2. 1929-1939 Stock market crash Didn’t realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.

3. The Roaring 20’s The new concept of “credit” People were buying: –Automobiles –Appliances –Clothes Fun times reigned –Dancing –Flappers –Drinking

4. Why was this bad? Credit system –People didn’t really have the money they were spending WWI –The U.S. was a major credit loaner to other nations in need –Many of these nations could not pay us back

5. The Stock Market People bought stocks on margins –If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall –Now the person has less than $100 and no money to pay back

6. And then…. With people panicking about their money investors tried to sell their stocks –This leads to a huge decline in stocks –Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke

7. Herbert Hoover was president at the start Philosophy: We’ll make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

8. Farmers were already feeling the effects –Prices of crops went down –Many farms foreclosed People could not afford luxuries –Factories shut down –Businesses went out Banks could not pay out money People could not pay their taxes –Schools shut down due to lack of funds Many families became homeless and had to live in shanties

10. Many waited in unemployment lines hoping for a job.

11. People in cities would wait in line for bread to bring to their family.

12. Some families were forced to relocate because they had no money.

13. “Hooverville” Some families were forced to live in shanty towns –A grouping of shacks and tents in vacant lots They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

16. A drought in the South lead to dust storms that destroyed crops. “The Dust Bowl”

17. The South Was Buried Crops turned to dust=No food to be sent out Homes buried Fields blown away South in state of emergency Dust Bowl the #1 weather crisis of the 20th century

19. Two Families During the Depression

20. A Farm Foreclosure

21. Some families tried to make money by selling useful crafts like baskets.

22. *FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instated the “New Deal” Yea! Frankie!

23. People everywhere were effected by the depression It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

24. Industry Destitute Farming Stock Market Banking Alphabet Agencies Find out more - Internet.

25. Banking Banking Acts 1933 and 1935 Investors deposits insured No gambling in securities Fireside chats used to encourage people to put money back into banks Bank Holiday only secure banks allowed to re-open

26. Stock Market Faith in Securities Act 1933 Securities Act 1934 Stricter control Companies had to be honest

27. Destitute Federal Emergency Relief Act ( F E R A ) $500 million to state governments to provide relief Given as DOLE payments SuccessesProblems

28. Farming – First Agricultural Adjustment Act Put up prices by creating artificial scarcity, ie killing livestock, ploughing up crops This was considered by many to be unconstitutional and an extension of federal powers.

29. Industry The New Deal introduced major breaks with traditional practices. N.R.A. Social Security Act Wagner Act Fair Labour Standards Act

30. Industry – N.R.A. The National Recovery Administration made:- 1.Industry less cut throat in its operation 2.Owners introduce a minimum wage 3.Rules on the maximum working hours Employers reacted differently from their workers.

31. Alphabet Agencies Roosevelt created a number of major agencies known by their initials. T.V.A.C.C.C.P.W.A. Some opponents called them Alphabet Soup.

32. Public Works Administration P.W.A. Laws passed in Congress. 1.It was slow to get underway. 2.Capital intensive rather than labour intensive – money to T.V.A. and other organisations. 3.Built hospitals and roads and was involved in slum clearance.

33. Civilian Conservation Corps C.C.C. The first New Deal project introduced in March 1933. 1.Created work for 2.5 million unemployed workers 2.Led to tree planting and soil conservation 3.Bridges, dams, nature trails and picnic areas were built 4.Blacks were segregated and women excluded

34. Tennessee Valley Authority T.V.A. The river Tennessee was transformed by 1.Overturning years of deforestation and soil erosion by replanting and soil conservation. 2.The building of a series of dams and canals. 3.Flood prevention. 4.Hydro electric power for homes and business.

35. Success or Failure? 1.Reduced unemployment by 7 million 2.Soil conservation schemes. 3.The Stock Market and banks recovered. 4.Transformed the Tennessee valley. 5.Roosevelt was re-elected. 1.Still 6 million out of work in 1941. 2.The numbers fell due to enlistment and rearmament in WW2. 3.Black people were segregated from white. 4.Women were excluded from the New Deal. 5.Tennessee benefited but many areas were still suffering.