The Crash and its Solution 1929 Crisis The Crash and its Solution

The USA in the 1920s

The USA in the 1920s It was an age of consumerism There was a desire of enjoying life Some social groups lived in a situation of poverty: African-Americans Women Farmers

The Economic Boom After WW1 the US was not directly affected and they sold their products The economic boom affected society Motor industry grew rapidly

The Economic Boom Causes: Isolationism Technology Out of foreign affaris High tariffs Technology Mass production (automobiles) Hire purchaseHigher demand for goods Shares

Industry Traditional such as coal and textile did not prosper As a response to high American tariffs other countries put high tariffs too Mass production techniques

Agriculture Farmers were encouraged to produce more during WW1 After war they continued producing more than what they could sell Prices dropped

Social Problems Few people were extremely rich 42 per cent of population lived below the poverty line

Racism There were lots of nationalities Tolerance began to be under attack The Ku Klux Klan started in the South but spread to other parts of America

Causes of the Depression The offer was higher than the demand Too much food was produced Banks were too small Speculation on the stock market Wall Street Crash

The Crash Animation: http://www.ngfl-cymru.org.uk/vtc/ngfl/history/gcse_usa_rev_elander/sheet1.htm

Effects of the Depression Unemployment Industrial production dropped House-building fell Banking system collapsed People death from starvation

The New Deal

The New Deal: Agencies TVA: flood control and dam building National Recovery Administration AAA: solve agriculture problems CCC: offered jobs for conservation projects PWA: constructed public buildings

New Deal’s Results Possitive: People trusted businesses again and started investing Old people and disabled people got pensions Workers had better wages and more rights Millions of jobs were created Industry and agriculture began to recover FDR won the 1936 election Roosevelt was very popular America remained a democracy

New Deal’s Results Failures: Blacks and women did not have equal rights Many small farmers and city workers especially blacks remained out of work In 1939 there were 9 million unemployed in America The Depression did not end until WWII

New Deal. Conclusion There was quite a lot of opposition to the New deal: Some people said it gave FDR too much power Republicans said it would make things worse Southerners said it interfered too much in local government Businessmen sait it was an attack on free enterprise and made it too hard to make profits The Supreme Court said some bits of it were unconstitutional