1. The Great Depression and the New Deal (Pt 1) APUSH March 15

2. The Stock Market Crash People began to buy stocks less and less—sensing a decline investors began to sell. Many sold stocks because of “margin calls” Stock prices plummeted rapidly October 29, 1929 the worst day Over $30 billion lost in total. Signal the Depression had begun.

3. Bank Failures When stocks declined, banks lost money they had invested, and money they had lent to speculators. Some banks forced to close, with this news, Americans began to pull their money out of banks all at one time. With too many withdrawals, over 3,000 banks collapsed!

4. The Devastation of the Depression By 1933, more than 9,000 banks had failed. In 1932 alone, 32,000 companies went out of business. In 1933, more than 12 million workers were unemployed. Average family income dropped from $2,300 to $1600 a few years later.

5. Urban Areas People lost jobs, couldn’t pay mortgage or rent, many people homeless. People set up shantytowns—little towns of shacks where homeless stayed. Soup kitchens and bread lines were established by local charities to help the needy.

6. A typical breadline

7. Hoover’s Solutions Very pro-business. Like most Republicans, Hoover believed in helping businesses first, and that their wealth would “trickle down” to the poor. Some public works programs (Hoover Dam) Provided loans to businesses in distress. However, his solutions didn’t deal with overproduction— even if companies could produce, people were too poor to buy anything!

8. Refusal to Provide Direct Relief Didn’t want to spend federal money without further income. Encouraged private charities and state and local governments to help the poor. By 1932, such agencies were overwhelmed and did not have enough money to help many Americans. By 1930, Americans were more frustrated and started to blame Hoover for economic problems.

9. The Bonus Army Blunder In 1924, soldiers had been promised a $1000 bonus. With economic crisis, the House passed a bill which would pay the veterans early. In 1932, 1,000 soldiers marched across the country to lobby Congress to approve the bill—were called “The Bonus Army.” Once in Washington, over 15,000 veterans gathered, disappointed when Senate rejected bill. Many veterans stayed in Washington, because there was nowhere else to go. Hoover called in troops to force the veterans to leave the city. Two veterans were killed, 1000s were gassed. After this incident, most people were ready to get rid of Hoover.

10. Bonus Army Images

12. Foreign Policy Concerns Japanese Imperialism: 1931 invasion of Manchuria US responds with Stimson Doctrine—US would not recognize any territorial acquisitions achieved by force, did little to stop imperialism of Japanese Good Neighbor Policy: Hoover smoothes relations with Latin America, removal of troops from Haiti and Nicaragua.

13. The Rise of FDR 5 th cousin of TR Governor of New York Polio Grew up wealthy Religion gave him sympathy for poor (“forgotten man”) Charisma and political appeal

14. Election of 1932 Roosevelt promises “New Deal” from campaign Wins certain victory Role of blacks key in this election  switch to Democratic Party

15. Relief, Recovery and Reform First move: Nationwide banking holiday First 100 Days created many key reforms CCC FERA AAA TVA MANY REFORMS INSPIRED BY PROGRESSIVISM Congress eager to cooperate with Roosevelt to ensure change and progress

16. Managing Money Reform of banking system with Glass-Steagall Banking Reform Act— insured deposits, created FDIC “Managed currency”— government bought all gold so it could print more money  INFLATION

17. Creating Jobs Roosevelt wanted to BOTH aid the worker and “prime the pump” of industry CCC—employment in government camps for young men. Had to send some money home Provided direct relief with FERA HOLC—helped refinance homes CWA—purely temporary jobs during difficult winter. WPA—public buildings, bridges and roads

18. Roosevelt’s Critics Father Charles Coughlin— Catholic priest, became fascist-like in his critique of FDR Senator Huey Long— leftist critic of Roosevelt, “Share our Wealth” program because New Deal wasn’t doing enough Dr. Francis E. Townsend—raised need for an old age pension

19. Women in the New Deal Eleanor Roosevelt: Visible first lady Francis Perkins: America’s first women cabinet member Mary McLeod Bethune— director in National Youth Administration More women in academia and literature as well

20. Helping Industry and Labor National Recovery Administration: To assist industry, labor and unemployed Developed codes of competition in industry— reduced hours, set minimum wages Workers formally given right to organize and bargain Declared unconstitutional in Schecter cases (1932) Led to PWA Repeal of Prohibition