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Great Depression


1929 to 1940 – PowerPoint PPT presentation

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Title: Great Depression

Great Depression
  • 1929 to 1940

What were the causes of the Great Depression?
  • Causes
  • Overproduction
  • Many different industries were overproducing
    products based on product demand for WWI.
  • Farmers high demands during WWI, fell after WWI,
    and crop prices declined by 40. Produced more in
    hopes to sell more crops, but failed.
  • The McNary-Haugen Farm Relief Act It would
    subsidize American agriculture by raising the
    domestic prices of farm products. The plan was
    for the government to buy the wheat, and either
    store it or export it at a loss.
  • President Coolidge vetoed the bill twice.

What were the causes of the Great Depression?
  • C Causesunder consumption Americans did not
    have the money to buy products. Prices of goods
    rose. The difference between the rich and the
    poor rose. Credit and the installment plan
    Credit an arrangement in which consumers agreed
    to buy now and pay later for purchases.Installmen
    t plans monthly payments that included
    interests. Easy credit allowed Americans to pile
    up a lot of consumer debt, which they couldnt
    pay back.

What were the causes of the Great Depression?
  • Causes
  • Uneven distribution of income 1920 to 1929 the
    income of the wealthiest 1 of the population
    grew by 75 compared with 9 of the whole U.S.
  • 70 of American families earned less than 2,500
    per year and could not afford different household
    products. The prosperity of the era depended on a
    small of the population.

Why did the Stock Market crashed?
  • Stock market was a clear sign of prosperity.
  • DOW Jones Industrial Average based on the stock
    prices of 30 representative large firms trading
    on the New York Stock Exchange.
  • Bull Market- stock are up Bear Market- stock are
  • 1924- 4 million Americans owned stocks- a lot
    were average Americans wanted to get rich.
  • People were buying on speculation- buying stocks
    and bonds on the chance of a quick profit,
    ignoring the risks.
  • Buying on the margin where people pay a small
    of stocks prices as a down payment and borrowed
    the rest.
  • Government did nothing to regulate the market.

Why did the Stock Market crashed?
  • In1927 Houses prices began to fall, a bad sign
    of the American economy.
  • Many Americans put their life savings into stocks
    hoping to make a huge profit.
  • 1929
  • September 29 stocks prices peaked and fall.
  • October 24 Black Thursday market took a
    plunge, investors were unloaded their shares,
    about 13 million shares.
  • October 29 Black Tuesday bottom fell out of
    the market. 16.4 million shares were dumped.
  • November 30 investors lost 30 million

Financial Collapse
  • Run on the bank- people withdrew all of their
    money from the bank, but the bank had no money to
    pay back the people. People lost their savings.
  • In 1929 600 banks closed, by 1933 11,000 out of
    25,000 national banks failed. Only 28 states had
  • Gross national product- nations total output of
    goods and service, was cut in half from 104
    billion to 59
  • Unemployment went from 3 to 25 by 1932.
  • World Wide Event Countries had to pay their debt
    from WWI and limit Americas ability to import
    European goods and export goods.
  • Hawley-Smoot Tariff a protective tariff to
    protect farmers and business owners from foreign

What was life like during the depression?
  • In the cities Building Shantytowns build towns
    out of wasted material.
  • Soup Kitchens offer free or low cost food
  • Bread lines stand in line and wait for food by
    different charitable organizations or public
  • In 1933 24 African Americans died because of
  • Rural Areas People could grow their own food.
  • 1929 to 1932 400,000 farms were lost through
  • Dust Bowl Drought, which the wind would blow
    dust for hundred of miles. States Kansas,
    Oklahoma, Texas, New Mexico, and Colorado.
  • Okies people who left the Dust Bowl region.
    Negative term.
  • Families stayed home, listen to the radio or
    played board games.
  • Men looked for jobs or left their jobs become
    hoboes. They stood in the bread lines.
  • No direct relief government support in the form
    of food or cash.
  • Women canned food and sewed clothes. Looked down
    upon if they had a job.

What was life like during the depression?
  • Children They suffered malnutrition. Child
    welfare programs were slashed.
  • By 1933 2,600 schools closed and 300,000 students
    were out of school.
  • Teenagers (Hoover Tourists) travel around the
    country looking for jobs.
  • Many riders were jailed or killed by freight yard
    patrolmen or murderous criminals 1929 t0 1939
    24,647 were killed and 27,171 were injured on the
  • Social and Psychological Effects 1928 to 1932
    suicide rose from more than 30. 3 times the
    amount of people were admitted into mental

Hoover Administration
  • Became President in 1928
  • Hoovers philosophy he believed that the
    government should play a limited role in helping
    with the depression.
  • Rugged Individualism the belief that people
    should succeed through their own efforts, and not
    through government intervention.
  • Cautious Steps Brought key figures from
    business, banking, and labor to find solution to
    the nation's economic problems.
  • Hoovervilles were shantytowns Hooverhotels-
    cardboard homes Hooverblankets were newspapers
    Hooverflags were empty pockets.
  • Boulder dam (Hoover Dam) On the Colorado River.
    Paid by the electric power to would create.
    Passed with 700 million public works project in
    1929. It provides electricity, flood control and
    water supply.

Hoover Administration
  • 1930 Congressional elections Democrats take
    over. No seats in House of Representatives and 1
    vote in Senate.
  • Farmers Revolt Burn their corn and dumped their
    milk because their products were not selling.
  • Federal Farm Board keep crops off the market
    until prices raised, and bought each others
  • National Credit Corporation larger banks loaned
    money to smaller banks to stave off bankruptcy.
  • Direct Intervention He wanted to reform banking,
    provide mortgage relief and federal money into
    business investment.
  • Federal Home Loan Bank Act (1932) lowered
    mortgage rates for homeowners and allowed farmers
    to refinance their farm loans and avoid
  • Glass- Stegall Banking Act separated investment
    from commercial banking.
  • Reconstruction Finance Corporation (RFC) (1932)
    Congress passed 2billion for emergency financing
    for banks, life insurance companies, railroads,
    and other large businesses. trickle down effect

Hoover Administration
  • The Bonus Expeditionary Forces Army led by Walter
  • In 1932, 10,000 to 20,000 WWI veterans and their
    families went to Washington, D.C.
  • The Patman Bill authorized the government to pay
    a bonus to WWI veterans who were not properly
    paid during WWI.
  • Approved in 1924, Paid by 1945.
  • Congressman Wright Patman believed the money
    should be paid immediately.
  • June 17 Hoover told them to leave, but 2,000
  • July 28 General Douglass MacArthur with his aide
    Major Dwight D. Eisenhower were ordered to remove
    the soldiers and their families
  • 1,000 people were gassed.

Election of the 1932
  • The election showed the people were ready for a
  • FDR (democratic nominee) 23 million of the
    popular vote
  • Hoover (republican nominee)16 million
  • 20th Amendment moved the inaugural date from
    March to January. Approved February 1933.
  • Brain Trust A group of professors, lawyers, and
    journalists that worked with FDR on how to
    improve the state of the America.

FDR and the New Deal
  • His program for change was called the New Deal
  • It focused on three goals
  • RELIEF for the needy, Economic RECOVERY and
    Financial REFORM
  • First Hundred Days it was a period of intense
    activity that lasted from March to June 16, 1933.
  • Congress passed 15 major pieces of legislation
    that will expand the power of the federal
  • Fireside chat (March 12, 1933) informal talks
    that discussed different issues that bother the
    public in simple language.

Reform, Relief, Recovery
  • Reform
  • Emergency Banking Act
  • FDIC
  • Federal Securities Act
  • Securities and Exchange Commission
  • NIRA
  • NRA
  • 21st Amendment
  • Relief
  • FERA
  • CCC
  • TVA
  • Recovery
  • AAA
  • CWA

New DealBusiness Assistance and Reform
  • 1933 Emergency Banking Relief Act (EBRA)
  • Banks were inspected by Treasury department and
    those stable could reopen
  • NIRA or National Industrial Recovery Act (1933)
  • A law enacted to establish codes of fair practice
    for industries and to promote industrial growth
  • Provided money to states to create jobs in
    construction of schools and other community
  • The Supreme Court found it unconstitutional
    stating that the law gave legislative powers to
    the executive branch and that the enforcement of
    industry codes within states went beyond the
    federal governments constitutional powers to
    regulate interstate commerce.
  • 1933 Federal Deposit Insurance Corporation (FDIC)
  • Protected bank deposits up to 5,000
  • Reassured millions of bank customers that their
    money was safe
  • 1932 21st Amendment
  • Passed to repeal the prohibition of alcohol.

New DealBusiness Assistance and Reform
  • 1933 National Recovery Administration (NRA)
  • Established codes for fair competition
  • Set prices of many products and establish
  • Was also found unconstitutional with the NIRA,
    due to it being an unfair advantage to small
    business owners compared to big business.
  • Federal Securities Act (1933)
  • Required corporations to provide complete
    information on all stock offerings and made them
    liable for any misrepresentations.
  • 1934 Securities and Exchange Commission (SEC)
  • Supervised the stock market and eliminated
    dishonest practice
  • It was created to help prevent people with inside
    information about companies from rigging the
  • 1935 Banking Act of 1935
  • Created seven-member board to regulate the
    nations money supply and the interest rates on
  •  1938 Food, Drug and Cosmetic Act (FDC)
  • Required manufacturers to list ingredients in
    foods, drugs, and cosmetic

New DealEmployment Projects
  • 1933 Civilian Conservation Corps (CCC)
  • Provide jobs for single males on conservation
  • Men between 18- 25 to work
  • Develop parks, plant trees, and helped in
    soil-erosion and flood control projects.
  • By 1942 3 million men went through the CCC.
  • 30 a month, 25 sent straight to families.
  • Supplied free food and uniforms, plus a place to
  • Helped to cure the dust bowl by planting 200
    million trees.
  • 1933 Federal Emergency Relief Administration 
  • Helped states to provide aid for the unemployed
  • To be able to maintain a certain standard living
  • 1933 Public Works Administration (PWA)
  • Created jobs on government projects
  • Revive American industry tri-borough bridge,
    Lincoln tunnel, grand coulee dam in Washington
  • It built more than half a million miles of roads.

Second New DealEmployment Projects
  • 1935 Works Progress Administration (WPA)
  • Quickly created as many jobs as possible- from
    construction jobs to positions in symphony
  • Headed by Harry Hopkins
  • Create jobs as quickly as possible between 1935
    to 1943.
  • It spent 11 billion to give jobs to more than 8
    million unskilled workers.
  • Built 850 airports, repaired 651,000 miles of
    roads, 125,000 public buildings.
  • Women workers created sewing groups and made 300
    million garments for the needy.
  • Wrote guides to cities, collected historical
    slave narratives, painted murals on the walls of
    schools,. And other public buildings and
    performed in theater troupes around the country
  • 1935 National Youth Administration (NYA)
  • Provided job training for unemployed young people
    and part-time jobs for needy students
  • Provide aid to high school, college, and graduate
  • Provided part-time jobs, working on highways,
    parks and the grounds of public buildings.

New DealFarm Relief and Rural Development
  • 1933 Agricultural Adjustment Administration (AAA)
  • Aided farmers and regulated crop production
  • Lowered crop prices by lowering production, which
    the government would pay farmers to leave a
    certain amount of every acre of land unseeded.
  • Government paid 200 million to cotton growers to
    plow under 10 million acres and paid hog farmers
    to slaughter to 6 million pigs.
  • The Supreme Court decided that it was
    unconstitutional on the grounds that agriculture
    is a local matter and should be regulated by the
    states rather than by the federal government.
  • It was replaced with the Soil Conservation and
    Domestic Allotment Act this act paid farmers for
    cutting production of soil-depleting crops and
    rewarded farmers for practicing good soil
    conservation methods.
  • In 1938 it was brought back by did not include a
    processing tax to pay farm subsidies, a provision
    that the Supreme Court declared unconstitutional.

Second New DealFarm Relief and Rural Development
  • 1933 Tennessee Valley Authority (TVA)
  • Developed the resources of the Tennessee Valley
  • Renovated five existing dams and constructed 20
    new ones, created thousands of jobs, and provided
    flood control, hydroelectric power and other
  • It also created the Oak Ridge Facility, which
    will later provide research for the atomic bomb.
  • 1935 Rural Electrification Administration (REA)
  • Provided affordable electricity for isolated
    rural areas.

New DealHousing
  • 1933 Home Owners Loan Corporation (HOLC)
  • Loaned money at low interest to homeowners who
    could not meet mortgage payments
  • 1934 Federal Housing Administration (FHA)
  • Insured loans for building and repairing homes
  • 1937 United States Housing Authority
  • Provided federal loans for low-cost public

New DealLabor Relations
  • 1935 National Labor Relations Board (Wagner Act)
  • Defined unfair labor practices and established
    the National Labor Relations Board (NLRB) to
    settle disputes between employers and employees
  • Prohibited unfair labor practices such as
    threatening workers, firing union members, and
    interfering with union organizing.
  • The board to hear testimony about unfair
    practices and to hold elections to find out if
    workers wanted union representation.
  • 1938 Fair Labor Standards Act
  • Established a minimum hourly wage and a maximum
    numbers of hour in the workweek for the entire
    country. Set rules for the employment of workers
    under 16 and banned hazardous factory work for
    those under 18
  • Maximum hours a week of 44 hours.
  • Minimum wage 25 cents an hour, creasing to 40
    cents by 1945.

New DealRetirement
  • 1935 Social Security Administration
  • Provided a pension for retired workers and their
    spouses and aided people with disabilities
  • Old Age Insurance for retires 65 or older and
    their spouses it was a supplemental retirement
    plan half from employers, half from the
  • Unemployment compensation system funded by
    federal tax, a payment every week 15-18.
  • Aid to families with dependent children and the
    disabled the aid was paid for by federal funds
    made available to the states.

Critics of FDR
  • Deficit Spending spending more money than the
    government was receiving.
  • FDR believed it was evil, but necessary in times
    of trouble.
  • Liberal critics argued that the New Deal did not
    go far enough to help the poor and to reform the
    nations economic system.
  • Conservative critics believed 3 things
  • 1.) FDR was spending way too much money
  • 2.) Used New Deal Policies to control business
    and socialize the economy.
  • 3.) Gave the federal government too much control.

FDR and the Supreme Court
  • NIRA (1935) was claimed unconstitutional because
    it gave the federal government too much power to
    regulate interstate commerce.
  • AAA (1936) was claimed unconstitutional on the
    grounds that agriculture is a local matter and
    should be regulated by the states rather than by
    the federal government.
  • Court Packing Plan (February 1937) Congress
    passed a bill to allow FDR to appoint 6 new

Three Main Critics of FDR
  • Father Charles Coughlin, a Roman Catholic Priest,
    who broadcast radio sermons from Detroit. He was
    against FDR because he favored guaranteed annual
    income and nationalization of banks.
  • Dr. Francis Townsend, a physician and health
    officer in Long Beach, California. He believed
    FDR was not doing enough to help the poor and
    elderly. He devised a pension plan that provided
    monthly benefits to the aged.
  • Senator Huey Long, he wanted to win the
    Presidency. Share the wealth program, Every Man
    a King. Wealth redistribution through a net
    asset tax.
  • Long was very popular 27,000 Share our Wealth
    clubs with 7.5 million members.
  • In 1935 Long was assassinated.

FDRs Second New Deal
  • The Second New Deal was under way when FDR was up
    for re-election in 1936.
  • The Republicans are going to nominate Alfred
    Landon, the governor of Kansas, while the
    Democrats are going to nominate FDR.
  • It was an overwhelmingly victory for FDR.

Helping Farmers
  • During the 1930s 2 out of every 5 farms in the
    United States were mortgaged, and 1,000s of
    small farmers lost of their farms.
  • Soil Conservation and Domestic Allotment Act.
    This act paid farmers for cutting production of
    soil-depleting crops and rewarded farmers for
    practicing good soil conservation methods
  • The Resettlement Administration (1935) it
    provided monetary loans to small farmers to buy
  • In 1937 the agency was replaced by the Farm
    Security Administration (FSA), which loaned more
    than 1 billion to help tenant farmers become
    landholders and established camps for migrant
    farm workers.
  • It also hired photographers to make a record of
    the Great Depression.

Roosevelt Extends Relief
  • Works Progress Administration (WPA) Headed by
    Harry Hopkins.
  • Between 1935 and 1943, it spent 11 billion to
    give jobs to more than 8 million workers, most of
    them were unskilled.
  • Built 850 airports, repaired 651,000 miles of
    road, hired people to create murals and created
    125,000 public buildings.
  • Women workers created 300 million garments.

Roosevelt Extends Relief
  • National Youth Administration (NYA) was created
    to provide education, jobs, counseling and
    recreation for young people.
  • It gave federal aid for students who want to go
    to college as long as the students worked part
  • If college graduates couldnt find jobs, the
    government provided them with part-time jobs.

Improving Labor and Other Reforms
  • National Labor Relation Act or the Wagner Act
    sponsor Senator Robert F. Wagner of NY. The act
    reestablished the NIRA provision of collective
    bargaining, the right of works to join unions and
    engage in collective bargaining with employees.
  • The act set up the National Labor Relations Board
    (NLRB) to hear testimony about unfair practices
    and to hold elections to find out if workers
    wanted union representatives.

Improving Labor and Other Reforms
  • Fair Labor Standards Act (1938)
  • Set work hours at 44 hours per week- going down
    to 40 in 2 years
  • Minimum wage was 25 cents per hours- going up to
    40 cents per hours in 2 years
  • Set rules for workers under the age of 16
  • Banned hazardous work for those under the age of

Improving Labor and Other Reforms
  • Social Security Act (1935) was created by
    Secretary of Labor, Francis Perkins. This act had
    3 major parts
  • Old Age insurance for retirees 65 or older and
    their spouses
  • Unemployment compensation system.
  • Aid to families with dependent children and the

Culture in the 1930s
  • Motion Pictures and Radio provided an escape
    from the realities of the Great Depression.
  • By the end of 1930s, 65 of Americans were
    attending the movies per week.
  • 15,000 movie theatres
  • Radio sales went up 13 million in 1930 to 28
    million by 1940. 90 of Americans had a radio
  • Famous Movies Gone with the Wind, Flying Down,
    Wizard of Oz, Snow White, Public Enemies, and
    Duck Soup.
  • Famous Radio Programs/Personalities Orson
    Welles, Bob Hope, and George Burns and Gracie
    Allen. Famous Programs Soap Operas and War of
    the Worlds

Flying Down to Rio
Gone with the Wind
Duck Soup
Snow White
Wizard of Oz
The War of the Worlds I
The War of the Worlds II
Roosevelt legacy The Impact of the New Deal
  • Expanding the governments role in the economy
  • The government went into deeper debt
  • Protected workers rights.
  • Helped stabilized the countrys finances.
  • Set quotas on the production of crops and gave
    loans to farmers.
  • Helped protect national resources.
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