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The Great Depression Begins 1929 - 1941

The Great Depression Begins 1929 - 1941. Americans wait in soup and bread lines in cities in order to eat and feed their families. The Great Depression Begins 1929 - 1941. CAUSES of The Great Depression Too many people were buying items on credit - not saving $

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The Great Depression Begins 1929 - 1941

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  1. The Great Depression Begins1929 - 1941 Americans wait in soup and bread lines in cities in order to eat and feed their families.

  2. The Great Depression Begins1929 - 1941 CAUSES of The Great Depression • Too many people were buying items on credit - not saving $ • Companies producing too many goods - piled up in warehouses – included building too many houses 3. Farmers were growing surplus crops - drove prices down 4. Industrialization/Technology caused people to lose jobs 5. There was a large gap between the wealthy and the poor 6. Stock-based economy

  3. American were buying too much on credit and not saving their money. Overproduction of Goods - America producing more than it could consume. A high tariff (Hawley-Smoot Tariff) reduced international trade to a trickle as other countries followed suit and passed high tariffs.

  4. Over production of crops drove prices down. Use of new technology led to higher unemployment. Machines doing jobs previously performed by humans.

  5. Causes of the Great Depression Stock prices extremely inflated. Risky practices being used: Stock Speculation and Buying on Margin Prices did not accurately reflect value of the stock/company DJIA – Dow Jones Industrial Average What is the Dow and how is its value determined?

  6. Stock Market Prices Inflated Stock Prices 10/29/1929 and 2013 $1 in 1929 was worth about $10 in 2011 dollars. Stock prices did not accurately reflect the profit of the company. Prices driven up by speculating (demand).

  7. President Herbert Hoover - 1929-1933 - Republican Hoover Blankets Hoover Flags Hoover reluctant to interfere in the economy. Takes cautious first steps. Strong supporter of laissez-faire (let the market be) economics. When he finally decides to take action, it is too little too late. He is a one-term president Hoovervilles – lean to housing some made from wood others from cardboard.

  8. BROTHER, CAN YOU SPARE A DIME? (1931) Once I built a railroad, I made it run I made it race against time Once I built a railroad, now it's done Brother, can you spare a dime? Once I built a tower, up to the sun Bricks and mortar and lime Once I built a tower, now it's done Brother, can you spare a dime? Once in Khaki suits, gee we looked swell Full of that Yankee-Doodly-dum Half a million boots went slogging through Hell And I was the kid with the drum Say, don't you remember, you called me"Al" It was "Al" all the time Say don't you remember, I was your pal Brother, can you spare a dime? http://www.youtube.com/watch?v=eih67rlGNhU

  9. Hoover’s Handling of Bonus ArmyDestroyed His Political Career WWI veterans (17,000) descend on Washington D.C. to ask for an early payment of war bonuses in Spring and Summer 1932. Congress had voted to pay these in 1945. Congress voted no. Hoover asked Gen. MacArthur to disperse the marchers. He used force. Americans very upset. A boy was blinded and a baby died after tear gas was used. No way Hoover would be re-elected.

  10. Unemployment Rates During Great Depression Unemployment Rate During the Great Depression Year RateAdditional Information 1923-29 3.3% Too much production occurring 1930 8.9% Hoover’s presidency 1931 15.9% Hoover’s presidency 1932 23.6% Election Year – FDR wins in landslide 1933 24.9% FDR – 1st New Deal (Hitler comes to power) 1934 21.7% 1935 20.1% 2ndNew Deal Begins (Japan threatens Manchuria and China) 1936 17.0% Election Year 1937 14.3% Congress pressures FDR to end New Deal programs 1938 19.0% 1939 17.2% War begins in Europe on Sept. 3, 1939 when Poland is invaded 1940 14.6% Election Year 1941 9.9% Japan bombs Pearl Harbor on Dec. 7, 1941 – U.S. industries begin producing war products 1942 4.7% War year FYI – Highest Average Unemployment Rate of Great Recession of 2008 was about 11-12%

  11. The Election of 1932Franklin D. Roosevelt (D) v. Hoover (R)

  12. Franklin Delano Roosevelt – Democrat(1932-1945) – Elected 4 Times Let me assert my firm belief that the only thing we have to fear is fear itself. FDR- First Inaugural Address http://www.youtube.com/watch?v=amNpxQANk0M

  13. The Importance of First Lady Eleanor Roosevelt FDR was disabled from Polio and was confined to a wheelchair. Made traveling the country difficult for him. Eleanor traveled around and brought information to the president about how the American people were doing. She was his eyes and ears. She pushed him on a number of issues including women’s rights and Civil Rights for African Americans. Bethune As a result, Frances Perkins became the first female cabinet member – Secretary of Labor, and Mary McCloud Bethune was the first Director of Negro Affairs in the National Youth Administration.

  14. FDR’s Brain Trust A group of experts in their fields that advised FDR on a variety of matters including the economy.

  15. FDR’s First 100 Days • Honeymoon period at the beginning of his presidency. • Congress passed every piece of requested legislation! • WPA, AAA, CCC, NRA, etc. • Called for a bank holiday so banks could be examined. • “I think it’s time for a drink.” Repeal of Prohibition – 21st Amendment – 1933 • Fireside Chats

  16. FDR’s First and 2nd New Deal – The 3 Rs RELIEF AND RECOVERY EBRA, CCC, PWA, CWA, WPA, NYA, AAA, FDIC, HOLC, FHA, and FERA REFORM SSA, FLSA, NLRA (Wagner Act), SEC, FHA, TVA, and REA

  17. FDR’s Critics Dr. Francis Townsend – Townsend Plan Most people had not saved any money for retirement. He proposed the old-age pension plan funded by a 2% national sales tax so every retired person over 60 would receive $200 per month. The Social Security Act is passed later in the New Deal Era. People receive social security numbers for the first time. Father Charles Coughlin – Catholic Priest Early supporter – turned critic. Felt FDR did not really help the “little” man – didn’t come through with his promises. Became so radical the Catholic Church stopped his weekly radio broadcasts Huey Long – LA Governor and Later U.S. Senator Program: Every Man a King – Share Our Wealth – Socialist Assassinated in the LA Capitol Building 9/8/1935 FDR said one of the most dangerous men in America.

  18. FDR and the Court Reorganization Plan Court-Packing Deal: Who: Supreme Court Why: Were not upholding the constitutionality of his New Deal programs What: Change the number of justices from 9 to 15 Reaction: Republicans and Democrats both outraged – called him a dictator. FDR quickly backed down.

  19. A Resurgence of Labor Unions AFL (Samuel Gompers) v. CIO (John Lewis) Had different goals and broke away from each other. AFL dominated by skilled white male workers. CIO wanted all industrial workers regardless of race or sex or skill level to be able to join a union. New Deal Act: Wagner Act (National Labor Relations Act) passed to guarantee collective bargaining and prohibit unfair labor practices such as blacklists.

  20. New Ideas in Economics There was a recession in 1937-38 caused mostly by passage of the SSA – took money out of circulation at a time when consumer spending was needed. FDR was influenced by the teachings of economist John Maynard Keynes. He taught that governments should spend their way out of recessions/ depressions.

  21. Stock market reform- Securities and Exchange Commission Established to police the NYSE First chairman was Joseph P. Kennedy)- practice of buying on margin was regulated

  22. T o put more money in circulation, FDR issued an Executive Order to take the U.S. off the GOLD STANDARD The government could now print more money than Fort Knox gold reserves could backup. More money in circulation caused inflation causing value of dollar to lower.

  23. TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding – regulated by Federal government. LASTING LEGACIES OF THE NEW DEAL

  24. Social Security Program LASTING LEGACIES OF THE NEW DEAL

  25. LASTING LEGACY The Federal Debt Soared During FDR’s Presidency 1933 US National Debt $22.5 billion 1945 US National Debt $258.5 billion This is the result of Keynesian Economic ideas. FDR drastically increased government intervention in the economy. Other presidents will follow suit.

  26. Life During the DepressionThe New Deal and Minorities Farmers Dust Bowl and Drought on the Great Plains. The Grapes of Wrath by John Steinbeck – about the hardships farmers faced. Women who chose to work were accused of taking jobs men could be working.  Mexican Americans – no real help for these Americans African Americans – usually last hired, first fired. Higher unemployment rate than among whites. Racial tensions increased. FDR feared losing votes if openly supported Civil Rights. Native Americans Indian Reorganization Act of 1934 passed Tribal lands returned to them.

  27. WWII - End of the New Deal War declared in Europe – September 1939 Great Britain and France declare war on Germany after Germany invaded Poland.

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