The GREAT Depression

The serious and worldwide economic decline of the 1930’s

•What are they?

1920’S

PROSPEROUS TIME : NOT SHARED EQUALLY

PEOPLE COULD BUY because of INSTALLMENT BUYING,

FARMERS

IN A DEPRESSION THROUGHOUT THE WHOLE

DECADE.

RURAL POVERTY IN THE 1920’S

MANY FARMERS LOST THEIR FARMS. BELOW IS ONE OF THOUSANDS OF FARM FORECLOSURE SALES.

SPECULATING (buying and selling risky items in hopes of making a quick profit)

STOCK MARKET CRASH AND FINANCIAL PANIC

WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929

REASONS FOR THE STOCK MARKET CRASH

STOCKS WERE OVERPRICED DUE TO SPECULATION

MASSIVE FRAUD AND ILLEGAL ACTIVITY

MARGIN BUYING

FEDERAL RESERVE POLICY

THE DEPRESSION CAUSED A DRAMATIC DROP IN INCOME AND SAVINGS (IN BILLIONS OF DOLLARS)

personal and corporate savings

“OUR GOVERNMENT IS FOUNDED ON A CONCEPTION THAT IN TIMES OF GREAT EMERGENCY, WHEN FORCES ARE RUNNING BEYOND THE CONTROL OF INDIVIDUALS OR

COOPERATIVE ACTION, BEYOND THE CONTROL OF LOCAL COMMUNITIES OR THE STATES, THEN THE GREAT RESERVE

POWERS OF THE FEDERAL GOVERNMENT SHOULD BE BROUGHT INTO ACTION TO PROTECT THE PEOPLE. BUT WHEN THESE FORCES HAVE CEASED THERE MUST BE A

RETURN TO STATE, LOCAL AND INDIVIDUAL RESPONSIBILITY.”

HERBERT HOOVER, SPEECH IN OCTOBER 1932 EXPRESSING HIS PHILOSOPHY

HOOVER RESPONDED TO THE GREAT DEPRESSION

UNEMPLOYMENT WORSENS THROUGHOUT HOOVER’S PRESIDENCY:

1929-1933

HOOVER’S SOLUTIONS TO THE GREAT DEPRESSION:

•CREATED some programs public and private

•Mostly thought THAT THIS DEPRESSION WOULD CURE ITSELF AS THEY ALWAYS HAD IN THE PAST

UNEMPLOYMENT IN MILLIONS OF WORKERS

“Hoovervilles”, homeless camps

FRANKLIN DELANO

ROOSEVELT BECAME THE 32ND

PRESIDENT OF THE UNITED STATES

NEW DEAL

Programs created by Franklin D. Roosevelt to fight

the depression

1st one- 1933-1935

2nd one- 1935-1937

PWA: PUBLIC WORKS ADMINISTRATION

SPENT $3.3 BILLION ON PUBLIC WORKS PROJECTS AS "PUMP-PRIMING” TO GET THE ECONOMY MOVING

TVA: TENNESSEE VALLEY AUTHORITYhydroelectric power facilities

TVA TODAY

THE TVA : GREAT SUCCESS

-BRINGING CHEAP ELECTRIC POWER (public

vs. private)

-CONTROLLING FLOODS (dams)

- REPLANTING FORESTS

- ENCOURAGING INDUSTRY TO COME TO

THE TN VALLEY.

-THE TVA IS STILL THE NUMBER ONE PRODUCER OF ELECTRICITY IN THE

U.S.

NEBRASKA SENATOR GEORGE W. NORRIS WHOSE IDEA FOR A DEVELOPMENT PROJECT IN THE WHOLE TENNESSEE VALLEY WAS ADOPTED BY FDR.

BANKING AND STOCK MARKET REGULATIONS

$FDIC: FEDERAL DEPOSIT INSURANCE CORPORATION GUARANTEED INDIVIDUAL DEPOSITS.

$THE SECURITIES ACT: PASSED IN 1933

$THE SECURITIES AND EXCHANGE COMMISSION (SEC) PASSED IN 1934- IMPLEMENTED CHANGES THAT CURBED ABUSES IN THE STOCK MARKET.

$Changes in money to ENCOURAGE

INFLATION ( an increase in prices and a decrease in the value of money) SO MANUFACTURES COULD GET MORE DOLLARS FOR THEIR PRODUCTS.

1930’s cost • 1 cents • 10 cents

• $3500• 5 cents

• $1,970/yr

• $600• 9 cents

• 12 cents/lb

2000’s cost • 42 cents• $3.84

• $240,000• $2.50

• $40,550

• $28,500• $2.80

• $4/lb

ITEM• Stamp • Gallon of

Gas • House • Ice cream

cone• Average

Salary • New Car • Loaf of

bread • 1 lb

hamburger

SECOND NEW DEAL PROGRAMS, 1934-1936

FHA: FEDERAL HOUSING AUTHORITY

FARM PROGRAMS: RESETTLEMENT ADMINISTRATION, FARM SECURITY ADMINISTRATION

SOCIAL SECURITY ACT 1935

UNEMPLOYMENT COMPENSATION FOR LAID OFF WORKERS

COMPENSATION TO DISABLED WORKERS

PAYMENTS TO THE WIVES AND CHILDREN OF DECEASED WORKERS

OLD AGE INSURANCE, OFTEN CONSIDERED THE MOST IMPORTANT FEATURE OF THE ACT

SOCIAL SECURITY NURSE VISITING A DESTITUTE FAMILY

SOCIAL SECURITY CREATED MASSIVE AND COMPLEX BOOKKEEPING JOBS FOR FEDERAL

AND STATE EMPLOYEES

DROUGHT STRIKES

AREA DEVASTATED FIRST BY DROUGHT THEN BY WIND DRIVEN CLOUDS

.

STRONG WINDS CAME THE CROPS FARMERS PLANTED COULD NOT HOLD THE SOIL AND IT BLEW AWAY IN CLOUDS OF “DUST”.

DUST BOWL

WHERE DID THE DUSTBOWL TAKE PLACE ?

HOW DID IT AFFECT THE FARMERS IN THE REGION?

• MANY FARMERS DECIDED TO PACK UP AND LEAVE

•MANY went WEST TO CALIFORNIA HOPING FOR A NEW START

•MANY OF THE MIGRANTS WERE FROM OKLAHOMA -called “OKIES”

•NOT MUCH BETTER so MANY OF THE MIGRANTS ENDED UP LIVING IN MIGRANT/REFUGEE CAMPS.

MIGRANT CAMPS IN

CALIFORNIA WHERE

REFUGEES CAME TO MAKE A NEW START

LEGACY OF THE NEW DEAL: HOW DID IT CHANGE AMERICA?

INCREASE IN THE POWER OF THE FEDERAL GOVERNMENT

INCREASE OF THE ROLE THE FEDERAL GOVERNMENT PLAYS IN THE LIFE OF THE PEOPLE

GROWTH OF EXECUTIVE POWER

THE USE OF DEFICIT SPENDING- AS A TECHNIQUE FOR MAINTAINING THE ECONOMIC HEALTH OF THE NATION

CREATION OF A WELFARE STATE AND THE ACCEPTANCE THAT THE FEDERAL GOVERNMENT SHOULD TAKE RESPONSIBILITY FOR THE WELFARE OF THE PEOPLE

THE RIGHT OF WORKING PEOPLE TO ORGANIZE UNIONS TO ADVANCE THEIR ECONOMIC INTERESTS

RENEWED INTEREST IN PRESERVING AND PROTECTING THE ENVIRONMENT

MAJOR CONSTRUCTION AND INSTITUTIONS THAT ARE STILL WITH US TODAY

SHOWED THAT DEMOCRACY IS CAPABLE OF RESPONDING TO MAJOR DISRUPTIONS AND HAS THE TOOLS TO REFORM ITSELF