Write down these terms and match them with the correct definition on your own paper

1. Putting a down payment & making a monthly payment on expensive purchases Collapsing banks panic Americans to withdraw savings causing failures system for buying & selling shares of a company Long period of rising stock prices Purchasing stocks on credit Stock market crash of Oct. 29, 1929 Banks protecting loans by demanding payments on loans Gambling on the stock market in hopes of making a huge profit “Black Tuesday” Stock Market Margin Margin Call Speculation Bull Market Installment Bank Run Write down these terms and match them with the correct definition on your own paper

2. End of the 1920s • Election of 1928 • Biggest Issue of the 28 Election? 21st Amendments repeals the 18th, ending Prohibition 1933 Triple Whammy

3. End of the 1920s • Election of 1928 • Coolidge not running for a second term. • HoovervsSmith • Herbert Hoover • Sec. of Commerce under Harding • “Prosperity for everyone” • “we are nearer to the final triumph over poverty…” • Alfred Smith • Irish-Catholic-Democrat Triple Whammy

4. Causes of the Great Depression Hi Remember me Hit farmers HARD Hawley-Smoot tariff

5. Hoover Disconnected? • Oct 25, 1929- Hoover claims the foundation of nations industry is strong. • Oct 29, 1929- Stock Market Crashed • March 30, 1930- Hoover, “the worst effects of the Crash will pass in 60 days.”

6. Hoover’s Philosophy • Believed: • in “rugged individualism” • the idea that people succeed through their own efforts • in over confidence economics “Prosperity is right around the corner.” • money given to business leaders would trickle down…

7. The “Hoover” Depression • Believed help should come from local governments • State • City • Charity • Red Cross • Salvation Army • Churches • Your problems are not the FEDERAL GOVERNMENT’S PROBLEMS

18. Escaping the Depression • Entertainment Industry Boomed • Movies • Comedies • Romance • Thrillers • Musicals • Wizard of Oz • Gone with the Wind • Literature • The Grapes of Wrath • John Steinbeck • Radio • Comedy • Soap Operas

19. The “Hoover” Depression • Believed help should come from local governments • Did little to spur job growth, stimulate the economy or grant government relief.

20. Debt vs. Deficit Government Spending Military Social Programs Health care Welfare Unemployment Education • 2008 -4,000,000 • 2009 -10,000,000 • 2010 -5,000,000 • 2011 +6,000,000 (surplus) • 2012 -3,000,000 Yearly Spending Debt from 2008 to 2012 -16,000,000 Red = Govt spends more money than they make (deficit) Blue = Govt makes more money than they spend. (surplus)

21. The “Hoover” Depression • Did little to • spur job growth • stimulate the economy • grant government relief. • Because he believed GOVT relief would contribute to DEFICIT SPENDING • * Relief = Aid in any form given by govt to people.

22. Too little too late

23. The Depression gets worse… • 1930- 1352 banks closed • 1932- 30,000 companies closed • 1933- 9000 banks closed • 1933- 12 million people unemployed = 25% of industrial workforce. • Average family income dropped 50% in 3 years.

24. Unemployment 25% Local Charities & Churches offer relief Breadlines Soup Kitchens Many men saw handouts as a slap in the face Dehumanizing Emasculating No job = no money= no home. Bailiffs- (court officer) kick people out of their homes Shantytowns- shacks for homeless in public parks or open land…called Hoovervilles to place blame. Hobos- homeless wander the country via the railroad to find work. Hobo Jungles- camps where hobos lived while traveling. and Worse…

25. Hoover looks bad

26. Hoover’s Legacy • Failed President • Lost to Roosevelt in ‘32 biggest landslide in US history. • Did more in govt relief than any president before him. • Depression & Bonus Marches looked bad in the eyes of Americans.

27. Roosevelt’s Philosophy • Expand the role of the Executive Office. • Create federal aide for unemployed • Promote work relief and create jobs that do not compete with private industry. • Abandoned the gold standard • Allow Fed reserve to manipulate value of the dollar

28. Franklin D. Roosevelt’s Appeal • In 1932 presidential election, FDR was perceived as a man of action. • Hoover was viewed as a “do-nothing president.” • Results: a landslide for Democrats because Americans were tired of the poor economy in the U.S.

29. Roosevelt wins because Americans wanted someone to fix all their financial problems

30. Situation When FDR Entered Office • In March 1933, the country was virtually leaderlessand the banking system had collapsed.

31. FDR Restored Confidence • In his inaugural address, he said “The only thing we have to fear is fear itself….” • He promised vigorousleadership and boldaction, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

32. Presidency • March 4 1933-Inauguration Day • US unemployment @ 25% • Most banks were closed • Gold Standard = Bank Standards • Economy in shambles • First Hundred Days • Sent dozens of BILLS to Congress • Congress passed 15 BILLS into ACTS of legislation (New Deal) • Set Precedent for future presidents.

33. Purposes of the New Deal

34. Purposes of the New Deal • Relief: to provide jobs for the unemployed and to protect farmers from foreclosure • Recovery: to get the economy back into high gear, “priming the pump” • Reform: To regulate banks, wall street, industry, & agriculture to ensure it doesn’t collapse again.

35. Sources of New Deal Ideas • Brains Trust: specialists and experts, mostly college professors, idea men • New Economists: government spending, deficit spending and public works, government should prime economic pump • Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationist, anti-inflationists -- often conflicting, compromising, blending ideas

36. Second New Deal (1934-1941) • Emphasis: reform • Political Position: liberal • Primary aim: permanent reform • Philosophy: international economic cooperation and economic abundance • Objectives: increased purchasing power and social security for public • Beneficiaries: small farmers and labor

38. New Deal • Origins • Sought advice from experts in “Brain Trusts” • Academics • Economics • Business • Agriculture • Law • Social work • Experts had many points of view • Spurred debate & arguments • FDR made final decision.

40. Bank Holiday • Closed 4 days • Fed gave loans to secure banks • Banks reopen when financially ready

41. Glass-Steagall 1933 • Separated Banks • Commercial v. Investment • Strengthened the Federal Reserve • Ended the gold standard • Determined value of the Dollar • Stop Bank Runs • Restore public confidence in banks Investment Banks Commercial Banks Why is it important? Banks that underwrote risky stock investments were not tied to your day to bank accounts

42. Civil Works Administration • Temp. Emergency Jobs • Construction • Sewage Systems • Bridges • Buildings • 5 months • 4million Jobs • 200 million per month (deficit spending)

43. Civilian Conservation Crop. (CCC) • Purpose • Flood Control • Soil conservation • Forest Projects • Target • Men 18-25 • Effective

44. Federal Deposit Insurance Corp (FDIC) • Purpose • Insure individual deposits in banks • Target • Depositors • Effective

45. Agriculture Adjustment Act • Purpose • Reduction of crops to end surplus and equalize prices • Target • Farmers • Effective but Unconstitutional

46. Tennessee Valley Authority Act • Purpose • Flood Control • Damns • Roads, Bridges • Hydro-electric power • Target • TN river valley • Effective

47. Works Progress Administration • Purpose • Hire Unemployed for construction • Target • Unemployed • Effective

48. Social Security Act • Purpose • Retirement plan for elderly +65 • Target • Over 65 • Effective

49. Securities and Exchange Commission • Purpose • Regulated Stock Market & restricted margin buying • Target • Stock Market • Effective

50. Court Packing • Many 2nd New Deal programs deemed UNCONSTITUTIONAL • FDR responds by • Encouraging older Supreme Court justices to retire • Attempting to add more Justices to the Supreme Court • Caused negative resentment with other branches of Govt. • Legislative (congress) • Judicial ( Supreme Court)