Objective: Students will begin their study of the Great Depression.

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• Objective Students will begin their study of the
  Great Depression.
• Drill
• -If you (the govt) pay a person to dig a hole
  and you pay another person to fill up that same
  hole, what have you accomplished?

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• John Keynes-Keynesian Economic Theory

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s/1965/1101651231_400.jpg
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• Trickle Down Theory
• -Govt gives tax cuts to big business and the
  like.
• ?
• -Big business and the like invest it in the
  economy
• ?
• -More jobs, goods and services are produced
• ?
• -Consumers have more jobs and wages to spend on
  goods and services
• ?
• -Govt make up the tax cuts with more tax revenue

• Keynesian Theory
• -Govt makes up spending with increase tax
  revenue
• ?
• -Business creates more goods, services and jobs.
• ?
• -More consumers have jobs and spend their wages
• ?
• -Govt create jobs thru public works

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• IV. FDR and the Three Rs Relief, Recovery, and
  Reform
• 1. On Inauguration Day, FDR asserted, the only
  thing we have to fear is fear itself.
• 2. He called for a nationwide banking holiday to
  eliminate paranoid bank withdrawals, and then
• commenced on his Three Rs.

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• V. Roosevelt Tackles Money and Banking
• 1. The Emergency Banking Relief Act of 1933 as
  passed first.
• 2. Then, Roosevelt settled down for the first
  of his thirty famous Fireside Chats.

President Franklin D. Roosevelt during one of his
fireside chats in Washington, D.C., April 28,
1935. His conversational voice brought a sense of
personality to the presidency.
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• 3. The Hundred Days Congress passed the
  Glass-Steagall Banking Reform Act, that provided
  the Federal Deposit Insurance Corporation, which
  insured individual deposits up to 5000, thereby
  eliminating the epidemic of bank failure and
  restoring faith to banks.

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• VI. Creating Jobs for the Jobless
• 1. Roosevelt had no qualms about using federal
  money to assist the unemployed, so he created
  the Civilian Conservation Corps (CCC), which
  provided employment in fresh-air government camps
  for about 3 million uniformed young men.

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• i. They reforested areas, became fire fighters,
  drained swamps, and controlled floods.

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• 2. The Agricultural Adjustment Act (AAA) made
  available many millions of dollars to help
  farmers meet their mortgages.
• Oscar Heline, farmer from Iowa, interviewed by
  Studs Terkel in Hard Times (1970) Grain was
  being burned. It was cheaper than coal. In South
  Dakota, the county elevator listed corn as minus
  three cents a bushel. If you wanted to sell them
  a bushel of corn, you had to bring in three
  cents. We had lots of trouble on the highway,
  people were determined to withhold produce from
  the market - livestock, cream, butter, eggs, what
  not. If they would dump the produce, they would
  force the market to a higher level. The farmers
  would man the highways and cream cans were
  emptied in ditches and eggs dumped out. They
  burned the Trestie Bridge, so the trains wouldn't
  be able to haul grain.

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• 3. The Home Owners Loan Corporation (HOLC)
  refinanced mortgages on non-farm homes and bolted
  down the loyalties of middle class, Democratic
  homeowners.
• 4. The Civil Works Administration (CWA) was
  established late in 1933, and it was designed to
  provide purely temporary jobs during the winter
  emergency.

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• 5. Congress also authorized the Works Progress
  Administration (WPA) in 1935,
• which put 11
• million on thousands
• of public buildings,
• bridges, and hard-
• surfaced roads and
• gave 9 million people
• jobs in its eight year
• existence.