1. Roaring 20’s and the Great Depression
Part 2
The Crash and the new deal

2. Herbert Hoover became the President in 1928
Herbert Hoover became the President in When he was campaigning he said, “We shall soon…be in sight of the day when poverty will be banished from this nation.” Hoover and the rest of the country had just experienced unprecedented prosperity for 10 years…. They had no idea what was about to happen to the country.
Herbert Hoover

3. Problems in the Economy
The great wealth gained by some in the 1920’s hid the fact that most Americans were struggling.
By 1929, 71 percent of American families earned less than $2500 per year, the minimum to live decently.
During the 1920’s industries had improved efficiency and produced more goods.
If people could not afford the goods, some continued to buy them anyway on credit.
Lots of goods piled up in factories because people could not afford them.
There was a lot of speculation which meant that people would buy and sell stocks in hopes of making a quick profit.
Investors were also buying on margin-borrowing to buy stock and then re- paying the debt with the profit that was made.

4. The Crash and the Great Depression
The value of stocks reached a high point on September 3, 1929, and after that the value dropped.
On October 29th, Black Tuesday a record number of stocks were sold off at much lower prices than they were purchased for.
This severe drop in stock market prices, called the Crash of 1929, was the first event in The Great Depression.
Banks began to demand that people pay back the money they borrowed to buy stocks.
By March of 1933, about 9,000 banks had gone out of business.
People stopped buying goods and businesses laid people off, which led to high unemployment.
The Great Depression would last from 1929 until World War II.

5. A Scene and Headline from Black Tuesday
Scenes from the Great Depression

6. Hoover Acts Conservatively
President Hoover felt that government interference would make the depression even worse.
Hoover did try to take some action, but his ideas backfired and made the situation worse.
People became bitter towards Hoover.
They pulled their empty pockets out and called them “Hoover flags”. Slums were called “Hoovervilles.”
In 1932, Hoover set up an agency to give money to states, cities and towns for public works projects.
These projects created some jobs, but it was too little and too late.

7. Franklin D. Roosevelt “FDR” the 32nd President of the United States.
In the Summer of 1932, some World War I Veterans marched on Washington D.C. to demand a bonus that was not due to them until the 1940’s. They were desperate and needed the money. They were called the Bonus Army. They were removed by force.
Because of Hoover is so unpopular, He was easily defeated by Franklin D. Roosevelt in the Election of 1932.
Franklin D. Roosevelt “FDR” the 32nd President of the United States.

8. When FDR was inaugurated on March 4, 1933 he said: Let me assert my firm belief that that the only thing we have to fear is fear itself.” FDR gave Americans hope through his words and his actions. He set up a “brain trust” of smart people to help with ideas to end the Great Depression. FDR declared a “bank holiday” to shutdown all banks. Only the banks that were in good shape were allowed to re-open.

9. The Hundred Days Relief for the hungry and jobless.
During his campaign, Roosevelt had promised the American people a “New Deal”.
In his first hundred days as President, FDR worked with Congress to accomplish the “three R’s”.
Relief for the hungry and jobless.
Recovery for agriculture and industry.
Reforms to change the way the economy worked.

10. Responses to the New Deal
Some people in America thought that the New Deal went to far, gave the government too much power and was moving the country towards socialism.
Others, including Louisiana Senator Huey Long argued that the New Deal did not go far enough and that wealth should be redistributed.
Charles Coughlin and Francis Townshend argued that more should be done to help the poor and the elderly.
The New Deal did expand the size of the U.S. Government, but most Americans supported Roosevelt because he was taking action to end the Depression.

11. The Second New Deal & The Election of 1936
FDR did want to help the elderly, so he got Congress to pass the Social Security Act.
Workers and employers made payments into a fund, which they could draw from when they retired.
The Second New Deal expanded the size of the government even more, but also created jobs for the unemployed.
Roosevelt was easily re-elected in 1936, gaining support from people who had previously only voted Republican.
FDR won every state except Maine and Vermont.

12. Major Programs of the New Deal
Hundred Days, 1933
PROGRAMS
ACCOMPLISHMENTS
FERA (Federal Emergency Relief Administration
Provided federal money for relief projects to the unemployed
PWA (Public Works Administration)
Created jobs by having people build highways, bridges etc…
AAA (Agricultural Adjustment Administration)
Regulated farm production and promoted soil conservation
TVA (Tennessee Valley Authority)
Planned development of the Tennessee Valley region
CCC (Civilian Conservation Corps)
Hired young men to plant trees, build dams, and other projects
FDIC (Federal Deposit Insurance Corporation)
Protected the money of depositors in insured banks
NRA (National Recovery Administration)
Regulated Industry and raised wages and prices
WPA (Works Progress Administration
Established large-scale national works projects
REA (Rural Electrification Administration)
Brought electricity to rural areas
NYA (National Youth Admistration)
Set up jobs and education opportunities
Wagner Act
Protected the right to form unions, labor disputes
Social Security Act
Provided retirement benefits, unemployment help
Second New Deal, 1935

13. A Tennessee Valley Authority (TVA) Dam
A Civilian Conservation Corps (CCC) crew building a road in Zion National Park
The New Deal Programs put people to work, but it did not end the Depression

14. The Supreme Court & The New Deal Slows Down
The majority of the Supreme Court did not support FDR’s New Deal programs and used judicial review to strike down some programs.
FDR asked Congress to pass a law that would allow the number of Supreme Court Justices to increase from nine to fifteen.
This was seen as a power grab by Congress and it was voted down.
As the Depression continued and even took a turn for the worse, Roosevelt was not as popular with the American people as he had been.