1. Great Depression Problems New Deal Solutions

2. Causes of the Great Depression
Uneven distribution of wealth- workers not paid enough to buy what they produce
Low interest rates->Businesses over-borrow money->over-produce goods beyond market demands
Market flooded with goods that can’t be sold= businesses lay off workers and shut down

3. Causes of the Great Depression
Speculation in the stock market= crash causes loss of money and bank collapse
Cyclical effect of laying off workers who can’t afford the products, then laying off workers because products can’t be sold

4. Life During the Great Depression
Record-high Unemployment
Loss of homes= increased homeless population builds shantytowns (Hoovervilles)
Anger of people affected by the Depression= hunger marches, protests
Rise of entertainment (movies, music, radio shows, etc) to distract people
Federal government programs to help citizens in need

11. The New Deal
Federal Government programs designed to help people in need and stimulate the national economy
Many current assistance programs either based on or continued from the New Deal

12. Banking and Finances Emergency Bank Relief Act (EBRA)- regulated banks
Federal Deposit Insurance Corporation (FDIC)- Insured bank deposits
Farm Credit Administration (FCA)- refinanced farm mortgages
Home Owner’s Loan Corporation (HOLC)- financed homeowners’ mortgages

13. Agriculture and Industry
Agriculture Adjustment Administration (AAA)- paid farmers to limit over-production
National Industrial Recovery Act (NIRA)- limited federal production, set prices
National Labor Relations Act (NLRA)- right for workers to form unions and bargain collectively
Tennessee Valley Authority (TVA)- Rural modernization, developed seven states

14. Work and Relief
Civilian Conservation Core (CCC)- created forestry job for young men
Federal Emergency Relief Administration (FERA)- founded city and state relief programs
Public Works Administration (PWA)- created work programs for public project (roads, bridges, schools)

15. Social “Safety Net” Social Security Act (SSA)
Provided income for senior citizens, handicapped, and unemployed
Monthly retirement benefit for people over 65