The Depression Begins

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The Depression Begins

• Farmers had suffered throughout the 1920s and
  were the first group to plunge into depression
• Businesses increased profits while holding down
  material costs and wages, thus suppressing
  consumer spending power
• Global economic problems created by World War I
  were the main factors

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Hoover and the Great Depression

• President Hoover took aggressive action to stem
  the depression by using the power of the federal
  government
• He created a wide variety of agencies and boards
  that contained the best minds in American
  business to suggest solutions
• He also sponsored a tax cut hoping to stimulate
  the economy

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The Election of 1932

• Hoovers unpopularity denied him his second term
  and ushered Franklin Roosevelt into the White
  House
• Roosevelt promised a New Deal for Americans and
  relief from the depression
• The only thing we have to fear is fear itself.

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The First New Deal Relief Measures

• The Federal Emergency Relief Administration
  (FERA)
• The Civil Works Administration (CWA)
• The Public Works Administration (PWA)
• The Agricultural Adjustment Act stabilized
  prices on farm produce through paying farmers to
  reduce their acreage under cultivation

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The Banking Crisis

• Many American banks had closed immediately after
  the stock market crash and the public no longer
  trusted them
• Roosevelt tabled an emergency Banking Relief Act
  that gave the executive broad powers of financial
  reform
• Additional legislation followed strengthening the
  Federal Reserve and establishing the FDIC to
  insure deposits

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Industrial Recovery

• The National Industrial Recovery Act (NIRC)
• The National Recovery Administration (NRA)
• National Labor Board

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The Second New Deal Work Relief and Social
Security

• The Works Progress Administration (WPA)
• The National Youth Administration (NYA)
• The Social Security Act of 1935

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The Battle of the Supreme Court

• As the first act of his second term, Roosevelt
  announced a plan to reform the judicial system
• Angry with the Supreme Court for foiling several
  New Deal measures, the president was determined
  to create a more willing court
• His scheme was complex and produced a public
  outcry of dictatorship Roosevelt quickly pulled
  back his plan
• Ironically, the Court began passing practically
  every new initiative after this event

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