GREAT DEPRESSION Aim: How was the Great Depression dealt with in America? Do Now: Paragraph - Explain life in the Roaring ‘20s. Open homework DESPAIR OF GREAT DEPRESSION

GREAT DEPRESSION Aim: What caused the Great Depression? Do Now: Explain buying stocks on speculation and on margin. DESPAIR OF GREAT DEPRESSION

President Hoover  1928  Economic boom of the 1920s  Speculation – buying/selling stock for quick profit  Buying on margin – pay for small part of stock and borrow money to pay for the rest

Stock Market Crash 1929  Stock prices dropping in Sept.  Thousands sell their stock  Prices drop lower  Black Tuesday, Oct. 29 – millions of shares sold  Prices plummet  Economic depression

Stock Market Crash 1929  People couldn’t repay loans (bought on margin)  Bank run – people rush to bank to withdraw $  Banks don’t keep all money on hand  Thousands of banks close  Businesses go bankrupt  Workers fired – high unemployment

Great Depression  Severe economic downturn –  Unemployment – 25% in 1933  Banks and businesses close  World depression

GREAT DEPRESSION Aim: How did F.D.R.’s New Deal try to help Americans? Do Now: Presentations Rosie, Sravya, Emily DESPAIR OF GREAT DEPRESSION

Hoover  Stays out of business affairs  Thought economy would work itself out  Bonus Army – thousands of veterans march on White House to get bonus from fighting WWI  Army removes veterans

“Hoovervilles”  Poor areas where people lived in shacks

Franklin Delano Roosevelt 1932  “Only thing we have to fear is fear itself”  Boost public confidence  Bank holiday – shutdown of banks for 4 days  Fireside chats – radio talks made by FDR  Tell Americans to put money in banks

The First 100 Days  New Deal – policy to fight the depression through gov’t programs  Congress passes most laws with little debate  Three major goals  Relief for the hungry and jobless  Recovery for agriculture and industry  Reforms to change the way the economy worked

Alphabet Soup Programs  FERA (Federal Emergency Relief Administration)  PWA (Public Works Admin.)  AAA (Agricultural Adjustment Admin.)  TVA (Tennessee Valley Authority)  CCC (Civilian Conservation Corps)  FDIC (Federal Deposit Insurance Corporation)  NRA (National Recovery Admin.)  WPA (Works Progress Admin.)  SEC (Securities and Exchange Commission)

National Recovery Act (NRA)  Purpose: recovery of industry  Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

Agricultural Adjustment Act (AAA)  Purpose: the recovery of agriculture  Paid farmers who agreed to reduce production of basic crops  Soil conservation

Federal Emergency Relief Admin (FERA)  Purpose: relief  Gave money to states so they could distribute money, clothing, and food to the unemployed

Civilian Conservation Corp (CCC)  Purpose: relief  Gave outdoor work to unemployed men  They received $30 per month, but $22 went back to the family

GREAT DEPRESSION Aim: Was the New Deal more positive or more negative? Do Now: Take out Paragraph on yesterday’s Aim. How did FDR try to help Americans? DESPAIR OF GREAT DEPRESSION

Wall Street  Need to prevent another crash from happening again  Make sure loans are given to people who can pay it back  No buying stocks on speculation or margin  SEC (Securities and Exchange Commission) – set up to monitor activities on Wall Street

Social Security  1935  Workers and employers made payment into a special fund  Elderly would draw from that fund when they retired

Court Packing  Supreme Court – Judicial review – can rule laws of Congress unconstitutional  Threatens New Deal  FDR tries to add 6 judges who agreed with him  So majority would vote in his favor  Law doesn’t pass  Hurt FDR’s image

Dust Bowl  Drought in the Great Plains  Result from poor farming tactics  Dry soil and dust picked up by storms  Dust storms turned day into night

Effects of the Depression  Fear of losing $ and property again  Made $ the most important thing  New Deal didn’t end the Depression  Did help  Restored people’s confidence  World War II would end it

Big Government  Strengthen power of presidency  Gov’t responsible for people’s well-being  Rely on federal gov’t  New Deal causes American debt

New Deal: Good or Bad GoodBad Government has a duty to help all citizens Government should not interfere in business and in people’s private lives New Deal helped the country through the worst days of the Depression New Deal led in increases in the national debt At a time when Europe turned to dictators to solve the Depression, the New Deal saved the nation’s democratic system The New Deal did not end the Great Depression

Debate  Liberal – favor gov’t action to bring about reform  Conservative – favor fewer gov’t controls and freedom in economic matters  Because of New Deal – government is more involved in society than ever

Topics for Test  Prohibition and Women’s Suffrage  Roaring ’20s  Harding, Coolidge, and Hoover – laissez faire  Assembly line and installment buying  Great Depression  Causes  FDR New Deal programs Dust Bowl Effects of Depression

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