Causes of the Great Depression Overproduction and under consumption of goods. Farm Debt / Credit Problems Uneven distribution of wealth

Effects of the Great Depression Stock Market Crash – Panic of 1929 Factories Close Ford lays off 75,000 Unemployment Rises million without jobs (25%)

Effects of the Great Depression 5,500 banks close and 9 million accounts vanish Gross Domestic Product = 103 billion in 1929 GDP = 56 billion in 1933

Hoover’s Philosophy

“The spread of government destroys initiative and thus destroys character. Character is made in the community as well as in the individual by assuming responsibilities and not escaping them.”

Hoover’s Aid Policies Reconstruction Finance Corporation Agricultural Marketing Act

Hoover’s Unpopularity Hoovervilles Bonus Army

1933: A New President A New Deal

The New Deal Goals Fix the Banks March 6, 1933 close banks to inspect the financial health of all banks. Establish the FDIC = Insure bank accounts up to 5,000 Reopen banks on March 16 and deposits exceeded withdrawals

The New Deal Goals Provide Relief Federal Emergency Relief Administration (FERA) -Give money to local relief agencies.

New Deal Goals Create Jobs “Public Works Programs”

Provide Jobs Civil Works Administration (CWA) = roads, parks, and airports Civilian Conservation Corps (CCC) = forest, beach, and park maintenance/restoration Public Works Administration (PWA) = dams and bridges Tennessee Valley Authority = cheap electric power and flood control of the Tennessee Valley

Stimulate Economic Recovery National Recovery Administration (NRA) = regulate wages, working conditions, production, prices, minimum wage and collective bargaining. Security and Exchange Commission (SEC) = regulate the stock market Agricultural Adjustment Act (AAA) = raise crop prices through lowered production.

The Second New Deal 1935 Works Progress Administration (WPA) = provided 8.5 million jobs Social Security Act (SSA) = pensions for workers, unemployment insurance, aid to dependent mothers and children, to the blind, and physically disabled

New Deal Criticisms Many acts deemed unconstitutional (too socialist) Did not end discrimination to any minorities Did not end the Great Depression