The Great Depression

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The Great Depression

• M. Siebert
• U.S. History B

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Causes of Great Depression1929 - 1941

• Tariffs (Hawley-Smoot Tariff) and war debt
  policies that cut don foreign market for American
  goods
• Overconfidence and Economic Ignorance
  (availability of easy credit)
• Credit Installments
• Buying on Margin
• Unequal Distribution of Wealth (very few people
  putting real money into the economy)
• Crisis in the farm sector (Overproduction)

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Triggering Event

• October 29, 1929 (Black Tuesday)
• Stock Market Crash Panic-induced selling of
  stocks
• As a result of the panic induced sale of stocks -
  stock values crashed, people lost all of their
  investments, business and banks failed

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Great Depression Cont

• 25 of population out of work (Natl average in
  1933)
• Shantytowns (Hoovervilles) little towns
  consisting shacks sprang up on outskirts of town
• Soup kitchens/bread lines put in place in 1933
  people waited to receive food
• Especially difficult on African Americans and
  Latino Americans
• Dust Bowl occurred which emphasized problem

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Bread Lines
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Dust Bowl
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Dust Bowl
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Great Depression

• American Gothic
• Depicts average Midwest Farmer

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Early Years (under Hoover)

• No Direct Relief (cash payments or food)
• Americans (including Hoover) valued Rugged
  Individualism people should succeed through
  their own efforts
• Thus Hoover opposed any form of federal welfare,
  or direct relief

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FDRs New Deal (3 Rs)

• Relief ease the hardships of American people
• Recovery return the economy back healthy and
  improve national confidence and restore optimism
• Reform change the problems that caused the
  Great Depression and prevent future economic
  catastrophe

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FDR Reforms Banking

• His 1st step was to reform banking and finance
• Bank failures caused Americans to lose faith in
  the banking system
• Roosevelt declared a bank holiday and closed all
  banks to prevent further withdrawals
• Emergency Banking Relief Act Treasury dept.
  inspected banks before they could reopen

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New Deal Programs

• Civilian Conservation Corps (put young men to
  work on Conservation projects)
• Works Progress Administration (create as many
  jobs as possible, quickly)
• Securities and Exchange Commission
• Social Security Act

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New Deal Programs Cont.

• Federal Deposit Insurance Corporation
• (Glass-Steagall Act)
• National Recovery Administration (NRA)
• Tennessee Valley Authority (TVA)

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Opposition to the New Deal

• Father Charles Coughlin
• Radio personality
• Anti-Semitic, fascist
• Silenced by superiors
• Huey Long
• LA Senator
• Share Our Wealth Program
• 5,000 to all at the expense of the prosperous
• Assassinated in 1935

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New Deal and Legacy

• Expand Fed Govt. Power
• Greater Presidential Power
• Allow govt. deficit spending
• Create social programs to help citizens in need
• Concern for workers (right to strike, safe
  working conditions)
• Federal role in Environmental Conservation

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Franklin and Eleanor Roosevelt