We are closer to the end of poverty than at any point in our history

The Great Depression1929-1945

• Spark-Crash of The Stock Market-10/29/29• Underlying Causes-• Mass Production-too many goods produced,

not enough demand• Credit-too many goods bought that people

could not afford, including stocks, On Margin• Investing-inexperienced people put too much

of their $$ in the Stock Market-risky

Wall Street

Bull vs. Bear Market

Market and Economy doing wellMarket and Economy doing poorly

Bank Runs

Okies

Riding The Rails

Hoovervilles

Hoover Blankets

Buy American

• Hoover signs the Hawley-Smoot Tariff• Increasing Tariffs-Americans buy less foreign

goods• Foreign nations now had less $$ to pay back

war debt to US.

Rugged Individualism

Hoover Dam 1931-1936 *Public Works

Bonus Army

A New Deal1933-1945

The New Deal in Action - The 3 R’s• Relief-Immediate help-$$ to the people

• Recovery-temporary jobs

• Reform-permanent programs- Soc. Sec. FDIC• These programs would be paid by:

*Deficit Spending- Government Spends more than it takes in

• FDR was seen as taking action!*People had a renewed confidence in

government

FDR Gets To Work Right Away

• Declares a Bank Holiday, Closing ALL Banks for 4 Days

• Why?• To Get $$$ to the

banks!!

Alphabet Soup• AAA, CCC, FDIC, SEC, SSA, PWA, TVA, WPA,• Nickname given to all these programs

New Government Beauracricies are set up to assist

people in need• CCC – Gave public

works jobs to young men

• FERA – Gave $ relief directly to unemployed

• AAA – Paid farmers NOT to grow certain crops

• PWA – built ports, schools, aircraft carriers

• FDIC – Insures deposits made to federal certified banks

• WPA – Employed people to bulid hospitals, schools, parks, airports

• Social Security Act – Insurance for elderly, unemployed, and disabled

FDR and The New Deal Help Labor• Wagner Act- allowed workers to BARGAIN

COLLECTIVELY for what they wanted. (Unions hire representatives to bargain a contract for all members)

• Fair Labor Standards Act-• Created Minimum Wage, Maximum Hours. • .25 cents/44 hours a week originally.• Currently $7.25/40 hours a week

Minimum WagesGreen-higher, Blue-same, Yellow-None, Maroon-Lower

Court Packing

Eleanor Roosevelt – FDR’s eyes and ears

Why is FDR Elected 4x’s?

• Seen as using government to help• Feared change during crisis-Dep./WW2• Confident attitude• Support from new voters-– Labor– Women– Minorities

REVIEW – Causes of the Depression1 – Weaknesses in the Overall Economy

Overproduction/underconsumption of consumer goods and Farming products

2 – Unequal distribution of IncomeNot all social classes enjoyed boom of ’20s

3 – Excessive buying on Credit4 – Weak Corporate/Banking structures

Corruption, high-risk investments, lack of preparedness for recession

5 – Weak international EconomyEurope dependent on U.S. economy after WWI

Differences between FDR and Hoover

Roosevelt*Democrat*Willing to give direct relief to

people - $*Willing to allow Government

to make economic decisions*Deficit Spending

Hoover*Republican*Believed the Free-Market

system would correct itself*Believed people should work

through hard times (self-help/rugged individualism)

*Believed Gov’t should not make economic decisions (laissez-faire)

The New Deal is a Major Turning Point in American Government!• The government became more involved in

the economy and people’s lives!

• The New Deal Does Not End the Great Depression!

•World War 2 Does!!

• Wagner Act, Fair Labor Standards Act, SSA, FDIC, Creeping Socialism, Rugged Individualism, Court Packing, TVA, AAA, CCC, Bonus Army, Okies, Hoovervilles, Hoover Blankets, Dust Bowl, Deficit Spending, Brain Trust, Relief, Recovery, Reform, public works projects