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The Depression and New Deal. The Stock Market Crash and Underlying Causes of the Depression. Why does the 20s bull market collapse? Inflated stock values Borrowing to buy stocks Stock Market Crash – October 1929 Underlying economic weaknesses Durable goods and construction

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the stock market crash and underlying causes of the depression
The Stock Market Crash and Underlying Causes of the Depression
  • Why does the 20s bull market collapse?
    • Inflated stock values
    • Borrowing to buy stocks
    • Stock Market Crash – October 1929
  • Underlying economic weaknesses
    • Durable goods and construction
    • Corporate profits vs. wages
    • Consumer indebtedness
    • Banking and stock-brokerage
    • Agricultural sector weakness
    • High Tariffs
ecological disaster
Ecological Disaster
  • The “Dust Bowl”
  • Agricultural prices (1929-1932)
  • Foreclosures and farm abandonment

“The farmers are all in the same class. Broke—financially, underfeed.[sic] —under clothed, all have the blues and disgusts.”--John A. Garner

  • Hitting the Road
    • “Okies”
minorities and the depression
Minorities and the Depression
  • Mexican-Americans
    • Unemployment rates
    • Forced repatriation
  • African-Americans
    • Unemployment rates
    • Lynchings “create vacancies”
contrasting approaches to national emergency
Contrasting Approaches to National Emergency

Franklin Delano Roosevelt

Herbert Hoover and voluntarism”

roosevelt s new deal
Roosevelt’s New Deal
  • Bank Holiday and Emergency Banking Act
  • Agricultural Adjustment Act (AAA)
  • Federal Emergency Relief Administration
  • Civilian Conservation Corps
  • National Youth Administration
  • Works Progress Administration
  • Social Security Act
assessing the new deal
Assessing the New Deal
  • Expansion of Federal Spending
  • Transformation of State Bureaucracies
  • Establishment of a welfare state
  • Maintenance of American income levels
expansion of government
Expansion of Government
  • Government spending on public aid (all levels)
    • 1913-- $21 million
    • 1932-- $208 million
    • 1939-- $4.9 billion
  • Public Aid as percentage of all government expenses
    • 1913-- 1%
    • 1933-- 6.5%
    • 1939-- 27.1%
  • Per Capita spending on public aid (all levels of government)
    • 1913-- $.22
    • 1939-- $37.80