The Great Depression and the New Deal

1. The Great Depressionand the New Deal AP Chapter 24

3. Florence Leona Christi • "I did not ask her name or her history. She told me her age, that she was 32. • She said that they had been living on frozen vegetables from the surrounding fields and birds that the children killed. • Dorthea Lange--Photographer

5. I. The Great Crash • October 29,1929 • “Black Tuesday” • Within 3 weeks… • Over time…

6. A. Causes of the Crash 1. Stock Market Speculation 2. Mistakes by the Federal Reserve Board 3. An Ill-Advised Tariff 4. A Maldistribution of Wealth

7. 1. Stock Market Speculation • Money poured into the stock market • Many investors bought on 10% “margin” • Investor put in only 10% and borrowed from banks, brokers • Rampant speculation and risky ventures • Confidence in future earnings fell and banks, brokers demanded loan repayment

8. 2. Mistakes by the Federal Reserve Board • 1930-1931, Federal Reserve curtailed the amount of money in circulation and raised interest rates • Credit became more difficult for the public to obtain • Policy was disastrous when the crash occurred • U.S. needed easier credit once Depression began

9. 3. An Ill-Advised Tariff • Hawley-Smoot Tariff (1930) • Raised tariffs on agricultural and manufactured goods • Other countries retaliate by raising tariffs on American goods

10. 4. A Maldistribution of Wealth • Huge gap between wealthy and poor • Wealthiest families’ incomes rose the most • Coolidge Administration mistakes: • Lowered taxes on the wealthy • Slowed consumer consumption

11. Income Distribution Before the Great Depression

12. B. Effects of the Crash 1. Gross National Product… 2. 25%..

13. Unemployment, 1929-1942

14. The Jobless

20. C. Hoover’s Response • Unable to effectively communicate with the common man… • Tries the “trickle down” method… • Debt moratorium…

21. 1. Hoover’s Program • Associationalism • Glass-Steagall Act (1932) • Reconstruction Finance Corporation (RFC) • Hoover uncomfortable with deficit spending, Especially spending that directly gave money to the poor • Livestock feed over food for farm families • Bank bail out over salaries for teachers and city workers

22. D. Mounting Discontent and Protest 1. Bonus Expeditionary Force (Bonus Army) • 20,000 staged a march on Washington, D.C. • About 2000 make “camp” • House agrees, Senate refuses • Douglas MacArthur and George Patton called in • Make shift city burned and veterans dispersed

23. “Bonus Army”

24. D. Mounting Discontent and Protest 2. “Hooverville’s” *Make shift cities, like in Central Park, where jobless people lived. *Suicide rates skyrocket

25. “Hoovervilles”

26. The Homeless

28. E. The Dust Bowl • Tons of topsoil blown off barren fields --storm clouds for hundreds of miles. • CO, KS, TX, OK; eventually entire country was affected. • 1932, 14 dust storms • By 1934, 100 million acres of farmland had lost all or most of the topsoil to the winds.

29. Black SundayApril 14, 1935 • April 1935 -- weeks of dust storms, • Cloud appeared on the horizon • Winds were clocked at 60 mph. Then it hit.

36. The Hobos • Migratory • Homeless • Poor/penniless • Indigent workers • Sometimes supporting others • Unlike tramps, vagabonds who did not want to work

39. The Rail Yard Hobos

40. The MigrantsThe “Arkies” and the “Okies”

46. II. The New Deal Takes Shape

47. The Emergence of Roosevelt1933 - 1945 • Franklin Roosevelt • born to wealth and privilege • 1921--crippled by polio • 1928--elected governor of New York • talented politician • 1932--defeats Hoover with farmer- worker-immigrant-Catholic coalition

48. Election of 1932

49. Roosevelt • Bulldog determination to succeed • Talent for surrounding himself with capable people and getting most out of them (the Brain Trust) • Instill hope and courage in the people “We have nothing to fear but fear itself“ http://www.youtube.com/watch?v=3tyvvjWtc-

50. F.D.R. & Eleanor