1. EOC Day 7
SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal.

2. Stock Market Crash 1929
Black Monday/Tuesday- The stock market dropped 30 points or about 12% both days
Crash caused by “speculation”
Buying on Margin-Using credit to invest in the stock market
Glass-Stegall Act separated commercial banks from investment banks

3. Effect By 1932, 5,761 banks had failed (22% of total)
Many banks invested in stocks before the crash
Thousands of businesses failed
20,000 in 1929; 30,000 in 1932 
Unemployment reached 25% by 1932 (13 million people) excluding farmers. 

4. Effect
Total wages dropped from $12 billion to $7 billion from 1929 to 1932.
By 1932, 25% of farmers lost their farms 
People experienced loss of self-worth 
Many families broke up; marriage rate and birth rate declined. 
 3 million people became homeless and lived in makeshift shacks known as "Hoovervilles"

5. Government Response President Hoover- Believed Europe was to blame
Hawley-Smoot Tarrif- highest peacetime tarriff in history-60%
Volunteerism- urged businesses to avoid layoffs or wage cuts
Private charity not enough to save the poor
Bonus Army- 14,000 veterans lobbied for passage of a bonus bill
Hoover insisted the government not pass the bill

6. Government Response Franklin D. Roosevelt- Won the election of 1932
New Deal- A set of government actions meant to end the Great Depression-Relief, Recovery, Reform
Unprecedented passage of legislation called the “First Hundred Days”

7. New Deal Reforms
Bank Holiday Banks were temporarily closed to make sure they were sound and to close unsound banks
Civilian Conservation Corps- employed 2.75 young men in conservation jobs
Federal Emergency Relief Admin- 500 million dollars to states to help the poor

8. New Deal Reforms
Agricultural Adjustment Act- paid farmers to reduce their crop or livestock production
Led to corruption
Tennessee Valley Authority-20 dams built in Tennessee to help provide employment
Home Owners Loan Corporation Refinanced mortgages on 1 million non-farm homes

9. New Deal Reforms
National Recovery Admin- maximum work hours, minimum wage, minimum prices
Wagner Act- Reasserted the right of labor to self organize
Social Security Act-old-age pensions for retired workers as well as poor mothers or handicapped

10. Critics
The American Liberty League-Group of wealthy republicans and conservative democrats
Wanted to fight “socialist New Deal”
Father Charles Coughlin- Radio host who thought the deal was not strong enough

11. Supporters
Senator Huey Long- promised to make “every man a king” and supplyed each family with 5,000 dollars at expense of the rich
Dr. Francis Townsend- provided senior citizens with 200 dollars a month, funded by a national sales tax

12. Dust Bowl
In late 1933, drought struck states in the Mississippi River area and the Great Plains (Texas, Arkansas, Oklahoma, Kansas, Missouri)
In five years, 350,000 Oklahomans and Arkansans -- "Okies" and "Arkies" migrated to southern California.

14. Based on the cartoon, how did President Roosevelt want to ease the Great Depression?
A. by expanding the role of government in citizens’ lives
B. by expanding the authority of legislative representatives
C. by regulating the stock purchases by individual investors
D. by restricting the spending by government on domestic projects