The Great Depression was caused by a combination of factors in the late 1920s and early 1930s, including unchecked speculation on credit, poor government policies, and a weak global economy recovering from World War I. The stock market crash of 1929 greatly exacerbated the economic crisis. As banks collapsed and millions lost their jobs, poverty and homelessness spread rapidly across the US. In response, President Franklin D. Roosevelt introduced his New Deal programs in the 1930s, which focused on relief, recovery, and reform through massive public works projects, the establishment of social security and financial regulations, and other initiatives aimed at revitalizing the economy. However, the Great Depression was not fully reversed until American involvement in World War II boosted industrial production.

1. T he Great
Depr ession

3. 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

4. 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

6. DEPRESSION SPREADS
 Millions of people lost their jobs.
 Banks recalled loans.
 People take money out of banks
 Banks can’t pay back money so they
close
 People lose money in banks

7. THE DUST BOWL
 Drought and dust storms in the
Midwest forced many farmers to
leave their land and migrate west in
search of jobs.

11. Impact
 Unemployment – 25%
 Rural Life
 Farmers Suffer
 Dust Bowl – severe drought
 “Okies” – farmers who moved to California
 Less Leisure Activities
 Movies, sports, etc.

12. Hoover’s Response
 Policies to aid businesses
 Business recovers jobs people recover
 Reconstruction Finance Corporation
 Gave money to businesses
 Stopped payments of war debts

13. “ Hoovervilles”

14. The Bonus March
 20,000 jobless WWI veterans go to
Washington DC and demand bonus for
war
 Hoover sends in army
 Destroys popularity

16. Franklin Delano
Roosevelt
 President 1932 – 1945
 The New Deal
 Plan to end Great Depression
 Relief
 Recovery
 Reform
 End of Laissez-faire

17. Relief
 1933 Bank Holiday to stop collapse
 Federal Emergency Relief Act (FERA)
 Relief to unemployed
 Public Works Administration (PWA)
 Built ports, schools, aircraft carriers

18. 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

19. Recovery
 National Industrial Recovery Act
 NRA
 Regulated wages, prices, working conditions
 Agricultural Adjustment Act (AAA)
 Paid farmers not to grow certain crops

20. 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

21. New Deal Effects
 Labor
 Roosevelt takes pro-labor approach
 Unions increase
 Native Americans
 Indian Reorganization Act
 Attempt to restore Native American culture

22. New Deal Effects
 African Americans
 Little benefit
 Latinos
 Many suffered – worked in agriculture
 Women
 Little help in workplace

23. Controversy
 Supreme Court finds many laws
unconstitutional
 National Recovery Act
 Congress can’t regulate intrastate commerce
 Agricultural Adjustment Act
 Agriculture is a local matter not an interstate
matter

24. 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

26. Political Opposition
 Business
 Claimed FDR and government had too much
power
 Communists, Socialists gain support

27. 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