Great Depression Causes Impact New Deal

Objective USII.6D The student will demonstrate knowledge of the social, economic, and technological changes of the early twentieth century by identifying the causes of the Great Depression, its impact on Americans, and the major features of Franklin D. Roosevelt’s New Deal

Great Depression The optimism of the 1920’s concealed problems in the American economic system and attitudes about the role of government in controlling the economy The Great Depression had a widespread and severe impact on American life Franklin D. Roosevelt’s New Deal used government programs to help the nation recover from the Depression

Causes of the Great Depression People over speculated on stocks, using borrowed money that that they could not repay when stock prices crashed

Causes of the Great Depression The Federal Reserve FAILED to prevent the collapse of the banking system Federal Reserve was created in 1913 The Federal Reserve watches over all banks in the country and prevents bank failures

Causes of the Great Depression High tariffs discouraged international trade Tariff = A type of tax on imported goods It raises the prices of goods Other countries put a high tariff on American goods, which resulted in American businesses losing money because they couldn’t lower their prices.

Impact on Americans A large number of banks and other businesses failed Banks loaned a lot of money to people who could not pay it back People started to withdraw their money from the bank Banks could not give people their money due to the fact that they had no money left Over 9,000 banks closed across the country Some states had NO banks open at all

Impact on Americans ¼ of workers were without jobs 25%

Impact on Americans Large number of people were hungry and homeless They went town to town looking for work Many lined up for scraps of bread and some soup in soup lines Times were difficult

Hooverville Named after President Herbert Hoover Hoover did not help the economy or the people Hoover believed the economy would correct itself Hoover had a laissez-faire approach It means government stay out of the economy They homeless shacks being built across the country became known as Hoovervilles

Brother Can You Spare A Dime Song by Bing Crosby It summed up the attitudes of Americans during the Great Depression Brother Can You Spare A Dime

Impact on Americans Farmers’ incomes fell to low levels 1 million Farmers lost their farms Farmers in the great Plains left to California and cities because of the Dust Bowl

New Deal Election of 1932 Herbert Hoover vs Franklin D. Roosevelt Roosevelt was promising a New Deal for Americans to go back to work Alphabet soup Hoover believed that the economy would bounce back on its own without government interference “The only thing we have to fear is fear itself”-Franklin D. Roosevelt

Major features of the New Deal Social Security 1935 You pay into it, and when you are 65, become blind, or disabled you receive the money

Major features of the New Deal Federal Work Programs WPA Works Projects Administration and provided work for over 8 million people Built roads, bridges, parks, swimming pools, county fairgrounds, airport runways

Major features of the New Deal Environmental Improvement Programs CCC Civilian Conservation Corps hired more than 2 million people Planted trees, built dams, cleaned highways TVA Tennessee Valley Authority 1933 Helped control floods, create electricity, reforest lands, and encourage agricultural development

Major features of the New Deal Farm Assistance Programs REA Rural Electrification Administration Helped bring electricity services to rural areas

Major features of the New Deal Increased rights for labor 1938 Fair Labor Standards Act 40 Hour Week Set a minimum wage Overtime = Time and 1/2