1. The Great Depression

3. Causes Buying on credit Government policies Weak international economy
Not regulating stock market or businesses
Weak international economy
Other countries still recovering from WWI
The Stock Market Crash

4. Stock Market Crash Buying On Margin October 29, 1929 – Black Tuesday
Making down payments and borrowing the rest
October 29, 1929 – Black Tuesday
Rapid selling of stocks
values drop $14 billion

6. DEPRESSION SPREADS Millions of people lost their jobs.
Banks recalled loans.
People take money out of banks
Banks can’t pay back money so they close
People lose money in banks

7. THE DUST BOWL
Drought and dust storms in the Midwest forced many farmers to leave their land and migrate west in search of jobs.

11. Impact Unemployment – 25% Rural Life Less Leisure Activities
Farmers Suffer
Dust Bowl – severe drought
“Okies” – farmers who moved to California
Less Leisure Activities
Movies, sports, etc.

12. Hoover’s Response Policies to aid businesses
Business recovers jobs people recover
Reconstruction Finance Corporation
Gave money to businesses
Stopped payments of war debts

13. “Hoovervilles”

14. The Bonus March
20,000 jobless WWI veterans go to Washington DC and demand bonus for war
Hoover sends in army
Destroys popularity

16. Franklin Delano Roosevelt
President 1932 – 1945
The New Deal
Plan to end Great Depression
Relief
Recovery
Reform
End of Laissez-faire

17. Relief 1933 Bank Holiday to stop collapse
Federal Emergency Relief Act (FERA)
Relief to unemployed
Public Works Administration (PWA)
Built ports, schools, aircraft carriers

18. Relief Civilian Conservation Corps (CCC)
Planted trees, built bridges, parks
Works Progress Administration (WPA)
Built hospitals, schools, parks, airports
Tennessee Valley Authority (TVA)
Built dams, cheap electric power

19. Recovery National Industrial Recovery Act
NRA
Regulated wages, prices, working conditions
Agricultural Adjustment Act (AAA)
Paid farmers not to grow certain crops

20. Reform Federal Deposit Insurance Corporation
FDIC
Insured savings accounts
Securities Exchange Act (SEC)
Regulated stock exchanges
Social Security Act (SSA)
Pensions for elderly, unemployed, handicapped

21. New Deal Effects Labor Native Americans
Roosevelt takes pro-labor approach
Unions increase
Native Americans
Indian Reorganization Act
Attempt to restore Native American culture

22. New Deal Effects African Americans Latinos Women Little benefit
Many suffered – worked in agriculture
Women
Little help in workplace

23. Controversy Supreme Court finds many laws unconstitutional
National Recovery Act
Congress can’t regulate intrastate commerce
Agricultural Adjustment Act
Agriculture is a local matter not an interstate matter

24. Court-Packing Plan Supreme Court continued to veto legislation
FDR asked congress to allow him to increase number of justices from 9 to 15
Not allowed – separation of powers

26. Political Opposition Business Communists, Socialists gain support
Claimed FDR and government had too much power
Communists, Socialists gain support

27. New Deal Evaluation Does not end Great Depression Did help some people
WWII does
Did help some people
Gave more power to president and government
More involvement in business and social life