Causes of Great Depression A Uneven Distribution of
Causes of Great Depression • A. Uneven Distribution of Income – Richest 1% owned approximately 40% of the country’s wealth • B. Overproduction – Country had a huge surplus of excess goods • C. Loss of Export Sales – Many countries put high tariffs on other countries’ imported goods – thus making exports for every country (including U. S. ) go down… – People worldwide can’t afford any imported goods • D. Federal Reserve’s Failure to Raise Interest Rates – Banks w/ risky investments and gambled w/ risky loans • **E. Stock Market Crash
Herbert Hoover’s Policy • He opposed direct relief by federal govt. • 1) Voluntary conferences with industry leaders (ordered them to stop cutting wages) • 2) National Credit Corporation – Created pool of money to enable banks to lend money • 3) Reconstruction Finance Corporation – Make loans to banks, railroads, agriculture Most of Hoover’s measures were not successful…
FDR’s New Deal • Increased govt. control – too powerful – Duty to maintain safeguard that protected people from economic disaster – Opposition from both the RIGHT and LEFT of the government
Left & Right Oppose New Deal • Left (liberals) • 1) Huey Long – Radical ideas… cut down by assassin’s bullet (1935). • 2) Father Coughlin – Accused Jewish bankers of an international conspiracy… That they caused the Great Depression. • 3) Dr. Townsend – Proposed ‘Old Age Revolving Pension’… Retirees get a $200 check monthly… but have to spend it ALL by the end of the month. • 4) Upton Sinclair – Shocked conservatives with his policies… Almost won the governorship of California. He started the liberal wing of the Democratic Party. • Right (conservatives) • 1) too much control by federal govt. • 2) too many regulations on business • 3) too much deficit spending
FDR “Court-packing” Scheme Judicial Procedures Reform Bill of 1937 • Wanted to add justices that would support the New Deal’s programs • Justices who served 10+ years, over 70 years old who did not retire – President could appoint additional justice • DIDN’T WORK
REMINDERS • TEST: Tuesday (1920 s, Great Depression, New Deal) • REVIEW: Monday • BY SAT 12 pm: Digital copy of PPTs and Study Guide will be uploaded.
- Slides: 6