1.  1920's -Spending/Good Economic times  Tues. Oct. 29th, 1929 - NY Stock Market Crashed Caused-G. Depression last until 1942

2. Stock Market  Investors-purchased stocks; hope to make profit  Banks loaned $$ to investors  Investors only had to pay for 10% of the stock's at time of purchase-known as BUYING ON MARGIN, Balance paid at later date

3.   STOCK SPECULATION - Buy & sell stocks quickly to make quick $$$  b/c of buying & selling, stock value increased  Often inflated values  Gave false sense of security/confidence in American market

4.  Oct. 1929-Stocks prices began to drop  Invest. Confid. dropped  Invest. tried to sell Stocks  Bottom fell out of market = panic /RUSH TO sell… (many Inv. go bankruptcies as banks recall loans)  Ripple effect on the economy

5. Effect of Stock Market Crash - Rush to sell stocks  People withdrew money from banks  Banks collapsed  Banks loaned out no money  Banks recalled loans  Business collapsed  Factories closed down  Unemployment rose  no gov't assistance at first  -No goods purchased  purchasing power declined  reduced productivity yet again (= ECONOMIC CYCLE)  DOMINO EFFECT Unemployment Purchasing Power Productivity

6.  1920's U.S. Eco. based on Productivity –  Producing goods-Provided employement  Goods produced -purchasing demand had to be there: Productivity-Purchasing-High employment =Healthy economy  1920-27, U.S. productive capacity doubled b/c of technological innovation  (OVERPRODUCTION)

7. Uneven Dist. of Wealth  0.1% at top owned as much as bottom 42% of American families  Middle Class -Bulk of pop. Not wealthy; job b/c of the industrialization & consumerization  Depended on salaries  Productivity declined lost jobs  Cut back on purchasing  Decline in Consumption among the middle class ruined the whole country

8. Pres. Hoover’s Response  LAISSER FAIRE Attitude-Gov't say out of economy wouldn't create programs of gov' aid to individuals - "RUGGED INDIVIDUALISM -Volunter $$ /Donations Persuaded bankers/business to VOLUNTER $$$$  Hoover organized private relief agencies for unemployed  Tax breaks in return for private sector economic investment HOOVER MORATORIUM - Stop war Reparations payments-in return-Euro. countries purchase American goods to stimulate American economy

9.   HOOVER Passed Passed Smoot Hawley Tax- Protect U.S. industry (stimulate purchasing of U.S. goods)  fatal error...  Congress did not understand that the world had become a GLOBAL ECONOMY  in retaliation European countries passed high tariffs on foreign goods coming into their country-

10. HHoover increasingly unpopular….to little to late.. RECONSTRUCTION FINANCE CORPORATION -Emergency loans to banks

11.  In 1931- Soviets flooded world market with cheap wheat  Resulted in -Global BANKERS’ PANIC  Bankrupt, wiped out life savings of thousands of Americans/Europeans

12.  Dairy Farmers frustrated w/low price of milk refuse to sell (dump it)  WW1 veterans (March on Washington = BONUS MARCH 1931,-reached Wash. Set up shantytowns = HOOVERVILLES (food scraps = HOOVER-MEALS…  Dispersed (MacArthur/Eisenhower)

13. 1932 ELECTION  1 / 4 unemployed…  nat'l income 50% less than in 1929  Repubs. nominated Hoover  no hope  winner by a landslide = FRANKLIN DELANO ROOSEVELT (Dem - N.Y. governor)

14. The Great Depression FDR’s “New Deal”

15. Franklin Delano Roosevelt (FDR) Eleanor Roosevelt *A woman is like a tea bag- you never know how strong she is until she gets in hot water. Eleanor Roosevelt - US diplomat & reformer (1884 - 1962) *Great minds discuss ideas; Average minds discuss events; Small minds discuss people.

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19.  R evolution in American society - changed way gov't functioned -FDR believed gov't involvement in economy was crucial to stimulate the economy  Banking Hoilday- shut down banks /gov't inspection-re-open when "healthy"- people's slowly redeposited-allowed banks to invest in the economy

20. Brain Trust Columbia University President Roosevelt's advisors, met with him at his home in New York state throughout the spring and summer of 1932 to come up with a solution for the Depression - wanted to modify and survey the United States' laissez-faire economy by advocating government and big business cooperation and beginning public works projects and state and federal funded relief programs to help future economic downturns. http://www-rohan.sdsu.edu/~belier/brain_trust.htm 1. Black voters shift from Republican to Democrat 2

22.  Stock Market Reform- Security Exchange Commission control & Regulate Stock Market -Print $$$: Keynesian Economic Theory (Cauz/= inflation), value of dollar less- gave gov't spending power

23.  NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) / NATIONAL RECOVERY ADMIN (NRA) – -Gov. regulates business/indust. - labor & business

24.  TENNESSEE VALLEY AUTHORITY (TVA) - Electricity/Hydroelectric power ( nationalization v. privatization of elec. )

25. The Annual Move by Otis Dozier, 1936

26.  AGRUCULTURAL ADJUSTMENT ACT (AAA) - Aid formers- SUBSIDIES  Food Stamp Act of 1939 - gave away surplus food to poor, also guaranteed (small) farmers a market

27.  CIVILIAN CONSERVATION CORPS (CCC) - Set up to establish work for young men -in areas of reforestation, soil conservation, flood control, road construction - also took them out of urban labor markets

29.  NATIONAL YOUTH ADMIN. (NYA) - created jobs for young in urban areas  National Labor Relations Act (aka Wagner Act)- legitimized unions & labor -collective bargaining & collective action (strikes, etc...) - it outlawed BLACKLISTS & other anti-union practices

31. Construction of the Dam by William Gropper

32.  Social Security Act (1935)- Retirement/unemployemen - " creeping Socialism "- WELFARE STATE - unemployment insurance, old age pensions

34. ELECTION OF 1936 - FDR won easily  Reorganize Supreme Court – to get New Deal legislations passed  FDR wants # of judges changed from 9  15 (to " pack the court ") – with judges that approved New deal  but judges retired & FDR got to appoint new ones  they approved all New Deal legislation

35.  1930's – new Qs arose…  Forgein Issues-WWII  ELECTION OF 1940 - FDR broke with tradition & ran a 3rd time  Isolationist foreign policy- FDR won in 1940 (and again in 1944)

36.  INCREASED GOV’INTERVENTION  CREEPING SOCIALISM  WELFARE STATE  CONTROLLED BUSINESS

37. a person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people. Father Charles Coughlin “Social Justice” Hate Radio Dr. Francis E Townsend of California “Senior Citizens”

38. The way of Jefferson,Madison, and Lincoln Radical shortcut