The Great Depression.

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The Great Depression
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Presentation transcript:

The Great Depression

The Business Cycle Phase One: Prosperity – The economy expands with more goods being produced, prices rising, more workers hired, and higher wages. Phase Two: Recession – The economy slows down. Phase Three: Depression – More goods than can be sold (surplus), prices fall, production decreases, and workers are laid off. Phase Four: Surpluses are reduced, the demand for goods increases, and factories rehire workers.

Background People ignored the signs of a depression: Businesses were producing more goods than they could sell. People were no longer buying products. Profits were not being passed along to workers in the form of higher wages. Investors used their money to speculate.

Black Tuesday The stock market crashed stock prices dropped drastically and lost value banks closed to keep bank runs from occurring.

Causes of the Great Depression People had borrowed more money than they could repay causing banks to fail and businesses to close. Overproduction of goods in manufacturing and agriculture Hands off attitude of the federal government

Effects of the Great Depression on South Carolina Housing conditions were poor. Diseases spread. Banks failed. Incomes decreased. Charities tried to help feed people and provide wood for heat until the number of people in need made it impossible for them to help. Rise in unemployment.

Franklin Delano Roosevelt elected President Nov. 1932 “nothing to fear but fear itself.” used radio to talk to the people in fireside chats. started an aggressive program to bring relief, recovery and reform in his first ‘Hundred Days’ in office.

New Deal a series of laws and programs established by President Franklin D. Roosevelt to help the economy recover without extended government involvement laws and programs known by their initials and sometimes called the “alphabet agencies”

Rural Electrification Authority (Act) (REA) This act was designed to run power lines to rural areas to provide them with electricity South Carolina and the United States were impacted because the REA loaned money to farmers’ groups to help them get electricity that made life easier for rural communities and farmers. farmers were able to install milking machines and water pumps that made farming more profitable

Civilian Conservation Corps (CCC) established by the United States Army and run by the Labor Department Provided jobs across the United States. Projects included land clearing and improvement, forestry, dam building, and improving national parks. It included an educational program to stop illiteracy and juvenile delinquency. The CCC impacted South Carolina by building 18 state parks, improved the land, employed 50,000 men, and put a significant amount of money in the state’s economy. Men participating in this program learned to read as well as learned job skills that enabled them to get jobs outside the CCC.

Works Progress Administration (WPA) The WPA was designed to give jobs to the unemployed to work on public projects. built highways, airports, bridges, playgrounds, hospitals and schools It was known for its arts related projects. conducted interviews with former slaves South Carolina and the United States were impacted because jobs were provided, public facilities were improved, and arts related projects were produced.

Public Works Administration (PWA) The PWA was designed to build large long term projects including schools, subways, courthouses, and aircraft carriers. The PWA impacted South Carolina through the building of schools. The PWA built the library at the University of South Carolina.

Social Security Act The Social Security Act provided insurance to the elderly and was financed by taxes on wages paid by employee and employer. It also provided money for the disabled. It impacted South Carolina by providing money to those elderly and disabled who had paid into the program.

Santee Cooper Electricity Project largest New Deal project in South Carolina built dams on the Santee and the Cooper Rivers, creating Lake Marion and Lake Moultrie. hydroelectric dams produced power that would provided electricity and provided jobs to those who built it improved living conditions for many South Carolinians.