1. Great Depression Ch. 12 pg. 366

2. The President Herbert Hoover (R) becomes President in 1928. The economy is still doing well. Attempted to relief, but failed.

5. The Great Depression Depression- a period of severely reduced economic activity characterized by a sharp rise in unemployment.

8. Causes 1.) Farming Suffers - Overproduction led to lower prices. overproduction/ underconsumption -2.) Rich/poor gap growing - Rich getting richer, middle class & poor making less money.

9. Causes 3.) Living on Credit- - Making credit easily available encouraged Americans to pile up large consumer debt. - overproduction, under consumption

11. “On Margin” “On Margin”- Buying on margin is borrowing money to purchase stock. Use your investment as collateral. Allows you to buy more stock than you'd be able to normally.

12. The Stock Market Crash Black Tuesday- the bottom fell out of the market. - Why? Investors lost confidence in the market and rushed to sell their shares. - Tuesday Oct. 29 th 1929

14. The Depression Banks and Business collapse – too many depositors tried to withdraw money. Show Bank Run Hawley-Smoot Tariff – raised prices on foreign imports to point where they could not compete with the American market.

16. “On Margin” - You buy a stock for $50 and the price of the stock rises to $75. -If you used cash to buy the stock and paid in full, you’ll earn a 50% in returns. -But if you bought the stock on margin – paying $25 in cash and borrowing $25 from your broker – you get 100% in returns.

17. “On Margin” Downside -The stock you bought for $50 falls to $25. If you fully paid for the stock, you'll lose 50 percent of your money. If you bought on margin, you'll lose 100 percent, and you still must come up with the interest you owe on the loan.

18. Life During The Great Depression Pg.373

19. Life in the Cities Lost their jobs and homes. Hours reduced. Wages cut. Many sold apples for 5 cents. Workers traveled from city to city looking for jobs – Hobos.

20. Life in the Cities Poor waited in breadlines for bowls of soup and bread. By 1932 1 out 5 children in NYC face starvation. Built makeshift shacks out of scrap materials. Shantytowns- little towns consisting largely of shacks.

21. Life in the Cities Shantytowns were also called Hoovervilles. Why?

23. Women - Canned food, sewed clothes - Some worked outside of the home. - Taking care of children, family budget.

24. The Depression and Politics Hoover “rugged individualism” Election of 1932 Hoover v. Franklin D. Roosevelt (Gov. NY) FDR = 23 million votes Hoover = 16 million votes FDR the LANDSLIDE winner

25. The Dust Bowl Severe drought in the 1930’s. Factors of the Dust Bowl 1.) Over usage of Land 2.) Drought Families pack up and travel west on Route 66 to California

29. Unemployment UnemploymentAvg. Income 19295%$2,300 193225%$1,600 Then & Now

30. FDR & The New Deal Ch. 13 Pg. 396

31. FDR offers Relief Franklin D. Roosevelt (D) Governor of New York. Promised “a new deal for the American people” Served 4 terms.

33. Election of 1932 Hoover v. FDR FDR = 23 million votes Hoover = 16 million votes FDR the LANDSLIDE winner

36. FDR’s Cabinet “Brain Trust” –FDR’s Cabinet included: –Republicans and Democrats –Frances Perkins – Secretary of Labor **First woman cabinet member in US History** - Eleanor Roosevelt extremely important.

37. First 100 Days During his first 100 days FDR proposed 15 bills known as The First New Deal Three Goals: 1.) relief 2.) recovery 3.) reform

38. First 100 Days Day 1 – convinced congress to pass with the Emergency Banking Bill. - FDR closes banks for four days. - Banks could get accounts into order

39. First 100 Days Day 8 – delivers first fireside chat. - Fireside chats are important form of communication. - FDR explains bank closures. - He calms the American public. - People believe their money is safe in the bank.

40. First 100 Days FDIC Federal Deposit Insurance- Insured individual bank accounts up to $5000. -Securities and Exchange Commission regulated stock market.

41. First 100 Days Roosevelt administration created programs and agencies. These alphabet agencies would 1.) Aid workers. 2.) stimulate economic growth.

42. TVA – Tennessee Valley Authority

45. New Deal Agencies Farmers - Agricultural Adjustment Act (AAA) paid farmers subsidies not to plant on part of their land and to kill off excess livestock. Alphabet Soup- New Deal Agencies Most Americans wanted jobs not handouts.

46. New Deal Propaganda

48. Impact of the New Deal - African Americans- - surprised ND did not address support equality. - hurt many sharecroppers. Native Americans – - Indian New Deal gave Indians economic assistance and control over affairs. BOTH faced discrimination when competing with white Americans for limited # of jobs.

49. Opposition to the New Deal The Right’s ( R ) View -Made government too powerful. - “The Challenge to Liberty” By Herbert Hoover The Left’s ( D ) View - New Deal didn’t do enough. Socialist like ND programs b/c govt. was moving into private sector.

50. Opposition to the New Deal The Populist View- -Spokesman for the poor. -Huey Long – “Share our wealth”

51. The Second New Deal First New Deal focused on: 1.) Banking system 2.) farmers 3.) Unemployed 1935 FDR issues the Second New Deal. Focused on: 1. )The elderly 2.) The poor. 3.) The unemployed

52. The Second New Deal Social Security Act- Established: - unemployment insurance - insurance for work related accidents. - provided aid for poverty-stricken mothers and children, and disabled. ** most popular & significant New Deal programs.**