The Great Depression ( Standard 11. 6: The Great Depression and how the New Deal fundamentally changed the role of the federal government.) ( Standard 11. 6: The Great Depression and how the New Deal fundamentally changed the role of the federal government.)

Election of 1932 Herbert Hoover Republican. Believed economy would recover by itself. Big business was a key factor in economic recovery. Hawley-Smoot tariff was passed to protect domestic industries. Europe raised their tariffs. Reconstruction Finance Corporation (RFC) was created to help banks extend credit and loans to ordinary citizens. Against direct federal aid to help recovery. Provided some unemployment relief, but this was too late. Franklin D. Roosevelt Democrat. Brought new ideas about the role of government. Had compassion for the ordinary citizens of the country. Communicated every week with the people by radio to provide moral support. “ New Deal ” programs were pushed through Congress to provide relief, create jobs, and stimulate economic recovery. Changed the way our government dealt with the people of the United States.

Herbert Hoover v. Franklin D. Roosevelt

Causes of the Great Depression Speculation in the 1920s caused many people to buy stocks with loaned money and this was based on a false optimism. The stock market boom was very unsteady, because it was based on borrowed money and when investors lost confidence, the stock market collapsed. The stock market crashed in October of Western Europe was hit with a depression that was going to change the face of the continent.

Causes of the Great Depression Short sighted government economic policies were another factor in the economic problems of the 1930s. Politicians believed that business was the key business of America. Congress protected business with high tariffs and stayed out of their way. These actions hurt American farmers and international trade.

Causes of the Great Depression The economy was not stable as our national wealth was not spread evenly. A few families controlled a major portion of our countries wealth. Their spending was done on a limited basis and did not stimulate the American economy.

Causes of the Great Depression Supply was greater than demand. Prices went up and Americans could not afford anything. Farmers and workers did not profit as unevenness of prosperity made recovery difficult. A drought in the heart of the country contributed to the problems faced by farmers.

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

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

Two Families During the Depression

“ Dust Bowl ”

“ On the Road ”

Relief

“Survivors”

Recovery

“ New Deal ” Programs President Roosevelt took office in 1933 and immediately went to work creating new programs to give relief, create jobs, and stimulate economic recovery. These programs were called the “New Deal” or “alphabet soup.” The entire country was behind the president as they were ready for a change. Roosevelt would give them an answer as he pushed program after program through Congress during his first hundred days in office.

“ New Deal ” Programs Federal Deposit Insurance Corporation FDIC – insure bank deposits. Federal Emergency Relief Administration FERA - public works programs and direct relief. Civil Works Administration CWA – public works program. Civilian Conservation Corps CCC – work to maintain and restore forests, parks, and beaches.

“ New Deal ” Programs Indian Reorganization Act of 1934 Returned unallocated land to Native Americans National Industrial Recovery Act NIRA – helped businesses and workers. Public Works Association PWA – large constructions projects. Federal Securities Act of May 1933 SEC – regulated the stock market. Home Owners Loan Corporation HOLC – refinanced home mortgages. Agricultural Adjustment Administration AAA – paid farmers not to grow crops.

“ New Deal ” Programs Tennessee Valley Authority TVA – provided cheap electricity to region. Works Progress Administration WPA – built schools, hospitals, airfields, etc. Farm Security Administration FSA – loaned money to farmers and set up camps. National Labor Relations Act NLRB – Wagner Act to help working man. Fair Labor Standards Act of 1938 Banned child labor and set a minimum wage. Social Security Act Provided old-age pensions, unemployment insurance, workers compensation.

Franklin D. Roosevelt