Do Now: How does the economic cycle work? UNIT 11 THE DEPRESSION

I. CAUSES OF THE DEPRESSION A. Overproduction 1. Farmers (since the end of WWI) 2. Factories A) Demand decreases B. Distribution of Wealth 1. 1% controls $ A) Not spending enough 2. Lower Class scraping by C. Credit Problems 1. America has too much debt 2. Installment Buying 3. Buying On Margin

D. STOCK MARKET CRASH 1. Speculation 2. Black Tuesday A) Prices plunged B) Panic Selling

II. EFFECTS A. Banks Collapse B. Businesses Close C. Massive Unemployment D. Hawley-Smoot Tariff E. Becomes Global

III. HARDSHIPS A. No jobs B. No food C. Starvation D. Homelessness

6 SAMPLE SLIDE WITH IMAGE 1) Describe what you see in this picture. 2) When and where do you think this picture was taken? Explain your answer.

E. FARMERS 1. Default on Loans 2. Banks Foreclosed 3. Become Tenant Farmers 4. Dust Bowl 5. Okies & Arkies

DUST STORMS

DISPLACEMENT AND MIGRATION Migrant family in San Francisco, 1935 Farmer leveling dust hills in Texas, 1938

F. Employed fears G. Women H. Minorities 1. African-Americans 2. Asian-Americans 3. Mexican-Americans A) repatriation

IV. HOOVER’S RESPONSE A. Republican B. Economic policy 1. Laissez Faire 2. Volunteerism A) private charities B) wealthy Americans 3. localism C. Depression deepens 1. Trickle-down economics 2. RFC – Reconstruction Finance Corporation

D. PROTESTS 1. Cry for socialism 2. Fascist leaders rise 3. Bonus Army

V. FDR A. Bio 1. Wife Eleanor 2. Polio 3. Gov. NY 4. New Deal B. Brain Trust

C. FIRST 100 DAYS bills passed 2. 3R’s A) Relief B) Recovery C) Reform 3. Emergency Banking Bill A) Bank Holiday 4. Fireside Chats

D. OPPOSITION TO THE NEW DEAL 1. Right – too much gov’t A) Republicans B) Liberty League 2. Left – note enough gov’t A) Francis Townsend B) Charles Coughlin C) Huey Long

D. SECOND NEW DEAL 1. Keynesian economics – deficit spending A) pump priming 2. Programs A) WPA B) Social Security C) REA 3. Labor Reforms A) Wagner Act B) Fair Labor Standards Act C) CIO created 1. sit-down strikes

E. SUPREME COURT CHALLENGES 1. Many Acts found unconstitutional A) NIRA B) AAA 2. Court Packing A) Increase judges by 6

F. RECESSION OF 1937