Farmers grow more than people need. Crop prices drop. Farmers have no money and lose farms (Foreclosure.) Factories have goods left over. Factories decrease production. Unemployment increases. Workers have less money to spend. People buy less.

American farmers overproduced and lost farms. American economy weakened in the 1920’s as well as became unbalanced, carried by housing and auto industry. Poor distribution of purchasing power. Enormous amount of debt at home and abroad. Everyone borrowed, nobody paid it back.

The Dust Bowl was a natural disaster that struck the nations midsection. Drought (lack of rain,) along with poor farming practices, caused plant life to die and then the winds came and blew away the rich top soil causing dust storms.

OKIES and ARKIES Okies and Arkies were people who fled due to the Dust Bowl and moved to California for work. They were greeted with hostility because jobs were scarce everywhere.

People believed that if you worked hard you were successful. The Great Depression destroyed that myth. People however did not want handouts, they wanted a hand up.

Dorothea was a photographer whose pictures captured the plight of the average American in a way that words cannot express. Dorothea Lange

1. Instead of buying new clothes, you sew up old clothes. 2. Instead of buying veggies, you start a garden. 3. You started a home business (laundry / selling baked goods.) 4. Rent out an empty room in your house. Families try to get by on their own

Having always faced racism, prejudice and discrimination, things only get worse for African Americans. The national unemployment rate was at 25%. For African Americans 75%. Lynching also rose in the 1930’s. Here are some figures:

Mexican Americans faced a unique crisis. Some were sent to Mexico even though they were U.S. citizens. This practice was called repatriation. Mexican Americans also lost jobs to whites.

Women The number of women with high paying jobs actually increased. Men still received first priority

WW I vets were to get a government bonus in They want bonus in Hoover accused them of being agitators and communists. Congress said no to early bonus. The Bonus Army stayed to peacefully protest.

President Hoover sends in US Army under General MacArthur to kick the Bonus Army out of D.C. The army uses tanks, rifles, tear gas and bayonets to get rid of Bonus Army. This ruins Hoover’s chance for re- election.

Hoover was a laissez - faire president. He did try to get the government involved with the Agricultural Marketing Act, Hawley-Smoot Tariff and finally the Reconstruction Finance Corporation however. The people blamed him for the depression.

Shantytowns on the outskirts of cities were given the name “Hoovervilles.” Homeless people who used newspapers to cover themselves for warmth called the newspapers “Hoover blankets.” Empty pockets turned inside out were called “Hoover flags.”

FDR defeats Hoover in 1932 and promises the people a New Deal. He will use the government to get the economy going again and people back to work.

Not everyone will favor FDR’s New Deals. The Supreme Court and rich business owners will challenge him all the way.

Any new program designed to give financial aid or jobs to those in DIRE need fall into this category

Any New Deal Program designed to change the way things used to operate like a bank or financial institution.

Any New Deal Program designed to get people back to work and put money back into the economy.

The use of public/government spending to stimulate private industry.

The governor of and a U.S. senator for Louisiana though FDR wasn’t doing enough to help the needy. So he started a program entitled “ Share our Wealth” He though that the RICH should give up their $ and share with everyone. ROBINHOOD!!!!

He came up with the idea to help the elderly have a monthly income. Dr. Francis Townsend came up with social security!

You pay for it through a separate tax that is deducted from your pay check. You will pay for it, but it may not be around for you to collect when you retire.

A Roman Catholic priest who tells his 30 million radio listeners that FDR is not doing enough to help those in need. He blames Jews and big bankers for all the problems caused by the Depression. His hatred of Jews makes him an anti- Semite.

A system of dams and power plants are built in the southeast to provide electricity and tourism to improve life in the south.

Young men work in national parks and in the wilderness. They send a portion of their checks home so parents can spend the money.

FDR’s plan to name more liberals (people who want change) to the Supreme Court. The Supreme Court was loaded with conservatives (people who want things to be the way they are). The Supreme Court continued to declare unconstitutional a great number of FDR’s New Deal programs.