1. The Great Depression and FDR

2. Stock Market Boom and Crash
Everyone investing in stocks– bull market-high confidence in making $$
Bear market– value of stocks drop
Stock exchange– buying and selling shares in corporations

3. Late in 1920’s stocks area at high levels
Investors can’t afford all their buying so they buy on margin– pay part, borrow the rest
If value of stock rises, can pay back, if not investors going into debt
Speculation– high risk for high profit

4. September 1929– investors get scared & sell stocks like crazy
End of October prices plunging, Black Thursday 24th to Black Tuesday 29th
Corporations lose tons of $$$

5. The Great Depression
Stock market crash didn’t cause it but was a factor
Crash happens, people can’t pay debts, bank in trouble, people rush to take their $$ out, banks fail, and $$ is lost

6. 1920’s people bought luxury items, by 1929 people who could afford had bought, led to surpluses
Farming, textile, lumber, railroad industries decline
Employers cut salaries & laid off workers

7. 1929 less than 1% owned 1/3 of all US wealth
US big in trade, our depression to decline in trade– international depression
20-25% of people unemployed

8. People wait in lines for food, soup kitchens form
Hobos travel the country looking for work and food on RR’s
People build shelters out of whatever available --Hoovervilles

9. Hoover and the Depression
Pres. Hoover believed things would fix themselves & hoped charities would help people out
Later realizes he needed to do something
Public Works Programs– projects for the community, gave people jobs
Reconstruction Finance Corp.– lend $ to businesses, too strict though, failure

10. WWI veterans promised $1,000 bonus in 1945, need $ now
Vets march and protest in DC– Bonus Army, camp out in front of capital
Hoover calls in the army to remove them, 2 vets killed, people furious

11. FDR
Republicans hurt because of Hoover, Democrats nominate Franklin Delano Roosevelt in 1932
FDR- distant cousin of Teddy, from wealthy NY family, married to Eleanor Roosevelt

12. Suffered from polio from a pool when young, paralyzed in both legs
Always wanted to be photographed sitting or behind podium (wheelchair, leg braces never seen) thought it showed weakness
Gov. of NY before Pres– reputation for reform

13. Group of advisors– Brain Trust– economists, professors, businessmen
FDR wins by a landslide but depression gets worse by time he takes office
Inauguration quote– “Only thing we have to fear is fear itself.”
Closes banks for 4 days and calls special session of congress (also demos)

14. Famous for his ability to talk to Americans, “fireside chats”– weekly radio broadcasts
1st Hundred Days– FDR sends 15 proposals to congress, all approved, these new laws become the New Deal

15. New Deal Programs
Federal Deposit Insurance Corporation (FDIC)– insured $ in banks, prevents banks from failing
Civilian Conservation Corps (CCC)– hired young men to work on nature related projects, parks, trails

16. Agricultural Adjustment Act (AAA)– tried to lower farm production to raise prices- paid farmers to destroy crops while people in cities starved
Social Security Act– set aside $$ for people when they retire