the great depression

Woodrow Wilson

28th President of the United States from 1913 to 1921. (WWI)

Warren G. Harding

29th President of the United States from 1921 to 1923. (“Return to Normalcy” Scandals)

Calvin Coolidge

30th President of the United States from 1923 to 1929. (Silent Cal, “The business of American people is business”)

Herbert Hoover

31st President of the United States from 1929 to 1933. Held office during the onset of the Great Depression.

Rugged Individualism

Hoover's belief in self-reliance and minimal government intervention in the economy. “Keep the economy moving, government should not step in and help individuals!”

Prohibition

A nationwide ban on alcohol sales that influenced Hoover's electoral success.

Laissez-faire

An economic philosophy that opposes government intervention in the market, continued by Hoover.

Stock Market

A system for buying and selling stocks/shares of companies; owning a small piece of the company.

Bull Market

A prolonged period of rising stock prices, caused many people began to invest in stocks.

Speculate

To invest in stocks with the hope of profiting from rising prices/betting that the market would continue to climb, enabling them to sell stock and make money quickly.

Buying on Margin

Buying stocks by making a small cash down payment and borrowing the rest from a broker, which banked banks, led to a risk of loss.

Black Thursday

October 24, 1929, A significant stock market crash that marked the beginning of panic selling.

Black Tuesday

October 29, 1929, the date of the worst stock market crash in American history, marked the beginning of the Great Depression.

Bank Failures

Closure of banks due to insolvency, a major cause of the Great Depression. 1 in 4 banks closed in 1932.

Uneven Distribution of Income

A situation where wealth is not distributed equally among the population.

Great Depression

The longest and most widespread economic downturn in U.S. history, starting in 1929 and lasted until the beginning of WWI.

Bank Run

A situation where a large number of customers withdraw their deposits simultaneously. It occurred when people fearing the bank would go bankrupt.

Reconstruction Finance Corporation (RFC)

A government agency that provided financial support ($2 billion) to state and local governments. Its main purpose was to create jobs for Americans who wanted to work.

Hooverville

Makeshift shantytowns named after President Hoover, where homeless families lived.

Hoover blankets

Newspapers used by the homeless as blankets.

Hoovermobile

Cars pulled by mules, reflecting the poverty during the Great Depression.

Dust Bowl

A severe drought in the Great Plains that led to massive agricultural decline.
Causes: no rain, and new technology. tractors and steel plows tear up extra sod that was holding onto soil, the drought turns open soil into a sand box.

Migrant Workers

Workers who move from place to place to find employment, often termed as 'Okies'.

FDR's New Deal

A series of programs aimed at relief, recovery, and reform during the Great Depression.

The First New Deal

Programs passed before 1935 (most in the first 100 days of FDR’s presidency), focusing on immediate economic recovery.

The Second New Deal

Programs initiated after 1935 focusing on long-term economic reforms (from recovery to reforming economic security).

Fireside Chats

Radio broadcasts by FDR to discuss his policies and rebuild public confidence/trust in banks.

Emergency Banking Relief Act

Law passed by Congress that would close down insolvent banks and to reorganize and reopen financially sound banks.

Securities Act

Legislation requiring truthful information from companies regarding stocks and bonds.

Securities and Exchange Commission (SEC)

Regulatory agency that oversees the stock market and prevents fraud.

Glass-Steagall Act

Legislation that separated commercial banking from investment banking.

Civilian Conservation Corps (CCC)

A public work relief program providing jobs for young men in environmental projects like forestry service planting trees, fighting forest fires, and building reservoirs.

Public Works Administration (PWA)

A government agency focusing on infrastructure development and job creation (highways, dams, schools, and other gov’t facilities).

National Industrial Recovery Act (NIRA)

Legislation that set standards for production, wages, and hours.

National Recovery Administration (NRA)

A key piece of legislation passed in 1933 that aimed to stimulate economic recovery by promoting fair competition and establishing minimum wages. The agency aimed at eliminating unfair competition and assisting labor unions.

Works Progress Administration (WPA)

The largest New Deal agency providing jobs for unemployed Americans in construction and infrastructure. 8.5 million workers built miles of highways, roads, public buildings and parks.

National Labor Relations Act (Wagner Act)

A landmark labor law enacted in 1935 that aimed to protect the rights of workers to organize and engage in collective bargaining. Created to hear disputes over unfair labor practices

Social Security Act

Established a government responsibility for the welfare of the less fortunate. This act provided pensions for the elderly, unemployment insurance, and support for disabled individuals and was a milestone in American History.

Supreme Court and New Deal

The Court initially blocked several New Deal programs, leading FDR to propose judicial reform.

March of Dimes

An organization founded to raise funds for polio research and awareness (Roosebelt having polio). In 1938 the National Foundation for  Infantile Paralysis (its former name).

Polio Vaccine

Developed by Dr. Jonas Salk in 1955, it helped to combat polio outbreaks.

African American Democrats

Many African Americans shifted their political allegiance to the Democratic Party during the Depression.

The Spark of the Great Depression.

Prices decline, the market plummets!

Hoover Becomes President.

Hoover defeats Democratic nominee Alfred E. Smith in the Election of 1928. Prohibition and religion are big factors that help him win.

Republicans keep control

Hoover was the third Republican president in a row.

Causes of Great Depression (according to scholars)

Overproduction in factories and farms, uneven distribution of wealth, a decline in international trade due to high tariffs, banking system failures, and mistakes by the Federal Reserve reduced the money supply.

Banks

First thing hit by the market crash

Hoover’s Response

Asked employers not to fire workers or lower their pay. He asked labor leaders not to ask for higher pay or to strike

Effects of the Depression

Joblessness, homelessness, hatred for Hoover.

Jobless/Homeless

Jobless goes from 4  to  12 million. Houses are lost, people become homeless.

Hatred for Hoover

Hoover said it’s not the government’s job to fix the poor. People name poor places after Hoover. Hooverville or shanty towns, hoovermobiles/cars pulled by mules, Hobos (train kids) looking for jobs, and hooverblankets/newspapers used as blankets while traveling the rails by the homeless.

Okies

came from Oklahoma, so migrant workers were often called this

Herbert Hoover's Beliefs

Herbert Hoover believed in "rugged individualism," where individuals should solve their own problems without relying on federal government aid. He encouraged local governments and charities to take the lead in helping people.

The Stock Market Crash (1929)

Occurred due to excessive speculation and buying on margin. When prices dropped, mass panic led to massive selling, causing the market to collapse. Key dates include: Black Thursday (October 24, 1929, the Start of the panic) and Black Tuesday (October 29, 1929, Largest single-day crash.)

Reform (New Deal)

Permanent programs to prevent another depression through regular legislation and new social welfare programs.

FDR’s first 100 days

 the 1^st thing he does is repeal prohibition with the 21st amendment.

Hoover in the 1932 Election

Advocated for reduced federal spending and minimal government intervention.

FDR in the 1932 Election

Pledged to provide relief and reform to combat the Depression through direct government action.

Relief (New Deal)

Immediate action to help those in crisis such as creating jobs and welfare.

Recovery (New Deal)

Economic programs to rebuild industries/Temporary programs to restart the economy through federal spending and job creating.

Reform

Laws to prevent future economic disasters.

Restore public trust in bank

FDR implemented Bank Holidays, Federal Deposit Insurance Corporation (FDIC), and The Securities & Exchange Commission (SEC)

The Securities & Exchange Commission (SEC)

Regulation of the stock market to prevent fraud.

Federal Deposit Insurance Corporation (FDIC)

A government agency established in 1933 to provide insurance for bank deposits, protecting depositors' funds.

Bank Holidays

Temporary closure of banks to prevent withdrawals or bank runs

TVA (Tennessee Valley Authority)

Federal agency that manages the Tennessee river system and provides electricity to the southeastern U.S. Built dams to control flooding.

FDR and the Supreme Court

The Supreme Court initially struck down key New Deal programs. In response, FDR proposed adding more justices to the Court, but the idea faced significant opposition.

The New Deal Slogan

Relief, recovery, reform.

Social Effect of great depression

Rise of Hoovervilles (shantytowns), hobos, and widespread homelessness.

Economic effect of the great depression

4 to 12 million unemployed; homes lost; banks failed.

Stock Market Crash

A sudden dramatic decline of stock prices across a significant cross-section of a stock market, which occurred in October 1929.

The Great Depression

A worldwide economic downturn that lasted from 1929 until the late 1930s, characterized by high unemployment, widespread poverty, and significant declines in industrial production and international trade.

Agricultural Adjustment Act (AAA)

A federal law enacted in 1933 aimed to boost agricultural prices by reducing surpluses and paying farmers to cut back on production.

Smooth-Hawley Tariff

A law that raised import duties on thousands of goods, intended to protect American businesses.

Recovery, Reform, and Relief

The three R's of the New Deal, focusing on immediate relief, recovery of the economy, and reform of the financial system.

Sit-Down Strike

A form of protest where workers remain in their workplace and refuse to work.

Bonus Expeditionary Force

Groups of WW1 veterans marched on Washington, D.C. in 1932, demanding immediate payment of their promised military service bonus. Hoover sent the U.S. Army to disperse them, which led to public outrage after violent clashes.

Economic Boom

A period of sustained and rapid economic growth that is beyond normal.

Speculation Boom

A period of economic activity where investors make high-risk investments expecting quick returns.

New York exchange crashed

The event that occurred on Black Tuesday leading to the Great Depression.

Hoover Becomes President

Prohibition and religion are big factors that help to win.

Republicans keep control

Hoover was the third Republican president in a row. He continued ‘laissez faire” economic philosophy.

The Spark of the Great Depression

A rapid decline in stock prices caused panic, leading to the stock market plummeting.

Banks Lose Billions

As panic spread, people rushed to withdraw their savings, causing banks to run out of money. By 1932, 1 in 4 banks had closed.

Hoover’s Response to the Great Depression

Asked employers not to fire workers or lower their pay. He asked labor leaders not to ask for higher pay or to strike.

Hoover Federalism

Hoover believed that charities (churches) or state and local governments, not federal governments, should provide food and shelter to people who were poor or out of work.

Farmers Destroy Crops to Raise Prices

Farmers burned crops and dumped milk instead of selling at a loss, attempting to reduce supply and increase demand to raise prices for their goods.

Hoover’s Response to Bonus Army

At first, Hoover sent the veterans food, but after the bonus was voted down in Congress, Hoover told the veterans to leave. About 2,000 stayed. Hoover ordered the army to use force to remove them. The U.S. Army used tear gas on the U.S. war veterans.

Hoover was voted out. Why?

Many people blamed Hoover for their economic problems; the Bonus Army debacle was the final blow. In the 1932 election, Hoover faced Democrat Franklin D. Roosevelt, New York’s governor. Roosevelt, NY’s Governor, wins in a landslide.

Results of Dust Bowl

Suffocation of humans/animals from dust filling their lungs. Farmers can’t pay banks. Banks take their farms. Many Great Plains farmers move to California.

Migrant Workers

Many farmers packed up their belongings and started for California to look for work.  They became migrant workers moving from place to place to pick crops. Many came from Oklahoma, so migrant workers were often called Okies.

Okies

They became migrant workers, moving from place to place to pick crops. Many came from Oklahoma, so migrant workers were called this.

First New Deal Focus

Putting people to work, Fixing the banking crisis, and Helping farmers.

FDR’s Farm & Industry Relief Programs

Agricultural Adjustment Act (AAA), National Industrial Recovery Act (NIRA), and National Recovery Administration (NRA)

FDR’s Bank Relief Programs Dealing with Banking and Stocks.

Securities Act, the Securities and Exchange Commission (SEC), The Glass-Stegall act, the Federal Deposit Insurance Corporation (FDIC), and the Civil Works Administration

FDR’s Relief Programs Assistance to Help the Poor

Civilian Conservation Corps (CCC), Public Works Administration (PWA), Civil Works Administration (CWA), and Tennessee Valley Authority (TVA)

Civil Works Administration (CWA)

Employed 4 million to build airports,  schools, and parks. Temporary jobs only lasting through the winter

The Wagner Act

Another name for National Labor Relations Board (NLRB)

Supreme Court Ruling

Parts of Roosevelt’s New Deal were unconstitutional. To overcome this, Roosevelt wanted to increase the number of U.S. Supreme Court judges.

March of Dimes

Roosevelt's having polio raised national awareness of the disease and a drive to find a cure. In 1938, the National Foundation for Infantile Paralysis was founded. It later changes its name to this.