The Great Depression – The “Perfect Storm” Causes of the Great Depression

Causes of the Great Depression

Causes of the Great Depression Stock Market Crash

Causes of the Great Depression Stock Market Crash Overproduction in farm and factory- (End of the consumer durables revolution)

The Great Depression Causes of the Great Depression Stock Market Crash Overproduction in farm and factory- (End of the consumer durables revolution) Illness of the International Economy

The Great Depression Causes of the Great Depression Stock Market Crash Overproduction in farm and factory- (End of the consumer durables revolution) Illness of the International Economy Income inequality

II. Consequences of the Great Depression

II. Consequences of the Great Depression Int’l trade nearly disappeared

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system”

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system” Bank “runs”

Protecting a bank during the period of bank “runs” - 1931

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system” Bank “runs” Collapse of investment

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system” Bank “runs” Collapse of investment Supply outstripped demand

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system” Bank “runs” Collapse of investment Supply outstripped demand People Suffered

Unemployed men vying for jobs at the American Legion Employment Bureau in L.A.

Famous Dorothea Lange photographs – “Migrant Mother”

II. Consequences of the Great Depression Int’l trade nearly disappeared Credit tight, high interest rates Tariff barriers Deflation Investors & Consumers: lost confidence in “the system” Bank “runs” Collapse of investment Supply outstripped demand People Suffered Diversions in a time of distress – The Good & the Bad

Leisure during the Depression Miniature Golf Craze

Leisure during the Depression “Cinderella Man” – James Braddock

The Great Depression III. Politics of the ’20s & ’30s A. Warren G. Harding elected in 1920 B. Calvin Coolidge – “Silent Cal” C. Election of 1928 D. Herbert Hoover (1929-1933)

Warren Harding Campaign poster - 1920 America’s present need is not heroics, but healing; not nostrums, but normalcy; not revolution, but restoration; not agitation, but adjustment; not surgery, but serenity; not the dramatic, but the dispassionate; not experiment, but equipoise; not submergence in internationality, but sustainment in triumphant nationality. -- Warren Harding, “Return to Normalcy” speech, 1920

Teapot Dome Scandal

Herbert Hoover

Al Smith – 1928 Democratic nominee for President

Wall Street preying upon the common citizen

The Great Depression IV. FDR Personal Background Election of 1932

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot)

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No Business Pro-business/less regulation by gov. More involvement by gov.

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No Business Pro-business/less regulation by gov. More involvement by gov. Attacks Roosevelt was “experimental” & “risky” Scolded Republicans for allowing speculation

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No Business Pro-business/less regulation by gov. More involvement by gov. Attacks Roosevelt was “experimental” & “risky” Scolded Republicans for allowing speculation Personality Hoover was a president under siege: unlucky & unpopular Eloquent, persuasive, confident

Election of 1932 President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No Business Pro-business/less regulation by gov. More involvement by gov. Attacks Roosevelt was “experimental” & “risky” Scolded Republicans for allowing speculation Personality Hoover was a president under siege: unlucky & unpopular Eloquent, persuasive, confident Theme Stand pat – rely on market forces “New Deal” make a change

Election of 1932 Deciding Factor =THE GREAT DEPRESSION! President Hoover Roosevelt Ticket Republican (1st ballot) Democrat (5th Ballot) Prohibition Yes No Business Pro-business/less regulation by gov. More involvement by gov. Attacks Roosevelt was “experimental” & “risky” Scolded Republicans for allowing speculation Personality Hoover was a president under siege: unlucky & unpopular Eloquent, persuasive, confident Theme Stand pat – rely on market forces “New Deal” make a change Deciding Factor =THE GREAT DEPRESSION! Result: Electoral votes 472 to 59 -- A LANDSLIDE VICTORY

How similar? How different?

The Great Depression IV. FDR Personal Background Election of 1932 New Deal – Hundred Days and Beyond 3 Rs: Relief/Recovery (& some Reform)– “Alphabet Soup” Banking (Bank Holiday & Emer. Relief, Glass-Steagall Act) Farming & industry (AAA, NIRA) Government investment (HOLC, PWA) Unemployment and poverty (FERA, WPA) Financial sector (SEC, FDIC) TVA Conservative and Populist opposition

The Great Depression IV. FDR (cont’d) 2nd New Deal BG: Reason; Inspiration; Priorities; Adding the 3rd “R” Unions (Wagner Act, NLRB, AFL-CIO) Social Security Act (1935) Other Legislation (Utility Reform, Banking Act of 1935, REA) The FDR Coalition

The Great Depression IV. FDR (cont’d) A New Political Landscape Election of 1936 Extension of New Deal Programs End of the New Deal Legacy of the New Deal Analysis Results