The Great Depression

Causes of the Great Depression Consumerism Spent more than saved Overproduction and underconsumption led to falling prices

More Causes Buying stock on speculation/high risks investments Buying stock on margin/borrow $$ Republican laissez faire policies of the 1920s Stock market prices reached new highs

Stock Market Crash Herbert Hoover elected president in 1928 Opposed too much government interference in business October 29, 1929: Black Tuesday

The Great Depression 1929-1941 People withdrew $ from banks, led them to close Stopped investing in stock market Led to unemployment “Hoovervilles”/ makeshift villages

Hoovervilles

Soup Lines

High numbers of homeless people

Families, especially children, were effected.

The Dust Bowl Farmers did not prosper in 1920s Droughts Stripping soil of its natural protection/soil erosion by poor farming practices Dust storms “black blizzards”

Results of the Dust Bowl “Okies” Movement and migrated west to California The Grapes of Wrath by John Steinbeck

Bank Closures

Dorthea Lang’s Migrant Mother Hobos

Presidential Election of 1932 Herbert Hoover (R) v Franklin D. Roosevelt (D) Happy Days are Here Again

FDR New Deal: relief, recovery and reform programs Hundred days Fireside chats 21st amendment

New Deal programs

Federal Deposit Insurance Corporation Insured accounts against bank failures

Civil Works Administration CWA Civil Works Administration “Make-work” projects like raking leaves

Civilian Conservation Corps CCC Civilian Conservation Corps Work program for men 18-25 $30 per month; planted trees, worked in national parks and forests

Securities and Exchange Commission Regulated companies that sold stocks and bonds (stock Market).

National Industrial Recovery Act NIRA National Industrial Recovery Act Plan to stimulated industry and business activity and reduce unemployment.

Agriculture Adjustment Administration AAA Agriculture Adjustment Administration Paid farmers to reduce production

Tennessee Valley Authority (TVA) Controlled flooding (environmental) Created electricity Created jobs Helped fight malaria Improved standard of living including literacy

Huey Long Senator and Governor of Louisiana Criticized FDR Share Our Wealth Clubs Redistribution of wealth Later assassinated in New Orleans

Court packing scheme Supreme Court was a source of resistance for FDR’s programs Proposed enlarging # of justices on SC from 9 to 15, constitution did not specify a # President appoints justices, hoped to appoint justices that supported programs

2nd New Deal 1934 New programs that focused more on social welfare benefits

WPA Works Progress Administration Designed to help Americans find work

NYA National Youth Administration AKA – Jr. WPA Helped high school and college age with part time jobs Headed by Mary McLeod Bethume, member of National Black Cabinet

SSA Social Security Administration Retirement & disability benefits

REA Rural Electric Administration Provided electricity to isolated rural areas.

Wagner Act National Labor Relations Act Could not be fired for joining a union. National Labor Relations Act Law passed in 1935 to protect the right of workers, monitored unfair business practices Organize unions Use collective bargaining

Eleanor Roosevelt Social activist Traveled for her husband Supported reforms for all men and women Discrimination remained for minorities during the Great Depression

International Concerns Led to worldwide depression FDR supported high tariffs to push for the buy of American goods Foreign nations also passed tariffs Increasing tensions in Europe and rise of totalitarian regimes.

Neutrality Acts Germany, Italy and Japan were rising in power Passed in 1935, US prohibited the sale of weapons to nations at war