The Great Depression “Boom & Bust” Causes & Consequences (sgilbert)

Prosperity in the 1920s Business Prosperity *expansion of new industries (Model T, radio, vacuum cleaners, refrigerators, etc.) Speculative Boom *savings invested in stocks *people bought widely on credit

Unsound Features of the 20s Economy Technological Unemployment Decline of Overseas Trade Unequal Distribution of Wealth Buying on Credit (including stocks!) Overproduction and under consumption Agricultural Depression & Dust Bowl

The Stock Market Crash of 1929 “Panic on Walls Street - 1929 “Black Tuesday”; October 29, 1929: 13 million shares sold in a single day, stock values plummet. Effects of the Crash Millions ruined People stopped buying to conserve savings Drop in production Increasing unemployment Collapse of public confidence

Hoover’s Response “Rugged Individualism” Private Philanthropy v. Government “Dole” Reconstruction Finance Corp. (1932) “Hoovervilles”

FDR’s New Deal “The Three Rs” Relief – to provide immediate food, shelter, aid. Recovery – to provide jobs, wages. Reform – to permanently fix the system for future generations.

FDR’s “Alphabet Agencies” The Highlights Tennessee Valley Authority (TVA) Built dams and hydroelectric facilities to control flooding and bring electricity seven southeastern states

The Alphabet Agencies, cont’d. Civilian Conservation Corps (CCC) Put 2.5 million young male workers into forest, beach, and national park maintenance and restoration projects.

The Alphabet Agencies, cont’d. Public Works Administration (PWA) Works Progress Administration (WPA) Federally funded projects to build schools, roads, bridges, etc.

The Alphabet Agencies, cont’d. Federal Deposit Insurance Corporation (FDIC) Federally insures personal savings accounts.

The Alphabet Agencies, cont’d. Securities and Exchange Commission (SEC) Regulates the Stock Market

The Alphabet Agencies, cont’d. Agricultural Adjustment Act (AAA) Tried to raise farm prices by paying farmers not to raise certain crops and animals.

The Alphabet Agencies, cont’d. Social Security Act (SSA) Provides old age pensions for workers, unemployment insurance, and aid to the physically disabled.

Other New Deal Must-Knows “Bank Holiday” – closed banks for nine days while banks were inspected and reopened. Frances Perkins – Sec. of Labor; first woman to hold a cabinet position. “Court Packing: Scandal – FDR attempted to enlarge the Supreme Court to include more pro-New Deal judges – NOT GOOD! Wagner Act – legalized unions practices such as collective bargaining; outlawed anti-unions tactics such as blacklisting.

What will it take to end the Depression? Legacy of the New Deal: restores HOPE … but FAILS to stop the depression. What will it take to end the Depression?

How did we get to this moment? Pearl Harbor How did we get to this moment?

Foreign Policy: Isolationism  war Germany invades Poland! Neutrality Acts: withhold weapons and loans from ANY belligerent (fighting) nations Lend-Lease Act: US can aid any nation whose defense is vital to US security sell weapons to Allies Angers Germany

2.Japan invades Manchuria! Violates Open Door Policy - (vowed not to colonize) US est. oil embargo (refuse to trade) Japan attacks Pearl Harbor December 7, 1941 – “A date which will live in infamy” 2,400 Americans killed, 1,200 wounded, 300 planes damaged… in less than 1 hour

Pearl Harbor

Pearl Harbor

P e a r l H a r b o r http://maps.google.com/maps?hl=en&q=uss%20arizona%20memorial&um=1&ie=UTF-8&sa=N&tab=wl

US DECLARES WAR!