1. The Great Depression
Chapters 22 & 23

2. ECONOMIC DANGER SIGNS Uneven Prosperity: rich got richer
Buying on credit: increase in personal debt & installment plans
Stock Market: speculation, playing the market, buying on margin
Overproduction: especially cars, Americans are buying less
Farmers in trouble: demand down, prices down, suffered the most
Workers in trouble

3. Click in graph for video

4. STOCK MARKET CRASH 1st major event of the Great Depression
Oct. 29, 1929 Black Tuesday
Many people not immediately affected if wealth didn’t depend on the stock market

5. CAUSES OF THE GREAT DEPRESSION
1. Overspeculation: take a large risk in the hope of selling big
2. Government Policies: tariffs & war debt policies cut down on forcing markets for American goods
3. Unstable/Uneven Economy: national wealth unevenly distributed
4. Crisis in farm sector
5. Availability of easy credit

6. THE GREAT DEPRESSION
Longest, most severe economic depression in US History
Banks closed: people wanted money, banks didn’t have it because of investments
Global impact because economies were interdependent

7. DEPRESSION IN CITIES People lost jobs, evicted from homes
Shantytowns, soup kitchens, bread lines
African Americans/Latinos have higher unemployment, lower pay

8. Bread Lines

10. DEPRESSION IN RURAL AREAS
DUST BOWL
Environmental condition in Great Plains in 1930s
Depression Video
Many migrated to Pacific states from area from North Dakota to Texas
Dust Bowl Video

11. DEPRESSION ON THE FAMILY
Increase in discrimination against minority groups & women: fired to give jobs to men
Farmers couldn’t pay mortgages, many lost farms
No federal govt. help
Teenagers leave home to find jobs
Suicide rate up, state mental hospital admission up
Leads to habit of savings
People tried to keep sense of humor

12. HOOVER STRUGGLES Herbert Hoover elected pres. In 1928
“key to recovery is confidence”
Blamed for depression: not his fault
Thought direct federal relief would hurt people’s self respect & create large bureaucracy: TRUE!!

13. BONUS ARMY
Unemployed WWI vets & families marched into Washington wanting pensions paid now
Hoover sent in army: used force, tear gas
Hurt Hoover, looked bad

14. NEW DEAL 1933-1938 1932 Presidential Election
Winner: Franklin D. Roosevelt (Dem): use govt. to get out of Depression
20th Amendment: changed Inauguration date to Jan. 20th

15. FDR’s PROGRAM Relief: Help all Americans in need
Recovery: Spur the economy out of the Depression
Reform: Prevent another severe Depression
**pushed work relief rather than monetary relief
**Fireside chats: radio talks explaining the New Deal
Brain Trust: group of intellectuals who helped form the New Deal
The Three R's

16. BANK HOLIDAY All banks closed for 4 days
Govt. inspected the financial health of banks
Generated confidence in banks: people put money in banks made loans stimulates economy

17. FIRST HUNDRED DAYS 1st: get Americans to work
Gives them money to spend which helps the economy
Expanded federal government’s role in the economy
21st Amendment: Repealed Prohibition

18. NEW DEAL UNDER ATTACK
People afraid fed. govt. & Pres. getting too powerful
Sup. Ct. declared some programs unconstitutional
Didn’t end Depression, less helpful to women & minorities
Progressives: New Deal didn’t go far enough
Court Packing: FDR wanted to increase # of Sup. Ct. justices to put own people in
Public upset with this!!!!

19. 2ND NEW DEAL
More social welfare benefits, stricter controls over business, stronger support for unions, higher taxes on rich
Social Security
1936 Presidential Election
Winner: FDR
1st time most African Americans voted Democratic, 1st time labor unions backed one candidate

20. NEW DEAL EFFECTS Women: still faced discrimination in work place
1st woman in Cabinet: Frances Perkins, Sec. of Labor
Eleanor Roosevelt: supporter of New Deal, “eyes & ears” for FDR
African Americans: “Black Cabinet” formed to advise FDR on racial issues
FDR never fully committed to civil rights b/c afraid of losing support from white Southern Dem.

21. NEW DEAL SUPPORTERS Women African Americans Mexican Americans
Native Americans
Labor unions

22. CULTURE IN 1930S Literature: Buck, Steinbeck, Mitchell
Movies: seen as an escape
Marx Brothers, Wizard of Oz, Snow White, Gone with the Wind
Arts: supported unemployed artists, musicians, historians, theater people & writers

23. LASTING NEW DEAL ACHIEVEMENTS/EFFECTS
Public works: bridges, dams, roads, buildings
Federal agencies: TVA, SEC, FDIC
Social Security
Legacy of hope
Changed relationship between workers/employers
Labor stronger in politics
Creation of welfare state: fed. govt. takes care of people
Increased power of fed. govt.
Shift in power from Congress to President