The Great Depression of 1929-1933

By: Alyshia Archibald

Causes and Effects of The Depression, 1929-1933

  • Wall Street Crash: The Wall Street Crash began on October 24, 1929 that was also known as Black Thursday. The stock prices plunged on this day.Following the massive plunge bankers bought stocks worth million of dollars to stabilize the prices. This lasted for a few days until October 29, which was known as Black Tuesday. From this day on prices kept on plunging because no buyers were to be found. It declined from 381 to 198.
  • Causes of The Crash: The causes of the crash was the government policies, global economic problems, overproduction of goods, a weak farm economy, and an uneven distribution of income. All of these things caused the crash in the 1920s.
  • Effects of The Crash: Every since the crash many things happened in the economy. The nation's income declined. This causes for a higher rate in poverty and homelessness. Also many banks closed which wiped out people's savings accounts. The unemployment rate rose dramatically.

Hoover's Policies

  • Responding to a Worldwide Depression: One of Hoover's worse decisions after the Crash was signing the of the law a schedule of tariff rates that was the highest in history. The purpose of it was to satisfy the U.S. business leaders. All of this cause for the national and international economies sank further into a depression. One of his other mistakes was suspending the payment of international debts which caused massive loan defaults.
  • Domestic Programs: Hoover soon signed into law programs that offered assistance in indebted farmers and struggling businesses. The Federal Farm Board was authorized to help farmers stabilize prices. The Reconstruction Finance Corporation benefited smaller businesses.
  • Despair and Protest: Many farmers and Veterans were desperate for things to change. Some farmers banded together to stop banks from foreclosing on their farms and evicting them from their homes. The veterans also marched to demand immediate payment of the bonuses promised.
  • The Election of 1932: During the election of 1932, many voters were on the border line of choosing either Roosevelt or Hoover for presidency. Towrds the end Franklin D. Roosevelt was chosen. In between the time he was sworn into office and election Hoover was still considered as a "lame-duck" president. He was powerless to cope with the depression.

Franklin D. Roosevelt's New Deal

  • F.D.R The New Man: Theodore's greatest strengths were his warm personality, a great speaker, and ability to work with and inspire people. He also instituted a number of welfare and relief programs to help the jobless.
  • The New Deal Philosophy: His New Deal programs were to serve three R's: Relief for people out of work, recovery for business and the economy as a whole, and reform of American economic institutions.
  • The First Hundred Days: After Roosevelt was sworn into office on March 4, 1933 he called for Congress into a hundred-day-long special session that discussed new programs such as the Federal Deposit Insurance Corporation and the Home Owners Loan Corporations.
  • Other Programs of the First New Deal: Other programs were formed. (Civil Works Administration,Securities and Exchange Commission,etc.)

The Second New Deal

  • Relief Programs: The Work Progress Administration provided part-time jobs to help young people stay in high school or college or until they could get a job with a private employer. The Resettlement Administration provided loans to sharecroppers, tenants, and small farmers.
  • Reforms: Many reforms were to help rural areas to outlaw unfair labor jobs.
  • The Social Security Act: An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes.
  • The Election of 1936: Roosevelt was nominated for a second term during this year. His opponent became Alfred Landon. Roosevelt won this election.
The Great Depression: Causes and Effects
Roosevelt and the New Deal Part 1
The Second New Deal