the great depression & the new deal 1929-1939. the great depression began when the stock market...

The Great Depression & the New Deal

1929-1939

The Great Depression began when the stock market crashed in 1929.

•Many Americans had invested in the stock market.

•Some used all their savings to buy stocks.

•Others bought stocks with money borrowed from banks.

•From 1925 to 1929, stock prices increased, so people borrowed more $ to buy more stocks.

In October 1929, stock Prices began to fall.

People tried to sell stocks, but no one wanted to buythem.

On October 29, 1929, the stock marketcrashed as prices dropped rapidly. This day is known as Black Tuesday.

1. ½ of all Americans were poor.

2. Farmers overproduced during WW1; they could not sell them.

3. Factories also produced more than people couldbuy.

4.

5.

6. The government refused to interferein business—”laissez faire”

Herbert Hoover was President when the Great Depression began.

• He was sure it would end by itself.

• In 1932, he asked Congress to start an agency that would lend money to banks and businesses.

• Hoover’s plan failed!•25% of Americans were unemployed•many salaries were lowered•people became homeless

By 1933, 1 million peoplelived inHoovervilles!

The shack and box“towns” were calledthis because the American people blamed President Hoover for the depression.

Schools closed because teachers could not be paid.

Bread & apples cost only 5 cents,but jobless people couldn’t even

pay for that!

Many waited in lines for bread, soup, coffee, and

other free food items.

Beginning in 1931, a seven year drought destroyed farms on the Great Plains.

The soil dried up and blew away, causing great dust storms.

This became known as the Dust Bowl.

Farmers could no longer earn a living.

Thousands of farmers sold their farmsand moved west to California.

They traveled from placeto place working on farms.

This made them migrantfarm workers.

The Bonus Army

In the summer of 1932, 20,000 WW1 veterans went to Washington, DC, to demand the bonus money the US government had promised them.

•They were supposed to wait until 1945, but were hungry!

•They didn’t want to wait any more.

When President Hoover refusedto pay the bonuses, the angryveterans camped out in DC to protest.

They became known as the Bonus Army.

President Hoover sent General Douglas MacArthurand federal troops to forcethe veterans to leaveWashington, DC.

This made most Americans mad at Hoover for attacking the veterans.

By 1932, most Americans wanted a new president.

Franklin Delano Roosevelt (FDR)Promised a “New Deal” for the American people in his inaugural address on March 4, 1933.

He told a frightened nation:“The only thing we have to fearis fear itself.”

FDR’s New Deal•closed all banks nationwide 2 days after becoming President;

•safe banks were allowed to reopen after government examination;

•people were encouraged to put savings in banks again;

•first 100 days in office worked with Congress to pass new programs.

Goals of the “New Deal”

1. Relief from poverty and hunger.

2. Recovery from the depression.

3. Reform (change) to prevent future depressions.

New Deal,New Agencies……to carry out the goals of relief, recovery & reform.

•money to the poor

•helped farmers

•provide jobs for unemployed

•assist people with getting food, clothing & other goods.

Tennessee Valley Authority (TVA)•build dams to control floods•build power plants that used waterpower to make electricity

Other government agencies hired people to build bridges, plant tress and clean streets.

Correcting the Problems that caused the Depression

• provides insurance for money in savings accounts (banks).

• no longer would people lose their money if banks failed.

• made it safer for people toinvest in the stock market.

Social Security Act (1936)

• all workers must pay a special tax

• in return, workers receive pensions when they retire at age 65

• provided money for poor families with children

First Lady: Eleanor Roosevelt

•very popular

•traveled across the country to work for equal rights for:--women--workers--African Americans

Marian Anderson

When a women’s grouprefused to allow the African-American singerto sing inside its building,Eleanor Roosevelt invitedher to sing in front of the Lincoln Memorial.

Ms. Anderson sang “America” in front 75,000 people.

In 1955, she became the first African American to sing regularly with the Metropolitan Opera Company in New York City.

America: My Country ‘Tis of Thee

My country,' tis of thee, sweet land of liberty,

of thee I sing; land where my fathers died, land of the pilgrims' pride, from every mountainside

let freedom ring!

First Female Cabinet member

FDR appointed

Frances Perkins

as Secretary of Labor.

Stacking the Supreme Court

Felix Frankfurterwas the firstJewish-Americanappointed a Supreme CourtJustice.

By 1944, FDR had appointed 7 of the 9 Supreme Court Justices.

The Black Cabinet

• A group of African American leaders who often met with President Roosevelt.

• Mary McLeod Bethune was one prominent member of this group.

• Bethune led the Office of Minority Affairs from 1935-1944.

• Many African Americans became Democrats during the New Deal.

Results of the New Deal made the federal government larger and more

powerful than ever; increased taxes; the national debt grew larger; helped America by providing relief to the poor

and hungry; New Deal agencies built bridges, dams, roads,

and airports; saved the American democracy from the dictators

that took control when other nations experienced depression.