The Causes of the Great Depression What caused the most severe economic crisis in American history?

Shaky Stock Market Triggers a Banking Crisis Speculative boom leads to a spectacular crash –“Black Tuesday” –Bull Market –Bear Market –Buying on Margin –Speculative Bubble Banking crisis wipes out people’s savings –Interest –Bank Runs

Too Much for Sale, Too Little to Spend Overproduction puts too many goods in stores Widening wealth gap leads to rising Underconsumption causes farm failures, bankruptcies, & layoffs

Government Actions Make a Bad Situation Worse Tight money supply hobbles the economy –Federal Reserve System –Discount Rate Tariffs cause trade troubles –Hawley-Smoot Tariff Act

The Response to the Economic Collapse How did the federal government respond to the economic collapse that began in 1929?

Ideological Responses to the Economic Crises Conservative Response: Let the economy stabilize –Status Quo –Business Cycle Liberal Response: Government must help –Public Works –Social Welfare Radical Response: Capitalism must go

Hoover’s Conservative Response to Hard Times Cautious Approach: Limited government intervention –Hoovervilles –Reconstruction Finance Corporation (RFC) –Trickle-Down Theory Hoover battles the Bonus Army Roosevelt calls for a New Deal: The election of 1932 FDR launches the New Deal’s First Hundard Days

The Human Impact of the Great Depression How did ordinary Americans endure the hardships of the Great Depression?

A Country in Economic Distress Rising unemployment affects millions of Americans –Living Wage Farmers lose their farms –Foreclosure Financial woes stress American families

“Ill-Housed, Ill-Clad, Ill- Nourished” Evictions force people out of their homes Millions face hunger and starvation –Soup Kitchens –Breadlines

Natural Disasters Intensify the Suffering Black blizzards plague the Great Plains –Dust Bowl Natural Impact of the Drought: Desertification Human Impact of the Drought: Depopulation From Drought to Deluge: The Great Flood of 1936

Coping With Hard Times Struggling to get by Looking for help –Public Assistance

The New Deal and Its Legacy How did the expansion of government during the New Deal affect the nation?

The First New Deal Restructuring the financial sector Shoring up the free enterprise system –National Industrial Recovery Act (NIRA) Paying farmers not to plant –Agricultural Adjustment Administration (AAA) Promoting economic development & homeownership Remembering the “Forgotten Man” –Civilian Conservation Corps (CCC) –Federal Emergency Relief Administration (FERA)

Protests and Political Challenges Critics attack the New Deal –Right Wing –Left Wing Demagogues turn up the heat –Huey Long

The Second New Deal Energizing the country with electricity & jobs –Works Progress Administration (WPA) –Schechter Poultry Corp v. U.S. Bill of rights for workers –Wagner Act Economic security for Americans –Social Security Act Battling the Supreme Court

Social and Political Impacts Good deal for workers –Congress of Industrial Organizations (CIO) Mixed deal for women –Mary McLeod Bethune Disappointing deal for African Americans Better deal for American Indians Tough deal for Mexican Americans Emergence of a New Deal Coalition in politics

Legacy of the New Deal Unalienable Rights: Life, liberty and economic security –Welfare State Larger role for Uncle Sam in people’s everyday lives –Deficit Spending