ss.912.a.5.11 examine causes, course, and consequences of the great depression and the new deal
TRANSCRIPT
EOC Day 7
SS.912.A.5.11 Examine causes, course, and consequences of the Great Depression and the New Deal.
Black Monday/Tuesday- The stock market
dropped 30 points or about 12% both days Crash caused by “speculation”
Buying on Margin-Using credit to invest in the stock market
Glass-Stegall Act 1932- separated commercial banks from investment banks
Stock Market Crash 1929
By 1932, 5,761 banks had failed (22% of total) Many banks invested in stocks before the crashThousands of businesses failed 20,000 in 1929; 30,000 in 1932 Unemployment reached 25% by 1932 (13 million people) excluding farmers.
Effect
Total wages dropped from $12 billion to $7
billion from 1929 to 1932. By 1932, 25% of farmers lost their farms People experienced loss of self-worth Many families broke up; marriage rate and
birth rate declined. 3 million people became homeless and lived
in makeshift shacks known as "Hoovervilles"
Effect
President Hoover- Believed Europe was to blame Hawley-Smoot Tarrif- highest peacetime tarriff in
history-60% Volunteerism- urged businesses to avoid layoffs
or wage cuts Private charity not enough to save the poor
Bonus Army- 14,000 veterans lobbied for passage of a bonus bill Hoover insisted the government not pass the bill
Government Response
Franklin D. Roosevelt- Won the election of
1932 New Deal- A set of government actions meant
to end the Great Depression-Relief, Recovery, Reform
Unprecedented passage of legislation called the “First Hundred Days”
Government Response
Bank Holiday 1933- Banks were temporarily
closed to make sure they were sound and to close unsound banks
Civilian Conservation Corps- employed 2.75 young men in conservation jobs
Federal Emergency Relief Admin- 500 million dollars to states to help the poor
New Deal Reforms
Agricultural Adjustment Act- paid farmers to
reduce their crop or livestock production Led to corruption
Tennessee Valley Authority-20 dams built in Tennessee to help provide employment
Home Owners Loan Corporation 1933- Refinanced mortgages on 1 million non-farm homes
New Deal Reforms
National Recovery Admin- maximum work
hours, minimum wage, minimum prices Wagner Act- Reasserted the right of labor to
self organize Social Security Act-old-age pensions for retired
workers as well as poor mothers or handicapped
New Deal Reforms
The American Liberty League-Group of
wealthy republicans and conservative democrats
Wanted to fight “socialist New Deal” Father Charles Coughlin- Radio host who
thought the deal was not strong enough
Critics
Senator Huey Long- promised to make “every
man a king” and supplyed each family with 5,000 dollars at expense of the rich
Dr. Francis Townsend- provided senior citizens with 200 dollars a month, funded by a national sales tax
Supporters
In late 1933, drought struck states in the Mississippi River area and the Great Plains (Texas, Arkansas, Oklahoma, Kansas, Missouri)In five years, 350,000 Oklahomans and Arkansans -- "Okies" and "Arkies" migrated to southern California.
Dust Bowl
Based on the cartoon, how did President
Roosevelt want to ease the Great Depression? A. by expanding the role of government in
citizens’ lives B. by expanding the authority of legislative
representatives C. by regulating the stock purchases by
individual investors D. by restricting the spending by government
on domestic projects