Causes and Effect of the Depression

1929-1933

Wall Street Crash

The ever-rising stock prices had become both a symbol and a source of wealth during the prosperous 1920s.

A "boom" was in full force in the United States and in the world economy in the late 1920s.

Causes & Effects of the Crash

The depression throughout the nation and the world was the result of a combination of factors that matured during the 1920s. Wages has risen relatively little compared to the large increases in productivity and corporate profits.


While in retrospect it can be seen that the economic decline reached bottom in 1932, complete recovery came only with the beginning of another world war, in 1939.

The Wall Street Crash and the Great Depression

Hoover's Policies

At the time of the stock market crash, nobody could foresee how long the downward slide would last. President Hoover was wrong in thinking that prosperity would soon return.

Responding to a Worldwide Depression

Repercussions from the crash on the Wall Street were soon felt in the financial centers of Europe.

Domestic Programs: Too Little, Too Late

By 1931, Hoover was convinced that some government action was needed to pull the U.S. economy out of its doldrums.

Despair and Protest

By 1932, millions of unemployed workers and impoverished farmers were in a state bordering on desperation. Some decided to take direct action to battle the forces that seemed to be crushing them.

The Election of 1932

The depression's worst year, 1932, happened to be a presidential election year. The disheartened Republicans renominated Hoover, who warned that a Democratic victory would only result in worse economic problems.
American Response to the Great Depression

Franklin D. Roosevelt's New Deal

He would dominate the nation and the U.S. government for 12 years and 2 months.

F.D.R: The Man

Following in the footsteps of fellow President Teddy Roosevelt whom was also his relative, FDR first was New York's state legislator and then U.S assistant secretary of the Navy.

The First Hundred Days

Eager to provide leadership, Franklin was sworn into office March 4, 1933. Immediately afterwards congress passed a special hundred day long session.

New Deal Philosophy

In his campaign for president in 1932, Roosevelt offered vague promises but no secure programs.
American History - Part 175 - FDR - First 100 days - Inauguration excerpts

Other Programs of the First New Deal

Congress adjourned briefly after its extraordinary legislative record in the first hundred days of the new deal.

The Second New Deal

The first two years in office for President Roosevelt were spent attempting to deal with one of the three R's: recovery.

Relief Programs

Harry Hopkins became the keynote administrator in FDR's administration in which Hopkins headed.
Federal Work Programs for Black Americans Documentary (1930s)

Reforms

The reform legislation of the second New deal reflected Roosevelt's theory that industrial workers and farmers needed to receive more gov. help than others.

The Social Security Act

SSA created federal insurance programs based upon automatic collection from taxes from the employees throughout peoples working career.

Election of 1936

During Roosevelt's second term in 1936, the economy was still weak and unstable yet there had been improvements made.