The Great Dspression

Election of 1928

Candidate

Hoover

Al Smith

Hoover Credentials

Republican

Prohibition

Protestant

Election Winner

Hoover

Stock Market Boom

1921-27

Bull Market

Prices going up

Bear Market

Prices are dropping

1920 Stock Market

“you can’t lose”

banks giving away huge loans

Margin Buying

Brokerages (people doing the buying + selling of stocks for you) giving loans

Black Thursday

Oct 24, 1929

auto stocks pluments

people selling stocks and panicking

Black Tuesday

Oct 29, 1929

Stalk market crash

millions of people selling stocks but no one buying

Bank Buyout

banks throw money into market to stabilatize

Hoover Responce

Don’t freak out

help self, neigbors, charity

Rugged Individualism

Gov’t doesn’t need to come in a save

Gov’t needs to be Referee, NOT empire

Expectations from Great Depression

Peoples expectations about the Gov’t change forever

Bonus Army

vetrans camped out capital buildings

wanted their pentions early

Hoover called polise and burned everything to the ground

Hoovervilles

Homeless people living in parks/sewer pipes

Soup kitchens/ Breadlines

people stayed in long lines begging for food

Unemployment 1929

3%

Unemployment 1933

25%

Job Line ups

People line up for jobs and state Unemployment service office

Race during GD

Hard for Blacks and Latinos

lower wages

Unemployment 50%

blamed for everything

Farmers during GD

lose land

resort to sharecropping

know how to grow food to feed family

Dust Bowl

huge dust storms

huge drought

Texas to North Dekota

Okies

migrants

Families during GD

Men being suisidele

Women working hard

schools closed

children malnourished

1932 Election

FDR wins

Governor of NY

FDR

Slogans of 1932 Election

Play it safe with Hoover

New Deal

FDR Cabinet

Brain Trust

Diverse people w/different opinions

Frances Perkins

Sec. of Labor

First woman ever in presidential cabinet

First 100 days SLOGAN

“We have nothing to fear but fear itself”

Gains trust and confidence

The three R’s

Relief, Recovery, Reform

First 100 days

FDR makes congress pass 15 major laws

use of radio

Fireside Chats

Chats with the public

shows that he is caring and trustworthy

Emergency Banking Act

FDR puts all banks on “Bank Holiday” and sends agents to press reset button

Banks are open and trusted by public

Glass-Steagall Act

Creation of the FDIC

FDIC

Federal Deposit Inserance Corpation

$250,000 per bank

Old Economic Theory

Laissez-fair = hands off

gov’t does not get involved with economy

Securities and Exchange Commission

regulations for the stock market to protect the average investor

Keynesian Economics

John Maynard Keyne

1. gov’t puts itself in debt for short time

2. gov’t spends putting people to work on gov’t programs

3. circles, economy gets bigger

4. gov’t cuts spending and privet business take over

“Priming the Pump”

$ makes $

Huey Long

Share our wealth - Program

taxing the rich to give all americans a minimum income

Governor of LA

Dr. Townsend

older people need money when they retire

creates the Social Security

workers have money taken out of their paycheck and are given it back when they retire (once a month check)

Court Packing Scandal

Supreme Court find some of the New Deal programs unconstitutional

FDR wants 6 more court judges

Congress NO

Court packing bill