The Stock Market Crash, the Great Depression, and the New Deal.

The Stock Market Crash, The Stock Market Crash, the Great Depression, and the Great Depression, and

the New Dealthe New Deal

What was the Great What was the Great Depression?Depression?

• Period of severe economic Period of severe economic hardship that lasted from hardship that lasted from 1929 to World War II1929 to World War II

What were three causes of What were three causes of the Great Depression?the Great Depression?

• Overspeculation in stocksOverspeculation in stocks

• Collapse of the banking Collapse of the banking systemsystem

• Hawley-Smoot TariffHawley-Smoot Tariff

What is What is speculationspeculation??

• Buying something at a Buying something at a low price in the hope of low price in the hope of selling it later at a profitselling it later at a profit

What is the largest What is the largest stock market in the stock market in the

United States?United States?

• The New York Stock The New York Stock ExchangeExchange

What does it mean to What does it mean to buy stock on margin?buy stock on margin?

• Buy stock on creditBuy stock on credit

What event triggered the What event triggered the Great Depression?Great Depression?

• The Stock Market The Stock Market CrashCrash

What functions as the What functions as the central bank of the central bank of the

United States?United States?

• The Federal Reserve The Federal Reserve SystemSystem

What acts as a banker’s What acts as a banker’s bank?bank?

• The Federal ReserveThe Federal Reserve

What controls the What controls the nation’s money supply?nation’s money supply?

• The Federal ReserveThe Federal Reserve

What is inflation?What is inflation?

• When prices increase When prices increase and the dollar buys and the dollar buys lessless

What does the Federal What does the Federal Reserve do to stop Reserve do to stop

inflation?inflation?

• Raises interest ratesRaises interest rates

The Federal Reserve’s The Federal Reserve’s power to set ________ power to set ________

______ enables it to control ______ enables it to control the nation’s money supply?the nation’s money supply?

• Interest ratesInterest rates

What does the Federal What does the Federal Reserve do if it believes the Reserve do if it believes the

economy is overheating economy is overheating and causing inflation?and causing inflation?

• Raises interest ratesRaises interest rates

What does the Federal What does the Federal Reserve do if it believes Reserve do if it believes the economy is slowing the economy is slowing

down?down?

• Lowers interest ratesLowers interest rates

What is a protective What is a protective tariff?tariff?

• A tax on imports that is so A tax on imports that is so high that Americans high that Americans cannot afford to buy cannot afford to buy foreign goodsforeign goods

What was the Hawley-What was the Hawley-Smoot Tariff?Smoot Tariff?

• Protective tariffProtective tariff

• The highest tariff rates The highest tariff rates in historyin history

The Hawley-Smoot Tariff The Hawley-Smoot Tariff was supposed to help was supposed to help

American business. Why American business. Why did this tariff law hurt the did this tariff law hurt the

American economy?American economy?

• Foreign countries retaliated by Foreign countries retaliated by passing high tariffs of their own.passing high tariffs of their own.

• This meant foreigners could no This meant foreigners could no longer afford to buy American-longer afford to buy American-made goods.made goods.

• The decrease in foreign sales The decrease in foreign sales was greater than the increase in was greater than the increase in the sale of American-made the sale of American-made goods within the United States.goods within the United States.

What were five effects of What were five effects of the Great Depression on the Great Depression on

the United States?the United States?

• Unemployment increasedUnemployment increased

• Banks closedBanks closed

• Consumer demand for Consumer demand for goods droppedgoods dropped

• Political unrest increasedPolitical unrest increased

• Farm foreclosures increasedFarm foreclosures increased

What was the What was the unemployment rate among unemployment rate among

Americans by 1932?Americans by 1932?

• 25%25%

Who was president when Who was president when the Great Depression the Great Depression

began?began?

• Herbert HooverHerbert Hoover

What was Herbert What was Herbert Hoover’s political party?Hoover’s political party?

• RepublicanRepublican

What president started the What president started the New Deal?New Deal?

• Franklin D. RooseveltFranklin D. Roosevelt

What was Franklin What was Franklin Roosevelt’s Roosevelt’s

political party?political party?

• DemocratDemocrat

What was President What was President Franklin Roosevelt’s Franklin Roosevelt’s

program to end the Great program to end the Great Depression?Depression?

• The New DealThe New Deal

Who said, “The only thing Who said, “The only thing we have to fear is fear we have to fear is fear

itself?”itself?”

• Franklin D. RooseveltRoosevelt

What the three R’s of What the three R’s of the New Deal?the New Deal?

• ReliefRelief

• RecoveryRecovery

• ReformReform

What is reform?What is reform?

• Change for the betterChange for the better

What was the purpose of What was the purpose of the New Deal “relief” the New Deal “relief”

programs?programs?

• Ease the suffering of the Ease the suffering of the unemployedunemployed

Give an example of a New Give an example of a New Deal “relief” program.Deal “relief” program.

• WPAWPA

What did WPA do?What did WPA do?

• Paid people to work on Paid people to work on public works projectspublic works projects

What are public works What are public works projects?projects?

• Construction projects paid Construction projects paid for by the governmentfor by the government

• Benefit everyoneBenefit everyone

Give examples of public Give examples of public works projects.works projects.

• RoadsRoads

• SchoolsSchools

• BridgesBridges

• Post officesPost offices

• ParksParks

• LibrariesLibraries

• DamsDams

What was the purpose of What was the purpose of the New Deal “recovery” the New Deal “recovery”

programs?programs?

• Help Business RecoverHelp Business Recover

Give an example of a New Give an example of a New Deal “recovery” program.Deal “recovery” program.

• AAAAAA

For what did AAA stand?For what did AAA stand?

• Agricultural Adjustment Agricultural Adjustment AdministrationAdministration

What did AAA do?What did AAA do?

• Paid farmers Paid farmers notnot to raise to raise crops and livestockcrops and livestock

• By limiting supply, tried to By limiting supply, tried to raise livestock and crop raise livestock and crop pricesprices

What was the purpose of What was the purpose of New Deal “reform” New Deal “reform”

programs?programs?

• Bring about change for the Bring about change for the better in American societybetter in American society

Give two examples of New Give two examples of New Deal “reform” programs.Deal “reform” programs.

• FDICFDIC

• Social SecuritySocial Security

For what does FDIC stand?For what does FDIC stand?

• Federal Deposit Insurance Federal Deposit Insurance CorporationCorporation

What does FDIC do?What does FDIC do?

• Deposits at FDIC-insured Deposits at FDIC-insured banks are now insured up banks are now insured up to at least $250,000 per to at least $250,000 per depositor through depositor through December 31, 2013December 31, 2013

What did the Social What did the Social Security Act provide?Security Act provide?

• Unemployment insuranceUnemployment insurance

• Old-age pensionsOld-age pensions

What brought an end to the What brought an end to the Great Depression?Great Depression?

• World War IIWorld War II

What is another name for What is another name for organized labor?organized labor?

• UnionsUnions

Were labor unions active Were labor unions active during the Great during the Great

Depression?Depression?

• YesYes

What three rights did What three rights did workers gain during the workers gain during the

New Deal?New Deal?

• Right to form a UnionRight to form a Union

• Right to StrikeRight to Strike

• Minimum WageMinimum Wage

Since the New Deal, who do Since the New Deal, who do Americans hold responsible Americans hold responsible for bringing prosperity to the for bringing prosperity to the

U.S. economy?U.S. economy?

• The federal government, The federal government, especially the Presidentespecially the President