Chapter 14

1
Chapter 14 15 Test Prep

• Great Depression
• The New Deal

2
Causes of the Depression

• In the 1920s Americans purchased many goods with
  CREDIT.
• Too many investors tried to withdraw their money
  all at once helped cause many banks to fail.
  (bank runs)
• Hoover thought that the business cycle would
  correct itself through volunteerism and localism.

3
Causes contand the Hoover years

• Hoover created the RFC because he thought the
  economy needed more credit.
• Hawley-Smoot Tariff- high tax on foreign products
  
• Business cycle-expansion and decline of economy
  (see drawing)
• Capitalism is where business is performed for a
  profit.

4
Effects of the Depression

• Hoovervilles- makeshift shantytowns created by
  homeless people.
• Hoover lost 1932 election because
• -lack of public trust
• -Bonus Army incident
• -his financial policies (or lack of same)
• -Massive unemployment homelessness.

5
Life in the 30s

• Escapism is seeking relief from your problems and
  is usually temporary
• Dorothea Lange used photography to show the
  suffering of Okies and others
• ..

6
What was the chief complaint of conservatives,
such as Herbert Hoover, against the New Deal?

• Made the government too powerful
• Concerned only with saving the banking system
• The New Deal policies were not radical enough
• Promoted free enterprise and individualism

7
FDRs NEW DEAL

• Name of his plan to end the Great Depression his
  goals were to provide relief, recovery, and
  reform.
• Some programs/agencies still exist today SEC,
  FDIC, TVA, SSA
• Increased government involvement in our lives and
  strengthen the executive branchgreatest impact
  of N.D.

8
The Great Depression caused some Americans to
doubt

• Fascism
• Socialism
• Capitalism
• Communism

9
New Deal Programs

• Security and Exchange Commission (SEC) regulates
  the stock market.
• Emergency Banking Act was passed by Congress to
  keep banks closed until inspected by the
  government. Passed after FDR ordered the bank
  holiday .
• The Agricultural Adjustment Act (AAA) helped
  farmers by trying to end overproduction and raise
  crop prices.
• Wagner Act legalized labor unions.

10
2nd New Deal WPA impact

• Govt put over 8 million to work
• 20,000 facilities built, many still used today
• Support for the cultural arts ie.
• Musicalsymphonies created/performed, lesson
  given.
• Literaturebooks of folklore created, other books
  and short stories written
• Physical artspaintings, murals, sculptures made.

11
Dust Bowl Causes

• Overplowing of plains and planting the same crop
• Overgrazing by ranchers.
• Drought
• Wind
• Poor planting strategies
• No irrigation

12
Dust Bowl impact

• Cattle and people died from dust pneumonia
• Dislocated people head west to California
  (migration) they were called Okies
• Crops wont grow on plains during this time and
  many lose their land.
• Govt will develop planting strategies and
  irrigation systems to stop/prevent future issues.