1. Chapter 25 Depression and the New Deal
Title

2. Section 1 The Great Depression pg. 493
The stock market crash of 1929 hurt the American economy

3. 9% workers unemployed
Businesses were forced into layoffs

4. Layoff
Cutting jobs because a company can’t afford to pay workers

5. 8 million Am out of work
Many people lost all their savings

6. President Hoover
Believed federal government shouldn’t help unemployed

7. President Hoover
Asked people to be patient and that the depression would end
Only president 1 year and was blamed for depression

8. People not able to pay home loans so lost houses

9. Homeless people built & lived in cardboard or tar paper shacks
Had no heat, lights or water
These slums called “Hoovervilles”.

10. Hoovervilles

11. “Hoover flags”

12. Causes of the Depression
Stock market crash
Overproduction
Buying too much on credit

13. Causes of the Depression
Banks that held unpaid loans went out of business
Foreign countries still owed war debts and couldn’t buy American products
Farm prices went down, couldn’t support family.

14. Overproduction
Making too many goods

15. Credit
Buy now, pay later
Lost job so couldn't repay debts

16. Homeless lived in subways, parks & empty warehouses

17. Unemployed sold apples in streets.

18. American families stood in breadlines for free food

19. . Section 2 A New Deal for the Nation pg. 496

20. Pres Hoover planned to help weak economy by:
Agricultural Marketing Act- Congress gave $500 mil to buy extra (surplus) crops from farmers to help raise crop prices.

21. 1932 Reconstruction Finance Corporation loaned emergency money to banks, Railroad & insurance companies.

22. Federal public works program to create jobs like building dams, highways, & buildings.

23. A moratorium (legally delaying something) put on war debt payments owed to US from foreign countries; hoped they would buy US products.

24. 1932 election won by Democrat Franklin Delano Roosevelt

25. Roosevelt Offered a “New Deal” for America
He said “the only thing we have to fear is fear itself”.

26. His “New Deal” covered three areas:
Relief
Recovery
Reform

27. Actions taken by Congress & President during the 1st hundred days:

28. Bank Holiday
A national “bank holiday” prevented people from taking all their money out of their bank, causing bank to fail.

29. Emergency Banking Act
Gave federal loans to banks

30. Federal Emergency Relief Administration
Gave millions in loans to state agencies to help families with food, clothes & shelter.

31. Civilian Conservation Corps (CCC)
Hired young people to plant trees, build roads & flood control in rural areas.

32. Agricultural Adjustment Act (AAA)
Paid farmers for crops they destroyed
Shortage of products would raise prices

33. National Recovery Administration (NRA)
Started to help businesses recover
Reduced workweek, started minimum wages & stopped child labor

34. Truth-in-Securities Act
Controlled selling stocks & bonds

35. Tennessee Valley Authority (TVA)
Gave jobs to 1,000s to work on flooding & erosion in Tennessee River Valley

36. The New Deal Changes Government
Section 3 p.500
The New Deal Changes Government

37. The 2nd New Deal Tried to make economic reforms
Greatly increased the role of government in Americans' lives

38. 1935 The Works Progress Administration (WPA)
Gave jobs to 8 million out of work Americans

39. WPA Built schools; hospitals, playgrounds, museums & airports
Actors hired to do plays
Musicians do concerts
Artists paint murals on government buildings

40. New National Labor Relations Act
Gave workers the right to form unions

41. National Labor Relations Board
Government agency protected voting
Unions & employers discuss wages, hours & working conditions

42. 1935 Social Security Act
Government took responsibility for the elderly, jobless & disabled

43. Had 3 Parts:
Pension for elderly
Unemployment pay
Disability benefits

44. Home Owners Loan Corporation, 1933
Gave low-interest long-term home loans to help people make house loan payments

45. Federal Housing Administration (FHA)1934
Encouraged low cost home building & repair

46. Supreme Court reacts to reforms?
Roosevelt’s New Deal ran into problems with Supreme Court

47. Most members thought it unconstitutional

48. Roosevelt called Supreme Court “nine old men” and he appointed 6 new younger justices to Supreme Court as older justices retired

49. 1881 American Federation of Labor (AFL)