The Great Depression Causes Drop in farm income. Low factory wages. Worldwide depression. Underconsumption. Margin buying of stocks.

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Presentation transcript:

The Great Depression

Causes Drop in farm income. Low factory wages. Worldwide depression. Underconsumption. Margin buying of stocks.

Business Cycle

Hoover’s Response Initial “wait and see” attitude. Government works programs. Reconstruction Finance Corporation Bonus March

Election of 1932 Hoover - Rep. Roosevelt - Dem. “Prosperity is just…” “New Deal for …” Movement of Black voters to the Democrats.

The New Deal Walked a tightrope between the extreme positions of the left and right. Pragmatic. Piecemeal. Try anything approach.

Three Goals of the New Deal

Relief “The only thing we have to fear is fear itself.” Short range goal to help the immediate concerns of the nation.

Recovery Stable money. Regulating banks. Getting off the Gold Standard

Reform Banking. TVA. Labor

Effects of the Great Depression “value” of stocks drops from $87 to $19 billion. Steel production drops 80% All industrial output drops 50%. 500,000 homes and farms foreclosed alone 2500 banks failed. Unemployment 33-40%

Psychological aspects, etc. Despair/ “Failure” Mistrust Hunger Inadequate medical care. Living conditions. Divorce rate goes down.

Key legislation & creations Emergency Banking Act of Glass-Steagall Act Agricultural Adjustment Act of 1933 National Industrial Recovery Act (NRA) Works Progress Administration (WPA) Frazier-Lemke Act. Civilian Conservation Corp (CCC) Federal Emergency Relief Act (FERA) Home Owners’ Loan Corporation (HOLC) Tennessee Valley Authority (TVA) Wagner Act (NLRA)