The Great Depression & New Deal

1929-1939

Causes & Effects of the Depression

  • Wall Street Crash
The stock prices kept going up from March 1928 to September 1929. On September 3rd, the Dow Jones had reached its all time high of 381.Millions of people lost their money on October 29.
  • Causes of the Crash
The top 5 percent of the rich Americans received more than 33 percent of all income. Their was uneven distribution of income. Many people in all economic classes believed that they could get rich by playing the market.The stock prices dropped , market collapsed and many lost everything.
  • Effect of the Crash
Poverty, searching for work, and homeless people increased. Mortgage foreclosures and evictions became commonplace. Difficulty increased for African Americans and farmers.

Great Depression Effects

How the great depression affected women, african-americans, and immigrants.wmv

Hoover Policies

  • Responding to a Worldwide Depression
Hoover's first major decision was concerning the international situation. June 1930, the president signed a law schedule of tariff rates. The effect was suppose to reduce trade for all nation. By 1931 the Dawes plan for collecting war debts couldn't continue.
  • Domestic Programs: Too Little, Too Late

1931 Hoover was convinced that some government action was needed to pull the U.S. economy out of its depression. Th Federal Farm Board was authorized to help farmers stabilize price by temporarily holding grain and cotton in storage.Reconstruction Finance Corporation help stabilize key businesses.

  • Despair and Protest

Farmers banded together to stop banks from foreclosing on their farms and houses. 1932 a thousand unemployed WW1 veterans marched to Washington D.C. to demand payment immediately.

  • The Election of 1932
The republicans renominated Hoover for president. 1932 was the depression's worst year because of the presidential election. The democrats nominated Franklin Roosevelt for president and Nance Garner for vice president.The 20th amendment passed in February 1933 and was ratified by October 1933 to shortened the presidential election and inauguration.

Life During the Depression

  • Women
More women started working, and their percentage in the labor force increased.They were accused of taking jobs from men. Most men didn't search for jobs available to women. Many New Deal program allow woman to receive lower pay than men.
  • Dust Bowl Farmers
A severe drought in the early 1930's ruined their crops in the Great Plains.Thousands of people from Oklahoma and surrounded states moved to California. They searched for farms or factory work that couldn't be found often.
  • African Americans
Racial discrimination continued in the 1930s .They were hired last and fired first. Their unemployment rates were higher than the national average.Unemployed black's were excluded from state and local relief programs. Racial tensions increased and lynching continued in the South.Civil rights leaders got a little support from the president. The New provided some relief for black's . African American received support from the first lady.
  • Native Americans
The Dawes Act of 1887, had encouraged Native Americans to be independent farmers and was repealed in 1934 with the passage of the Indian Reorganization Act. Critics accused the New Deal of withholding control from Native Americans.
  • Mexican Americans
Mexicans suffered from discrimination in the 1930's. California and the Southwest was a principal source of agricultural labor in the 1920's. Discrimination in the New Deal Programs for jobs forced Mexicans to return to Mexico.

Franklin D. Roosevelt's New Deal

  • F.D.R: The Man
President Theodore Roosevelt was his cousin and was married to Theodore's niece, Elanor. Franklin Theodore was paralyzed by polio in 1921. He could never again walk unaided and required assistance from crutches, braces, and a wheelchair. Eleanor Roosevelt became the most active first lady.
  • New Deal Philosophy
His New Deal programs were to serve three R's: relief,recovery, and reform. He relied on a group of advisers who had assisted him while he was Governor of New York.
  • The First Hundred Days
March 4, 1933 Roosevelt called Congress into a hundred day long session. March 6,1933 the president ordered the banks to closed for the holiday. Congress enacted a lot of financial recovery programs. He also had programs for unemployment.
  • Other Programs of the First New Deal
Civil Works Administration hired laborers for temporary construction jobs sponsored by the federal government. The Securities & Exchange Commission was created to regulate the stock market and to place strict limits on speculating practices. The Federal Housing Administration helped construction industry and homeowners by insuring bank loans for building new houses and repairing old houses.
The Wall Street Crash and the Great Depression
President Herbert Hoover
FDR New Deal