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The Great Depression
Brian McDonald
Center on Poverty, Work, & Opportunity UNC School of Law
Trends of the 1920s
• Economic prosperity for much of the country
• Improvements and setbacks for both women and minorities
• Significant technological changes in society
• Republican domination of the American Presidency
• Laissez-faire approach from the federal government
America in the 1920s
Election of 1928
Herbert Hoover (Red) – Republican
Alfred Smith (Blue) - Democrat
Wall Street Crash
• October 24th, 1929: Black Thursday – The market lost 11% of its value
(many investors decided to sell) – Major bankers/investors pumped
money in to prevent a larger drop and try to stop the fall
• October 29th, 1929: Black Tuesday – Market lost an additional 12%; many
investors sold, economic depression
Herbert Hoover • Much debate exists as to Hoover’s
effectiveness when the market crashed
• In lieu of federal involvement, he left much of the decision-making to the states (laissez-faire)
• Hoover blamed for economic problems of the country
– Homeless communities emerge; media calls them “Hoovervilles”
Causes of the Great Depression
• Stock Market Crash buying on the margin and stock speculation
• Continued crop failure in the dust bowl • Rest of the world (global economic
issues) • Excessive goods (overproduction) • Weak farm economy (and agricultural
issues) • Excessive use of credit • Direction of government and monetary
policies
Photographic Essay
Photographic Essay
Photographic Essay
Photographic Essay
Photographic Essay
Photographic Essay
Election of 1932
Franklin D. Roosevelt (Democrat) - Blue
Herbert Hoover (Republican) - Red
Franklin Roosevelt
After Roosevelt overwhelmingly wins the election, he tells the nation:
“I pledge you, I pledge myself, to a new deal for the American people.”
The resulting New Deal is his comprehensive set of programs to put people back to work motivating relief, recovery, and reform for the country.
Significant New Deal Programs
• Civilian Conservation Corp
• Public Works Administration
• Securities & Exchange Commission
• Tennessee Valley Authority
• Agricultural Adjustment Administration
• National Labor Relations Act
• Social Security Act • Emergency
Banking Act • Civil Works
Administration • Federal Deposit
Insurance Corporation
• Reconstruction Finance Corp
New Deal Programs
Civilian Conservation Corp
Construction
Public Works Administration Project
(Mississippi River)
Consequences of the Great Depression
• Job loss, increased unemployment (25% in 1932); recession from 1937-39
• Homelessness and increases in economic inequality; limited resources
• Culture of poverty (including psychological problems and substance abuse)
Questions 1. What were the strengths and
weaknesses of Hoover and Roosevelt’s responses to the Great Depression?
2. How successful was the New Deal? Did that, or World War II, get the nation out of the Great Depression?
3. What role should the federal government play in the economic success of our country?