The Great Depression and the New Deal I

The Great Depression and the New Deal

I. The Great Depression

The Stock Market Boom § Stock exchange: organized system for buying and selling shares. § Investors start buying on margin (Credit) § Stock market panic: Crash has people losing money and selling stocks

The Depression Begins § Farmers had suffered throughout the 1920 s 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

Depression Facts § By 1932, 25% of Americans were unemployed.

Hoover and the Great Depression § Although President Hoover thought the Depression was temporary, he took aggressive action to improve the Depression with the help of the federal government. § He created a wide variety of agencies and boards that contained the best minds in American business to suggest solutions § Public works: projects to make jobs on highways, parks, or libraries.

Facts on Herbert Hoover’s Presidency § Bonus Army: they wanted their money from fighting in WWI and marched on Wash.

II. Roosevelt and the First New Deal

The Election of 1932 § Hoover’s 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. ”

Franklin D. Roosevelt § Distant cousin to Teddy Roosevelt § Married Eleanor Roosevelt (Teddy’s niece) § Elected president in 1932 § Had a “Brain Trust” (lawyers, economists) § Won in a landslide victory over Hoover. § He wanted to help the “forgotten man at the bottom. . ”

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

III. One Hundred Days § Closed banks for 4 days (Emergency Banking Relief Act)…he reorganized the banks § Passed 15 new proposals into law to help stimulate the economy and build American confidence.

Relief Measures § (PWA): Public Works—built ports, schools, and aircraft carriers § (FERA): gave relief to unemployed and needy § (FDIC): insured savings accounts by banks § (TVA): Tenn. Valley Authority—built dams and used water power, set up schools § (AAA) The Agricultural Adjustment Act: stabilized prices on farm produce through paying farmers to reduce their acreage under cultivation

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

IV. The Second New Deal

New Deal Takes Shape § FDR gave high priority to create jobs § Rebuilt the Tennessee Valley Region § Helped business and labor by backing work projects § Created 2. 5 million jobs that benefited workers and others.

Work Relief and Social Security § The Works Progress Administration (WPA) § The National Youth Administration (NYA) § The Social Security Act of 1935

V. The Last Years of the New Deal

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

Other notes for test § Minorities jobs were taken by white employers and prejudice continued against minorities. § Every week about 85 million people went to the movies to escape their cares and worries. § Francis Townsend: a California doctor that is famous for creating a monthly pension.

Vocabulary to know § migrant worker: After the Dust Bowl people that moved place to place looking for work § pension: Money that an older person receives after retirement that is paid monthly § unemployment insurance: A tax that was put on workers and it funded people that lost their jobs is called