The Great Depression
Causes and effects of the depression
- The wall street crash of 1929 is better known as Black Tuesday. This gloomy day was only the beginning of a ten year depression that began immediately after. It was caused by a tremendous amount of selling of stocks.
- The crash was not the only cause of the depression even though companies were making more money, the workers saw little to no increase in wages. Also people were only buying stocks in hope to sell it for a higher price. Another big issue was overproduction, which has been prevalent prior to the crash.
- The depression effected the lives of everyone and even people to come. A system was created to track the health of the economy because of the depression. It also made it harder for farmers and African Americans to prosper.
- The depression became worldwide because of WW1 which caused the need for debts to be paid. The prosperity of Europe was closely tied to the United States which turned into a problem. Due to an act of selfishness that was passed by congress known as the Hawley-Smoot Tariff, the world sank into a deeper depression because trade reduced even more. As a continuing effect , the Dawes Plan could no longer continue so Hoover proposed a moratorium.
- After neglecting the needs of farmers the government wanted to help support them in order to improve the economy. Then the RFC was created in an effort to stabilize key businesses. Democrats felt as if it would only help the rich.
- Farmers tried to reverse the process by stopping the entire crop of grain harvested from reaching the market. Another instance of protest when veterans tried to get congress to pass the bonus bill. violence broke out which lead to Hoover sending the army and it made people view him negatively.
- Hoover was re-elected as a candidate for presidency but lost to Franklin D. Roosevelt because he symbolized the change society needed. Hoover was known as a lame-duck because of his helplessness towards the depression.
President Hoover Visits Detroit
Franklin D. Roosevelt's New Deal
- F.D.R was a distant cousin of Theodore Roosevelt who was Republican. F.D.R. was paralyzed by polio in 1921 but continued to run the country. His wife Eleanor was just as captivating. She became the most active first lady in history giving speeches, writing news paper columns and traveling the country.
- The New Deal Philosophy was based around the tasks to relieve, recover, and recover. These were known as the three r's. Roosevelt's advisors were also one of a kind ranging from many different ethnicities and including women.
- During only 100 days of his presidency, he passed more bills than any other president. F.D.R continued to reform the economy by repealing prohibition which lessened crime also. He also instituted numerous relief programs to better stabilize the people and economy.
- Roosevelt improved on previous acts by adding to them. for example, he added the CWA to the PWA in order to hire laborers for temporary construction jobs.
The New Deal: Crash Course US History #34
The Second New Deal
- Relief programs took another step forward with the creation of WPA which created 3.4 million jobs in a year.
- When the Wagner Act passed it allowed for workers to be a part of unions and for the unions to collectively bargain on behalf of the workers. A revenue tax was installed which taxed the wealthy few harder than the normal citizens.
- Social Security was a major act that made provisions for people retired over the age of 65 and also workers who have lost their job or disabled.
- In 1936 Roosevelt was re-elected with flying colors. He ran against Alfred London who agreed with F.D.R. but felt as he was spending too much money.