GREAT DEPRESSION AND

THE NEW DEAL

CAUSES OF THE GREAT DEPRESSION

OVERPRODUCTIONMore products made than people could buy

SPECULATIONLed to crash in 1929. People invested in rising stock prices. Speculation in real estate holdings; prices fell in a crash in October 1929.

UNEVEN DISTRIBUTION OF INCOME

SHAKY BANKING PRACTICESBankers invested depositors’ money poorly

RESTRICTED INTERNATIONAL TRADEAmericans put up high protective tariffs, restricting international trade

HUMAN IMPACT OF THE DEPRESSION

NO SAFETY NETHigh unemployment, bank failuresand foreclosures

RECORDING THE MISERY:

DORTHEA LANGE:Recorded the misery of the people in herphotographs

JOHN STEINBECKWrote about the suffering of migrant families during the Depression in a series of articles. Grapes of Wrath

DUST BOWL (1930s)Heavy winds carried top soil away, buried homes, and destroyed harvests. Over a million farmers were driven off their land.

FDR—FRANKLIN ROOSEVELT

BRAIN TRUSTGroup of talented advisers to the President

FIRESIDE CHATSRoosevelt used the radio to speak directly to the American people

NEW DEALFDR’s program for helping the nation survive the Depression-He called Congress into special session when he took office in order

to pass this legislation-Much of his program was passed in 100 days-Consisted of programs focused on “Relief, Recovery, and Reform”

THE NEW DEAL

RELIEFShort term actions designed to help people until the economy recovered-BANK HOLIDAY closed all banks for restructuring-Created government jobs to get people back to work

CIVILIAN CONSERVATION CORPS (CCC)PUBLIC WORKS ADMINISTRATION (PWA)WORKS PROGRESS ADMINISTRATION (WPA)

RECOVERYRestores incentives to produce (make/supply goods)

-NATIONAL RECOVERY ADMINISTRATION (NRA)-AGRICULTURAL ADJUSTMENT ACT (AAA)

NEW DEAL CONTINUED

REFORMMeasures to remedy problems of the economy and prevent depressions

-FDIC insured bank deposits to restore confidence in banks-SEC agency to watch over stock markets and prevent

collapse-SOCIAL SECURITY ACT provided a safety net for workers

with unemployment insurance, old age pensions, and insurance for families of those who died early; paid for by contributions of employees and employers.

IMPORTANT PEOPLE

HERBERT HOOVERPresident when Great Depression began. Believed in “rugged individualism” and failed to take enough measures against the Great Depression.

FRANKLIN D. ROOSEVELT (FDR)Elected President in 1932; introduced a New Deal program to get the economy moving again.

JOHN STEINBECKWriter during the Great Depression. Wrote The Grapes of Wrath

ELEANOR ROOSEVELTA political activist who served as the eyes and ears to her husband, President Franklin Roosevelt

AND DON’T FORGET…

MEXICAN REPATRIATIONUnder the Immigration Acts of the 1920s there were no restrictions on immigration from Mexico (except a medical and literacy test in Spanish). Hoover authorized a special Mexican Repatriation Act to immigrants back to Mexico and more than half a million were forcibly sent back to Mexico. Many may have been lawful American citizens who became separated from their families.

REACTIONS TO THE NEW DEAL Critics of the New Deal included:

Dr. Francis TownsendHuey LongFather Coughlin

COURT PACKING PLANFDR’s plan to add additional justices to the Supreme Court after they declared some of his programs illegal.