The Great Depression

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

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

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

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.

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)

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

Critics of the New DealWomen & 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

Critics of the New DealFarmers – • Dust Bowl – The Grapes of Wrath

Progressives & Socialists – • New Deal is not doing enough to solve the

problems• Wealth should be distributed evenly

Critics of the New DealRepublicans & 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)

Critics of the New DealThe 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

Life During the DepressionRise 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

Life During the DepressionNative 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

http://www.youtube.com/watch?v=wF80co_Y_Bc

http://www.youtube.com/watch?v=TQUcoSy1yMA&feature=related

http://www.youtube.com/watch?v=TpfY8kh5lUw

The Great Depression & The New Deal