 Gross National Product  It is the total value of all goods and services produced within a nation in a particular year, plus income earned by its citizens.

They used to tell me I was building a dream And so I followed the mob When there was earth to plow or guns to bear I was always there right on the job They used to tell me I was building a dream With peace and glory ahead Why should I be standing in line Just waiting for bread Once I built a railroad, I made it run Made it race against time Once I built a railroad, now it's done Brother, can you spare a dime? Once I built a tower up to the sun Brick and rivet and lime Once I built a tower, now it's done Brother, can you spare a dime? Once in khaki suits, gee we looked swell Full of that Yankee-Doodley-Dum Half a million boots went slogging’ through Hell And I was the kid with the drum Say, don't you remember? They called me "Al" It was "Al" all the time Why don't you remember, I'm your pal Say buddy, can you spare a dime Once in khaki suits, ah gee we looked swell Full of that Yankee-Doodley-Dum Half a million boots went slogging through Hell And I was the kid with the drum Oh, say, don't you remember, they called me "Al" It was "Al" all the time Say, don't you remember, I'm your pal Buddy, can you spare a dime?

Economic Troubles  Some became wealthy, others couldn’t earn a living  Industries struggled  Farmers could not sell the amount of goods produced

Industries Weaken  Railroads and steel barely made a profit  Result of new forms of transportation  Coal mining dropped by about 50%  Replaced with hydroelectric power, oil, and natural gas  Housing market falls  Related industries (furniture, lumber, etc.) fall too

Farmers Struggle  Decline of demand for crops by 40% after WWI  Many farmers produced more in hopes of selling more  Prices dropped dramatically  Farmers couldn’t pay debts and went into foreclosure  lose property  Government issues McNary-Haugen Bill- calling for government price supports  Government would buy excess crops from farmers  President Coolidge vetoed the bill twice- “Farmers have never made money. I don’t believe we can do much about it.”

Major Issues Facing Americans  Rising prices  Stagnant wages  Unbalanced distribution of income  Overbuying on credit

Uneven Distribution of Wealth  , wealthiest 1% of Americans income rose by 75%  Only a 9% increase among Americans as a whole  More than 70% of Americans earned $2,500 per year  This was considered the minimum amount needed for a decent standard of living  Families earning double that could not afford basic goods

Stock Market  Most visible sign of American economic prosperity  Dow Jones Industrial Average- barometer of stock market health  Measure based on stock prices of 30 large firms trading on New York Stock Exchange  During the 1920s, the stocks were a “bull market”- period of rising stock prices  Americans bought many stocks and bonds  Many bought stocks who were average Americans hoping to strike it rich  Some buyers used speculation- bought stocks on the chance of a quick profit  They used buying on margin- paying a small percentage of a stock’s price as a down payment and borrowing the rest  Investors spent money and prices soared

 Sept Stock prices peaked and then fell  Confidence in the market started to waver  Investors quickly sold stocks  Oct market took deeper plunge and investors sold more shares  Oct BLACK TUESDAY- bottom fell out of the market and the nation’s confidence  Millions of shares were sold on this day (16.4 million) ▪ Many lost savings and could not repay debts

 Recession: A period of unemployment and low business activity  Depression: A period of high unemployment and extremely low business activity

Conrad Albrizio’s The New Deal What does this mural reveal about the role of the government during this time period?

 Republican candidate: Herbert Hoover  Democratic candidate: Franklin Delano Roosevelt  Roosevelt won the election by a landslide and the Democrats won control of the House and Senate

 FDR had to wait 4 mos. to be sworn in officially  20 th Amendment- shortened time until presidential inauguration had not been passed yet (lame duck)  FDR began working right away with his team of advisers “Brain Trust” select group of professors, lawyers, and journalists  Developed a program to alleviate the problems known as the New Deal  Relief for needy  Economic recovery  Financial reform

 Name given to time period early in Roosevelt’s presidency where there was intense activity to pass New Deal initiatives  New initiatives expanded the role of the federal government in the nation’s economy  Banks  March declared a bank holiday and closed all banks  Emergency Banking Relief Act- authorized the Treasury Dept. to inspect the banks  Held a fireside chat- radio talk about issues of public concern, explaining in simple terms the New Deal measures  RESULTS: American regained confidence in using the banking system again

 Agricultural Adjustment Act (AAA)- raise crop prices by lowering production  Government paid farmers to leave fields unseeded  Civilian Conservation Corps (CCC)- young men, 18-25, built roads, developed parks, planted trees, and helped soil erosion.  National Industrial Recovery Act (NIRA)- provided money to states to create jobs in construction of schools and other community buildings

 Works Progress Administration (WPA)- Goal was to create as many jobs as possible as quick as possible  Built airports, roads, public buildings, garment (textile) work, etc.  Gave work to more than 8 million workers  Social Security Act  Old age insurance  Unemployment compensation  Aid to families with disabled (dependent) children

 Deficit spending- spending more money than the government receives in revenue  Liberal criticism- Programs did not go far enough to help the poor  Conservative criticism- believed certain programs gave too much control over agriculture and industry to the government  Supreme Court stated NIRA was unconstitutional  Said the federal government overstepped bounds of position and gave legislative powers to the executive branch  Roosevelt requested 6 judges to be added to the Supreme Court (packing the court) ▪ Many felt the president was violating the separation of powers ▪ Roosevelt got his way and added judges that ultimately favored the New Deal

Supreme Court declares NRA unconstitutional because it gave the executive branch legislative power.