1. The Great Depression and the New Deal

2. I. The Great Depression

3. The Stock Market Boom  Stock exchange: organized system for buying and selling shares.  Investors start buying on margin (Credit)  Stock market panic: Crash has people losing money and selling stocks

4. The Depression Begins  Farmers had suffered throughout the 1920s and were the first group to plunge into depression  Businesses increased profits while holding down material costs and wages, thus suppressing consumer spending power  Global economic problems created by World War I were the main factors

5. Depression Facts  By 1932, 25% of Americans were unemployed.

7. Hoover and the Great Depression  Although President Hoover thought the Depression was temporary, he took aggressive action to improve the Depression with the help of the federal government.  He created a wide variety of agencies and boards that contained the best minds in American business to suggest solutions  Public works: projects to make jobs on highways, parks, or libraries.

8. Facts on Herbert Hoover’s Presidency  Bonus Army: they wanted their money from fighting in WWI and marched on Wash.

9. II.Roosevelt and the First New Deal

10. The Election of 1932  Hoover’s unpopularity denied him his second term and ushered Franklin Roosevelt into the White House  Roosevelt promised a “New Deal” for Americans and relief from the depression  “The only thing we have to fear is fear itself.”

11. Franklin D. Roosevelt  Distant cousin to Teddy Roosevelt  Married Eleanor Roosevelt (Teddy’s niece)  Elected president in 1932  Had a “Brain Trust” (lawyers, economists)  Won in a landslide victory over Hoover.  He wanted to help the “forgotten man at the bottom..”

12. The Banking Crisis  Many American banks had closed immediately after the stock market crash and the public no longer trusted them  Roosevelt tabled an emergency Banking Relief Act that gave the executive broad powers of financial reform  Additional legislation followed strengthening the Federal Reserve and establishing the FDIC to insure deposits

13. III. One Hundred Days  Closed banks for 4 days (Emergency Banking Relief Act)…he reorganized the banks  Passed 15 new proposals into law to help stimulate the economy and build American confidence.

15. Relief Measures  (PWA): Public Works—built ports, schools, and aircraft carriers  (FERA): gave relief to unemployed and needy  (FDIC): insured savings accounts by banks  (TVA): Tenn. Valley Authority—built dams and used water power, set up schools  (AAA) The Agricultural Adjustment Act: stabilized prices on farm produce through paying farmers to reduce their acreage under cultivation

17. Industrial Recovery  The National Industrial Recovery Act (NIRC)  The National Recovery Administration (NRA)  National Labor Board

18. IV. The Second New Deal

21. New Deal Takes Shape  FDR gave high priority to create jobs  Rebuilt the Tennessee Valley Region  Helped business and labor by backing work projects  Created 2.5 million jobs that benefited workers and others.

22. Work Relief and Social Security  The Works Progress Administration (WPA)  The National Youth Administration (NYA)  The Social Security Act of 1935

23. V.The Last Years of the New Deal

25. The Battle of the Supreme Court  As the first act of his second term, Roosevelt announced a plan to reform the judicial system  Angry with the Supreme Court for foiling several New Deal measures, the president was determined to create a more willing court  His scheme was complex and produced a public outcry of dictatorship; Roosevelt quickly pulled back his plan  Ironically, the Court began passing practically every new initiative after this event

26. Other notes for test  Minorities jobs were taken by white employers and prejudice continued against minorities.  Every week about 85 million people went to the movies to escape their cares and worries.  Francis Townsend: a California doctor that is famous for creating a monthly pension.

27. Vocabulary to know  migrant worker: After the Dust Bowl people that moved place to place looking for work  pension: Money that an older person receives after retirement that is paid monthly  unemployment insurance: A tax that was put on workers and it funded people that lost their jobs is called