The Dirty Thirties Crash and Depression

Causes of the Great Depression  1. The Stock Market Crash of 1929:  mainly impacted businesses and wealthy individuals

Causes of the Great Depression  2. The overuse of credit throughout the 20s

Causes of the Great Depression  3. Agricultural Crisis

Causes of the Great Depression  4. Bad Banking Practices

Causes of the Great Depression  5. A global depression

Causes of the Great Depression  6. Laissez Faire politics throughout the 1920s

Conditions of the Great Depression  1. Unemployment

Conditions of the Great Depression  2. The Dust Bowl

Conditions of the Great Depression  3. Distrust of the banking system

Conditions of the Great Depression  4. Small government is replaced with big government

Election of 1932  Approach to the Great Depression:  Hoover believed that depression relief should come from state and local governments and private agencies  Roosevelt believed that the depression required strong action and leadership by the federal government. “This campaign is more than a contest between two men… it is a contest between two philosophies of government.” -Hoover

FDR and the New Deal  In 1932 Franklin Delano Roosevelt was elected President defeating Hoover by a landslide  FDR was elected primarily for his “New Deal” campaign which promised more government programs and direct help for the people to solve the problems of the Great Depression.  “ The country needs, and, unless I mistake its temper, the country demands, bold, persistent experimentation. It is common sense to take a method and to try it. If it fails, admit it frankly and try another. But above all, try something! - FDR May 22 nd 1932  When FDR was elected, he brought optimism and hope to a fearful nation.  Fireside Chats: radio speeches that were given to encourage and appeal to the average American

The New Deal Begins  During his first Hundred Days, Roosevelt…  Created the “brain trust”-a group of diverse advisors- to help him plan the New Deal  Focused on fixing the banking industry by declaring a “bank holiday”  Proposed and Congress passed 15 major bills  These measures had 3 goals:  1. Relief for those suffering the effects of the depression  2. Recovery of the depressed economy  3. Reforms that would help prevent serious economic crises in the future

New Deal Programs  There were two phases of the New Deal, each had programs that:  Reformed the financial system  Ex. FDIC, Emergency Banking Act, SEC  Reformed Agriculture  Ex. AAA  Reformed industry  Fair Labor Standards Act, CIO  Sought to employ people and support business  WPA, NRA, CCC, TVA  Offered relief  Social Security Act, FERA

Impact of the New Deal  Positive:  Business profits and farm prices were up  Unemployment went down  Restoration of people’s faith and confidence in America  Positive reforms to prevent future economic crashes  Negative:  The US is still left in a depression  Costly, led to serious government debt  Beginning of the “welfare state”: people relying on the government  Was discriminatory against minorities