1. The Great Depression and FDR Chapter 25, Sections 1 and 2

2. The Boom The stock market was booming in the 1920’s. Everyone was buying stock – but they were buying it on margin. (meaning they paid only half of the stock price and borrowed the rest from their brokers) Because so many people were buying stock, the value of stocks were very high causing a BOOM.

3. The Bust Investors started selling their stocks in September 1929, fearing the boom would end. This caused a bust, because the stock prices started falling. Brokers began demanding repayments of their loans (due to people buying on margin), and so more people started selling their stock. The stock market crashed on October 29, 1929, and this day became known as “Black Tuesday.”

4. Factors leading to the Great Depression Unbalanced economy -Rich vs. poor -Farm income and industries decline. Credit crisis - People failed to meet their loan payments, and banks were forced to close. International Depression -American depression, causes a world depression. (less trade) Joblessness and Poverty - People lost their jobs, and, in 1932, 25% of all Americans were unemployed.

5. “Hoovervilles”

8. How did President Herbert Hoover deal with the Great Depression? He thought the crisis wouldn’t last long, and help was “just around the corner.” He encouraged relief (aid for the needy), and federal spending on public works (projects to build highways, parks, and libraries). He asked Congress to create the RFC (Reconstruction Finance Corporation)

9. The Bonus Army – the end of Hoover Congress had agreed to give all veterans of WWI a $1,000 bonus in 1945. Because of the Great Depression, many veterans lost their jobs and demanded the bonus in 1932. They marched to Washington, D.C. and demanded the bonus right away. Hoover refused their requests and called in the army to disrupt their protests. The troops, led by Dwight D. Eisenhower and Douglas MacArthur, burned their camps and injured several veterans – many who had brought their families to the protests. This outraged Americans and was the final undoing for President Herbert Hoover.

10. Pictures of the Bonus Army

11. Presidential Election of 1932 Herbert Hoover vs. Franklin D. Roosevelt FDR, as he was called, won the election by a landslide. He was married to Eleanor Roosevelt, Teddy Roosevelt’s niece. FDR was disabled in a wheelchair because he was stricken with polio in 1921. However, the public didn’t know that because he held himself up with a cane.

12. “The only thing we have to fear, is fear itself.”

13. The Brain Trust Over the years, FDR was known for relying on a group of lawyers, economists, and social workers to develop relief programs for the country. He never thought he had all the answers, and was known for always listening to other peoples ideas. This made him a very good president.

14. Hundred Days and New Deal In the First Hundred Days in office, FDR called a special session of Congress to pass new laws that would try to help the American people. FDR promised a “NEW DEAL” for Americans and these laws would become Roosevelt’s New Deal programs.

15. Fireside chats