Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Great Depression and the New Deal

Similar presentations


Presentation on theme: "The Great Depression and the New Deal"— Presentation transcript:

1 The Great Depression and the New Deal
Unit 9

2 The Great Depression

3

4 Gross National Product

5 Unemployment

6 Workers’ Yearly Wages

7 Business Failures

8 Bank Closures

9 Photo Courtesy of Dorothea Lange

10

11

12

13

14 Bull Market

15 Buying On Margin

16 The Great Crash – Oct. 29, 1929

17

18

19

20

21 EVENTS WHICH LED TO GREAT DEPRESSION
EFFECTS Under consumption of goods and services---not buying goods Families had limited income to purchase goods Led to falling prices of goods Led to drop in farm prices Banks didn’t get back their $$$ Speculation on stocks Investors buy stocks on credit Wealth on paper CAUSES Decrease in consumer spending Unequal distribution of wealth Overproduction of goods Huge farms surpluses War debts not paid back Buying on margin (Credit) events

22 THE "SNOWBALL EFFECT" OF THE CRASH
Bankers call brokers wanting their money! Brokers go to investors to collect their money to pay the bank loans borrowed by broker for investor Orders to sell any any price… swamped the market--nobody would buy Brokers go under--stocks are worthless--investors loose their savings! Run on the Banks: People begin to panic and go to banks---try to withdraw their money…Banks don’t have any money to give back Banks close---people lost their savings Businesses close---could not pay back loans to banks. Workers loose their jobs No money to buy consumer products Sales fall---more businesses shut down More workers lose their jobs domino effect

23 Effects of the Stock Market Crash
Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Great Crash Investors Businesses and Workers Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production. Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States. Great Crash Investors Investors lose millions. Businesses lose profits. Effects of the Stock Market Crash

24 President Herbert Hoover’s Response (31st President)
Republican WWI – Food Administration Secretary of Commerce under President Harding and Coolidge “A chicken in every pot and a car in every garage.” – H. Hoover

25 Impact of the Crash

26 Bank Failures 5,197 banks collapse 500,000 farms and homes foreclosed Stock Value: $87bi  $19 bi

27

28

29

30

31

32 Hoovervilles

33

34

35 Business Failures Steel Production drops 80%
Industrial Output drops 50%

36 Unemployment Chicago = 50% Farmers = 33% Nationwide = 25% - 40%

37

38 Psychological Impacts

39

40

41 Poverty Strains Society
Some people starved and thousands went hungry. Children suffered long-term effects from poor diet and inadequate medical care. Social and Psychological Effects 1928–1932, suicide rate rises over 30% Admissions to state mental hospitals triple Impact on Health Living conditions declined as families crowded into small houses or apartments. Men felt like failures because they couldn’t provide for their families. Working women were accused of taking jobs away from men. Stresses on Families Competition for jobs produced a rise in hostilities against African Americans, Hispanics, and Asian Americans. Lynchings increased. Aid programs discriminated against African Americans. Discrimination Increases

42 Hoover’s Response to the Crash

43 Federal Farm Board (1930)

44 Hawley-Smoot Tariff (1930)

45

46

47 Volunteerism

48 Public Works Hoover Dam

49 Reconstruction Finance Corporation

50 Norris-LaGuardia Anti-Injunction Act (1932)

51 “Rugged Individualism”

52 Bonus Army

53

54

55 Dust Bowl

56

57

58 dust bowl

59

60

61

62

63

64

65

66 The Election of 1932 Herbert Hoover Franklin Delano Roosevelt

67 FDR’s Campaign “I pledge you, I pledge myself to a NEW DEAL for the American people.” Government Aid to the People (Direct Relief) Repeal of Prohibition

68 Hoover’s Campaign Higher Tariffs Rugged Individualism

69

70

71

72 20th Amendment

73 21st Amendment (1933)

74 The New Deal

75

76

77

78

79 Brain Trust

80 FDR’s Inner Circle Cordell Hull: Sec. of State
Frances Perkins : Sec of Labor

81 Harold L. Ickes: Sec of Interior, Head of PWA
Harry Hopkins: Head of FERA and later PWA

82 Eleanor Roosevelt

83 FDR’s First Hundred Days
Bank Holiday Federal Emergency Relief Association (FERA) Civil Works Administration (CWA) Public Works Administration (PWA) Civilian Conservation Corps (CCC) Homeowner’s Loan Corporation (HOLC)

84 The Three R’s Relief - direct aid to the people
Recovery – fix the current economy Reform – prevent a future collapse

85 Bank Holiday

86 Banking Crisis 5,190 Banks Failed in 1933 38 Banks closed
Total: 10,951 38 Banks closed Only banks who were solvent could reopen Gold Standard Emergency Banking Relief Act of 1933

87 Federal Emergency Relief Association (FERA)
Headed by Harry Hopkins

88 Civil Works Administration (CWA)

89 Public Works Administration (PWA)
Headed by Harold L. Ickes

90 Civilian Conservation Corps (CCC)

91 Home Owners Loan Corporation (HOLC)

92 The New Deal Works Progress Administration (WPA)
National Industrial Recovery Act ( NIRA) National Recovery Administration (NRA) Agricultural Adjustment Act (AAA) National Youth Administration ( NYA) Federal Housing Act (FHA)

93 Works Progress Administration (WPA)

94 National Industrial Recovery Act ( NIRA)

95 National Recovery Administration (NRA)
Blue Eagle Created under leadership of Hugh Johnson

96 Agricultural Adjustment Act (AAA)
Federal Farm Loan Act Headed by George Peek

97 National Youth Administration ( NYA)

98 Federal Housing Act (FHA)

99 The New Deal Glass-Steagall Act
Federal Deposit Insurance Corporation (FDIC) Securities and Exchange Commission (SEC) Wagner Act created National Labor Relations Board (NLRB) Fair Labor Standards Act (FLSA) Tennessee Valley Authority (TVA) Social Security

100 Federal Deposit Insurance Corporation (FDIC)
Glass-Steagall Act

101 Securities and Exchange Commission (SEC)

102 National Labor Relations Board (NLRB)
Yellow Dog contracts

103 Fair Labor Standards Act (FLSA)

104 Tennessee Valley Authority (TVA)

105 Housing Reform Federal Housing Administration (FHA)
United States Housing Authority (USHA)

106 Social Security Act

107 Revenue Act of 1935

108 Indian Reorganization Act
Indian Emergency Conservation Program

109 Criticisms of the New Deal

110 Critics The American Liberty League Father Charles Coughlin
Senator Huey P. “Kingfish” Long Dr. Francis Townsend

111 The American Liberty League

112 Senator Huey P. “Kingfish” Long
Father Charles Coughlin

113 Dr. Francis Townsend Old Age Revolving Pension Plan

114 Criticism of the New Deal
Failed to fix the Great Depression National debt doubled America becoming a Handout state Class status (Business and Labor/farmers) FDR’s want to change the Supreme Court Planned economy Millions Still Unemployed The New Deal didn’t cure Depression, WWII did

115 Court Challenges to the New Deal
Schechter vs. US

116 Butler vs. US AAA is unconstitutional

117 Judiciary Reorganization Bill
Court Packing

118 End of the New Deal Pump Priming Practice

119 FDR employed economic theory of John Maynard Keynes

120 Support of the New Deal Help relieved the worst crisis in 1933
Help prevent hunger by managing economy

121 Distribution of national income
Americas economic system kept from collapse

122 Citizens retain self respect

123 FDR saves America’s free enterprise system from socialism and anti-business interests

124 FDR Cured Capitalism of its abuses

125 Middle of the Road Approach


Download ppt "The Great Depression and the New Deal"

Similar presentations


Ads by Google