
• 1st woman ever
appointed to the Cabinet
• believed in strong govt.
involvement in the
economy
• created labor reforms
and government agencies
to aid unemployment &
workers
The WPA
•Works Project Administration –
largest employer of the country
•purpose: create organizations that
give jobs & wages to people
currently unemployed
–Ex. building roads, libraries, parks,
airports, etc.
Civilian Conservation
Corps
• designed to tackle the
problem of
unemployed young
men (18-25)
• gave environmental
jobs to men: plant
trees, built public
parks, restocked
rivers with fish, etc.
• 3 million men served
in the CCC
The Federal Housing
Administration
• insured mortgages of lower-income
Americans (helping these people
afford homes)
• provided loans to local govts. for
public housing projects
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Eleanor Roosevelt
• political
“helpmate”
(compared to
Hillary Clinton)
• she became FDR’s
eyes & ears
(especially during
ill times)
• strong 1st lady
behind the man
Arizona & the Depression
• Route 66 – population increase
(migrant farmers from the Dust Bowl)
• JOBS! Copper, cotton, farming, and
mining flourished during this time
• copper & cotton prices drop
Indian New Deal
•hopped on the bandwagon
•used federal funding to create
jobs for Indians on reservations
(built schools, hospitals, gave
food aid)
• Indian Reorganization Act – self-
governing reservations
Congress of Industrial
Organization
• federation of unions that organized
industrial workers
• sit-down strike – remained in the
factories but refused to work
–to prevent owners from replacing
them with new employees
The Supreme Court
• Supreme Ct. worried that President Roosevelt was taking more power than the Constitution
• The Court had ruled against some New Deal programs, so…
• “Court Packing bill” – allowed the President to appoint up to 6 new justices; rejected; but established power of the Presidency
Why haven’t we had another
Depression?
•govt. set up programs to prevent
another Depression
– i.e. Social Security & Federal Deposit
Insurance Corporation