1. The Great Depression & the New Deal Chapter 25 Section 1

2. Economic Collapse Key ? How did 1920s prosperity affect different social groups? Key ? How did 1920s prosperity affect different social groups? Economic prosperity in the 1920s. Economic prosperity in the 1920s. More products were being produced – incomes of middle class and poor not rising. More products were being produced – incomes of middle class and poor not rising. Many products went unsold. Many products went unsold. Farmers –produced more crops than they could sell. Farmers –produced more crops than they could sell.

3. The Illusion of Wealth Most Americans could not afford cars and appliances. Vast majority had only small incomes and little savings. Most Americans could not afford cars and appliances. Vast majority had only small incomes and little savings. Many could not find steady work. Continued to use credit – an arrangement for delaying payment on a purchase. Large debts were accumulated. Many could not find steady work. Continued to use credit – an arrangement for delaying payment on a purchase. Large debts were accumulated. Stock market still climbing. Stock market still climbing. Many investors bought stock on speculation- buying and selling risky stocks in the hope of making a quick profit. Bought borrowed money to buy stocks, but couldn’t repay when prices fell. Many investors bought stock on speculation- buying and selling risky stocks in the hope of making a quick profit. Bought borrowed money to buy stocks, but couldn’t repay when prices fell.

4. The Crash and the Great Depression Key ? – What caused the crash of 1929 and the Great Depression? Key ? – What caused the crash of 1929 and the Great Depression? President Hoover – economic depression- financial slump. President Hoover – economic depression- financial slump. Financial panic led to the Stock Market Crash of 1929. – Black Tuesday Financial panic led to the Stock Market Crash of 1929. – Black Tuesday Great Depression of the 1930s– worst economic crisis in the nation’s history. Great Depression of the 1930s– worst economic crisis in the nation’s history.

6. Great Depression Global affect – when the American economy failed, so did Europe’s. Global affect – when the American economy failed, so did Europe’s. Lasted until World War II in 1941. Lasted until World War II in 1941. Millions experienced starvation, homelessness, and extreme suffering. Millions experienced starvation, homelessness, and extreme suffering.

7. Hoover Loses the Nation’s Trust Key ? – Why did the American people lose faith in Hoover? Key ? – Why did the American people lose faith in Hoover? Hoover did not believe the government aid to the needy and depended on charitable organizations. Solicited voluntary wage rates maintained by businesses. Hoover did not believe the government aid to the needy and depended on charitable organizations. Solicited voluntary wage rates maintained by businesses. Reconstruction Finance Corporation- gov. funded organization that gave loans directly to banks and railroads. Reconstruction Finance Corporation- gov. funded organization that gave loans directly to banks and railroads. Public works projects – Hoover Dam Public works projects – Hoover Dam

8. The Bonus Army World War I veterans were promised a bonus for wartime service. World War I veterans were promised a bonus for wartime service. Summer of 1932, 15,000 veterans went to Washington - Many stayed and camped out in a “Hooverville” – a village of huts, shacks, and other temporary residences. Summer of 1932, 15,000 veterans went to Washington - Many stayed and camped out in a “Hooverville” – a village of huts, shacks, and other temporary residences. Mac Arthur tried to drive them out with tear gas, fired shots, one died. Mac Arthur tried to drive them out with tear gas, fired shots, one died. President Hoover not reelected. FDR first goal would be to rebuild Americans’ hope and trust. President Hoover not reelected. FDR first goal would be to rebuild Americans’ hope and trust.