Notes Section 1

1. Notes Section 1 Causes of the Great Depression

2. I. BACKGROUND OF THE DEPRESSION • Post-WWI economic boom in ’20s 1. Herbert Hoover president. 2. 1920s had experienced long “bull market” 3. By ’29 economy had slowed a. no stats to forecast

3. II. THE STOCK MARKET CRASH A. The Stock Market • 1. Legal gambling  can make a fortune • 2. “buying on the margin” • a. make down payment, borrow rest from broker • b. works when market going up. • If prices start to fall, why would “buying on the margin” turn out to be bad?

4. II. THE STOCK MARKET CRASH • B. August 1929, some investors worried that the boom might end, so they began selling their stocks. • C. Others noticed the sell-off and began to sell their stocks, too. • D. Stock prices began to fall.

5. II. THE CRASH • D. Black Tuesday • 1. Oct. 29, 1929 • 2. Panic selling • 3. Market flooded, no one buying • 4. Stocks worthless • 5. $10-15 billion lost

6. III. Great Depression: 1929-1941 A. The Long-Term Causes 1. Factory Overproduction 2. Banks make bad loans 3. Worker layoffs & unemployment causes companies to fail 4. Unequal distribution of wealth B. Hoover’s “trickle-down” approach 1. $$$ to banks/biz 2. will “trickle-down” to ppl 3. Takes LONG time 4. Thought people wouldn’t spend direct relief $, but hoard it

7. Unemployment 1929–1941 Hard Times

11. Hoovervilles

12. Hoovervilles

14. The Dust Bowl Chapter 26, Section 4

15. The Dust Bowl

16. WRAP • Sensory Figure for the market crash and the causes of the Depression. Be sure to address what the person: • Feels • Hears • Sees • Smells • Tastes • Remember, your grade for this Cat. A assignment is based on demonstrating what you know, so you need to explain the WHY for each sense.

17. The Bonus Army • http://www.youtube.com/watch?v=IiMuzkpT8Xs

18. Notes section 2 FDR Elected and the Hundred Days

19. I. Franklin Delanor Roosevelt Who was Franklin D. Roosevelt? • Franklin Roosevelt, known as FDR, came from a wealthy family. In 1905, he married Anna Eleanor Roosevelt. • During World War I, FDR had served as assistant secretary of the navy. He later became governor of New York. • In 1921, Roosevelt was stricken with a severe case of polio, a disease caused by a virus. His legs were totally paralyzed. • In 1932, the Democrats made him their presidential candidate.

24. I. Franklin Delanor Roosevelt A. FDR’s 1932 campaign • 1. Roosevelt, a Democrat declared: • “I pledge myself to a new deal • for the American people.” He did • not spell out what he meant, but • he struck a hopeful note. • 2. Promised to help the jobless, • poor farmers, and the elderly. • 3. Voters liked his confident • manner and personal charm.

26. II. The Hundred Days • March 9 - June 16, 1933 1. Experimentation 2. Congress passed 15 major new laws. a. aimed at banks, stock market, industry, farming, debt relief, spending & job creation B. Emergency Banking Relief Act 1. Second day in office. 2. All nation’s banks closed for 4 days 3. Day 5: only banks with enough $$ could reopen 4. Others had to stay closed

27. FDR’s Fireside Chats Chapter 26, Section 2 • Altogether, Roosevelt made 30 radio speeches while in office. He called them fireside chats because he spoke from a chair near a fireplace in the White House.

28. III. The New Deal • Roosevelt’s program for economic recovery • Three main goals 1. relief for the jobless 2. plans for economic recovery 3. reforms to prevent another depression. The President’s New Deal programs changed the relationship between government and the economy. From then on the federal government took an active role in managing the American Economy.

29. PROGRAMS OF THE NEW DEAL

30. TVA (Tennessee Valley Authority)

31. The Tennessee Valley Authority

32. Public Works Administration (PWA)

33. Civil Works Administration (CWA)

35. FDR and the Supreme Court Chapter 26, Section 3 • In 1935, the Supreme Court ruled that the National Industrial Recovery Act was unconstitutional. The Court said it gave too much power to the President. A year later, the Court struck down the Agricultural Adjustment Act. Then, the Court overturned eight other New Deal laws. • Roosevelt’s plan for the Court • After his inauguration in January 1937, Roosevelt put forth a plan to enlarge the federal courts. He called for raising the number of Supreme Court Justices from 9 to 15. This would make it possible for him to appoint six new Justices who supported his programs. • Reaction to Roosevelt’s plan • Both supporters and critics of the New Deal accused him of trying to “pack” the Court with Justices who supported his views. • They said his move threatened the principle of separation of powers. • Roosevelt fought for his plan for six months. Finally, he withdrew his proposal.

36. Short-Term Effects Social Security payments enable people to retire with pensions Union membership and power grow Farmers benefit from agricultural price supports The FDIC insures bank deposits The Securities and Exchange Commission oversees the stock market Long-Term Effects Social Security protects millions of Americans but may not be able to pay full benefits in the future High-wage and low-wage earners continue to have different kinds of protection and benefits Americans have economic safeguards provided by the government A split between liberals and conservatives still affects public life Effects of the New Deal