The Great Depression

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• The Great Depression

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Stock Market Crashes !

• Black Thursday
  
• Oct. 24, 1929 13,000,000 shares traded
• Black Tuesday Oct. 29,
  1929 16,000,000 shares sold
• Losses of 15 billion in 30 days

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Causes of the Depression

• I. Agricultural Problems
• Very low prices surpluses
• II. High Tariffs and War Debts
• Foreign countries cant afford tariffs so they
  cant trade arent making money to pay debts
• Hawley-Smoot Tariff (1930)
• III. Availability of easy credit
• Buy now and pay later led to increased debt.
• Eventually people stopped buying leading to a
  cut back on spending

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IV. Unequal distribution of income Between
1920-1929, wealthiest 1 of the countrys income
rose 75 (9 for all Americans total)
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President Hoover is Blamed!

• Hoover
• Rugged individualism -
• Govt aid would erode the character of those
  who receive it
• Its part of the business cycle.
• The economy will take care of itself.
• Hoovervilles
• Symbol of the depression

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Hoovers Effort

• Public Works project
• Too little, too late!
• Bonus March
• World War I veterans (25,000) demand bonus
  promised in 1924 by Congress early
• Hoover sends the army to clear out in May 1932.

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Trickle Down Economics

• Give tax incentives to businesses tax breaks in
  hopes that the economy will stimulate

• Business will then hire workers who earn and
  spend money

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Dust Bowl
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1933-1936

• Caused by removing grass overproduction
• Thousands of farmers had to leave their land
  behind as they headed west on Route 66
• Okies

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Roosevelt

• FDRs plans to fix the economy were known as the
  New Deal.
• Fireside Chats FDR used the power of radio to
  explain to the public how his programs would help
  America.
• Bank Holiday Closed all banks until new banking
  laws could be passed.

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The New Deal

• FDR governor of NY
• the only thing we have to fear is fear itself!
• Brain Trust - FDR relied on a group of
  intellectual advisers for New Deal ideas.
• The Hundred Days 15 major pieces passed from
  3/9/33 to 6/16/33
• Congress passed every New Deal Measure

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• FDR
• Practical not philosophical
• What does it take to get the economy going again?
• What do people need?
• Lets try new ideas to save the country.
• Fireside Chats

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Prime the Pump

• Keynesian Economics- John M. Keynes
• Demand-Side Economics
• Deficit Spending Govt goes into debt to jump
  start the economy (spend more than receive)
• Create jobs hire people people pay taxes and
  spend money

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3 Rs of the New Deal

• 1. Relief Payments of food, shelter, clothing
  direct aid from govt
• 2. Recovery correct the immediate problems
  prime the pump create jobs
• 3. Reform legislation to insure it wont
  happen again
• Partially successful
• Saves democratic capitalism from extremists

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New Deal Programs

• National Recovery Act (NRA)
• Business-Labor Relations
• Alphabet Agencies
• Jobs Programs (PWA)
• Business Aid (SEC)
• Farm Relief (TVA)
• Housing (HOLC)
• Labor Relations (Wagner Act/NLRB)
• Retirement (Social Security Admin)

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Critics of the New Deal

• Supreme Court declares the NRA and AAA
  unconstitutional
• In 1937 FDR attempts to increase the of
  justices to 15
• Hurts FDR politically

• Liberals
• New Deal not enough still too many poor
• Conservatives
• See FDR as a socialist
• Govt too involved in individuals lives
• The rich also oppose FDR

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Demagogues

• 1 A leader who makes use of popular prejudices
  and false claims and promises in order to gain
  power
• 2 A leader championing the cause of the common
  people

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Demagogues

• Father Coughlin
• Radio priest
• Conservatives support him
• Racist
• Pro-Hitler by the end of the 1930s

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Demagogues

• Huey Long
• Kingfish
• Senator from LA
• Share the Wealth
• Famous for helping the poor
• Assassinated

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Important women

• Eleanor Roosevelt
• Changes the role of the 1st lady from hostess to
  activist
• FDRs eyes and ears
• Received many letters and took action to improve
  peoples lives

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Important women

• Mary McLeod Bethune
• Educator director of Negro Affairs for the Natl
  Youth Admin
• Founder of Natl Council of Negro Women
• Frances Perkins
• 1st female cabinet member Dept of Labor