The Great Depression & The New Deal Post WWI Impact The Great Depression & The New Deal

Great Depression Factors The Boll Weevil and Drought Both drought and the Boll Weevil caused cotton production in Georgia to drop in half From 5.2 million acres in 1914 to 2.6 million acres in 1917

Boll Weevil

Boll Weevil - The Effects Tenant farmsers and share croppers moved to Georgia cities like Macon and Atlanta Many African-Americans migrated to the North after being heavily recruited by companies there Georgia was forced to diversify and manufacturing began to develop The upswing in manufacturing quick thwarted (stopped) by the onset of The Great Depression The Boll Weevil and drought brought depression to the rural Georgia economy well before the rest of the USA. The 1929 Stock Market Crash resulted in stock-holders losing more than $40 Billion. This loss crippled business throughout the 1930s as they tried to recover.

The drought

Great Depression – Contributing Factors Bank failures: There was no insurance in place to protect deposits in the ’20s and ‘30s. Too many customers tried to withdraw their money causing banks to fail in the ’30s. Life savings were often lost and the economy slowed as banks became cautious about making loans to businesses and individuals. Reduction in purchasing: A vicious cycle causing a slowdown in all aspects of the economy started as purchasing power halted and people became afraid to make purchases.

Great Depression – Contributing Factors Workers lost jobs and unemployment skyrocketed to 25% and people had no money to spend. Economic fear and disaster resulted. Overproduction of Agriculture Products Midwestern farmers had over produced their products resulting in drops in agricultural crop prices The profit of farmers plummeted In an effort to drive up prices and even though millions were starving, farmers destroyed or ceased to grow crops at all The Dust Bowl had driven farmers from their homes in droves, adding to the unemployment burden of the nation

The New Deal Even though Georgia voters supported Governor Eugene Talmadge (who opposed FDR), they supported the New Deal Programs outlined by President Franklin Roosevelt during the Great Depression. The New Deal Programs provided help to Georgians during the Great Depression Did not end the Great Depression but helped many Georgians make it through the difficult economic times

New Deal Programs impacting Georgia Agricultural Adjustment Act (AAA) which paid farmers (subsidies) not to produce certain crops in an effort to raise farm prices. The goal was to steer farmers away from on crop (cotton) in favor of crops such as peanuts, corn, and tobacco. The Civilian Conservation Corps (CCC) hired unmarried men ages 17-23 and war veterans of all ages to plant trees in national forests, build trails, and to work on environmental conservation projects. Since GA had so much rural land and so many men needing work the CCC was especially active in the stte. The program was controlled by whites and the work force lived together in camps. African American participation in this program remained very low.

New Deal Programs impacting Georgia Rural Electrification Act (REA) was also created by FDR in 1935. This program brought electricity to people who had none. A year later the Norris-Rayburn Act appropriated funding to bring electricity to small farms. Social Security was first introduced by FDR when Congress passed the Social Security Act in 1935. An important benefit of the program was unemployment insurance. This is the only New Deal program that still exists.