1. Causes, Consequences, and New Deal SOL: VUS.9c

2.  Overspeculation on stocks.  Using borrowed money to invest in businesses and stock.  Couldn’t pay back once stock market crashed on October 29, 1929.  Bank failures  1930’s saw 9,000 banks close.  Surviving banks stopped giving out loans.  People made “runs” on the banks.

3.  Reduction in purchases made by people.  Production slows  People lose jobs  Less money in circulation  Unemployment rose above 25%.  Smoot-Hawley Tariff 1930  America taxed imports on trade from other countries.  Other countries began taxing our goods. Trade ceased.  We had a lot of supply but no market to sell to. Businesses closed.

4.  People rushed to the banks to take out their money in fear of losing their life savings.  People stopped investing money into the economy.  People stopped spending money.  Less money in circulation (hoarding money).

5.  Stock Market Crash of 1929 caused a ripple effect of the economy into a deep depression.  Federal Reserve couldn’t control the amount of money in circulation. (money in jars/under the mattress)  Economy couldn’t thrive without foreign trade.  (Hawley-Smoot Tariff 1930)

6.  Unemployment and homelessness Unemployment  “Hoovervilles”  Bank closings  People lose life savings  Public Issues  Labor Union violence  Foreclosures on farms which causes migrations.  Due to drought  Farmers of mid-west migrate west to California

7.  Franklin Delano Roosevelt (FDR)  Cousin of Theodore Roosevelt  Became 32 nd President in 1933 in the midst of the Great Depression.  Handed the task of getting the country out of the Great Depression.

8.  A series of 30 radio programs delivered directly to the homes of people from 1933-1944 by President Roosevelt.  Appealed to the people by speaking in language they could understand and comforted their fears.  Spoke as a normal member of society.

9.  “We have nothing to fear but fear itself.”  The New Deal changed the role of government in the economy.  It also changed the attitudes of people towards the role of government.  Now citizens depend on the Federal Government to “fix” their problems and to take care of them in times of need.

10.  WPA (Works Progress Administration)  Gave money directly to families to maintain homes and food.  AAA (Agricultural Adjustment Administration)  Idea to pay farmers to limit amount of crops harvested  FDIC (Federal Deposit Insurance Corporation)  Attempt to promote deposits in banks by insuring money deposited by customers.  Social Security Act  Payments made to retired and unemployed due to illness or injury.

11.  Dorthea Lange  Famous photographer of this time period.  This picture is a representation of the Great Depression.