The Great Depression

1
The Great Depression the New Deal

• Chapter 25

2
The Great Depression

• When did the Great Depression begin?
• Stock value drops 14 billion on black Tuesday
• From 1929 to 1932 stock values decrease by 80
• How much wealth disappeared?
• Unemployment reached?
• Starvation / Hoovervilles

3
Causes of Stock Market Crash

• numerous investors buying on margin
• - putting up 10 borrowing the rest
• - expect to sell stock for profit
• - money invested in risky businesses
• - banks demanded payment of loans

4
Prolonged Depression

• mistakes by the Federal Reserve
• raised interest rates in 1930 1931
• Deepening inequality (p 641)

5
Prolonged Depression

• Tariff Act of 1930 (Hawley-Smoot Tariff act)
• Raised tariffs on agriculture
• - protect American farmers
• Legislation led to disaster
• - foreign govts retaliated by raising tariffs
• International trade declines

6
Hoovers policies

• Limited government intervention
• - providing money to unemployed would break
  their will to work
• Americans blamed Hoover for continuing depression

7
FDR

• Front-runner of democratic ticket in 1932
• Governor of New York
• What did FDR promise to the American people?
• Assumed office in March 1933
• - 1st order of business- save the nations
  financial system

8
FDRs takes office

• Economy in shambles
• - between 1929-32, 100k businesses went bankrupt
• - over 5,000 banks closed by 1933 (p 647)
• - unemployment soared

9
FDRs New Deal

• The Hundred Days legislation (p 647)
• - saved banks, repealed prohibition etc
• Used fireside chats to communicate
• FDR established a stronger government (p 659)

10
FDRs New Deal (continue)

• Created the Civilian Conservation Corps (CCC)
  Civil Works Administration (CWA)
• - employed more than 6 million
• Public Works Administration (PWA)
• - improve nations infrastructure
• - building of roads, bridges, airports etc

11
The Dust Bowl

• Little relief for rural poor
• Great Plains farmers suffered (Okies)
• - many loaded their jalopies and headed west
  along route 66
• - Steinbacks The Grapes of Wrath (1939)

12
The Second New Deal1935-37

• Roosevelt described Second New Deal as a
  program to limit the power privilege of the
  wealthy and to increase the security and welfare
  of ordinary citizens

13
The Second New Deal (continue)

• Social Security Act (1935)
• - funds for elderly poor, disabled
• - set up a retirement fund
• National Labor Relations Act (NLRA)
• - right of every worker to join a union of
  choice

14
Election of 1936

• Roosevelts New Deal gained wide support (new
  deal coalition)
• - party of the common man
• Handed FDR the greatest landslide victory in the
  history of American politics
• Received 98 of electoral vote (p 658)

15
US abroad

• FDR recognizes Soviet Union (1933)
• Announced the Good Neighbor Policy towards
  Latin America
• Renounced the Platt Amendment
• Granted Panama more control over canal

16
Conclusion

• FDRs New Deal stimulates economy and saves US
  from Depression
• Economy still suffers another recession in 1937
• Not until WWII does US return to full employment
  prosperity
• Roosevelts leadership propels him to an
  unprecedented 3rd 4th term
• FDRs public appearance