Transcript Slide 1
Despite overall prosperity of the 1920’s there were still some industries that were in trouble… Agriculture Textile Mills Railroads Mines President of the Era --Growing wealth of the richest Americans hid the struggle of the majority. During the 1920’s industries had improved efficiency and begun to produce more goods, but the income middle class and poor people didn’t rise enough to purchase the extra goods. This caused financial problems for businesses. Speculation Investors would buy and sell stocks in hopes of making a quick Profit. Pay Small Part of Stock’s Price + Barrow the Rest + Then sell stock when it goes high + Pay of the Loan + Keep the Rest as Profit = Buying on Margin Theory works as long as stocks keep going up, but if they fall investors could not pay of loans. By Sept 3, 1929 the value of stocks reached a high point. Prices dropped sharply, thousands of people sold their stocks at once. -- On this day investors sold 16.4 million stocks, this caused a final dramatic plunge in prices. --Crash was 1st event of the depression. --Banks demanded money that was loaned out be paid back immediately. Banks could not keep up with withdrawals. --Many banks close people lose everything--> People lost homes and went hungry. “Vicious Circle of Payback” Many European Countries had barrowed money from the U.S. Banks to rebuild after WWI. When the American’s economy failed so did Europe’s “Government Help would hurt the economy even worse” Became very unpopular-------------------------------HOOVERVILLES!!! Hoover 1932 = Not President anymore Roosevelt 1932= President Bonus Army Roosevelt gave Americans hope Promised to give Government help to the depression. Put together a ‘Brain Trust’ of Advisors, College Professors, Economists. Did 3 things Right away: 1. Bank Holiday 2. Re-Open only Strong Banks 3. Fire-Side-Chats FDR’s Policy or Programs to fight the Great Depression RELIEF, RECOVERY, REFORMS. Many Conservatives questioned how the government would pay for these policies Also They didn’t like more government involvement. FERA- (Federal Emergency Relief Administration)- Provided Federal Money for relief projects for the unemployment (13 million dollars). PWA- (Public Works Administration)- Created Jobs by having people build highways, bridges and other public works. AAA- (Agricultural Adjustment Administration)- Regulated farm production & promoted soil conservation Dust Bowl. CCC- (Civilian Conservation Corps)- Hired young men to plant trees, build damns, and work on other conservation projects. FDIC- (Federal Deposit Insurance Corporation)- Protected the money of depositors in insured banks (up to $250,000). WPA- (Works Progress Administration)- Established large-scale national works programs to create jobs. Wagner Act- Protected labor’s right to form unions and set up a board to hear labor disputes. Social Security Act- Provided workers with unemployment insurance and retirement benefits. Using barrowed Money to Fund Government Programs. (Many critics did not like putting the government in debt.) -- In the late 1930’s drought hit the great plains. (CO,KA,OK,TX,NM) --The overgrazing of cattle and the over plowing of fields damaged the land. --Wind picked up the dirt and filled the sky covering crops and destroying crops. --People picked up their families to move to find work. --Route 66 to California This also became overcrowded (Okies). --Families suffered---without work, families couldn’t afford to buy food. --Bread Lines—Provide food to the poor. --People lost their homes Thousands of homeless people lived under bridges and overpasses. Lived in Boxes. --Children dropped out of school begged for money Women forced to give up jobs to men. (Suicide Rate went way up). Many books and movies of the period described the hard times. --Photographers also captured the depression era suffering. Eleanor Roosevelt worked to help poor Americans. Lots of women helped run the new deal programs. Francis Perkins (Secretary of Labor) 1st female cabinet member. FDR Had 2 African Americans in his cabinet (1st ever). He would not support anti-lynching laws in the south. Mexican Boarder Closed --Americans who lived through the depression saw themselves as survivors. Lived lives in fear of losing everything again. --The New deal did not end the depression, WWII did, but it did change the U.S. Government system. --Roosevelt increased the President’s Power he proposed bills and programs for congress to consider, rather than waiting for congress to act. New Deal Programs of Today: 1. Social Security 2. Labor Practices 3. Agriculture Price Support. 4. FDIC 5. Regulation of Stock Market Set up a system where democrats and republicans argue about governmental controls. Democrats- usually seen as Liberals- Favors of Government action to bring about social and economic reform. Republicans- usually seen as Conservatives- favors fewer governmental controls and more individual freedom in economic matters.