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The Great Depression. ( Standard 11. 6: The Great Depression and how the New Deal fundamentally changed the role of the federal government.). Herbert Hoover Republican. Believed economy would recover by itself. Big business was a key factor in economic recovery.
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The Great Depression (Standard 11. 6: The Great Depression and how the New Deal fundamentally changed the role of the federal government.)
Herbert Hoover Republican. Believed economy would recover by itself. Big business was a key factor in economic recovery. Hawley-Smoot tariff was passed to protect domestic industries. Europe raised their tariffs. Reconstruction Finance Corporation (RFC) was created to help banks extend credit and loans to ordinary citizens. Against direct federal aid to help recovery. Provided some unemployment relief, but this was too late. Franklin D. Roosevelt Democrat. Brought new ideas about the role of government. Had compassion for the ordinary citizens of the country. Communicated every week with the people by radio to provide moral support. “New Deal” programs were pushed through Congress to provide relief, create jobs, and stimulate economic recovery. Changed the way our government dealt with the people of the United States. Election of 1932
Causes of the Great Depression • Speculation in the 1920s caused many people to buy stocks with loaned money and this was based on a false optimism. • The stock market boom was very unsteady, because it was based on borrowed money and when investors lost confidence, the stock market collapsed. • The stock market crashed in October of 1929. • Western Europe was hit with a depression that was going to change the face of the continent.
Causes of the Great Depression • Short sighted government economic policies were another factor in the economic problems of the 1930s. • Politicians believed that business was the key business of America. • Congress protected business with high tariffs and stayed out of their way. • These actions hurt American farmers and international trade.
Causes of the Great Depression • The economy was not stable as our national wealth was not spread evenly . • A few families controlled a major portion of our countries wealth. • Their spending was done on a limited basis and did not stimulate the American economy.
Causes of the Great Depression • Supply was greater than demand. • Prices went up and Americans could not afford anything. • Farmers and workers did not profit as unevenness of prosperity made recovery difficult. • A drought in the heart of the country contributed to the problems faced by farmers.
A drought in the South lead to dust storms that destroyed crops. “The Dust Bowl”
The South Was Buried • Crops turned to dust=No food to be sent out • Homes buried • Fields blown away • South in state of emergency • Dust Bowl the #1 weather crisis of the 20th century
“New Deal” Programs • President Roosevelt took office in 1933 and immediately went to work creating new programs to give relief, create jobs, and stimulate economic recovery. • These programs were called the “New Deal” or “alphabet soup.” • The entire country was behind the president as they were ready for a change. • Roosevelt would give them an answer as he pushed program after program through Congress during his first hundred days in office.
“New Deal” Programs • Federal Deposit Insurance Corporation • FDIC – insure bank deposits. • Federal Emergency Relief Administration • FERA - public works programs and direct relief. • Civil Works Administration • CWA – public works program. • Civilian Conservation Corps • CCC – work to maintain and restore forests, parks, and beaches.
“New Deal” Programs • Indian Reorganization Act of 1934 • Returned unallocated land to Native Americans • National Industrial Recovery Act • NIRA – helped businesses and workers. • Public Works Association • PWA – large constructions projects. • Federal Securities Act of May 1933 • SEC – regulated the stock market. • Home Owners Loan Corporation • HOLC – refinanced home mortgages. • Agricultural Adjustment Administration • AAA – paid farmers not to grow crops.
“New Deal” Programs • Tennessee Valley Authority • TVA – provided cheap electricity to region. • Works Progress Administration • WPA – built schools, hospitals, airfields, etc. • Farm Security Administration • FSA – loaned money to farmers and set up camps. • National Labor Relations Act • NLRB – Wagner Act to help working man. • Fair Labor Standards Act of 1938 • Banned child labor and set a minimum wage. • Social Security Act • Provided old-age pensions, unemployment insurance, workers compensation.
