Have you or someone you know been affected by the current economic crisis? How?
If not, why do you think you haven’t been affected?
Chapter 22 The Great Depression
Roaring 1920s Economy Downturn Housing industry declined WWI industries no longer needed Railroads lost busi- ness to cars, planes, etc. Farmers took out loans in hopes of selling more Consumers had less money to spend
Causes of the Great Depression 1. Old, outmoded industry 2. Crisis in the farm sector 3. Availability of easy credit 4. Unequal distrib. of income
Stock market crashed Thursday through Tuesday in October of 1929
Dow Jones Industrial Average went from 381 to 230, bottoming out at 198
The Dust Bowl
Drought worsens farmers’ problems Families left to find work
Soup kitchens Bread lines
The unemployment line
1932: Ready for Change Franklin D. Roosevelt elected President
“ I pledge you, I pledge myself, to a new deal for the American people.”
Franklin D. Roosevelt
“ Let me assert my firm belief that the only thing we have to fear is fear itself.”
Franklin D. Roosevelt
The policies that Roosevelt and his “braintrust” created to alleviate the problems of the Great Depression
Relief for the needy
The “Hundred Days”
What has President Obama done during his “first 100 days” in office?
Established the FDIC (Federal Deposit Insurance Corporation) Federal Securities Act Securities & Exchange Commission (SEC)
Relief for Needy and Economic Recovery
Agricultural Adjustment Act (AAA) Civilian Conservation Corps (CCC) PWA and CWA Tennessee Valley Authority (TVA) Fed. Housing Administration (FHA) “ alphabet soup”
The “Second New Deal”
Eleanor Roosevelt: For women, the poor, and minorities Works Progress Administration (WPA) Social Security Act: 1. Insurance for retirees 65 and older 2. Unemployment compensation 3. Aid for families with children or the disabled
What similarities and differences do you see between the 1930s depression and 2008-2009 recession?
By 1939, the country was on a slow path to recovery.
But Roosevelt became preoccupied with events in Europe
“ True individual freedom cannot exist without economic security and independence. People who are hungry and out of a job are the stuff of which dictatorships are made.”