we are closer to the end of poverty than at any point in our history
TRANSCRIPT
The Great Depression1929-1945
• Spark-Crash of The Stock Market-10/29/29• Underlying Causes-• Mass Production-too many goods produced,
not enough demand• Credit-too many goods bought that people
could not afford, including stocks, On Margin• Investing-inexperienced people put too much
of their $$ in the Stock Market-risky
Buy American
• Hoover signs the Hawley-Smoot Tariff• Increasing Tariffs-Americans buy less foreign
goods• Foreign nations now had less $$ to pay back
war debt to US.
The New Deal in Action - The 3 R’s• Relief-Immediate help-$$ to the people
• Recovery-temporary jobs
• Reform-permanent programs- Soc. Sec. FDIC• These programs would be paid by:
*Deficit Spending- Government Spends more than it takes in
• FDR was seen as taking action!*People had a renewed confidence in
government
FDR Gets To Work Right Away
• Declares a Bank Holiday, Closing ALL Banks for 4 Days
• Why?• To Get $$$ to the
banks!!
New Government Beauracricies are set up to assist
people in need• CCC – Gave public
works jobs to young men
• FERA – Gave $ relief directly to unemployed
• AAA – Paid farmers NOT to grow certain crops
• PWA – built ports, schools, aircraft carriers
• FDIC – Insures deposits made to federal certified banks
• WPA – Employed people to bulid hospitals, schools, parks, airports
• Social Security Act – Insurance for elderly, unemployed, and disabled
FDR and The New Deal Help Labor• Wagner Act- allowed workers to BARGAIN
COLLECTIVELY for what they wanted. (Unions hire representatives to bargain a contract for all members)
• Fair Labor Standards Act-• Created Minimum Wage, Maximum Hours. • .25 cents/44 hours a week originally.• Currently $7.25/40 hours a week
Why is FDR Elected 4x’s?
• Seen as using government to help• Feared change during crisis-Dep./WW2• Confident attitude• Support from new voters-– Labor– Women– Minorities
REVIEW – Causes of the Depression1 – Weaknesses in the Overall Economy
Overproduction/underconsumption of consumer goods and Farming products
2 – Unequal distribution of IncomeNot all social classes enjoyed boom of ’20s
3 – Excessive buying on Credit4 – Weak Corporate/Banking structures
Corruption, high-risk investments, lack of preparedness for recession
5 – Weak international EconomyEurope dependent on U.S. economy after WWI
Differences between FDR and Hoover
Roosevelt*Democrat*Willing to give direct relief to
people - $*Willing to allow Government
to make economic decisions*Deficit Spending
Hoover*Republican*Believed the Free-Market
system would correct itself*Believed people should work
through hard times (self-help/rugged individualism)
*Believed Gov’t should not make economic decisions (laissez-faire)
The New Deal is a Major Turning Point in American Government!• The government became more involved in
the economy and people’s lives!
• The New Deal Does Not End the Great Depression!
•World War 2 Does!!