Chapter 26: The Great Depression and the New Deal Section 1: Hoover and the Crash Section 2: Roosevelt and the New Deal

Herbert Hoover became president in 1828 But…. he became president at a time where America was just starting to have some money issues. But…. he became president at a time where America was just starting to have some money issues. Businesses had made so much stuff that they couldn ’ t sell it all – and they even had to lay off some workers. Businesses had made so much stuff that they couldn ’ t sell it all – and they even had to lay off some workers. Some people were buying so much stuff on credit that they ’ d never be able to pay off their bills. Some people were buying so much stuff on credit that they ’ d never be able to pay off their bills. Stock market prices were rising and people rushed to buy stocks (stocks don ’ t always keep going up and if they ’ ve gone up they might be coming back down some). Stock market prices were rising and people rushed to buy stocks (stocks don ’ t always keep going up and if they ’ ve gone up they might be coming back down some).

A “ little ” 1920 ’ s stock market crash timeline: A.September 3 rd, 1929: Stock values reached a high point. B.Prices then went downward. C.On October 23 rd : prices dropped a lot and people started to try and sell. D.The falling prices scared buyers who thought they might drop even more. E.October 24 th : a record number of shares was traded. F.By October 29 th, Black Tuesday, investors sold even more stocks at low prices. This was called the Crash of G.Banks began to demand that people pay back the money they had borrowed to buy the stocks. H.Banks ran short of money to give people to repay their loans. I.Many banks did not have enough cash on hand to pay back their customers and closed. J.Businesses sold less and less because people just didn ’ t have any money. K.Many businesses laid off workers. L.Thousands of people lost their jobs and millions went hungry

The Dow Jones in 1929 The Dow-Jones is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.

America had other depressions, but none had this much suffering and lasted this long, so it ’ s called: The Great Depression The Great Depression It also affected millions of people around the world It also affected millions of people around the world

More pictures of this time

Now – you would think President Hoover would do everything he could to help out, but… He believed in “ rugged individualism ” He believed in “ rugged individualism ” He didn ’ t support the idea of government support for the poor what we call social welfare. He didn ’ t support the idea of government support for the poor what we call social welfare. He wanted volunteers to help other people. He wanted volunteers to help other people. One thing Hoover tried: to balance the federal budget by cutting government spending and raising taxes, but… that pulled more money out of the economy and actually made things worse. One thing Hoover tried: to balance the federal budget by cutting government spending and raising taxes, but… that pulled more money out of the economy and actually made things worse. People blamed him for everything that went bad. People blamed him for everything that went bad.

Hoover Hog / Hoover Blanket / Hooverville / Hoover Flag

By 1932, millions of people lacked food and shelter – and it was time for a presidential election You don ’ t really know him, but does Herbert Hoover seem like the guy you ’ d want running things 4 more years? You don ’ t really know him, but does Herbert Hoover seem like the guy you ’ d want running things 4 more years? The country felt the same way and elected Franklin Delano Roosevelt (FDR) The country felt the same way and elected Franklin Delano Roosevelt (FDR)

Right away he did some things to help out: He told the country: “the only thing we have to fear…. is fear itself.” He told the country: “the only thing we have to fear…. is fear itself.” He declared a “bank holiday” and closed all the banks. He declared a “bank holiday” and closed all the banks. He promised only safe and secure banks would be allowed to re-open. He promised only safe and secure banks would be allowed to re-open. He kept letting the country know things would be okay – he even had “fireside chats” He kept letting the country know things would be okay – he even had “fireside chats”

One way a lot of presidents get judges is by what they do in their first 100 days in office That goes back to FDR and all the things he tried to do right away. That goes back to FDR and all the things he tried to do right away.

Roosevelt also promised a “ New Deal ” for Americans Relief for the hungry and jobless. Relief for the hungry and jobless. Recovery for agriculture and industry. Recovery for agriculture and industry. Reform to change the way the economy worked. Reform to change the way the economy worked.

Some FDR personal information… He was a distant cousin of Teddy Roosevelt (4 th ). He was a distant cousin of Teddy Roosevelt (4 th ). He was married to his cousin. He was married to his cousin. (5 th cousin). (5 th cousin). When he was 39 he caught polio. When he was 39 he caught polio. For the rest of his life he walked with canes, or rode in a wheelchair. For the rest of his life he walked with canes, or rode in a wheelchair. Most people didn ’ t even know. Most people didn ’ t even know.

Anna “ Eleanor ” Roosevelt One of the more active wives of a president One of the more active wives of a president A symbol of strength in women of the time A symbol of strength in women of the time

FDR started many new programs to help out (some still affect us today)

ProgramsAccomplishmentsPWA (Public Works Administration) Created jobs by having people build highways, bridges and public works highways, bridges and public works TVA (Tennessee Valley Authority) Planned development of the Tennessee Valley Region (including a dam) CCC (Civilian Conservation Corps) Hired young men to plant trees, build dams, and work on other conservation projects FDIC (Federal Deposit Insurance Corporation) Protected the money of depositors in insured banks insured banks WPA (Works Progress Administration) Established large scale national works programs to create jobs NYA National Youth Administration) Set up programs for young people people and helped them continue their education Social Security Act Provided workers with unemployment insurance and retirement benefits.

Roosevelt wasn ’ t perfect in everything he did. There were some people that didn’t like that he used deficit spending. There were some people that didn’t like that he used deficit spending. Spending money they didn’t have yet. Spending money they didn’t have yet.

People escaped through entertainment

This entertainment was often not realistic

Movies Movies

Radio

Swing