Presentation on theme: "EOC Day 7 SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal."— Presentation transcript:
1EOC Day 7SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal.
2Stock Market Crash 1929Black Monday/Tuesday- The stock market dropped 30 points or about 12% both daysCrash caused by “speculation”Buying on Margin-Using credit to invest in the stock marketGlass-Stegall Act separated commercial banks from investment banks
3Effect By 1932, 5,761 banks had failed (22% of total) Many banks invested in stocks before the crashThousands of businesses failed20,000 in 1929; 30,000 in 1932 Unemployment reached 25% by 1932 (13 million people) excluding farmers.
4EffectTotal wages dropped from $12 billion to $7 billion from 1929 to 1932.By 1932, 25% of farmers lost their farms People experienced loss of self-worth Many families broke up; marriage rate and birth rate declined. 3 million people became homeless and lived in makeshift shacks known as "Hoovervilles"
5Government Response President Hoover- Believed Europe was to blame Hawley-Smoot Tarrif- highest peacetime tarriff in history-60%Volunteerism- urged businesses to avoid layoffs or wage cutsPrivate charity not enough to save the poorBonus Army- 14,000 veterans lobbied for passage of a bonus billHoover insisted the government not pass the bill
6Government Response Franklin D. Roosevelt- Won the election of 1932 New Deal- A set of government actions meant to end the Great Depression-Relief, Recovery, ReformUnprecedented passage of legislation called the “First Hundred Days”
7New Deal ReformsBank Holiday Banks were temporarily closed to make sure they were sound and to close unsound banksCivilian Conservation Corps- employed 2.75 young men in conservation jobsFederal Emergency Relief Admin- 500 million dollars to states to help the poor
8New Deal ReformsAgricultural Adjustment Act- paid farmers to reduce their crop or livestock productionLed to corruptionTennessee Valley Authority-20 dams built in Tennessee to help provide employmentHome Owners Loan Corporation Refinanced mortgages on 1 million non-farm homes
9New Deal ReformsNational Recovery Admin- maximum work hours, minimum wage, minimum pricesWagner Act- Reasserted the right of labor to self organizeSocial Security Act-old-age pensions for retired workers as well as poor mothers or handicapped
10CriticsThe American Liberty League-Group of wealthy republicans and conservative democratsWanted to fight “socialist New Deal”Father Charles Coughlin- Radio host who thought the deal was not strong enough
11SupportersSenator Huey Long- promised to make “every man a king” and supplyed each family with 5,000 dollars at expense of the richDr. Francis Townsend- provided senior citizens with 200 dollars a month, funded by a national sales tax
12Dust BowlIn late 1933, drought struck states in the Mississippi River area and the Great Plains (Texas, Arkansas, Oklahoma, Kansas, Missouri)In five years, 350,000 Oklahomans and Arkansans -- "Okies" and "Arkies" migrated to southern California.
14Based on the cartoon, how did President Roosevelt want to ease the Great Depression? A. by expanding the role of government in citizens’ livesB. by expanding the authority of legislative representativesC. by regulating the stock purchases by individual investorsD. by restricting the spending by government on domestic projects