The Great Depression and the New Deal

Mr. OrnsteinWillow Canyon High School

United States and Arizona History

Ask???

•Does the Government have a responsibility to help poor people?

•How much help?•Where does the money

come from?

The Great Depression

•1929-1941•Ends with Franklin D.

Roosevelt’s New Deal and WWII

Rugged Individualism

• Government Did Not Help People With Economic Problems/No Government Welfare

• Idea That Hard Work=Success• Equal Opportunities• Laissez-faire/social darwinism

Before the Depression

• The Roaring 20’s, the spread of the automobile and other new technologies, growing prosperity, laissez-faire policies towards business. Mass consumption, increased rolls for women.

• Harlem Renaissance

Before the Depression

• Isolation in Foreign Policy• Red Scare-Afraid of Communism• Nativism and Fears of Farmers• Government Policies Favoring Business• New Industries• Increased Production• Increased Speculation-Stock Market

Herbert Hoover

• Believed in Rugged Individualism

• President when Depression Starts

• Does not believe the government can influence business and economics

Answer???

•What is rugged individualism?

•What did Herbert Hoover think the government should do to help people during the depression?

Underlying Causes of the Great Depression

• Overproduction• Uneven distribution of wealth• Speculation-investing often on credit• Shaky Banking• Restricted International Trade• Poor Government Fiscal or Money Policy• Too Little Money in Circulation• Bank Failures

Ask???

•Which was the most significant cause of the Great Depression?

Immediate Cause of the Great Depression

• October 29th, 1929• Stock Market Crashed

Economic Problems

• 5,000 Banks Closed

• Businesses Closed• Factories Closed• Farmers Lost their

Farms• Life Savings Lost• Demand for Goods

Decreased

• Millions Loose Their Jobs

• People Could Not Repay Loans

• People Lost Their Homes

• People Went Hungry

The Dust Bowl

• Farmers in the Great Plains Suffer Both Economic and Natural Disasters.

• Droughts and Heavy Winds in Addition to Financial Losses.

• 1 Million Farmer Lose Their Land

The Government Does Not Respond

• Government Was Not Set Up to Help the Poor.

• People Were Expected to Help Themselves

• Hoover Felt Economy Would Naturally Fix Itself

• Reliance on Charity and Private Organizations to Help

World Wide Depression

• The Great Depression Spreads All Over the World

• Major Reason Hitler Gains Power in Germany is the Great Depression

Ask???

• What Should the Government do to end the depression?

• What was the Dustbowl?• How did the Depression Start?

Empire State Building

•Gave People Hope During Depression

•Was Tallest Building at Time

The New Deal

•Franklin Roosevelt’s Plan to End the Depression

FDR’s Election

• Elected 1932• Only President Elected 4x• Roosevelt’s Election Gave Hope

to Americans• Roosevelt Vowed to Get the

Government Involved in Helping End the Depression and Helping Those Suffering

Roosevelt’s Philosophy

• President and Government Should Have Large Role in Economy

• Roosevelt Will Increase Size and Power of the Government

3 R’s of the New Deal

•New Deal is Divided into 3 Parts•Relief- Immediate Help for

those suffering•Recovery-stimulate Production•Reform-Permanent changes to

prevent further depressions

Relief

•Bank Holiday•CCC, WPA, PWA-

Government Creates Jobs

Recovery

•Stimulate Economy•Put More Money into the

System- “Priming the Pump”

Reform

• FDIC- Money in Bank is protected by Government

• Social Security-Pension for older Americans

• Securities and Exchange Commission-Police Stock Exchange

Problems with the New Deal

• Some Measures Were Unconstitutional

• Increases Size and Power of Government/some say too much

Legacy of New Deal

• Restores Hope in Government• Government Has Role in

Economy and Economic Well Being of the People

WWII

•World War II Brings the US Fully Out of the Depression

Answer:

•What were the 3 R’s of the New Deal?

•What is the Legacy of the New Deal?