The Great Depression and New Deal

What Goes Up…. Stocks rose in the Late 1920s to record highs Bull Market Everyone was buying stocks Bought on a margin or credit (Speculation)

Must Come Down Stocks peaked September 1929 However Black Thursday October 24th frightened investors Brief rise in stocks Complete Collapse on October 29th Black Tuesday Loss of one year profit People lost everything

The Economy Collapses Banks and small investors lost everything Customers who were encouraged to buy stocks with loans could not repay them Banks lose money and are forced to shut down People wanted to withdraw money Banks did not have enough money to pay all withdrawing depositors People lost their entire savings Businesses also forced to shut down

The Causes Post war had increase in production People were not buying products. Those who wanted already had. International Trade Decreases Europe still recovering High tariffs on European goods meant Americans weren’t buying. Europe had no money to buy American Goods.

The Depression Hits Home Unemployment skyrocketed Soup Kitchens, Breadlines, Shelters spring up Hoovervilles Bonus Army WW1 Vets demanding their bonus Hoover forces troops to remove them

President Hoover Fights Back Believed Government should not support people However institutes Reconstruction Financial Corporation $1.5 billion in Public Works 1932 approaches people believed Hoover couldn’t fix the situation

Election of 1932

“The only thing we have to fear is fear itself” Roosevelt begins work immediately Brain Trust Experts Roosevelt put together to end the Depression 100 Days Special Session of Congress begins passing “New Deal” Legislation

What is the New Deal? First Goal is to restore confidence in the banks March 6th, 1933- Emergency Banking Act Temporarily closed all banks to inspect them Only reopened the ones deemed “healthy” Fireside Chats- Radio addresses Roosevelt gave directly to the American People Changed political thinking where federal government should attempt to solve social and economic problems

Important Programs Civilian Conservation Corps 18-25 year old men restored national parks, put out forest fires, etc. Federal Deposit Insurance Corporation Insured bank accounts (protected your money)

New Deal Critics Conservatives Liberals New Deal went too far Would bankrupt our country Liberals Didn’t go far enough Huey Long “Share Our Wealth” Guaranteed income of $2500 per year Assassinated in 1935

Second New Deal Democrats win a landslide in congress in 1934 Work Progress Administration Built hospitals, parks, roads, and schools National Youth Administration Part of the WPA Gave college and high school students part time jobs to stay in school Social Security Act 1935 Provided aid for the elderly and disabled

The Election of 1936

Judicial Procedure Reform Act Supreme Court ruled many New Deal Programs Unconstitutional JPRA Would allow president to appoint new justices up to six for every who did not retire at 70 Critics said this was “court packing” Congress denied the request afraid it would affect checks and balances system However Supreme Court never ruled anything else of the New Deal Unconstitutional

Did the New Deal work? Changed every aspect of American life Expanded the power of federal government Parts of the New Deal still exist today FDIC and Social Security for example However, small depression still in 1937-8 Increased deficit spending

Americans Face Hard Times Families lacked money for basic necessities Divorce rates rose, birth rates fell Men traveled to find work Children often dropped out of school to support families Benefit of big family?

Farmers in the Depression Many farms were foreclosed Community would unite bid below market prices and give back to owner Severe drought in the Great Plains Turned land into a Dust Bowl Dust covered everything Dust Storm could last minutes to days Responded by moving to California

Working Hard to Survive Government deported many Mexican Born farm laborers Including American born children African Americans Lower wages Segregation Believed it would be worse under a Republican Administration Roosevelt asked for advice from African American Leaders who he appointed to his administration “Black Cabinet” Eleanor Roosevelt also strong fighter for minority rights

Arts and Literature Federal Writer’s Project (FWP) Part of the WPA Created travel guides, oral histories, folklore collections Federal Music Project and Federal Arts Project Brought music and plays to down trodden areas Margaret Mitchell Gone With the Wind