1. Great Depression Aim: What caused the Great Depression?
Do Now: Explain buying stocks on speculation.
DESPAIR OF GREAT DEPRESSION

2. President Hoover 1928 Economic boom of the 1920s
Speculation – buying/selling stock for quick profit
Buying on margin – pay for small part of stock and borrow money to pay for the rest

3. Stock Market Crash 1929 Stock prices dropping in Sept.
Thousands sell their stock
Prices drop lower
Black Tuesday, Oct. 29 – millions of shares sold
Prices plummet
Economic depression

4. Stock Market Crash 1929 People couldn’t repay loans (bought on margin)
Bank run – people rush to bank to withdraw $
Banks don’t keep all money on hand
Thousands of banks close
Businesses go bankrupt
Workers fired – high unemployment

5. Great Depression Severe economic downturn – 1929-1940s
Unemployment – 25% in 1933
Banks and businesses close
World depression

7. Hoover Stays out of business affairs
Thought economy would work itself out
Bonus Army – thousands of veterans march on White House to get bonus from fighting WWI
Army removes veterans

8. “Hoovervilles”
Poor areas where people lived in shacks

9. Great Depression Aim: How did F.D.R.’s New Deal try to help Americans?
Do Now: What caused the Great Depression?
DESPAIR OF GREAT DEPRESSION

10. Great Depression Aim: Was the New Deal more positive or more negative?
Do Now:
How did FDR try to help Americans?
DESPAIR OF GREAT DEPRESSION

11. Franklin Delano Roosevelt 1932
“Only thing we have to fear is fear itself”
Boost public confidence
Bank holiday – shutdown of banks for 4 days
Fireside chats – radio talks made by FDR
Tell Americans to put money in banks

12. Alphabet Soup Programs
FERA (Federal Emergency Relief Administration)
PWA (Public Works Admin.)
AAA (Agricultural Adjustment Admin.)
TVA (Tennessee Valley Authority)
CCC (Civilian Conservation Corps)
FDIC (Federal Deposit Insurance Corporation)
NRA (National Recovery Admin.)
WPA (Works Progress Admin.)
SEC (Securities and Exchange Commission)

14. The First 100 Days
New Deal – policy to fight the depression through gov’t programs
Congress passes most laws with little debate
Three major goals
Relief for the hungry and jobless
Recovery for agriculture and industry
Reforms to change the way the economy worked

15. National Recovery Act (NRA)
Purpose: recovery of industry
Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

16. Agricultural Adjustment Act (AAA)
Purpose: the recovery of agriculture
Paid farmers who agreed to reduce production of basic crops
Soil conservation

17. Federal Emergency Relief Admin (FERA)
Purpose: relief
Gave money to states so they could distribute money, clothing, and food to the unemployed

18. Civilian Conservation Corp (CCC)
Purpose: relief
Gave outdoor work to unemployed men
They received $30 per month, but $22 went back to the family

19. Wall Street Need to prevent another crash from happening again
Make sure loans are given to people who can pay it back
No buying stocks on speculation or margin
SEC (Securities and Exchange Commission) – set up to monitor activities on Wall Street

20. Social Security
1935
Workers and employers made payment into a special fund
Elderly would draw from that fund when they retired

21. Court Packing
Supreme Court – Judicial review – can rule laws of Congress unconstitutional
Threatens New Deal
FDR tries to add 6 judges who agreed with him
So majority would vote in his favor
Law doesn’t pass
Hurt FDR’s image

22. Effects of the Depression
Fear of losing $ and property again
Made $ the most important thing
New Deal didn’t end the Depression
Did help
Restored people’s confidence
World War II would end it

23. Big Government Strengthen power of presidency
Gov’t responsible for people’s well-being
Rely on federal gov’t
New Deal causes American debt

24. New Deal: Good or Bad Good Bad
Government has a duty to help all citizens
Government should not interfere in business and in people’s private lives
New Deal helped the country through the worst days of the Depression
New Deal led in increases in the national debt
At a time when Europe turned to dictators to solve the Depression, the New Deal saved the nation’s democratic system
The New Deal did not end the Great Depression

25. Debate Liberal – favor gov’t action to bring about reform
Conservative – favor fewer gov’t controls and freedom in economic matters
Because of New Deal – government is more involved in society than ever

26. Homework
Paragraph
Should the government play an active role in helping those who are in need? Be specific.

27. Dust Bowl Drought in the Great Plains
Result from poor farming tactics
Dry soil and dust picked up by storms
Dust storms turned day into night

28. Topics for Test Roaring ’20s Great Depression
Harding, Coolidge, and Hoover – laissez faire
Assembly line and installment buying
Great Depression
Causes
FDR
New Deal programs
Effects of Depression