The Depression and FDR Chapter 25 1929-1941. The Depression and FDR Section 1: The Great Depression.

The Depression and FDR Chapter The Depression and FDR Section 1: The Great Depression The Stock Market Because of the booming economy, everyone was investing in the stock market The Stock Exchange is a system where buying and selling shares Most people could not afford to buy shares outright so they bought them On Margin - borrowing money from stock brokers who borrowed money from the banks As long as stocks went up in value it was easy to pay off what you barrowed The Crash In September 1929 stock prices began to fall Investors saw their stocks losing value and fearing they would not be able to pay what they had borrowed they began to sell The panic reached its climax on October 29 th - a day known as Black Tuesday Panic spread across the US as millionaires and everyday people lost their life savings The Great Depression Over the next two years the economy also got worse Causes of the Great Depression (4) 1) An Unbalanced Economy There was a growing gap between the rich and the poor- 1% of the population controlled 1/3 of the wealth 2) Credit Crisis Many Americans defaulted on credit loans- banks suffered huge losses and thousands had to close with depositors losing all their money 3) International Depression After WWI many countries had to pay off debts due to the war As their economies suffered they dragged down the USs economy 4) Joblessness and Poverty Millions of Americans lost their jobs as the economy worsened- almost of Americans were unemployed l Hoover and the Crises Hoover did not believe that it was the governments job to step in and that legislation would not solve the economies problems He wanted to rely on business leaders and charities Hoover believed if he offered government assistance people would be forever dependent People began living in shanty-towns known as Hoovervilles - called that because people were frustrated with Hoovers inaction Hoover did increase public works - building highways, parks, libraries, etc. These and other efforts failed as all levels of government began to run low on funds In 1932, the Bonus Army was a group of WWI veterans who demanded a $1000 bonus that they were promised in 1945 but wanted right away Congressed and the president refused and most of the 20k veterans left About 2k remained and when police tried to force them to leave two men were killed Hoover called in the Army with tanks and machine guns After the Bonus Army was dispersed, the American public saw Hoover as called and distant and were ready for a change The Depression and FDR Section 2: Roosevelts New Deal Franklin D. Roosevelt FDR married Eleanor in 1905 and was paralyzed by Polio in 1921 FDR seemed to be a fresh approach to politics and accepted the Democratic nomination in 1932 The people elected Roosevelt in a landslide as he promised action As the economy worsened and more banks began to close, FDR in his inaugural speech reassured the American people- The only thing we have to fear is fear itself Within a week FDR signed the Emergency Banking Relief Act which closed and reorganized banks before they were opened People once again trusted in banks and deposited their money ending the Banking Crisis FDR reassured the people through speeches given on the radios called Fireside Chats - these gave Americans confidence in FDRs actions Hundred Days - FDR called Congress and in just over 3 months they launched 15 programs aimed at solving economic concerns This gave Americans a renewed since of hope The New Deal These laws became known as Roosevelts New Deal FDR aimed at creating jobs with Work Relief programs that gave needy people government jobs Reforested areas, built levees, and parks The Federal Emergency Relief Administration gave money to the poor To help farmers he passed the Agricultural Adjustment Act To raise the price of food the govt paid farmers to destroy their crops with Subsidies The Tennessee Valley Authority looked to bring electricity to rural areas by building dams The National Recovery Administration encouraged a minimum wage and abolish child labor The Public Works Administration set to create jobs with huge public works programs such as roads, shipyards, hospitals, city halls, schools, etc. Lincoln Tunnel and Fort Knox Federal Deposit Insurance Corporation insured peoples bank accounts While the New Deal did not bring the country into economic prosperity still had high unemployment and people struggling to survive- it put an end to the panic and the worst had passed. Create a T-Chart comparing and contrasting the efforts made by presidents Hoover and Roosevelt The Depression and FDR Section 3: Life During the Depression Even though women had made great social strides in the 1920s, the Depression saw much of that reversed Many believed that men should be employed over women in such a tough economy Many women stayed home and sometimes started their own businesses Eleanor Roosevelt was a champion for womens and other minorities rights and tried to bring attention to social issues The Dust Bowl 1931 saw a severe drought which not only killed crops but caused dust to be strewn all over the Midwest called black blizzards Thousands of farmers lost their farms and became Migrant Workers moving from place to place for work This often tore families apart as men would leave home for work and never return More than half of the African Americans in the South had no jobs, those that did could lose their job to a white jobseeker Many African Americans moved north but did not fair much better Mexican immigrants also saw hard times often being forced to leave the US and return to Mexico There were also many Radical political movements around the US- those that wanted extreme, immediate change Socialism and Communisms saw capitalistic America as an evil and promised an end to the economic hardship and racially discrimination In Europe the rise of Fascism in Italy and Germany became a worry. Fascists - believe the individual is second to the state Radio became increasingly popular Daytime dramas sponsored by dish detergent became know as soap operas Millions of Americans attended the movies to escape the everyday worries The theme of these medias was often about one facing hardship which many Americans could relate to The Depression and FDR Section 4: Effects of the New Deal Some criticized the New Deal saying it was unconstitutional and spent too much government money and destroyed free enterprise Others claimed that the New Deal didnt do enough Huey Long wanted FDR to redistribute the wealth of the nation by taxing the rich and giving it to the poor- he was assassinated in 1935 FDR also worried that his New Deal might be perceived as unconstitutional Many of FDRs programs were determined to be unconstitutional and were eliminated National Industrial Recovery Act Agricultural Adjustment Act Many other cases were pending and FDR worried the whole New Deal might be destroyed Court Packing FDR wanted to expand the Supreme Court from 9 members to 15 hoping that the 6 new judges would help uphold his New Deal FDRs plan failed and he lost much of his support in the Democratic Party Americans on Welfare FDR continued to work on the New Deal increasing taxes on the wealthy and creating government programs 1935 Congress passed the Social Security Act which taxed workers and employers to pay Pensions to retired people As well as elderly, disabled, and children whose parents couldnt support them Unemployment Insurance taxed businesses to help pay people that had lost their job By 1937 FDR tried to reduce government spending believing the Great Depression was coming to an end Almost immediately millions lost their jobs and farm prices dropped- The Roosevelt Recession lasted into 1938 This once again lost Roosevelt support from the Democratic Party By the end of the 1930s the New Deal was suffering tough scrutiny as the economy could not be supported by the government forever The New Deal expanded the role of government in our lives dramatically It would take events in Europe and Asia to the American economy the boost it needed to end the Great Depression