THE GREAT DEPRESSION: 1929- 1941

The Wall Street Crash

Ever-rising stock prices became a source of wealth in the 1920s. On Black Tuesday, October 29th, millions of panicky investors ordered their brokers to sell, but no buyers could be found.  By the end of October, over $30 billion had been lost. 

Causes of the crash

• Excessive Use of Credit 

• Overproduction of Products 

• Global Economic Problems 

“Hoovervilles”

Homeless people travelled in box cars and lived in Shantytowns. Little towns consisting of shacks made from scrap material 

The Dust Bowl

Severe drought, overproduction, and high winds blew away millions of tons of dry topsoil creating a dust bowl region in the Mid-West 

The Three R’s

• Relief‐ provide Americans with immediate help for basic necessities of life, including; food, direct monetary payments and employment 
• Recovery‐ A policy or program that has its primary goal to promote growth in the American economy 
• Reform‐ A policy or program that was designed to ensure that the Great Depression did not occur again by reforming economic institutions 

Recovery and Reform Major Programs  

Federal Deposit Insurance Corporation (FDIC), Securities and Exchange Commission (SEC)

Federal Deposit Insurance Corporation (FDIC)

guaranteed individuals bank deposits 

Securities and Exchange Commission (SEC)

created to regulate the stock market from dishonest practices that led to the crash, and audits to protect investors from fraud and insider trading 

RELIEF Major Programs 

The Federal Housing Administration (FHA), Public Works Administration (PWA)

Public Works Administration (PWA)

allotted money to state and local governments for building roads, bridges, dams, and other public works: created thousands of jobs 

The Federal Housing Administration (FHA)

insured cheap loans for building new homes and repairing old ones. Allow Americans more access to home loans 

Social Security Act

federal insurance program based on automatic collection of payments from employees and employers throughout a person’s working career 

The supreme court

has the power of judicial review. They interpret the laws and determine if a law is lawful or constitutional.