 What were the causes of the Great Depression?  How did the depression affect the lives of Americans?  How did the New Deal attempt to address the causes and effects of the Great Depression?

 8 years of prosperity  Time was good, but dangerous signs were around  Carefree lifestyle  Prohibition, Miss America, flapper

 Radio- Jazz and Fireside Chats  Movies- showed the Depression  Newspapers and Magazines- shaped the culture and established fads

 Traditional Religion – Darwin’s Theory and Scopes Trial (John Scopes went to trial in Tennessee over teaching Evolution in the classroom which was illegal at the time. He was found guilty)  Open Immigration- Rise of the KKK  Prohibition (18 th amendment)- smuggling alcohol, later repealed by the 21st

 Why did the market crash in 1929?

 October 29, 1929, people lost everything in one day  People committed suicide, everything was gone

 Business was booming, but investments were made with borrowed money (over speculation)  Expansion of credit  Bank failures  Bank deposits had been put into the market  Banks had no money

 Clients panicked and wanted to withdraw their money, but it was gone  No new investments in the market

 The Stock Market Crash led to the Great Depression

 Federal Reserve’s failure to prevent widespread collapse of the nation’s banking system in the late 1920s and early 1930s, leading to severe contraction in the nation’s supply of money in circulation.  Notice the police officer standing guard outside of the bank.

 High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade (Tariff Act of 1930, popularly called the Hawley- Smoot Act)

 Overproduction of goods  Stock Market Crash in 1929  Uneven distribution of wealth

 Unemployment (25%) and homelessness  Collapse of financial system (bank closings)  Demand for goods declines  Political unrest (growing militancy of labor unions)  Farm foreclosures and migration

 85,000 business closed  6,000 banks closed  Each week 100,000 people lost their job

 Franklin Roosevelt vs. Herbert Hoover  An election on how involved the government should be in helping out the common man  Hoover believed in laissez faire, while Roosevelt believed the government should help out (sort of like Obama’s stimulus)

 Roosevelt is elected, this changes the governments role in society

 This program changed the role of the government to a more active participant in solving problems.

 Roosevelt rallied a frightened nation in which one in four workers was unemployed.  “The only thing we have to fear is fear itself.”  Pictured: Unemployment Line

 Relief measures provided direct payment to people for immediate help  Works Progress Administration (WPA)- jobs for unemployed

 Recovery programs were designed to bring nation out of depression over time  Agriculture Adjustment Administration (AAA)- help to farmers

 Reform measures corrected unsound banking and investment practices  Federal Deposit Insurance Corporation (FDIC)

 Social Security Act offered safeguards for workers.