1. THE GREAT DEPRESSION AND THE NEW DEAL Cause and Effect

2. LEARNING OBJECTIVES:
SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal.

3. The Great Depression and The New Deal
Source

4. The Great Depression Main Idea:
As the Roaring 20's ended, severe economic problems led to the Great Depression that lasted throughout the 1930's

5. The Roaring 20’s Ended This was a time in our country of Economic Boom
People were spending money, businesses were growing
Businesses continued to operate gaining investors in their companies
Many bought stock on speculation hoping that the companies would grow and they would make money

6. Causes of The Great Depression
The Great Depression was the worst economic crisis in the history of the US.
Started August 1929 with a recession
Too many goods produced and not being bought
In the Roaring 20’s people overspent and now there was lots of consumer debt
Banks were giving out unsafe loans
There was a lot of speculation or margin buying
Farms were in trouble, droughts, falling prices
Businesses had to make cuts and laid off employees

7. What happened? The Great Depression
Americans and businesses had over speculated and over spent
They could not pay the debt
Businesses had to cut back and people lost their jobs
No jobs meant consumers were not buying goods
Businesses lost more money and borrowed more money
Debt increased with people

8. Herbert Hoover is President
As President:
He was a businessman and supported a laissez- faire government
He became President the economy was booming
During his 1st year as president the stock market crashed
People blamed him and things went from bad to worse
Banks are foreclosing on homes
People are losing their jobs
Farmers have food they cannot sell

9. Herbert Hoover as President
He advocated for rugged individualism with every man fending for himself
He believed in limited government and it would work itself out
He thought if we wait it out, the market will correct itself

10. Herbert Hoover as President
Hoover tried to bring relief:
The American Agricultural Act to help farmers
Smoot Hawley Tariff to protect goods
Reconstruction Finance Corporation offered loans to businesses
Cut taxes to give people more money to spend
Ultimately is actions and these initiatives did not help

11. The Great Depression-The Market Crashes
Stock Market Crashes
Black Tuesday occurred when 16 million shares are traded on one day.
This lead to panic and billions of dollars lost in a single day
This bankrupted investors in the New York Stock Exchange

12. Effects Of The Great Depression
Banks Fail
The public was in a panic and worried about their money
People wanted to take all there money out of banks and this was referred to the “bank run”
By them taking out all their money banks did not have enough money to operate
In 1929, 650 banks failed and by 1933 half of the banks were gone

13. The Great Depression: Life in America
Unemployment rates soared and millions of people were without jobs and income
Hundreds of people would show up for just a few jobs

14. The Great Depression And Its’ impact On Families
The Great Depression had devastating effects on the American Family
Soup kitchens and bread lines formed
Hoover asked local groups to take care of locals

15. The Great Depression And Its’ impact On Families
The Great Depression had devastating effects on the American Family
Home foreclosures
Moving to where jobs may be
Needing some place to live people created temporary homes
These temporary homes were made out of whatever materials they could find (cardboard, tar paper, tin, scrap wood)
They were often built near rivers an became small “towns” referred to as Shanty Towns or Hooverville's

16. The Great Depression And Its’ Impact Of Farmers
The Great Depression had devastating effects on the Farmer
Farmers were struggling before the depression because of industrialism
The market collapsed, farmers could not sell their product
Banks foreclosed on the farmers seizing their equipment and land
A drought occurred in the Great Plains creating the “Dust Bowl” that went on for years

17. America Wants a Change
Franklin Delano Roosevelt, FDR becomes President

18. FDR Takes Office: Promised quick action
He delivered in the first 100 days of his presidency with 15 new deal laws leading to bold programs to help the country

19. The Solution- The New Deal
Relief
Relief for the unemployed and poor
Recovery
Recovery of the economy to normal levels
Reform
Reform of the financial system to prevent a repeat depression

20. The Solution- The New Deal

22. FDR Wanted to Reach the People
Roosevelt held thirty Fire Side Chats
These connected him with the country
He delivered them with a sense of confidence that reassured the people their was hope
It was a way to sell his program to the American people

23. Additional Resources
Crash Course on The New Deal
Crash Course on The Great Depression
Article on What Caused the Dust Bowl
Reading Like a Historian, The New Deal. This has 7 primary and secondary sources that could be used as individual lessons to discuss ideas from The New Deal
Reading Like a Historian, Social Security. Primary and Secondary sources on social security
The History Channel, The Great Depression, video 3 minutes

24. Additional Resources
article and short video about the Dust Storm
Cause and Effects of the Great Depression, video
article and video biography of Franklin D. Roosevelt
article on the great depression listing the causes
videos and articles on key figures