2. Causes Buying on credit Government policies Not regulating stock market or businesses Weak international economy Other countries still recovering from WWI The Stock Market Crash
3. Stock Market Crash Buying On Margin Making down payments and borrowing the rest October 29, 1929 Black Tuesday Rapid selling of stocks values drop $14 billion
4. DEPRESSION SPREADS Millions of people lost their jobs. Banks recalled loans. People take money out of banks Banks cant pay back money so they close People lose money in banks
5. THE DUST BOWL Drought and dust storms in the Midwest forced many farmers to leave their land and migrate west in search of jobs.
6. Impact Unemployment 25% Rural Life Farmers Suffer Dust Bowl severe drought Okies farmers who moved to California Less Leisure Activities Movies, sports, etc.
7. Hoovers Response Policies to aid businesses Business recovers jobs people recover Reconstruction Finance Corporation Gave money to businesses Stopped payments of war debts
8. Hoovervilles
9. The Bonus March 20,000 jobless WWI veterans go to Washington DC and demand bonus for war Hoover sends in army Destroys popularity
10. Franklin DelanoRoosevelt President 1932 1945 The New Deal Plan to end Great Depression Relief Recovery Reform End of Laissez-faire
11. Relief 1933 Bank Holiday to stop collapse Federal Emergency Relief Act (FERA) Relief to unemployed Public Works Administration (PWA) Built ports, schools, aircraft carriers
12. Relief Civilian Conservation Corps (CCC) Planted trees, built bridges, parks Works Progress Administration (WPA) Built hospitals, schools, parks, airports Tennessee Valley Authority (TVA) Built dams, cheap electric power
13. Recovery National Industrial Recovery Act NRA Regulated wages, prices, working conditions Agricultural Adjustment Act (AAA) Paid farmers not to grow certain crops
14. Reform Federal Deposit Insurance Corporation FDIC Insured savings accounts Securities Exchange Act (SEC) Regulated stock exchanges Social Security Act (SSA) Pensions for elderly, unemployed, handicapped
15. New Deal Effects Labor Roosevelt takes pro-labor approach Unions increase Native Americans Indian Reorganization Act Attempt to restore Native American culture
16. New Deal Effects African Americans Little benefit Latinos Many suffered worked in agriculture Women Little help in workplace
17. Controversy Supreme Court finds many laws unconstitutional National Recovery Act Congress cant regulate intrastate commerce Agricultural Adjustment Act Agriculture is a local matter not an interstate matter
18. Court-Packing Plan Supreme Court continued to veto legislation FDR asked congress to allow him to increase number of justices from 9 to 15 Not allowed separation of powers
19. Political Opposition Business Claimed FDR and government had too much power Communists, Socialists gain support
20. New Deal Evaluation Does not end Great Depression WWII does Did help some people Gave more power to president and government More involvement in business and social life
