The Great Depression & New Deal
Causes and Effects of the Depression|1929-1933
Wall Street Crash: During the 1920s, stock prices began to become the symbol of wealth, and stock prices slowly increased for a total of 18 months in New York City. Black Thursday was a name given for Thursday on October 24, 1929 when stock prices plunged on Wall Street. Bankers decided to buy millions of dollars in stocks, but it only worked for one day. Black Tuesday was the day that the entire stock market crashed, and from that day on stock prices continued to decrease for a total of three years.
Causes of the Crash: Farmers overproduced a great amount of consumers good and products. The wealthy and poor shared an uneven distribution of income, causing wealth not to be shared equally. Buying on margin was caused by gambling and investors thinking that they could pay off their loans because of the increase of stocks.
The farmers wages weren't equal to the growth of production during the time period.
Effects of the Crash: The stock market crash led to the Great Depression. By 1933, unemployment rose to 25 percent and 20 percent of banks closed in the U.S. The social effects of the depression were distributed between all classes including the loss of jobs, foreclosure, and poverty.
Responding to a Worldwide Depression: The Hawley-Smooth Tariff increased taxes on foreign imports. The Dawes Plan could no longer continue due to high tariffs on their own goods.
Domestic Programs: Too Little, Too Late: The Farm Board helped farmers keep their grains and cotton in storage. The Reconstruction Finance Corporation (RFC): funded government owned businesses and help recover from the Wall Street Crash.
Despair and Protest: Farmers plotted together to discontinue foreclosures on their land and homes. Summer of 1932, veterans and their families marched to Washington D.C. to demand the payment of their bonuses. Congress failed the bill, and General Douglas McArthur was permitted to use violent weapons to clear the veterans from Washington D.C.
The Election of 1932: President Hoover was renominated, even though voters felt as if the victory would result in economic problems. Roosevelt enacted a "new deal" that would aid unemployment, and the governments spending. The Twentieth Amendment was an amendment that set the dates for the presidential election each year which would be the day that starts the president's term, January 20.
Franklin D. Roosevelt's New Deal
F.D.R: The Man: Franklin D. Roosevelt grew up wealthy in New York in a family of successful legislators. Roosevelt dreams were particularly to follow in his cousins' Theodore Roosevelt's footsteps , he became a legislator and secretary of the navy. Roosevelt was diagnosed with Polio in 1921, but it didn't stop him from resuming his career in politics; seven years later Roosevelt was elected governor of New York. Roosevelt's wife began to impact lives by delivering speeches, writing newspaper articles, and traveling the country. She supported Roosevelt in everything he accomplished and served as his conscience and support poor families.
New Deal Philosophy: Roosevelt promised to help end the depression, but he didn't have a plan on how to end it. The programs for the New Deal enabled relief, recovery, and reform for the American people. Francis Perkins was the first woman to serves in the president's cabinet.
The First Hundred Days: The Hundred Day session was enacted to pass every law that President Roosevelt requested. On March 6, 1933; all banks were closed to reorganize the withdrawal of funds. Roosevelt persuaded Congress to examine the bank withdrawals, prevent foreclosures, and provide relief for loans to farmers. The Federal Emergency Relief Administration (FERA):provided finances to homeless shelters and soup kitchens. The Public Works Administration (PWA): financed the building of roads, bridges, and dams. The Civilian Conservation Corps (CCC): employed young adults and provided their families monthly wages. The Tennessee Valley Authority (TVA): provided electricity at low prices in Tennessee.
Other Programs of the First New Deal: The Civil Works Administration (CWA): provided jobs for unemployed laborers. The Securities and Exchange Commission (SEC): regulated to control the Wall Street Crash. The Federal Housing Administration (FHA): provided help for construction workers and homeowners to relocate to new houses or repair their old ones.
The Second New Deal
Relief Programs- The Works Progress Administration acquired jobs for the unemployed which paid them double the amount of relief rate. Most of the individuals worked building airport, bridges, roads, and public buildings. The WPA, youth program provided jobs for young adults until they graduated high school or college. The Resettlement Administration was enacted to aid farmers to relocate to new settlements, and help with their expenses and labor crops.
Reforms- The National Labor Relations (Wagner) Act (1935) was enacted to protect employees rights, unions to encourage collective bargaining, business practices the right to labor, and guarantee that workers' rights were preserved. The revenue act of 1935 increased tax incomes of the wealthy and increased taxes on gifts from parents to children.
The Social Security Act- The act was enacted in 1935 to create an insurance program based on taxes from their employees or employers. The act also provided aid to individuals the age 65 or older, and individuals who were unemployed or disabled.
The Election of 1936- Roosevelt's New Deal attained him popularity amongst small workers and farmers, but he was hated by businesses because of his programs and acts that he created. President Roosevelt beat Landon in popular vote by more than 60 percent, and the New Deal would acquire support from African Americans in the North, whites, farmers, and labor unions.