Complete all of standard 18 vocab

America in Crisis: Great Depression

The Great Depression: Causes

Great Depression: Causes Over speculation of Stocks People bought high risk, high reward stocks When the market plunged they lost everything Buying stocks on Credit Using borrowed money to buy stocks When market plunged they could not pay back loans Overproduction and Underconsumption Companies were still mass producing goods, while consumers were not buying as many goods

The Great Depression: Immediate Effects

The Great Depression: Effects Depression by the Numbers The Gross National Product (GNP) fell from $103 billion in 1929 to $56 billion in 1933 6,000 banks failed 100,000 businesses failed Corporate profits fell from $10 billion to $1 billion $9 million in personal savings lost

The Great Depression: Effects Depression by the Numbers By 1933, 13 million were unemployed 25% of the workforce Many went West to California in search of jobs Worldwide shock-waves The hit on the American economy negatively impacted the entire world

The Great Depression: Effects Impact on Urban Life Development of Shantytowns Communities that consisted of shacks Later became known as “Hoovervilles” Numerous bread lines & soup kitchens Although the Great Depression was a difficult time for most Americans, minority groups faced even lower wages and higher rates of unemployment than most As a result, racial violence increased in the cities

The Great Depression: Effects Impact on Rural Life Agricultural prices fell drastically & most farmers experienced a huge increase in debt 400,000 farms were lost to foreclosure & bankruptcy The rise of tenant farming (again…) The “Dust Bowl” Caused by overfarming of land in the Midwest Massive dust clouds spread across the Midwest

The Great Depression: Hoover’s Response

The Great Depression: Hoover Herbert Hoover (R) was elected right before the Stock Market Crash Told the American people that they should not rely on the government for assistance through the Depression. He lost all popularity during his presidency and the American people named the shantytowns after him (Hoovervilles) Because he lost popularity, he lost the election of 1932 by a wide margin

The Great Depression: Hoover The Election of 1932 In 1932, voters had yet to see an improvement in the economy; wanted a NEW president Republican Candidate: Herbert Hoover Campaigned on the premise that his policies prevented the Great Depression from being worse than it could have been Democratic Candidate: Franklin Delano Roosevelt Campaigned on cautious liberalism Rejected Hoover’s conservatism, as well as the radical approach of socialists & communists

The Great Depression: The New Deal

The Great Depression: New Deal Upon accepting the Democratic nomination for the presidency, FDR promised “a new deal for the American people…” Roosevelt won by saying his New Deal would provide government assistance to the people At his first Inaugural Address Roosevelt stated, “the only thing we have to fear is fear itself…”

The Great Depression: New Deal The New Deal Roosevelt’s program for relief, recovery & reform Aimed at combating the problems caused by the Great Depression The Hundred Days (March 9 – June 16, 1933) During this time, FDR took a very radical approach to ending the Great Depression Passed 15 major New Deal Programs… Roosevelt’s Fireside Chats

The Great Depression: New Deal Laws that were passed during the Hundred Days included: Federal Deposit Insurance Commission Deposits up to $2500 were protected Civilian Conservation Corps Put 250,000 young men to work in construction jobs Tennessee Valley Authority Provided jobs, electricity, and water to rural areas of Tennessee, Georgia, and Alabama Agricultural Adjustment Act Farmers were paid to REDUCE their production of crops

The Great Depression: New Deal Challenges to the New Deal Supreme Court Struck down many New Deal programs as unconstitutional Roosevelt tried to pack the courts with pro-New Deal judges but failed Huey Long Democrat who argued that the New Deal was not doing enough to help struggling Americans Share The Wealth Program: wanted each American to have an income of $2500 a year This was too close to Socialism to many Americans

The Great Depression: New Deal 2nd New Deal After challenges to the First New Deal emerged, Roosevelt launched the Second New Deal… Social Security Act (1935) Provided economic aid the elderly (over 65) Eleanor Roosevelt In the Second phase of the New Deal, she changed the role of the First Lady Became a social activist, especially for minorities and women

The Great Depression: New Deal Impact of the New Deal By 1937 widespread economic improvement convinced many Americans that the Great Depression was over. As a result, Congress began to cut back on spending However, the Depression continues for a majority of Americans By 1939 the New Deal was over & events in Europe began to attract American attention The U.S. began producing goods for nations gearing up for war, which began to fuel the American economy once again