THE GREAT DEPRESSION AND THE NEW DEAL Cause and Effect

LEARNING OBJECTIVES: SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal.

The Great Depression and The New Deal Source http://diazsocialstudies.org/ahistory_units_2.htm#DEPRESSION1

The Great Depression Main Idea: As the Roaring 20's ended, severe economic problems led to the Great Depression that lasted throughout the 1930's

The Roaring 20’s Ended This was a time in our country of Economic Boom People were spending money, businesses were growing Businesses continued to operate gaining investors in their companies Many bought stock on speculation hoping that the companies would grow and they would make money

Causes of The Great Depression The Great Depression was the worst economic crisis in the history of the US. Started August 1929 with a recession Too many goods produced and not being bought In the Roaring 20’s people overspent and now there was lots of consumer debt Banks were giving out unsafe loans There was a lot of speculation or margin buying Farms were in trouble, droughts, falling prices Businesses had to make cuts and laid off employees

What happened? The Great Depression Americans and businesses had over speculated and over spent They could not pay the debt Businesses had to cut back and people lost their jobs No jobs meant consumers were not buying goods Businesses lost more money and borrowed more money Debt increased with people

Herbert Hoover is President As President: He was a businessman and supported a laissez- faire government He became President the economy was booming During his 1st year as president the stock market crashed People blamed him and things went from bad to worse Banks are foreclosing on homes People are losing their jobs Farmers have food they cannot sell

Herbert Hoover as President He advocated for rugged individualism with every man fending for himself He believed in limited government and it would work itself out He thought if we wait it out, the market will correct itself

Herbert Hoover as President Hoover tried to bring relief: The American Agricultural Act to help farmers Smoot Hawley Tariff to protect goods Reconstruction Finance Corporation offered loans to businesses Cut taxes to give people more money to spend Ultimately is actions and these initiatives did not help

The Great Depression-The Market Crashes Stock Market Crashes Black Tuesday occurred when 16 million shares are traded on one day. This lead to panic and billions of dollars lost in a single day This bankrupted investors in the New York Stock Exchange

Effects Of The Great Depression Banks Fail The public was in a panic and worried about their money People wanted to take all there money out of banks and this was referred to the “bank run” By them taking out all their money banks did not have enough money to operate In 1929, 650 banks failed and by 1933 half of the banks were gone

The Great Depression: Life in America Unemployment rates soared and millions of people were without jobs and income Hundreds of people would show up for just a few jobs

The Great Depression And Its’ impact On Families The Great Depression had devastating effects on the American Family Soup kitchens and bread lines formed Hoover asked local groups to take care of locals

The Great Depression And Its’ impact On Families The Great Depression had devastating effects on the American Family Home foreclosures Moving to where jobs may be Needing some place to live people created temporary homes These temporary homes were made out of whatever materials they could find (cardboard, tar paper, tin, scrap wood) They were often built near rivers an became small “towns” referred to as Shanty Towns or Hooverville's

The Great Depression And Its’ Impact Of Farmers The Great Depression had devastating effects on the Farmer Farmers were struggling before the depression because of industrialism The market collapsed, farmers could not sell their product Banks foreclosed on the farmers seizing their equipment and land A drought occurred in the Great Plains creating the “Dust Bowl” that went on for years

America Wants a Change Franklin Delano Roosevelt, FDR becomes President

FDR Takes Office: Promised quick action He delivered in the first 100 days of his presidency with 15 new deal laws leading to bold programs to help the country

The Solution- The New Deal Relief Relief for the unemployed and poor Recovery Recovery of the economy to normal levels Reform Reform of the financial system to prevent a repeat depression

The Solution- The New Deal

FDR Wanted to Reach the People Roosevelt held thirty Fire Side Chats These connected him with the country He delivered them with a sense of confidence that reassured the people their was hope It was a way to sell his program to the American people

Additional Resources http://floridastudents.org/PreviewResource/StudentResource/155061 Crash Course on The New Deal   http://floridastudents.org/PreviewResource/StudentResource/155059 Crash Course on The Great Depression http://www.cpalms.org/Public/PreviewResourceUrl/Preview/45250 Article on What Caused the Dust Bowl http://www.cpalms.org/Public/PreviewResourceUrl/Preview/37816 Reading Like a Historian, The New Deal. This has 7 primary and secondary sources that could be used as individual lessons to discuss ideas from The New Deal http://www.cpalms.org/Public/PreviewResourceUrl/Preview/37805 Reading Like a Historian, Social Security. Primary and Secondary sources on social security http://www.history.com/topics/great-depression The History Channel, The Great Depression, video 3 minutes

Additional Resources   http://www.history.com/news/10-things-you-may-not-know-about-the-dust-bowl article and short video about the Dust Storm https://www.youtube.com/watch?v=fV4l5w0ZpcY Cause and Effects of the Great Depression, video http://www.biography.com/people/franklin-d-roosevelt-9463381 article and video biography of Franklin D. Roosevelt http://www.bbc.co.uk/schools/gcsebitesize/history/mwh/usa/walldepressionrev1.shtml article on the great depression listing the causes www.biography.com videos and articles on key figures