Ch 17, Sec 1-3: The Great Depression & Ch 18, Sec 1-4

Causes of the Great Depression Stock Market Crash of 1929 Downfall of businesses worldwide Installment plans/overproduction of goods Failure of banks

First three years 9,000 banks closed 30,000 companies closed 12 million people unemployed (1/4th of the population) 1 million farms failed

Shantytowns People were kicked out of their houses/apartments Shacks on unused or public lands like streets and parks Also known as Hoovervilles

Jobs/Food People jumped on trains to move around the country for work (illegal) Rise in soup kitchens/bread lines to get food

Dust Bowl Great Plains farmers took away the prairie grasses for crops Drought caused the crops to fail Nothing to keep the soil in place-became dust Thicker than snow storms/covered everything in dirt Farmers lost their land/had to move west for work

Entertainment to the rescue!!! Movies/actors Groucho Marx Walt Disney 3 Stooges Movies allowed people to wish for a better time Rise in soap operas on the radio

Photographers Took pictures to capture the spirit of Americans during this time Wanted to show their struggles and outlooks at life Ex: Dorothea Lange Ex: Margaret Bourke-White

President Hoover’s Ideas Tried to get businesses to remain open Start public works projects ($1.5 billion) Refused to increase gov’t spending Had to gov’t give money to start up banks ($238 million)

People fought back Hunger marches in Oklahoma City Farmers revolted by burning their crops to make prices go up (supply + demand) WWI soldiers marched to Washington D.C. to get their bonus checks Camped out in the city Military called in to force them out with tear gas/weapons

President Roosevelt Takes Office March 4, 1933 Ideas were called the “New Deal” Fireside chats Brought in experts in every field to help make decisions/policy Big business was to blame Big business and gov’t needs to work together Gov’t needs to restore competition but keep it fair

Emergency Banking Relief Act All banks would be surveyed Only banks who were financially sound could remain open Stopped the banking problem

Regulations on Banks/Stock Market SEC-created to regulate the stock market and to prevent fraud Banks were no longer allowed to give loans for stock investments FDIC-gov’t insurance to for bank deposits

Federal Agencies: Agricultural Adjustment Administration Paid farmers to not raise certain animals and grow certain crops (prices were raised within 2 years) Helped big farmers increase wealth Hurt tenant farmers/African Americans (lost their jobs/homes)

Federal Agencies: National Recovery Administration Helped set new rules for businesses Set prices Created minimum wages Limited hours to work Failed to help end the depression

Federal Agencies: Civilian Conservation Corps Helped unemployed people get jobs Men 18-25 could plant trees, fight forest fires, and build reservoirs Earned $30/month

Federal Agencies: Public Works Administration 1/3rd of unemployed worked in construction Helped to build highways, dams, sewers, waterworks, schools, and gov’t buildings Required companies to hire African Americans

Federal Agencies: Works Progress Administration Helped build roads, parks, and buildings Hired artists to create artwork for gov’t buildings Hired actors to create films promoting the govt’s actions to end the depression

Townsend Plan Wanted people over 60 to retire Give them $200 a month Free up jobs for the unemployed

Social Security Act Workers earned the right to receive benefits Started welfare payments to: The needy/poor People with disabilities Retirement benefits for people over 65

National Housing Act Established the National Housing Authority Gave $500 million for loans to builders Turned slums into low-cost housing