The Great Depression

1. The Great Depression

2. The Great Depression Causes: • Economy is out of balance • Americans are increasingly in debt • Speculation • Overproduction • Tight-money supply to control credit • Stock Market crashes October 1929

3. The Great Depression Effects: • Millions out of work • Gross National Product falls dramatically – 104 billion to 56 billion in 4 years • Banks fail • Farmers lose their land • National income declined by 50% • Poverty leads to health and social problems • Competition causes racial tensions • Global economy suffers

6. Herbert Hoover – “Too Little Too Late” • Most Americans believed that the Depression was part of the “normal” business cycle. • Hoover thought nation would recover – Emphasized voluntary action and restraint • Business – no wage cuts • Unions – no strikes • Charities – increase donations • Congress – no help • Hawley Smoot Tariff 1930– • 31%-49% increase to satisfy American business leaders but it backfired • Other countries in turn raised their tariffs; Trading stopped • Suspension of the Dawes Plan

7. Herbert Hoover – Reforms • Federal Farm Board – stabilize farm prices by temporarily holding on to crops • Reconstruction Finance Corporation (RFC)– government sponsored company that helped Railroad, banks, insurance companies and other financial institutions. Hoping for a “Trickle Down” result Protest…….. • Farm Holiday Association– attempt to stop foreclosures by holding on to the harvest in hopes of raising prices. Ended in violence. • Bonus March– Veterans looking for bonuses camped out near the Capitol. Hoover ordered MacArthur to crush the towns and remove the protesters.

9. 1932 – Hoover vs. FDR. • “New Deal” ideas: repeal prohibition, aid unemployment, and cut government spending • Landslide victory • Hoover is “Lame Duck” President (20th Amendment 1933)

10. http://www.youtube.com/watch?v=Lm3Bntsp2ck

11. Critics of the New Deal Women & African Americans – • New Deal offers more to white men • More women in the workplace • Both groups are paid less for the same work • Racial discrimination & segregation

12. Critics of the New Deal Farmers – • Dust Bowl – The Grapes of Wrath Progressives & Socialists – • New Deal is not doing enough to solve the problems • Wealth should be distributed evenly

13. Critics of the New Deal Republicans & Other Groups – • Government is taking on TOO much responsibility; FDR is acting like a dictator • Taxes are unfair towards the wealthy • New Deal is like socialism • Examples include Al Smith and the American Liberty League and Demagogues such as Coughlin, Townshend, and Huey Long (the “Kingfish” from Louisiana)

14. Critics of the New Deal The Supreme Court – • The Supreme Court ruled that some New Deal reforms were unconstitutional (NRA/AAA) • Roosevelt tried to reorganize the court and appoint justices who would agree with him (Judicial-Reorganization Bill of 1937 a.k.a. “Court –Packing Bill”) • Republicans and Democrats refused to support this measure due to Checks & Balances • After several judges retired , it worked out for FDR’s New Deal

18. Life During the Depression Rise of Unions – • The NIRA and the Wagner Act (collective bargaining) legalized labor unions and membership grew • Tensions between unions – A.F. of L and C.I.O. • Strikes – GM and the U.A.W. • Fair Labor Standards Act • Minimum Wage • Maximum work week • Child labor restrictions

19. Life During the Depression Native Americans – • Indian Reorganization (Wheeler-Howard)Act of 1934 reunited tribes, returned lands, and preserved Native American cultures Mexican Americans – • Discrimination and competition forced many to return to Mexico Radio & Movies (Wizard of Oz/Disney cartoons) become very popular

20. The Great Depression & The New Deal http://www.youtube.com/watch?v=TQUcoSy1yMA&feature=related http://www.youtube.com/watch?v=TpfY8kh5lUw http://www.youtube.com/watch?v=wF80co_Y_Bc