the political and economical rise and downfall of the american society BOOM & BUST t h e g r e a t d e p r e s s i o n 1920s to 1940s the political and economical rise and downfall of the american society © brittany paulino & krizia medenilla

just an overview.. Depression Economy Presidents and elections Wall Street Crash  Black Tuesday Bonus Army Organized Intolerance Recession of 1938 The New Deal: how it worked and didn’t work Social Effects Ethics on women and racial segregation

H O O V E R ROOSEVELT Hoover vs.FDR:1932 Republican The only thing to fear is fear itself! “the only thing to fear is fear itself” Republican Belief that the federal government could not and should not try to fix peoples problems- Laissez Faire H O O V E R ROOSEVELT Democratic Those who believed that large scale problems like the depression required the governments help NEW PRESIDENT: ROOSEVELT!

Depression Economy Rich and powerful prosper Big companies took over the smaller companies (monopoly] People buying on credit equals debt Middle and lower class bought stocks Speculation Buying on Margin Too much supply, not enough demand Farming & Factory Problems emerge Bankruptcy

It’s a Cycle! Too many goods, not enough demand Unemployed people can’t buy things Prices drop to increase buying Employees laid off to make up for loss of profit Companies lose profits

Black Tuesday & Wall Street Crash Reaches an all time high and begins to drop Market was still believed to be in a “healthy condition” Claimed by Hoover Too many loans Black Tuesday: Panic begins (16.4 million shares sold) Rich and middle class affected the most

Black Tuesday and Wall Street Crash (cont.) People affected by the crash Stock holders Factory workers – profits fell and workers laid off Ex. Henry Ford’s Factory Small businesses – no one could afford them Banks – No one could pay off loans, causing debts Too many withdrawals simultaneously No FDIC (Federal Deposit Insurance Corp International Effects – If one country’s economy falls, then the rest fall

P O L I T I C A L C A R T O O N  HOOVER While he wanted to help the people, he was hesitant to provide direct federal relief to victims of the Great Depression.

Bonus Army Bonus Army jobless WWI Vets went to Washington DC Camped out to get payment for bond that didn’t pass Army led by MacArthur sent to suppress the Bonus Army led to violence Ex: Camps set on fire by government

Recession of 1937-1938 Economy showed signs of gradually pulling out of depression. Banks were stable business earnings were moving up Unemployment lowered at 15%. By 1937 the country was slipping back into a recession.

New Deal Contradiction to Laissez- Faire FDR designed programs to help Americans during the Depression Promised to improve relationship with the government and economy Closes the banks to ensure that they are “healthy” and brought on consumer trust Established FDIC Established Federal Emergency Relief Administration Ex: CCC (Civilian Conservation Corps)

Effects of New Deal Although New Deal helped many Americans, it fell short of many expectations Ex: Fair Labor Standard Act New Deal Agencies didn’t help women or minority groups Women: Lower wages for women Did not help female domestic workers

New Deal Effects (cont.) African Americans Relief Programs  racial segregation Not offered professional level jobs Received less pay for same work Whites worked in “white only” businesses Blacks began protests: “Don’t shop where you can’t work!” Lynchings increased

Effects of New Deal (cont.) Indian Reorganization Act Promoted by Commissioner of Indian Affairs John Collier Reversed assimilation policies Encouraged tribes to preserve their culture and traditions. Not all Indians liked it Mexican Americans Affected by CCC and given employment

Some reforms National recovery association (NRA): limited production and raised prices Civil Conservation Corps (CCC): solved some problems of unemployment by sending 3 million single men from age 17 to 23 to the nation’s forests to work. The Home Owners' Loan Corporation (HOLC): helped people save their homes from foreclosure. Works Progress Administration (WPA): employed more than 8.5 million people to build bridges, roads, public buildings, parks and airports. .

Themes of the Depression The rejection of world leadership, but not isolationism Cultural conflicts of the 1920s The failure of prohibition Government and business, was this really laissez faire? Organized Intolerance The persistence of progressive reform The role and responsibilities of government in society The New Deal and the Welfare State Hoover as the first of the "new" presidents Social, economic and political causes and impacts of the depression

STUDY HARD!