The Great Depression.

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Presentation transcript:

The Great Depression

Causes Buying on credit Government policies Weak international economy Not regulating stock market or businesses Weak international economy Other countries still recovering from WWI The Stock Market Crash

Stock Market Crash Buying On Margin October 29, 1929 – Black Tuesday Making down payments and borrowing the rest October 29, 1929 – Black Tuesday Rapid selling of stocks values drop $14 billion

DEPRESSION SPREADS Millions of people lost their jobs. Banks recalled loans. People take money out of banks Banks can’t pay back money so they close People lose money in banks

THE DUST BOWL Drought and dust storms in the Midwest forced many farmers to leave their land and migrate west in search of jobs.

Impact Unemployment – 25% Rural Life Less Leisure Activities Farmers Suffer Dust Bowl – severe drought “Okies” – farmers who moved to California Less Leisure Activities Movies, sports, etc.

Hoover’s Response Policies to aid businesses Business recovers jobs people recover Reconstruction Finance Corporation Gave money to businesses Stopped payments of war debts

“Hoovervilles”

The Bonus March 20,000 jobless WWI veterans go to Washington DC and demand bonus for war Hoover sends in army Destroys popularity

Franklin Delano Roosevelt President 1932 – 1945 The New Deal Plan to end Great Depression Relief Recovery Reform End of Laissez-faire

Relief 1933 Bank Holiday to stop collapse Federal Emergency Relief Act (FERA) Relief to unemployed Public Works Administration (PWA) Built ports, schools, aircraft carriers

Relief Civilian Conservation Corps (CCC) Planted trees, built bridges, parks Works Progress Administration (WPA) Built hospitals, schools, parks, airports Tennessee Valley Authority (TVA) Built dams, cheap electric power

Recovery National Industrial Recovery Act NRA Regulated wages, prices, working conditions Agricultural Adjustment Act (AAA) Paid farmers not to grow certain crops

Reform Federal Deposit Insurance Corporation FDIC Insured savings accounts Securities Exchange Act (SEC) Regulated stock exchanges Social Security Act (SSA) Pensions for elderly, unemployed, handicapped

New Deal Effects Labor Native Americans Roosevelt takes pro-labor approach Unions increase Native Americans Indian Reorganization Act Attempt to restore Native American culture

New Deal Effects African Americans Latinos Women Little benefit Many suffered – worked in agriculture Women Little help in workplace

Controversy Supreme Court finds many laws unconstitutional National Recovery Act Congress can’t regulate intrastate commerce Agricultural Adjustment Act Agriculture is a local matter not an interstate matter

Court-Packing Plan Supreme Court continued to veto legislation FDR asked congress to allow him to increase number of justices from 9 to 15 Not allowed – separation of powers

Political Opposition Business Communists, Socialists gain support Claimed FDR and government had too much power Communists, Socialists gain support

New Deal Evaluation Does not end Great Depression Did help some people WWII does Did help some people Gave more power to president and government More involvement in business and social life