1. The Roar Ends & Depression Sets In

2. The Great Stock Crash Stocks grew rapidly through the 1920s Stocks grew rapidly through the 1920s Based on speculation Based on speculation People bought stocks on margin (did not actually own, used speculation) People bought stocks on margin (did not actually own, used speculation) People began demanding that people pay for their stocks People began demanding that people pay for their stocks

5. The Great Stock Crash Result, Panic Selling Result, Panic Selling Black Tuesday, October 29: Stocks fell by $14 billion and continued to drop in the weeks to come Black Tuesday, October 29: Stocks fell by $14 billion and continued to drop in the weeks to come America, we have now reached the Great Depression America, we have now reached the Great Depression

6. Black Tuesday Black Tuesday

9. Causes of the Great Depression After the market crashed in 1929 stock prices collapsed After the market crashed in 1929 stock prices collapsed The Federal Reserve failed to prevent widespread collapse of the nation’s banking system in the late 1920s and early 1930s The Federal Reserve failed to prevent widespread collapse of the nation’s banking system in the late 1920s and early 1930s This led to severe contraction in the nation’s supply of money in circulation This led to severe contraction in the nation’s supply of money in circulation The Tariff Act of 1930 or the Haley-Smoot Act: High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade The Tariff Act of 1930 or the Haley-Smoot Act: High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade

10. Impact of the Depression of Americans Unemployment and Homelessness Unemployment and Homelessness Collapse of financial system = bank closings Collapse of financial system = bank closings Political Unrest = growing militancy of labor unions Political Unrest = growing militancy of labor unions Farm foreclosures and migration Farm foreclosures and migration

11. Impact of the Depression of Americans Dustbowl: Severe draught in the Southern Plains caused crops to fail Dustbowl: Severe draught in the Southern Plains caused crops to fail Caused dust storms that threw dust all over the country Caused dust storms that threw dust all over the country “Hoovervilles:” Large areas of homeless families that make houses and communities out of boxes and packing crates, wrapped themselves in newspapers for blankets “Hoovervilles:” Large areas of homeless families that make houses and communities out of boxes and packing crates, wrapped themselves in newspapers for blankets Suicide: Increased 30% between 1928 and 1932 Suicide: Increased 30% between 1928 and 1932

14. FDR & the New Deal New DealNew Deal

15. Overview “ Black Tuesday” Stock market crashes “ Black Tuesday” Stock market crashes Early 1930s farm product prices drop by 55%, hundreds of thousands of farmers lose everything Early 1930s farm product prices drop by 55%, hundreds of thousands of farmers lose everything By end of 1932 around 5,500 banks fail By end of 1932 around 5,500 banks fail By 1933 the saving of over 9 million American are wiped out By 1933 the saving of over 9 million American are wiped out Extremely high unemployment (25%) Extremely high unemployment (25%) President Hoover struggled, unsuccessfully to stop the slide President Hoover struggled, unsuccessfully to stop the slide FDR (Franklin Delano Roosevelt) ran against Hoover in 1932 election FDR (Franklin Delano Roosevelt) ran against Hoover in 1932 election

16. FDR Won election in a landslide Won election in a landslide Confined to wheelchair due to polio Confined to wheelchair due to polio NY Senator NY Senator Governor of NY Governor of NY

17. FDR Assistant Secretary of the Navy under Wilson Assistant Secretary of the Navy under Wilson Promised “Action, and Action now” at his inauguration Promised “Action, and Action now” at his inauguration Announced his decisions at “fire-side chats” to the nation Announced his decisions at “fire-side chats” to the nation

18. New Deal 15 major bills were passed in the first 100 days of the New Deal 15 major bills were passed in the first 100 days of the New Deal Emergency Bank Act Emergency Bank Act Took US off the gold standard Took US off the gold standard Federal Relief Administration Federal Relief Administration Alphabet agencies Alphabet agencies TVA TVA AAA AAA NRA NRA FDIC FDIC

19. New Deal Programs changed the role of the government to be a more active participant in solving problems Programs changed the role of the government to be a more active participant in solving problems FDR rallied the nation with his speech “We have nothing to fear, but fear itself FDR rallied the nation with his speech “We have nothing to fear, but fear itself

20. The Alphabet Agencies

21. AAA Agricultural Adjustment Act Agricultural Adjustment Act 1933,1937 1933,1937 Establish peace time support for farm prices, set production controls, farmers received benefits for following, saved agriculture from collapse Establish peace time support for farm prices, set production controls, farmers received benefits for following, saved agriculture from collapse Designed to bring the nation out of the depression over time Designed to bring the nation out of the depression over time

22. TVA Tennessee Valley Authority Tennessee Valley Authority 1933 1933 Flood Planning, built hydroelectric dams, brought electricity to rural areas Flood Planning, built hydroelectric dams, brought electricity to rural areas

23. FDIC Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation 1933 1933 Insure depositors savings up to $100,000, up from a $5,000 level Insure depositors savings up to $100,000, up from a $5,000 level Corrected unsound banking and investment practices Corrected unsound banking and investment practices

24. SEC Securities Exchange Act Securities Exchange Act 1934 1934 Had the authority to regulate the stock exchange and investment advisors Had the authority to regulate the stock exchange and investment advisors

25. WPA Works Projects Administration Works Projects Administration 1935 1935 Designed to provide jobs instead of welfare. Built roads, bridges, airports, hospitals, etc. adult, education, gave writers and artist jobs Designed to provide jobs instead of welfare. Built roads, bridges, airports, hospitals, etc. adult, education, gave writers and artist jobs Provided payment to people for immediate help Provided payment to people for immediate help

26. CCC Civilian Conservation Corps Civilian Conservation Corps 1933 1933 work programs for young unmarried men, conservation national parks, forests, recreation work programs for young unmarried men, conservation national parks, forests, recreation

27. Social Security Act 1935: combination of public assistance and insurance. 1935: combination of public assistance and insurance. old age insurance old age insurance unemployment insurance unemployment insurance Assistance to dependent children, the elderly, mentally ill,, and handicap Assistance to dependent children, the elderly, mentally ill,, and handicap

28. Controversies of the New Deal

29. NRA-National Recovery Act Declared unconstitutional by the Supreme Court Declared unconstitutional by the Supreme Court Congress illegally had the power to regulate intrastate commerce Congress illegally had the power to regulate intrastate commerce Violated separation of powers Violated separation of powers

30. AAA Supreme Court said agriculture was a local, not interstate matter Supreme Court said agriculture was a local, not interstate matter Violated provisions of the tenth amendment Violated provisions of the tenth amendment

31. “Court Packing” FDR wanted to add more justices to the Supreme Court FDR wanted to add more justices to the Supreme Court So he could up hold his decisions So he could up hold his decisions Increase the Court from 9 to 15 Increase the Court from 9 to 15 Asked Congress to pass the law Asked Congress to pass the law Never approved, because of separation of powers Never approved, because of separation of powers

32. Roosevelt’s Recession 1937 – 1938 a down turn in the Economy (recession) during the New Deal and Roosevelt’s presidency 1937 – 1938 a down turn in the Economy (recession) during the New Deal and Roosevelt’s presidency

33. Evaluating the New Deal

34. Most historians agree on the following assessments of the New Deal: World War II was largely responsible for ending the Great Depression, the New Deal did not solve unemployment, the farm crisis, or undercompsumption World War II was largely responsible for ending the Great Depression, the New Deal did not solve unemployment, the farm crisis, or undercompsumption The New Deal helped cope with the effects of the Great Depression The New Deal helped cope with the effects of the Great Depression The New Deal brought more power to the presidency and to the federal government. The government now had a role and a responsibility in more aspects of the nations economic and social life. The New Deal brought more power to the presidency and to the federal government. The government now had a role and a responsibility in more aspects of the nations economic and social life. The New Deal preserved the free-enterprise system The New Deal preserved the free-enterprise system