GREAT

DEPRESSION
Aim: How was the
Great Depression
dealt with in
America?
Do Now: Explain
the expression on
the womans face
in the picture to the
right.

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

Stock Market Crash 1929

Stock prices dropping in Sept.

Black Tuesday, Oct. 29 millions of

shares sold

Thousands sell their stock

Prices drop lower

Prices plummet

Economic depression

Stock Market Crash 1929

People couldnt repay loans (bought on

margin)
Bank run people rush to bank to withdraw
$

Banks dont keep all money on hand

Thousands of banks close

Businesses go bankrupt

Workers fired high unemployment

Great Depression

Severe economic downturn 1929-1940

Unemployment 25% in 1933
Banks and businesses close
World depression

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

Hoovervilles

Poor areas where people lived in shacks

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

The First 100 Days

New Deal policy to fight the depression

through govt 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

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)

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

Agricultural Adjustment Act (AAA)

Purpose: the
recovery of
agriculture
Paid farmers who
agreed to reduce
production of basic
crops
Soil conservation

Federal Emergency Relief Admin (FERA)

Purpose: relief
Gave money to
states so they
could distribute
money, clothing,
and food to the
unemployed

Civilian Conservation Corp

(CCC)

Purpose: relief
Gave outdoor
work to
unemployed men
They received
$30 per month,
but $22 went
back to the
family

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

Social Security

1935
Workers and employers made payment
into a special fund

Elderly would draw from that fund when

they retired

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

Effects of the Depression

Fear of losing $ and property again

Made $ the most important thing
New Deal didnt end the Depression

Did help
Restored peoples confidence

World War II would end it

Big Government

Strengthen power of presidency

Govt responsible for peoples well-being
Rely on federal govt
New Deal causes American debt

New Deal: Good or Bad

Good
Government has a duty
to help all citizens

Bad
Government should not
interfere in business and
in peoples private lives
New Deal led in
increases in the national
debt

New Deal helped the

country through the
worst days of the
Depression
At a time when Europe
The New Deal did not
turned to dictators to
end the Great
solve the Depression, the Depression
New Deal saved the
nations democratic
system

Debate

Liberal favor govt action to bring

about reform
Conservative favor fewer govt controls
and freedom in economic matters
Because of New Deal government is
more involved in society than ever