1. The CRASH, DEPRESSION, AND NEW DEAL
Tues. Oct. 29th, NYC Stock market crashed, which lasted until 1942

2. the average investor bought on credit
The stock market
the average investor bought on credit
Buying on margin
Works great, as long as you made money.
When the market went down, so did the investors lives.

3. When people started to panic and sell, banks asked for their money back
You didn’t have it since it was in the market…so they took enough of your stuff to pay off the loan.
People lost….

4. Now what happens if you lose your job?
Unemployment
Purchasing Power Productivity

5. a 2nd major problem: uneven wealth
0.1% at top owned as much as bottom 42% of American families (42% below poverty line)
of the 58% above the poverty line, most fell into the middle class category

6. this middle class depended on their salaries and they lost their jobs
Low savings, low purchases
this decline in consumption ruined the whole country

7. AMERICANS REACT TO HOOVER
Hoover was increasingly unpopular, but he continued to try...
…but it was too little too late….
Even though he tried, he got a terrible name and reputation

8. BONUS MARCH (by BONUS ARMY)
they reached Washington by 1931, set up shantytowns = HOOVERVILLES
food scraps = HOOVER-MEALS,
hitchhiking journeys = HOOVER RIDES
after one year they were thrown out by the Army

9. 1932 ELECTION
Republicans nominated Hoover  no hope
winner by a landslide = FRANKLIN DELANO ROOSEVELT (Democrat)
F.D.R.

10. FDR starts something called the NEW DEAL…
NRA – National Recovery Act
CCC – Civilian Conservation Corps
AAA – Agriculture Adjustment Act
WPA - Works Progress Administration
TVA – Tennessee Valley Authority
…which is supposed to bring Relief, Recovery and Reform

13. Kansas City from Politics, Farming, & the Law
Thomas Hart Benton, 1936

14. The Annual Move by Otis Dozier, 1936

15. Construction of the Dam by William Gropper

16. Opponents Say…. We are becoming SOCIALIST! "Soak The Rich" tax
We are not longer DEMOCRATIC!

17. FDR Opposition Who gets in FDR’s way?
the Supreme Court - they disallowed some New Deal legislation
FDR wants # of judges changed from 9 15 (to "pack the court”)
Judges retired & FDR got to appoint new ones who approved all New Deal legislation

18. IMPACT OF FDR and THE NEW DEAL
Became President in Great Depression
Created New Deal, which got us out of Great Depression
Run for – AND WON – 4 terms in office
Was the President during World War II
so FDR fundamentally reformed American society…