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The Great Depression and the New Deal Ch.22 & Ch.23

The Great Depression and the New Deal Ch.22 & Ch.23. 1929-1939. Causes of the Depression 1929-1933. Wall Street Crash : Rising stocks hit an all time high (September 3) Black Thursday: (October 24, 1929) Extreme amounts of selling on Wall Street Stock prices plunged

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The Great Depression and the New Deal Ch.22 & Ch.23

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  1. The Great Depression and the New Deal Ch.22 & Ch.23 1929-1939

  2. Causes of the Depression1929-1933 Wall Street Crash: Rising stocks hit an all time high (September 3) Black Thursday: (October 24, 1929) Extreme amounts of selling on Wall Street Stock prices plunged Bankers tried to stabilize the market on Friday. Black Tuesday: (October 29, 1929) *Investors panicked and sold while no buyers came.

  3. What started the Depression? Uneven distribution of income (Mellon Tax Plan) Stock market speculation (Mellon Tax Plan) Excessive use of credit Overproduction of consumer goods Weak farm economy Government policies Global economic problems.

  4. Effects U.S Gross National Product- (Value of all goods and services produced by the US in 1 year) -Dropped from $104 billion to $56 Billion in 4 years. US income dropped over 50% 20% of banks closed (10 million savings accounts lost) 1933- 13 million unemployed (25%)

  5. Hoover’s Policies “Do nothing president” Hoover assumed the tides would turn Message to Americans: Localism-Local and state gov. responsibility Volunteerism- Charities take care of the poor and needy. Rugged Individualism- Hard work, sacrifice, and determination will get the US out of the depression.

  6. Hoover Policies (Foreign) Hawley-Smoot Tariff (1930) -Raised tariffs to an all time high. Consequence??? Debt moratorium -1931 (Economy was so bad) Dawes Plan not working, Hoover suspended all payments of international debts. Tons of loan defaults.

  7. Hoover’s Domestic Programs Federal Farm Board- Help farmers stabilize prices by storing grain and crops. Reconstruction Finance Corporation (RFC) -1932 Congress created gov. owned corporation -Help railroads, banks, life insurance companies, and financial institutions. (Trickle Down Effect) (Business focused) Farmer unrest- Created Farm Holiday Association in the Midwest. Try to stop banks from foreclosing and try to keep 1932 harvest from the market. (Not Effective) Bonus March- WWI Veterans (Bonus Expeditionary Force) promised a bonus by 1945. March to D.C demanded an immediate payment. Hoover ordered the army to break up the encampment.

  8. Hoovervilles

  9. Bell Ringer 1)If you were living at the time of the Great Depression, what are three ways the Depression would have directly influenced your life? 2) Describe Hoover’s approach to the Great Depression. How did most American’s view Hoover’s philosophy?

  10. Election of 1932 Hoover becomes unpopular (1930 Democrats control House) Hoovervilles 1932- Worst year of the Depression so far. Franklin D. Roosevelt (FDR)- Dominates Hoover “I pledge you, I pledge myself, to a new deal for the American people.” Blacks started to favor Democrats instead of their traditional support for Republicans. Hoover “lame-duck” president: -Four months before FDR would become president. -20th Amendment- Shortened the period to January 20.

  11. FDR

  12. FDR’s New Deal Philosophy FDR promised to attack the crisis through radical reforms and experimentation. Congress gave him immense support Biggest problem at first was restoring confidence 3 R’s Relief- for people out of work Recovery – for business and economy Reform- of American institutions

  13. First 100 Days March 4, 1933: FDR called Congress to a Hundred-day-long special session. Congressed passed into law every request by FDR. More major legislation than any single Congress in history.

  14. Bank Holiday Early 1933 Banks were failing at insane rates To instill faith in the remaining banks, FDR closed the banks for a 4 day bank holiday on March 6, 1933. FDR reassured Americans on the radio that the banks would be back when they were sound.

  15. Fireside Chats March 12, 1933 First fireside chat Radio broadcast of the president reassuring Americans, especially in regard to the safety of the banks. More money was deposited than withdrawn when banks reopened.

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