THE GREAT DEPRESSION
“Black Thursday” Stock Market Crash October 24, ,900,000 shares traded, $13 billion lost in 24 hours.
November 1929: $26 billion—one-third of value before crash—lost.
BLUE CHIP STOCKS
THE GREAT DEPRESSION Structurally flawed economy – profit inflation Extent of the depression –Business failures –Bank failure –Unemployment
Human Consequences Unemployment Rate3%25% Wages$1,368$820 Poverty Rate24%60% Fertility Rate90%76% Infant Mortality5763 Immigrants280,00023,000
Migrant FamilyMigrant Family
THE GREAT DEPRESSION Hoover’s Response to the Great Depression –Agricultural Marketing Act (1929) –Reconstruction Finance Corporation (1932) –Opposition to direct relief –The Bonus Army
Pretty Boy FloydBonnie and Clyde Robberies: about 15 Murders: 9 law officers, 4 civilians Active Robberies: about 12 Murders: 8 law officers, 4 civilians Active
FDR and the New Deal
FDR and the New Deal The Hundred Days Reform of the banking system and the stock market Glass-Steagall Act The Federal Securities Act
FDR and the New Deal The Hundred Days Reform of agriculture and industry –Agricultural Adjustment Act (AAA) US v. Butler (1936) –National Recovery Act (NRA) Schechter Poultry Corp. v. US (1935)
FDR and the New Deal The Hundred Days Relief –Federal Emergency Relief Administration (FERA) Harry Hopkins –Civilian Conservation Corps (CCC)
FDR and the New Deal Attacks on the New Deal from the Right and the Left Dr. Francis Townsend Father Charles Coughlin Huey Long
FDR and the New Deal The Second New Deal –Social Security (1935) Sit-down strike against GM, 1937WPA – Flood control, AR, 1939 Wagner Act (1935) Works Progress Administration (1935)
FDR and the New Deal The End of the New Deal –Problems by 1937 Economic Recession Court-Packing Scheme –Emergence of Conservative Opposition in Congress –Shift from Regulation to Fiscal Management (Keynesian economics)