The Great Depression Chapters 22 & 23

ECONOMIC DANGER SIGNS Uneven Prosperity: rich got richer Buying on credit: increase in personal debt & installment plans Stock Market: speculation, playing the market, buying on margin Overproduction: especially cars, Americans are buying less Farmers in trouble: demand down, prices down, suffered the most Workers in trouble

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STOCK MARKET CRASH 1st major event of the Great Depression Oct. 29, 1929 Black Tuesday Many people not immediately affected if wealth didn’t depend on the stock market

CAUSES OF THE GREAT DEPRESSION 1. Overspeculation: take a large risk in the hope of selling big 2. Government Policies: tariffs & war debt policies cut down on forcing markets for American goods 3. Unstable/Uneven Economy: national wealth unevenly distributed 4. Crisis in farm sector 5. Availability of easy credit

THE GREAT DEPRESSION 1929-1940 Longest, most severe economic depression in US History Banks closed: people wanted money, banks didn’t have it because of investments Global impact because economies were interdependent

DEPRESSION IN CITIES People lost jobs, evicted from homes Shantytowns, soup kitchens, bread lines African Americans/Latinos have higher unemployment, lower pay

Bread Lines

DEPRESSION IN RURAL AREAS DUST BOWL Environmental condition in Great Plains in 1930s Depression Video Many migrated to Pacific states from area from North Dakota to Texas Dust Bowl Video

DEPRESSION ON THE FAMILY Increase in discrimination against minority groups & women: fired to give jobs to men Farmers couldn’t pay mortgages, many lost farms No federal govt. help Teenagers leave home to find jobs Suicide rate up, state mental hospital admission up Leads to habit of savings People tried to keep sense of humor

HOOVER STRUGGLES Herbert Hoover elected pres. In 1928 “key to recovery is confidence” Blamed for depression: not his fault Thought direct federal relief would hurt people’s self respect & create large bureaucracy: TRUE!!

BONUS ARMY Unemployed WWI vets & families marched into Washington wanting pensions paid now Hoover sent in army: used force, tear gas Hurt Hoover, looked bad

NEW DEAL 1933-1938 1932 Presidential Election Winner: Franklin D. Roosevelt (Dem): use govt. to get out of Depression 20th Amendment: changed Inauguration date to Jan. 20th

FDR’s PROGRAM Relief: Help all Americans in need Recovery: Spur the economy out of the Depression Reform: Prevent another severe Depression **pushed work relief rather than monetary relief **Fireside chats: radio talks explaining the New Deal Brain Trust: group of intellectuals who helped form the New Deal The Three R's

BANK HOLIDAY All banks closed for 4 days Govt. inspected the financial health of banks Generated confidence in banks: people put money in banks made loans stimulates economy

FIRST HUNDRED DAYS 1st: get Americans to work Gives them money to spend which helps the economy Expanded federal government’s role in the economy 21st Amendment: Repealed Prohibition

NEW DEAL UNDER ATTACK People afraid fed. govt. & Pres. getting too powerful Sup. Ct. declared some programs unconstitutional Didn’t end Depression, less helpful to women & minorities Progressives: New Deal didn’t go far enough Court Packing: FDR wanted to increase # of Sup. Ct. justices to put own people in Public upset with this!!!!

2ND NEW DEAL More social welfare benefits, stricter controls over business, stronger support for unions, higher taxes on rich Social Security 1936 Presidential Election Winner: FDR 1st time most African Americans voted Democratic, 1st time labor unions backed one candidate

NEW DEAL EFFECTS Women: still faced discrimination in work place 1st woman in Cabinet: Frances Perkins, Sec. of Labor Eleanor Roosevelt: supporter of New Deal, “eyes & ears” for FDR African Americans: “Black Cabinet” formed to advise FDR on racial issues FDR never fully committed to civil rights b/c afraid of losing support from white Southern Dem.

NEW DEAL SUPPORTERS Women African Americans Mexican Americans Native Americans Labor unions

CULTURE IN 1930S Literature: Buck, Steinbeck, Mitchell Movies: seen as an escape Marx Brothers, Wizard of Oz, Snow White, Gone with the Wind Arts: supported unemployed artists, musicians, historians, theater people & writers

LASTING NEW DEAL ACHIEVEMENTS/EFFECTS Public works: bridges, dams, roads, buildings Federal agencies: TVA, SEC, FDIC Social Security Legacy of hope Changed relationship between workers/employers Labor stronger in politics Creation of welfare state: fed. govt. takes care of people Increased power of fed. govt. Shift in power from Congress to President