Chapter 25 Depression and the New Deal Title

Section 1 The Great Depression pg. 493 The stock market crash of 1929 hurt the American economy

9% workers unemployed Businesses were forced into layoffs

Layoff Cutting jobs because a company can’t afford to pay workers

8 million Am out of work Many people lost all their savings

President Hoover Believed federal government shouldn’t help unemployed

President Hoover Asked people to be patient and that the depression would end Only president 1 year and was blamed for depression

People not able to pay home loans so lost houses

Homeless people built & lived in cardboard or tar paper shacks Had no heat, lights or water These slums called “Hoovervilles”.

Hoovervilles

“Hoover flags”

Causes of the Depression Stock market crash Overproduction Buying too much on credit

Causes of the Depression Banks that held unpaid loans went out of business Foreign countries still owed war debts and couldn’t buy American products Farm prices went down, couldn’t support family.

Overproduction Making too many goods

Credit Buy now, pay later Lost job so couldn't repay debts

Homeless lived in subways, parks & empty warehouses

Unemployed sold apples in streets.

American families stood in breadlines for free food

. Section 2 A New Deal for the Nation pg. 496

Pres Hoover planned to help weak economy by: Agricultural Marketing Act- Congress gave $500 mil to buy extra (surplus) crops from farmers to help raise crop prices.

1932 Reconstruction Finance Corporation loaned emergency money to banks, Railroad & insurance companies.

Federal public works program to create jobs like building dams, highways, & buildings.

A moratorium (legally delaying something) put on war debt payments owed to US from foreign countries; hoped they would buy US products.

1932 election won by Democrat Franklin Delano Roosevelt

Roosevelt Offered a “New Deal” for America He said “the only thing we have to fear is fear itself”.

His “New Deal” covered three areas: Relief Recovery Reform

Actions taken by Congress & President during the 1st hundred days:

Bank Holiday A national “bank holiday” prevented people from taking all their money out of their bank, causing bank to fail.

Emergency Banking Act Gave federal loans to banks

Federal Emergency Relief Administration Gave millions in loans to state agencies to help families with food, clothes & shelter.

Civilian Conservation Corps (CCC) Hired young people to plant trees, build roads & flood control in rural areas.

Agricultural Adjustment Act (AAA) Paid farmers for crops they destroyed Shortage of products would raise prices

National Recovery Administration (NRA) Started to help businesses recover Reduced workweek, started minimum wages & stopped child labor

Truth-in-Securities Act Controlled selling stocks & bonds

Tennessee Valley Authority (TVA) Gave jobs to 1,000s to work on flooding & erosion in Tennessee River Valley

The New Deal Changes Government Section 3 p.500 The New Deal Changes Government

The 2nd New Deal Tried to make economic reforms Greatly increased the role of government in Americans' lives

1935 The Works Progress Administration (WPA) Gave jobs to 8 million out of work Americans

WPA Built schools; hospitals, playgrounds, museums & airports Actors hired to do plays Musicians do concerts Artists paint murals on government buildings

New National Labor Relations Act Gave workers the right to form unions

National Labor Relations Board Government agency protected voting Unions & employers discuss wages, hours & working conditions

1935 Social Security Act Government took responsibility for the elderly, jobless & disabled

Had 3 Parts: Pension for elderly Unemployment pay Disability benefits

Home Owners Loan Corporation, 1933 Gave low-interest long-term home loans to help people make house loan payments

Federal Housing Administration (FHA)1934 Encouraged low cost home building & repair

Supreme Court reacts to reforms? Roosevelt’s New Deal ran into problems with Supreme Court

Most members thought it unconstitutional

Roosevelt called Supreme Court “nine old men” and he appointed 6 new younger justices to Supreme Court as older justices retired

1881 American Federation of Labor (AFL)