The Great Depression SOL 10b-d. THE CAUSES OF THE GREAT DEPRESSION AND ITS IMPACT ON THE AMERICAN PEOPLE. Causes of the Great Depression The stock market.

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Presentation transcript:

The Great Depression SOL 10b-d

THE CAUSES OF THE GREAT DEPRESSION AND ITS IMPACT ON THE AMERICAN PEOPLE. Causes of the Great Depression The stock market crash of 1929 and collapse of stock prices Federal Reserve’s failure to prevent widespread collapse of the nation’s banking system in the late 1920s and early 1930s, leading to severe contraction in the nation’s supply of money in circulation High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade (Tariff Act of 1930, popularly called the Hawley-Smoot Act)

Impact of the Great Depression Unemployment and homelessness Collapse of the financial system (bank closings) Decline in demand for goods

Political unrest (growing militancy of labor unions) Farm foreclosures and migration

FRANKLIN D. ROOSEVELT’S NEW DEAL RELIEF, RECOVERY, AND REFORM MEASURES ADDRESSED THE GREAT DEPRESSION AND EXPANDED THE GOVERNMENT’S ROLE IN THE ECONOMY. The New Deal permanently altered the role of American government in the economy. It also fostered changes in people’s attitudes toward government’s responsibilities. Organized labor acquired new rights, as the New Deal set in place legislation that reshaped modern American capitalism.

New Deal (Franklin Roosevelt) This program changed the role of the government to a more active participant in solving problems. Roosevelt rallied a frightened nation in which one in four workers was unemployed. (“We have nothing to fear, but fear itself.”)

Relief, Recovery & Reform Relief measures provided direct payment to people for immediate help (Works Progress Administration—WPA). Recovery programs were designed to bring the nation out of the depression over time (Agricultural Adjustment Administration— AAA). Reform measures corrected unsound banking and investment practices (Federal Deposit Insurance Corporation—FDIC). Social Security Act offered safeguards for workers.

Result of the New Deal The legacy of the New Deal influenced the public’s belief in the responsibility of government to deliver public services, to intervene in the economy, and to act in ways that promote the general welfare.