1. Review causes of the Great Depression
- Farming Crisis
Overproduction = Surplus Crops NOT sold
Demand & Prices Fall = Can’t Pay Loans & Lose Farms
- Living on Credit
Living beyond means = False Sense of Prosperity
Credit Easily Available = Business Support Consumer Debt
- Unequal Distribution of Wealth
Rich got richer in the 1920’s while the Poor got poorer

2. - Less Consumer Spending
- Industrial Issues
Key Industries NOT making much profit in the 1920’s
Coal Mining down due to new sources of energy
Boom Industries (automobiles, construction) weaken
- Less Consumer Spending
Rising prices, idle wages, overbuying = Less Spending
- Stock Market
Bull Market in the 1920’s = Rush to buy Stock (3% buy)
Market Speculation  buy with idea to make a quick buck
while ignoring the risks
Buying on Margin  pay for stock with a down payment
and borrowing the rest to pay

3. 4/27 Start

4. Great Depression Starts
September 1929
- Stock prices peak
then begin to fall
October 24, 1929
- Stocks plunge & investors unload shares
- Result: Stock Market Panic
October 29, 1929
“Black Tuesday” Stock Market Crashes
(16.4 million shares dumped and stock prices plummet)

5. Financial Collapse - Banks run out of money
- Rush on the Banks
People withdraw their money
Result  “failure of banks”
Result:
- Banks run out of money
- Millions of Americans lose life savings
1929 = 600 banks close
1933 = 11,000 banks fail

6. Financial Collapse - U.S. Economy Falls
Business's go Bankrupt (90,000 close)
Gross National Product is cut in half (104 to 59 billion)
Workers lose jobs (1 in every 4)
Unemployment Rate Rises (25% in 1933)

7. Hardships & Suffering - People lose homes People cant afford food
Shantytowns created
Nicknamed  “Hoovervilles”
People cant afford food
Find food at Soup kitchens
and in Bread Lines

8. Hardships & Suffering African Americans & Latinos Women Children
Face highest level of
unemployment
Face violence and
discrimination
Women
Targets of resentment
for having jobs
Children
Poor diets & malnutrition
Lack of healthcare
Had to drop out of school
Ruse in child labor

9. but then……. Hardships & Suffering Farmers and Rural Areas
Could grow their own food
Faced foreclosure of farms
Many turned to tenant farming
but then…….
The Dust Bowl ( )
Overproduction + Drought = No Crops
Winds + Drought + Bad Soil = Dust Storm
Outcomes 
- cannot grow food = evictions
- farmers leave their land & homes

10. Stop 4/27

11. 4/28
Reading/Notes page

12. Start 4/29

13. FDR (Franklin Delano Roosevelt)
Not to be confused with Teddy Roosevelt. Watch this video

14. Franklin D. Roosevelt’s Appeal
In 1932 presidential election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”

15. Purposes of the New Deal
Relief: to provide jobs for the unemployed and to protect farmers from foreclosure
Recovery: to get the economy back into high gear, “priming the pump”
Reform: To regulate banks, to abolish child labor, and to conserve farm lands
Overall objective: to save capitalism

16. First New Deal (1933-1934) Emphasis: reform
Political Position: conservative
Primary aim: economic recovery
Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)
Objectives: higher prices for agriculture and business
Beneficiaries: big business and agricultural business

17. National Recovery Act (NRA)
Purpose: recovery of industry
Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

18. First Agricultural Adjustment Act (AAA)
Purpose: the recovery of agriculture
Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn
Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

19. Federal Emergency Relief Admin (FERA)
Purpose: relief
Gave money to states and municipalities so they could distribute money, clothing, and food to the unemployed

20. Civilian Conservation Corp (CCC)
Purpose: relief
Gave outdoor work to unemployed men between the ages of 17 and 29
They received $30 per month, but $22 went back to the family

21. Second New Deal (1934-1941) Emphasis: reform
Political Position: liberal
Primary aim: permanent reform
Philosophy: international economic cooperation and economic abundance
Objectives: increased purchasing power and social security for public
Beneficiaries: small farmers and labor

22. Social Security Act Purpose: reform
Gave money to states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

23. National Labor Relations Act
Purpose: reform
Put restraints on employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.

24. Second Agricultural Adjustment Act
Purpose: recovery for agriculture
Paid farmers for conservation practices, but only if they restricted production of staple crops.

25. U.S. Housing Authority Purpose: recovery and reform
Used federal funds to tear down slums and construct better housing.

26. Stop 4/29