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The Great Depression

The Great Depression. Stock Market Crashes !. Black Thursday Oct. 24, 1929 13,000,000 shares traded Black Tuesday Oct. 29, 1929 16,000,000 shares sold Losses of $15 billion in 30 days. Causes of the Depression.

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The Great Depression

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  1. The Great Depression

  2. Stock Market Crashes ! • Black Thursday Oct. 24, 1929 13,000,000 shares traded • Black Tuesday Oct. 29, 1929 16,000,000 shares sold • Losses of $15 billion in 30 days

  3. Causes of the Depression I. Agricultural Problems Very low prices – surpluses II. High Tariffs and War Debts Foreign countries can’t afford tariffs so they can’t trade – aren’t making money to pay debts Hawley-Smoot Tariff (1930) III. Availability of easy credit Buy now and pay later led to increased debt. Eventually people stopped buying leading to a cut back on spending

  4. IV. Unequal distribution of income Between 1920-1929, wealthiest 1% of the country’s income rose 75% (9% for all Americans total)

  5. President Hoover is Blamed! • Hoover • Rugged individualism - Gov’t aid would erode the character of those who receive it • “It’s part of the business cycle.” • “The economy will take care of itself.” • Hoovervilles • Symbol of the depression

  6. Hoover’s Effort • Public Works project • Too little, too late! • Bonus March • World War I veterans (25,000) demand bonus promised in 1924 by Congress early Hoover sends the army to clear out in May 1932.

  7. Give tax incentives to businesses – tax breaks in hopes that the economy will stimulate Business will then hire workers who earn and spend money ‘Trickle Down’ Economics

  8. Dust Bowl

  9. 1933-1936 Caused by removing grass & overproduction Thousands of farmers had to leave their land behind as they headed west on Route 66 Okies

  10. Roosevelt • FDR’s plans to fix the economy were known as the New Deal. • Fireside Chats – FDR used the power of radio to explain to the public how his programs would help America. • Bank Holiday – Closed all banks until new banking laws could be passed.

  11. The New Deal • FDR – governor of NY • “…the only thing we have to fear is fear itself!” • Brain Trust - FDR relied on a group of intellectual advisers for New Deal ideas. • The Hundred Days – 15 major pieces passed from 3/9/33 to 6/16/33 • Congress passed every New Deal Measure

  12. FDR • Practical not philosophical • What does it take to get the economy going again? • What do people need? • Let’s try new ideas to save the country. • Fireside Chats

  13. “Prime the Pump” • “Keynesian Economics”- John M. Keynes Demand-Side Economics • Deficit Spending – Gov’t goes into debt to jump start the economy (spend more than receive) • Create jobs – hire people – people pay taxes and spend money

  14. 3 R’s of the New Deal • 1. Relief – Payments of food, shelter, clothing – direct aid from gov’t • 2. Recovery – correct the immediate problems; “prime the pump” & create jobs • 3. Reform – legislation to insure it won’t happen again • Partially successful • Saves democratic capitalism from extremists

  15. New Deal Programs • National Recovery Act (NRA) Business-Labor Relations • “Alphabet Agencies” Jobs Programs (PWA) Business Aid (SEC) Farm Relief (TVA) Housing (HOLC) Labor Relations (Wagner Act/NLRB) Retirement (Social Security Admin)

  16. Supreme Court – declares the NRA and AAA unconstitutional In 1937 FDR attempts to increase the # of justices to 15 Hurts FDR politically Liberals New Deal not enough; still too many poor Conservatives See FDR as a socialist Gov’t too involved in individuals lives The rich also oppose FDR Critics of the New Deal

  17. Demagogues • 1: A leader who makes use of popular prejudices and false claims and promises in order to gain power • 2: A leader championing the cause of the common people

  18. Demagogues • Father Coughlin • “Radio priest” • Conservatives support him • Racist • Pro-Hitler by the end of the 1930’s

  19. Demagogues • Huey Long • “Kingfish” • Senator from LA • “Share the Wealth” • Famous for helping the poor • Assassinated

  20. Important women • Eleanor Roosevelt • Changes the role of the 1st lady from hostess to activist • FDR’s eyes and ears • Received many letters and took action to improve people’s lives

  21. Mary McLeod Bethune Educator director of Negro Affairs for the Nat’l Youth Admin Founder of Nat’l Council of Negro Women Frances Perkins 1st female cabinet member – Dept of Labor Important women

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