The Great Depression & the New Deal

1929-1939

Causes & Effects of the Depression (1929-1933)

  • Wall Street Crash
The rising stock prices became a symbol & source of wealth during the 1920's. Millions of people invested their money in October 1929 the same year the market collapsed.
  • Causes of the Crash
Uneven distribution of income was one of the causes of the crash the economic success wasn't shard by all but by the 5% of the richest Americans received over 33%of all income. Another cause was stock market speculation people were investing their money hoping that the price of a stock would go up so that they could sell it. People also began to have an excessive use of credit, over production of consumer goods & a weak farm economy. Congress decided to enact high tariffs which protected the u.s. Industries but hurt farmers.
  • Effects of the Crash
The u.s gross national product dropped from $104 billion to $5 billion in 4 years while the nations income declined by over 50%.

Hoover's Policies

  • Responding to a Worldwide Depression
Hooves response was one of the worst mistakes during his presidency.
  • Domestic programs:Too Little, Too Late

Too pull the economy out of the hole Hoover supported and signed laws programs that offered assistance to indebted farmers and struggling business.

  • Despair and Protest
In 1932 unemployed workers and farmers joined together to ban banks from foreclosing on their farms as well as organized the Bonus march.

  • The Election of 1932
The election resulted in Roosevelt winning and Hoover being known as the worst president ever.

Franklin D. Roosevelt's New Deal

  • F.D.R.: The Man
Fdr was a child of a wealthy family in New York and became a New York legislature.
  • New Deal Philosophy
Roosevelt proposed to serve with his new deal programs by implying his 3 R's "relief for people out of work, recovery for business and the economy as a whole and reform of American institution .
  • The First Hundred Days
Immediately after being sworn in Roosevelt called congress into a 100 day long session in which congress passsed into law every request of Fdr enacting more major legislation than any single congress in history.
  • Other program of the First New Deal
Other programs that Roosevelt had enacted were the Civil works Administration, the securities and exchange commission, andThe federal housing Administration

The 2nd New Deal

  • Relief programs
Roosevelts Administration took initiative and enforced programs such as the work in progress administration along with the resettlement administration.
  • Reforms
Roosevelt believed that industrial workers & farmers needed to recirve more government help than upper class people. He enforced the national labor relations act and the rural electrification administration.
  • The Social Security Act
The social security act was passed to create a federal automatic collection of taxes from employees during their working career people who lost their jobs also benefited from this act.
  • The Election of 1936
Roosevelt won again against Alf Landon african americans began to support democrats because if Roosevelt's new deal.