1. The Great Depression (1929-1941)

2. Failing Economy Farmers: Farmers: –Surplus of Crops with no one to buy them. –Had taken out loans from banks, which cannot be repaid. –Began to lose their farms.

3. Consumers: Consumers: –Farmers don’t have $ to buy goods. –Businesses cannot sell their goods. –Begin to layoff workers –Cycle: No $, Can’t Sell, Can’t pay workers, No $

4. Income: Income: –Was not increasing in the 30’s. –Decent wages were $1,500 per year. 50% of people earned less than this.

5. Stock Market: Stock Market: –Bull Market through the 20’s – period of rising stock prices –Speculation – making a quick profit without assessing risk. –Margin – borrowing money to buy stocks

6. –Investor confidence waivers –The bottom fell out of the market on October 29, 1929. Black Tuesday. A record 16 million shares were dumped in one day.

7. Banks: Banks: –Began to collapse when people panicked and withdrew $ –6,000 banks fail (25% of all banks in U.S.) –No insurance

8. –Decline in trade  Hawley –Smoot Tariff Act (increases tariffs which reduced the flow of goods into the U.S. Other countries then do not buy U.S. exports)

9. –Depression became world- wide –Unemployment goes from 3% in 1929 to 25% in 1933

10. Causes of the Great Depression 1. Outdated Industry 1. Outdated Industry 2. Farming Problems 2. Farming Problems 3. Too much easy credit 3. Too much easy credit 4. Unequal Distribution of Income (5% earn 1/3 of nation’s income, while 40% earn only 1/10 of nation’s income) 4. Unequal Distribution of Income (5% earn 1/3 of nation’s income, while 40% earn only 1/10 of nation’s income)

11. The Depression’s Impact Cities: many evicted live in shantytowns – makeshift shacks made of scrap materials. Cities: many evicted live in shantytowns – makeshift shacks made of scrap materials. Soup Kitchens and Bread Lines became available. Soup Kitchens and Bread Lines became available.

12. Farms: Falling crop prices lead to farms being lost to foreclosure (when the mortgage lender takes back the property) Farms: Falling crop prices lead to farms being lost to foreclosure (when the mortgage lender takes back the property) Many turn to tenant farming – farming another person’s land Many turn to tenant farming – farming another person’s land

13. Dust Bowl – area from Texas to North Dakota. Dust Bowl – area from Texas to North Dakota. –Land unsuitable for growing due to: overproduction, drought and wind. –Southern plains were hardest hit (KS, OK and TX)

14. –Many farmers are forced to leave the farm behind to look for work. Became migrants. (Known as Oakies)

15. Poor diets, lack of money for health care led to serious problems Poor diets, lack of money for health care led to serious problems Falling tax revenues led to school closings. Many children went to work. Falling tax revenues led to school closings. Many children went to work.

16. Suicide rate rose 30% and 3X as many people were admitted to state mental hospitals. Suicide rate rose 30% and 3X as many people were admitted to state mental hospitals.

17. Government Response During the early years of the G.D. nearly 2 million men wandered the streets. During the early years of the G.D. nearly 2 million men wandered the streets. No “direct relief” – cash payments or food provided by the government. No “direct relief” – cash payments or food provided by the government.

18. Hoover tries to reassure Americans. Said that this was a natural part of the “business cycle”. Hoover tries to reassure Americans. Said that this was a natural part of the “business cycle”. Hoover believed in “Rugged Individualism” – people should succeed through their own efforts and not rely on the gov’t to bail them out. Hoover believed in “Rugged Individualism” – people should succeed through their own efforts and not rely on the gov’t to bail them out.

19. Asked charities to generate contributions to the poor. Asked charities to generate contributions to the poor. People began to call Shantytowns “Hoovervilles”. (Hoover blankets, Hoover Flags) People began to call Shantytowns “Hoovervilles”. (Hoover blankets, Hoover Flags)

20. 1930 – Hoover directed federal funds to the Boulder Dam project. 1930 – Hoover directed federal funds to the Boulder Dam project. He also backed the creation of the Reconstruction Finance Corporation (emergency $) and the Federal Home Loan Act which lowered mortgage rates. He also backed the creation of the Reconstruction Finance Corporation (emergency $) and the Federal Home Loan Act which lowered mortgage rates.

21. Hoover’s measures were considered too little, too late. Hoover’s measures were considered too little, too late. Bonus Army – 10,000 – 20,000 went to Washington to support a bill to have bonuses paid to veterans early. ($500 each) Bonus Army – 10,000 – 20,000 went to Washington to support a bill to have bonuses paid to veterans early. ($500 each)

22. Hoover assisted the veterans at first, but when the bill was voted down, Hoover forced the group to disband. Hoover assisted the veterans at first, but when the bill was voted down, Hoover forced the group to disband. 1,000 people were gassed. Americans were outraged. 1,000 people were gassed. Americans were outraged.

23. 1932 – Franklin D. Roosevelt is elected. (Former Gov. of New York) 1932 – Franklin D. Roosevelt is elected. (Former Gov. of New York) Would not be inaugurated until March. This sparked the passage of the 20 th Amendment in 1933. (Moved inauguration day to Jan.) Would not be inaugurated until March. This sparked the passage of the 20 th Amendment in 1933. (Moved inauguration day to Jan.)

24. Roosevelt’s first 100 days – Congress passed 15 pieces of legislation that expanded the gov’t’s role in the economy Roosevelt’s first 100 days – Congress passed 15 pieces of legislation that expanded the gov’t’s role in the economy

25. FDR calls a “bank holiday”. Banks close for gov’t evaluation. FDR calls a “bank holiday”. Banks close for gov’t evaluation. Fire Side Chat – FDR addresses the nation on the radio, encouraging people to put money back in the bank. Fire Side Chat – FDR addresses the nation on the radio, encouraging people to put money back in the bank.

26. New Deal FDIC – federal insurance for bank accounts up to $5,000. FDIC – federal insurance for bank accounts up to $5,000. Federal Securities Act – regulate the stock market. Federal Securities Act – regulate the stock market. 1933 – 21 st Amendment repeals Prohibition. 1933 – 21 st Amendment repeals Prohibition.

27. Agricultural Adjustment Act – raise crop prices, pay farmers to not grow crops. Agricultural Adjustment Act – raise crop prices, pay farmers to not grow crops. Civilian Conservation Corps – put young men to work (18- 25) Civilian Conservation Corps – put young men to work (18- 25)

28. Federal Emergency Relief Administration (FERA) – millions in direct payments to the needy. Federal Emergency Relief Administration (FERA) – millions in direct payments to the needy. Public Works Administration (PWA) – gave money to states to create jobs. (construction) Public Works Administration (PWA) – gave money to states to create jobs. (construction)

29. Federal Housing Administration (FHA) – loans for mortgages or repairs. Federal Housing Administration (FHA) – loans for mortgages or repairs. Critics of FDR say he was going to far and the government was becoming too involved. Critics of FDR say he was going to far and the government was becoming too involved.

30. The Supreme Court struck some programs down because the federal government was doing the state’s job. The Supreme Court struck some programs down because the federal government was doing the state’s job. Roosevelt attempted to appoint more judges that were supportive of his plan. Roosevelt attempted to appoint more judges that were supportive of his plan.

31. Americans believed that Roosevelt was violating checks and balances. Americans believed that Roosevelt was violating checks and balances. The most serious critic was Huey Long – senator from Louisiana. He proposed a program called “Share Our Wealth”. The most serious critic was Huey Long – senator from Louisiana. He proposed a program called “Share Our Wealth”.

32. –Long was assassinated in 1935.

33. Eleanor Roosevelt –first lady and social reformer. She traveled the country and became an advocate of the people. Eleanor Roosevelt –first lady and social reformer. She traveled the country and became an advocate of the people.

34. Second New Deal Focused on helping farmers by loaning money to buy land and creating a pictorial record of rural America. Focused on helping farmers by loaning money to buy land and creating a pictorial record of rural America. Works Progress Admin. (WPA)- $5 million to create more than 8 million jobs. Works Progress Admin. (WPA)- $5 million to create more than 8 million jobs.

35. Tennessee Valley Authority (TVA) – harnessed power to help prevent floods in the Tennessee Valley. Did cause some environmental pollution as a result. Tennessee Valley Authority (TVA) – harnessed power to help prevent floods in the Tennessee Valley. Did cause some environmental pollution as a result.

36. Wagner Act – government supports workers rights to join unions and engage in collective bargaining. Wagner Act – government supports workers rights to join unions and engage in collective bargaining. Social Security Act – 3 parts Social Security Act – 3 parts –Retirement plan –Unemployment –Aid to families (disabled, dependent children)

37. Lasting Impact of New Deal Unemployment fell to 14% by 1937. Unemployment fell to 14% by 1937. Roosevelt scaled back on the New Deal Roosevelt scaled back on the New Deal Deficit Spending – spending more than the gov’t brings in. Deficit Spending – spending more than the gov’t brings in.

38. Government went into debt (3.3 billion) Government went into debt (3.3 billion) Lasting Programs: Lasting Programs: –FDIC –Securities and Exchange –Wagner Act –Social Security –FHA

39. Although the New Deal did not end the Great Depression, it helped reduce the suffering of thousands by providing jobs, money and food. Although the New Deal did not end the Great Depression, it helped reduce the suffering of thousands by providing jobs, money and food. World War II ended the Great Depression. World War II ended the Great Depression.