Great Depression and The New Deal SS5H5

The Great Depression and the New Deal While the United States economy was booming in the 1920s, people invested in the stock market. In October of 1929, the stock market crashed. In two days, it fell 23%, and by the GREAT DEPRESSION, stocks had lost 89% of their value. Leading up to the Great Depression… In the 1920s, CREDIT began, which allowed people to buy many things with the promise of paying for them later. DEBT is money that is owed, and many people had debt. During the Great Depression, people could not pay their debts back to the banks, and the banks in turn lost money. Banks, as well as people, invested in the stock market. When it crashed, banks lost even more money. By 1932, one out of four persons was UNEMPLOYED, that is, did not have a job.

The Great Depression and the New Deal The Great Depression lasted ten years. The economy was in RECESSION – which means the economy was down. By 1933, 15 million people were unemployed. When people were unemployed, they could not afford housing. As a result of no housing, SHANTYTOWNS were common. In this, people lived in tents and shacks. HERBERT HOOVER, president from 1929 to 1933, was blamed for much of The Great Depression. Soup kitchens were formed so people who had no other place to go could get food to eat. Farmers also suffered in the Depression, because crops in the Midwest were not getting enough rain. As a result, the topsoil, or upper layer of dirt blew away. This was called the DUST BOWL, and caused many farmers to move to bigger cities.

The Great Depression and the New Deal Since many Americans blamed Herbert Hoover for the Depression, FRANKLIN DELANO ROOSEVELT (FDR), was elected president in He was elected president four times, which was more than any other president. FDR suffered from polio, and used wheelchairs and crutches. FDR helped the country recover from the Depression by introducing new programs called THE NEW DEAL. Many New Deal programs are still around today.

The Great Depression and the New Deal Most notably: CIVILIAN CONSERVATION CORPS (CCC) – provided jobs for young men to plant trees and build bridges TENNESSEE VALLEY AUTHORITY (TVA) – built dams to control flooding in Tennessee and provide cheap electric power to the southern states FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) – insured savings accounts by FDIC approved banks. WORKS PROGRESS ADMINISTRATION (WPA) – employed men and women to build hospitals, schools, parks, airports, and employed artists, writers and musicians. SOCIAL SECURITY ACT (SSA) – provides pension (monthly payments) to elderly, unemployed, and people with disabilities.

The Great Depression and the New Deal Though the country was in a depression, some people were still able to achieve success. DUKE ELLINGTON – a leader of the new sound in jazz called BIG BAND. MARGARET MITCHELL – won a Pulitzer prize for writing the novel, GONE WITH THE WIND JESSE OWENS – was an African American athlete who participated in the Summer Olympics in Berlin, Germany. He won four gold medals.