3. Causes
Buying on credit
Government policies
Not regulating stock market or businesses
Weak international economy
Other countries still recovering from WWI
The Stock Market Crash
4. Stock Market Crash
Buying On Margin
Making down payments and borrowing the
rest
October 29, 1929 – Black Tuesday
Rapid selling of stocks
values drop $14 billion
6. DEPRESSION SPREADS
Millions of people lost their jobs.
Banks recalled loans.
People take money out of banks
Banks can’t pay back money so they
close
People lose money in banks
7. THE DUST BOWL
Drought and dust storms in the
Midwest forced many farmers to
leave their land and migrate west in
search of jobs.
11. Impact
Unemployment – 25%
Rural Life
Farmers Suffer
Dust Bowl – severe drought
“Okies” – farmers who moved to California
Less Leisure Activities
Movies, sports, etc.
12. Hoover’s Response
Policies to aid businesses
Business recovers jobs people recover
Reconstruction Finance Corporation
Gave money to businesses
Stopped payments of war debts
14. The Bonus March
20,000 jobless WWI veterans go to
Washington DC and demand bonus for
war
Hoover sends in army
Destroys popularity
16. Franklin Delano
Roosevelt
President 1932 – 1945
The New Deal
Plan to end Great Depression
Relief
Recovery
Reform
End of Laissez-faire
17. Relief
1933 Bank Holiday to stop collapse
Federal Emergency Relief Act (FERA)
Relief to unemployed
Public Works Administration (PWA)
Built ports, schools, aircraft carriers
18. Relief
Civilian Conservation Corps (CCC)
Planted trees, built bridges, parks
Works Progress Administration (WPA)
Built hospitals, schools, parks, airports
Tennessee Valley Authority (TVA)
Built dams, cheap electric power
19. Recovery
National Industrial Recovery Act
NRA
Regulated wages, prices, working conditions
Agricultural Adjustment Act (AAA)
Paid farmers not to grow certain crops
21. New Deal Effects
Labor
Roosevelt takes pro-labor approach
Unions increase
Native Americans
Indian Reorganization Act
Attempt to restore Native American culture
22. New Deal Effects
African Americans
Little benefit
Latinos
Many suffered – worked in agriculture
Women
Little help in workplace
23. Controversy
Supreme Court finds many laws
unconstitutional
National Recovery Act
Congress can’t regulate intrastate commerce
Agricultural Adjustment Act
Agriculture is a local matter not an interstate
matter
24. Court-Packing Plan
Supreme Court continued to veto
legislation
FDR asked congress to allow him to
increase number of justices from 9 to 15
Not allowed – separation of powers
26. Political Opposition
Business
Claimed FDR and government had too much
power
Communists, Socialists gain support
27. New Deal Evaluation
Does not end Great Depression
WWII does
Did help some people
Gave more power to president and
government
More involvement in business and social life