Chapter 14 & 15 Test Prep Great Depression & The New Deal.

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Presentation transcript:

Chapter 14 & 15 Test Prep Great Depression & The New Deal

Causes of the Depression In the 1920’s Americans purchased many goods with CREDIT. Too many investors tried to withdraw their money all at once helped cause many banks to fail. (bank runs) Hoover thought that the business cycle would correct itself through volunteerism and localism.

Causes cont…and the Hoover years Hoover created the RFC because he thought the economy needed more credit. Hawley-Smoot Tariff- high tax on foreign products Business cycle-expansion and decline of economy (see drawing) Capitalism is where business is performed for a profit.

Effects of the Depression Hoovervilles- makeshift shantytowns created by homeless people. Hoover lost 1932 election because: -lack of public trust -Bonus Army incident -his financial policies (or lack of same) -Massive unemployment & homelessness.

Life in the 30’s Escapism is seeking relief from your problems and is usually temporary Dorothea Lange used photography to show the suffering of “Okies” and others.

What was the chief complaint of conservatives, such as Herbert Hoover, against the New Deal? Made the government too powerful Concerned only with saving the banking system The New Deal policies were not radical enough Promoted free enterprise and individualism

FDR’s NEW DEAL Name of his plan to end the Great Depression; his goals were to provide relief, recovery, and reform. Some programs/agencies still exist today: SEC, FDIC, TVA, SSA Increased government involvement in our lives and strengthen the executive branch=greatest impact of N.D.

The Great Depression caused some Americans to doubt Fascism Socialism Capitalism Communism

New Deal Programs Security and Exchange Commission (SEC) regulates the stock market. Emergency Banking Act was passed by Congress to keep banks closed until inspected by the government. Passed after FDR ordered the bank holiday. The Agricultural Adjustment Act (AAA) helped farmers by trying to end overproduction and raise crop prices. Wagner Act legalized labor unions.

2 nd New Deal WPA impact: Gov’t put over 8 million to work 20,000+ facilities built, many still used today Support for the cultural arts ie. –Musical=symphonies created/performed, lesson given. –Literature=books of folklore created, other books and short stories written –Physical arts=paintings, murals, sculptures made.

Dust Bowl Causes Overplowing of plains and planting the same crop Overgrazing by ranchers. Drought Wind Poor planting strategies No irrigation

Dust Bowl impact Cattle and people died from “dust pneumonia” Dislocated people head west to California (migration); they were called “Okies” Crops won’t grow on plains during this time and many lose their land. Gov’t will develop planting strategies and irrigation systems to stop/prevent future issues.