The Great Depression

1
The Great Depression

• 1929-1940

2
How The Great Depression Came

• The Great Depression was caused by an uneven
  distribution of income which led to a huge stock
  market crash.
• The uneven distribution of income was caused by
  workers getting very little of a companys profit.

3
The Stock Market Crash
In the 1920s the stock market peaked and began to
fall. By 1932 the stock market was only 20 of
what it used to be.
4
The Unemployment Rate

• Before the stock market crashed the unemployment
  rate was 3.2 and during the Depression it was
  24.9.
• Over 15 million people were unemployed.
• People who did have jobs were faced with major
  pay cuts
• The Current unemployment rate is 5.9

http//encarta.msn.com/media_461546193_761584403_-
1_1/Unemployment_During_the_Depression.htm l
5
The Banking Crisis

• Banks were extremely troubled by the loss of
  confidence in investors.
• Many people took out loans that they could never
  repay.
• The banks had also invested in the market which
  made them lose many dollars.
• People demanded their money back and never got
  it. Many banks were vandalized or destroyed by
  angry people wanting their money.
• This was later fixed by President Roosevelt (The
  New Deal)

http//encarta.msn.com/media_461556445_761584403_-
1_1/Banking_Crisis_1930s.htm l
6
The Dust Bowl

• The Dust Bowl was a time of a great drought.
• The Drought affected mostly the Southern Plains
• The other problem caused by the drought were dust
  storms
• The dust storms were known as black blizzards
• The Dust Bowl really was a very tough time for
  farmers

7
Government Assistance
During the Great Depression the government was
expected to help get the economy out of the down
fall.
8
Franklin Delano Roosevelt

• Born 1882 Died 1945
• Franklin Roosevelt was Senator in 1910
• During the election of 1932 The depression had
  made President Hoover very unpopular there for
  Roosevelt won the election.
• In the election Roosevelt received 22,821,857
  popular votes and Hoover only 15,758,901.
• In the electoral votes Roosevelt had 472 and
  Hoover had only 59.
• He was the 32 president of the United States
• He was president between 1933-1945
• He spent four terms in office which is now banned
  by the 22nd amendment

9
The New Deal

• The primary goals of the New Deal was
• 1. Recover from the Depression
• 2. Help victims of the depression
• 3. Recreate the economic system
• These were known as the three Rs of relief,
  recovery and reform
• On the list of problems the Banks were one of the
  worse. President Franklin called a Bank
  Holiday on March 9th, 1933
• This was a period in which banks closed.
• The day after the Bank Holiday more money was
  actually put into the bank than taken out.
• That was the end of the bank crisis
• The end of the bank crisis was the beginning of
  what was known as the hundred days.
• Since the end of the bank crisis Roosevelt Passed
  15 major economy effecting laws in 100 days

10
The New Deal Video
This is a great video but is 8 minutes. Dont
click on the video if you dont want to see it
11
Works Progress Administration (WPA)

• Because of the massive unemployment the
  Government decided to become a major employer.
• This administration hired approximately 8,500,000
  jobless people.
• This also benefited the government because many
  bridges, roads and parks were created and
  restored.

www.sfgate.com/traveler/ postcards/bridges.shtml

12
Federal Arts Projects

• This was an organization to employ skilled
  writers and artists
• This was not as big as the Works Progress
  Administration
• This only employed about 6,500 people
• They were paid 20 a week
• This organization also collected over 10,000 life
  stories.

13
FDIC

• This stands for Federal Deposit Insurance
  Corporation
• The FDIC was formed in 1933 as a means to insure
  banks.
• When the FDIC was first created it insured 5,000
  dollars for each bank.
• The insurance was for if a bank closed the FDIC
  would pay back all investors.
• The current FDIC rate is 100,000 per customer.

14
NIRA

• This stands for National Industrial Recovery Act.
• The NRA was a part of the NIRA.
• The NRA created a set of codes for over 500
  industries
• These codes helped regulate the prices of
  products to insure fair competition.

15
The Great Depression Beyond The U.S.

• The United States was not the only one affected.
• During the Great Depression most other countries
  were struggling.
• Such countries as Germany were one of the most
  affected.
• Because of how weak Germany was Hitler was able
  to blame Jews for the economic troubles and form
  the Nazi party.

16
After the Great Depression

• In 1939 the unemployment rate was 15
• However in September of 1939 when Great Britain
  declared war the United States began spending
  money on building forces.
• In 1941 when the United States declared war
  industry was in high demand and so was the demand
  for workers.