Chapter 23 The Great Depression and the New Deal

1. Chapter 23 The Great Depression and the New Deal

3. Hoover and the Crash • A Collapsing Economy • Industries like coal mining, railroads, and clothing manufacturing were declining through the 1920s • The stock market continued to rise as the economy was on the decline

4. Hoover and the Crash • Stock Market Crashes • On Wednesday, October 23, 1929 stock prices fell and investors lost $4 billion. • Brokers who lent people money to buy on margin started to recall their loans, and investors who could not pay had to sell their stocks. This caused prices to drop even more

5. Hoover and the Crash • October 29, 1929- Black Tuesday- the stock market collapsed completely • Stock prices plummeted • Millionaires lost their fortunes overnight

7. Hoover and the Crash • The Great Depression Begins • The stock market crash marked the start of a 12-year economic and social disaster known as the Great Depression

8. Hoover and the Crash • Troubled Industries • One major cause of the Great Depression was overproduction • Factories were producing more than people could afford to buy

9. Hoover and the Crash • Industries that supported prosperity in the 1920s began to decline • Spending on construction fell by more than $2 billion • car sales dropped by more than one third in 1929

10. Hoover and the Crash • Crisis in Banking • Banks across the country started to fail • 5,500 banks closed between 1930-1933

13. Hoover and The Crash • The Downward Spiral • With people unable to buy what factories were producing, many workers lost their jobs….and then had even less money with to buy stuff….which caused more workers to lose their jobs….which then caused more factories to close or declare Bankruptcy

14. Hoover and The Crash • The Human Cost • Urbanization caused the depression to affect more people

15. Hoover and The Crash • The Unemployed • Between 1929 and 1933 the unemployment rate went from 3% to 25% (13 million people were unemployed)

16. Hoover and The Crash • Growing Poverty • Jobless people lined up at soup kitchens • People tried to sell apples or pencils on the street • Tried to pick up trash for food

17. Hoover and The Crash • In big cities, homeless people built communities of rundown shacks • Known as Hoovervilles

21. Hoover and The Crash • Hoover Responds • Many Americans blamed President Hoover for the Depression

22. Hoover and The Crash • advisers recommended that Hoover let the Depression work itself out • Hoover believed that business leaders and local governments should help the people (Not The Federal Government)

23. Hoover and The Crash • Hoover met with executives and local governments to encourage them to help people • Hoover soon realized that the federal gov’t needed to get involved • formed that Reconstruction Finance Corporation (RFC)

24. Hoover and The Crash • The Bonus Army

34. Why was President Hoover receiving blame for the Great Depression? What will the American people want from their next president? Homework pages 782 and 790 Key Terms and People Due Wed

35. Roosevelt and the New Deal • Election of 1932 • Franklin D. Roosevelt vs. Herbert Hoover

36. Roosevelt and the New Deal • Roosevelt beat Hoover 472 electoral votes to 59

38. Roosevelt and the New Deal • During the campaign FDR pledged “a new deal for the American people” • The term New Deal would come to describe his way of getting the U.S. out of the Depression

39. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself…”

40. Roosevelt and the New Deal • The day after Roosevelt took office he declared a bank holiday • Tried to stop banks from closing • Created the Emergency Banking Relief Act

41. Roosevelt and the New Deal • Tried to restore Americans’ confidence in their banks and the economy by delivering fireside chats

42. Roosevelt and the New Deal • Roosevelt’s plan to bring back the economy was broken into three parts • Relief for the jobless • Promote economic recovery • Reform the economic system

43. Roosevelt and the New Deal • Relief for the Jobless • During FDR’s first hundred days he signed a record 15 new bills • Relief for the jobless • Economic recovery • Reforms to prevent future depressions

44. Roosevelt and the New Deal • Federal Emergency Relief Administration (FERA) was created to provide financial assistance to unemployed • Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) were created to give people jobs

45. CCC hired people to work in national parks, forests, wilderness areas • Men would plant trees, build reservoirs, construct parks • WPA paved 650,000 miles of roads, built 75,000 bridges and 80 airports

49. Roosevelt and the New Deal • Promoting Economic Recovery • National Recovery Administration (NRA) tried to improve wages and raise prices to boost the economy • Public Works Administration (PWA) was created to help improve the nations infrastructure and to created jobs (Lincoln Tunnel) • Tennessee Valley Authority (TVA) was created to build dams along the Tennessee river that would prevent flooding and provide electricity