Cause and Effect Great Depression
1929 - 1933
Causes of the Crash
The 1929 Stock Market crash was a result of various economic imbalances and structural failings. These are some of the most significant economic factors behind the stock market crash of 1929.
Hoover, a very successful mining engineer, thought that the engineer’s focus on effiency could enable government to play a larger and more constructive role in the economy. In 1917, he became head of the wartime Food Administration, working to reduce American food consumption. Many Democrats, including FDR, saw him as a potential presidential candidate for their party in the 1920s. For most of the 1920s, Hoover was Secretary of Commerce under Republican Presidents Harding and Coolidge. As Commerce Secretary during the 1920-21 recession, Hoover convened conferences between government officials and business leaders as a way to use government to generate cooperation rather than individualistic competition.
Election of 1932
The United States presidential election of 1932 was the 37th quadrennial presidential election, held on Tuesday, November 8, 1932. The election took place among the backdrop of the Great Depression that had ruined the promises of incumbent President and Republican candidate Herbert Hoover to bring about a new era of prosperity. The Democratic nomination went to the well-known governor of the most populous state, New York's Franklin D. Roosevelt, who had been reelected governor in a landslide in 1930. Roosevelt united all wings of his party, avoided divisive cultural issues, and brought in a leading southern conservative as his running mate.
FDR New Deal
The new deal was a series of domestic programs enacted in the United States between 1933 and 1938. They involved laws passed by congress as well as presidential executive orders during the first term of President . The programs were in response to FDR the great depression, and focused on what historians call the "3 Rs": Relief, Recovery, and Reform. That is Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat depression.
New Deal Philosophy
The New Deal produced a political realignment, making the democratic party the majority with its base in liberal ideas, the white South, traditional Democrats, big city machines, and the newly empowered labor unions and ethnic minorities. The republicans were split, with conservatives opposing the entire New Deal as an enemy of business and growth, and liberals accepting some of it and promising to make it more efficient. The realignment crystallized into the new deal coalition that dominated most presidential elections into the 1960s, while the opposition conservative coalition largely controlled Congress from 1937 to 1963. By 1936 the term liberal typically was used for supporters of the New Deal, and conservative for its opponents
Second New Deal
The Second New Deal is the term used by commentators at the time and historians ever since to characterize the second stage of the new deal programs of President FDR. In his address to Congress in January 1935, Roosevelt called for three major goals: improved use of national resources, security against old age, unemployment and illness, and slum clearance, as well as a national welfare program to replace state relief efforts. It is usually dated 1935- 1936, and includes programs to redistribute wealth, income and power in favor of the poor, the old, farmers and labor unions. The most important programs included social security, the National Labor Relations Act , the Banking Act, and breaking up utility holding companies. Liberals strongly supported the new direction, and formed the New Deal Coalition of union members, big city machines, the white South, and ethnic minorities to support it.
1929 : The Great Crash.
The Wall Street Crash
Stock Market Crash of 1929 and Its Effects on the Great Depression
FDR New Deal