The Great The Great DepressionDepression

1929-19411929-1941

Causes of The Great Causes of The Great DepressionDepression

People over speculated on stocks, using borrowed People over speculated on stocks, using borrowed money that they could not repay when stock prices money that they could not repay when stock prices crashed. This means they bought their stock on crashed. This means they bought their stock on credit or someone loaned them the money. credit or someone loaned them the money.

The stock market crashed because people The stock market crashed because people panicked and started to sell their stock. As a panicked and started to sell their stock. As a result, stocks became worthless.result, stocks became worthless.

The stock market crashed on October 29The stock market crashed on October 29thth, 1929, , 1929, also known as “also known as “Black TuesdayBlack Tuesday”.”.

The start of the Great Depression is often The start of the Great Depression is often associated with the stock market crash.associated with the stock market crash.

Causes of the Great Causes of the Great Depression continuedDepression continued

The Federal Reserve failed to prevent the The Federal Reserve failed to prevent the collapse of the banking system.collapse of the banking system.

High tariffs made trade with other countries High tariffs made trade with other countries difficult. difficult.

Farm income shrank.Farm income shrank. Industries declined which caused layoffs and Industries declined which caused layoffs and

lower wages.lower wages.

Impact and Effects of the Impact and Effects of the Great Depression on Great Depression on

AmericansAmericans During an economic depression unemployment During an economic depression unemployment

rises, there is an increased number of rises, there is an increased number of bankruptcies, and an increased number of poor bankruptcies, and an increased number of poor citizens.citizens.

During the Depression a large number of banks During the Depression a large number of banks and businesses failed.and businesses failed.

One – fourth of workers were without jobs.One – fourth of workers were without jobs. A large number of people were hungry and A large number of people were hungry and

homeless.homeless. Farmers’ income fell to low levels.Farmers’ income fell to low levels. Many people moved to Hoovervilles, which were Many people moved to Hoovervilles, which were

shacks made by homeless people, because they shacks made by homeless people, because they were forced to leave their homes due to were forced to leave their homes due to economic reasons.economic reasons.

The Dust BowlThe Dust Bowl The Southern Great Plains suffered an environmental The Southern Great Plains suffered an environmental

disaster during the 1930’s known as the “Dust Bowl”. disaster during the 1930’s known as the “Dust Bowl”. The hardest hit were western Kansas and Oklahoma, The hardest hit were western Kansas and Oklahoma,

northern Texas, and eastern Colorado and New northern Texas, and eastern Colorado and New Mexico.Mexico.

Causes of the Dust Bowl included drought, high Causes of the Dust Bowl included drought, high winds, and careless farming techniques. winds, and careless farming techniques.

As a result thousands of farmers went bankrupt and As a result thousands of farmers went bankrupt and had to give up their farms. Many migrated to had to give up their farms. Many migrated to California and became migrant workers, moving from California and became migrant workers, moving from place to place to harvest fruits and vegetablesplace to place to harvest fruits and vegetables

John Steinbeck’s novel,John Steinbeck’s novel, “The Grapes of Wrath”,“The Grapes of Wrath”, portrayed the difficulties of Dust Bowl farmers.portrayed the difficulties of Dust Bowl farmers.

Roosevelt’s New DealRoosevelt’s New Deal President Franklin D. Roosevelt President Franklin D. Roosevelt

succeeded Herbert Hoover in succeeded Herbert Hoover in 1932 as president.1932 as president.

Hoover was blamed for being Hoover was blamed for being unable to solve the problems of unable to solve the problems of the Great Depression. He was the Great Depression. He was president when the Great president when the Great Depression began.Depression began.

Roosevelt created programs that Roosevelt created programs that were aimed at economic relief, were aimed at economic relief, recovery, and reform. They will recovery, and reform. They will be known as the New Deal. be known as the New Deal.

The New Deal programs were The New Deal programs were passed by Congress during the passed by Congress during the “Hundred Days”. Other parts of “Hundred Days”. Other parts of the New Deal will be passed in the New Deal will be passed in the years to come.the years to come.

New Deal ProgramsNew Deal Programs The New Deal affected banking, the stock The New Deal affected banking, the stock

market, industry, agriculture, public works, relief market, industry, agriculture, public works, relief for the poor, and conservation of resources. for the poor, and conservation of resources.

It reformed banking problems, farming It reformed banking problems, farming overproduction, and stock market risksoverproduction, and stock market risks

The New Deal gave the federal government more The New Deal gave the federal government more control over the nation’s economy as well as the control over the nation’s economy as well as the idea that the government must take idea that the government must take responsibility for helping those in need.responsibility for helping those in need.

Franklin Roosevelt spoke over the radio to Franklin Roosevelt spoke over the radio to explain his New Deal programs to the American explain his New Deal programs to the American public. These will be called “Fireside Chats”.public. These will be called “Fireside Chats”.

New Deal Programs New Deal Programs continuedcontinued

Specific New Deal ProgramsSpecific New Deal Programs1.1. Agricultural Adjustment Act – (AAA) Paid Agricultural Adjustment Act – (AAA) Paid

farmers not to grow crops.farmers not to grow crops.2.2. Civilian Conservation Corps – (CCC) Provided Civilian Conservation Corps – (CCC) Provided

jobs for young men.jobs for young men.3.3. Tennessee Valley Authority – (TVA) Built dams Tennessee Valley Authority – (TVA) Built dams

to provide cheap electric power to seven to provide cheap electric power to seven southern states and built schools and health southern states and built schools and health centers. It improved the economic life of an centers. It improved the economic life of an entire region.entire region.

4.4. Works Progress Administration – (WPA) Works Progress Administration – (WPA) Employed men and women to build hospitals, Employed men and women to build hospitals, schools, parks, and airports.schools, parks, and airports.

New Deal Programs New Deal Programs continuedcontinued

5.5. Public Works Administration – (PWA) Built ports, schools, Public Works Administration – (PWA) Built ports, schools, and aircraft carriers.and aircraft carriers.

These (1-5) provided employment and income for Americans.These (1-5) provided employment and income for Americans.

6.6. Federal Deposit Insurance Corporation – (FDIC) Insured Federal Deposit Insurance Corporation – (FDIC) Insured savings accounts in banks approved by the governmentsavings accounts in banks approved by the government

7.7. Social Security Act – (SSA) Set up a system of pensions for Social Security Act – (SSA) Set up a system of pensions for the elderly, unemployed, and people with disabilities. the elderly, unemployed, and people with disabilities.

- The SSA created a tax on workers and employers. - The SSA created a tax on workers and employers. The The money provided the pensions for money provided the pensions for retired people. retired people.

- Another tax on employers funded unemployment - Another tax on employers funded unemployment insurance insurance payments to people who lost their jobs. payments to people who lost their jobs.

New Deal Programs New Deal Programs continuedcontinued

Social Security is best Social Security is best defined as a retirement plan.defined as a retirement plan.

It was established to provide It was established to provide a source of income for a source of income for retired workers, people with retired workers, people with disabilities, the elderly poor, disabilities, the elderly poor, and children of parents who and children of parents who could not support them.could not support them.

Social Security was a lasting Social Security was a lasting reform of Pres. Roosevelt’s reform of Pres. Roosevelt’s New Deal program.New Deal program.

Social Security, the FDIC, Social Security, the FDIC, and unemployment and unemployment insurance were efforts to insurance were efforts to reform the U.S. economy.reform the U.S. economy.

The Labor MovementThe Labor Movement

Workers benefited during the New Deal in that Workers benefited during the New Deal in that they gained the right to form unions, the right to they gained the right to form unions, the right to collective bargaining (discussions between collective bargaining (discussions between employers and union representatives of workers employers and union representatives of workers over wages, hours, and working conditions), over wages, hours, and working conditions), child labor ban, and a minimum wage of 40 cents child labor ban, and a minimum wage of 40 cents an hour.an hour.

Union membership increased during the 1930sUnion membership increased during the 1930s The Wagner Act guaranteed workers the right to The Wagner Act guaranteed workers the right to

form unions to bargain collectively with form unions to bargain collectively with employers. employers.

The End of the Great The End of the Great DepressionDepression

The Great Depression will last from 1929 to The Great Depression will last from 1929 to 1941.1941.

On December 7On December 7thth, 1941 the Japanese will bomb , 1941 the Japanese will bomb the U.S. naval base at Pearl Harbor and force the U.S. naval base at Pearl Harbor and force the U.S. into World War II. Factories will begin the U.S. into World War II. Factories will begin producing war material thus employing workers. producing war material thus employing workers. Farmers will produce food and crops needed for Farmers will produce food and crops needed for the war effort. Millions of men and women will the war effort. Millions of men and women will find themselves in the armed forces. By entering find themselves in the armed forces. By entering the war, the U.S. economy will get the boost it the war, the U.S. economy will get the boost it had been looking for.had been looking for.