the roar ends & depression sets in. the great stock crash stocks grew rapidly through the 1920s...
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The Great Stock CrashThe Great Stock Crash
Stocks grew rapidly through the 1920sStocks grew rapidly through the 1920s Based on Based on speculationspeculation People bought stocks on People bought stocks on marginmargin (did not (did not
actually own, used speculation)actually own, used speculation) People began demanding that people pay for People began demanding that people pay for
their stockstheir stocks
The Great Stock CrashThe Great Stock Crash
Result, Result, Panic SellingPanic Selling Black TuesdayBlack Tuesday, October 29: Stocks fell by , October 29: Stocks fell by
$14 billion and continued to drop in the weeks $14 billion and continued to drop in the weeks to cometo come
America, we have now reached the Great America, we have now reached the Great DepressionDepression
Causes of the Great DepressionCauses of the Great Depression After the market crashed in 1929 stock prices After the market crashed in 1929 stock prices
collapsedcollapsed The The Federal ReserveFederal Reserve failed to prevent widespread failed to prevent widespread
collapse of the nation’s banking system in the late collapse of the nation’s banking system in the late 1920s and early 1930s1920s and early 1930s This led to severe contraction in the nation’s supply of This led to severe contraction in the nation’s supply of
money in circulationmoney in circulation The Tariff Act of 1930The Tariff Act of 1930 or the or the Haley-Smoot ActHaley-Smoot Act: :
High protective tariffs that produced retaliatory High protective tariffs that produced retaliatory tariffs in other countries, strangling world tradetariffs in other countries, strangling world trade
Impact of the Depression of Impact of the Depression of AmericansAmericans
Unemployment and Homelessness Unemployment and Homelessness Collapse of financial systemCollapse of financial system = bank closings= bank closings Political Unrest = growing militancy of labor Political Unrest = growing militancy of labor
unionsunions Farm foreclosures and migration Farm foreclosures and migration
Impact of the Depression of Impact of the Depression of AmericansAmericans
DustbowlDustbowl: Severe draught in the Southern Plains : Severe draught in the Southern Plains caused crops to failcaused crops to fail Caused dust storms that threw dust all over the country Caused dust storms that threw dust all over the country
““HoovervillesHoovervilles:” Large areas of homeless families that :” Large areas of homeless families that make houses and communities out of boxes and make houses and communities out of boxes and packing crates, wrapped themselves in newspapers packing crates, wrapped themselves in newspapers for blankets for blankets
SuicideSuicide: Increased 30% between 1928 and 1932: Increased 30% between 1928 and 1932
OverviewOverview ““Black Tuesday” Stock market crashesBlack Tuesday” Stock market crashes Early 1930s farm product prices drop by 55%, Early 1930s farm product prices drop by 55%,
hundreds of thousands of farmers lose everythinghundreds of thousands of farmers lose everything By end of 1932 around 5,500 banks failBy end of 1932 around 5,500 banks fail By 1933 the saving of over 9 million American are By 1933 the saving of over 9 million American are
wiped outwiped out Extremely high unemployment (25%)Extremely high unemployment (25%) President Hoover struggled, unsuccessfully to stop President Hoover struggled, unsuccessfully to stop
the slidethe slide FDR (Franklin Delano Roosevelt) ran against Hoover FDR (Franklin Delano Roosevelt) ran against Hoover
in 1932 electionin 1932 election
FDRFDR
Won election in a Won election in a landslide landslide
Confined to wheelchair Confined to wheelchair due to poliodue to polio
NY SenatorNY Senator Governor of NYGovernor of NY
FDRFDR
Assistant Secretary of Assistant Secretary of the Navy under Wilsonthe Navy under Wilson
Promised “Action, and Promised “Action, and Action now” at his Action now” at his inaugurationinauguration
Announced his Announced his decisions at “fire-side decisions at “fire-side chats” to the nationchats” to the nation
New DealNew Deal
15 major bills were passed in the first 100 days of 15 major bills were passed in the first 100 days of the New Dealthe New Deal
Emergency Bank ActEmergency Bank Act Took US off the gold standardTook US off the gold standard Federal Relief AdministrationFederal Relief Administration Alphabet agenciesAlphabet agencies
TVATVA AAAAAA NRANRA FDICFDIC
New DealNew Deal
Programs changed the role of the government Programs changed the role of the government to be a more active participant in solving to be a more active participant in solving problemsproblems
FDR rallied the nation with his speech “We FDR rallied the nation with his speech “We have nothing to fear, but fear itselfhave nothing to fear, but fear itself
AAAAAA
Agricultural Adjustment Act Agricultural Adjustment Act 1933,1937 1933,1937 Establish peace time support for farm prices, Establish peace time support for farm prices,
set production controls, farmers received set production controls, farmers received benefits for following, saved agriculture from benefits for following, saved agriculture from collapsecollapse
Designed to bring the nation out of the Designed to bring the nation out of the depression over timedepression over time
TVATVA
Tennessee Valley Authority Tennessee Valley Authority 19331933 Flood Planning, built hydroelectric dams, Flood Planning, built hydroelectric dams,
brought electricity to rural areas brought electricity to rural areas
FDICFDIC
Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation 19331933 Insure depositors savings up to $100,000, up Insure depositors savings up to $100,000, up
from a $5,000 level from a $5,000 level Corrected unsound banking and investment Corrected unsound banking and investment
practicespractices
SECSEC
Securities Exchange Act Securities Exchange Act 19341934 Had the authority to regulate the stock Had the authority to regulate the stock
exchange and investment advisors exchange and investment advisors
WPAWPA
Works Projects AdministrationWorks Projects Administration 19351935 Designed to provide jobs instead of welfare. Designed to provide jobs instead of welfare.
Built roads, bridges, airports, hospitals, etc. Built roads, bridges, airports, hospitals, etc. adult, education, gave writers and artist jobsadult, education, gave writers and artist jobs
Provided payment to people for immediate Provided payment to people for immediate help help
CCCCCC
Civilian Conservation Corps Civilian Conservation Corps 19331933 work programs for young unmarried men, work programs for young unmarried men,
conservation national parks, forests, recreation conservation national parks, forests, recreation
Social Security Act Social Security Act
1935: combination of public assistance and 1935: combination of public assistance and insurance.insurance. old age insuranceold age insurance unemployment insuranceunemployment insurance Assistance to dependent children, the elderly, Assistance to dependent children, the elderly,
mentally ill,, and handicapmentally ill,, and handicap
NRA-National Recovery Act NRA-National Recovery Act
Declared unconstitutional by the Supreme Declared unconstitutional by the Supreme CourtCourt
Congress illegally had the power to regulate Congress illegally had the power to regulate intrastate commerceintrastate commerce
Violated separation of powers Violated separation of powers
AAAAAA
Supreme Court said agriculture was a local, Supreme Court said agriculture was a local, not interstate matternot interstate matter
Violated provisions of the tenth amendmentViolated provisions of the tenth amendment
““Court Packing”Court Packing”
FDR wanted to add more justices to the FDR wanted to add more justices to the Supreme CourtSupreme Court
So he could up hold his decisionsSo he could up hold his decisions Increase the Court from 9 to 15Increase the Court from 9 to 15 Asked Congress to pass the lawAsked Congress to pass the law Never approved, because of separation of Never approved, because of separation of
powerspowers
Roosevelt’s Recession Roosevelt’s Recession
1937 – 1938 a down turn in the Economy 1937 – 1938 a down turn in the Economy (recession) during the New Deal and (recession) during the New Deal and Roosevelt’s presidencyRoosevelt’s presidency
Most historians agree on the following Most historians agree on the following assessments of the New Deal:assessments of the New Deal:
World War II was largely responsible for ending the Great World War II was largely responsible for ending the Great Depression, the New Deal did not solve unemployment, the Depression, the New Deal did not solve unemployment, the farm crisis, or undercompsumptionfarm crisis, or undercompsumption
The New Deal helped cope with the effects of the Great The New Deal helped cope with the effects of the Great DepressionDepression
The New Deal brought more power to the presidency and The New Deal brought more power to the presidency and to the federal government. The government now had a role to the federal government. The government now had a role and a responsibility in more aspects of the nations and a responsibility in more aspects of the nations economic and social life.economic and social life.
The New Deal preserved the free-enterprise system The New Deal preserved the free-enterprise system