Notes on the Great Depression and Stock Market Crash

I. Economic Crisis
  A. Role of Stock Market Crash (October 1929)
    1. The stock market crash is seen as the main trigger for the Great Depression, symbolizing deeper economic issues rather than being the sole cause.
  B. Consumer Borrowing
    1. Most investments during the 1920s stock boom were made through credit, creating unsustainable economic conditions.
  C. Hoover's Response
    1. Herbert Hoover's indecisive leadership and optimistic forecasts led to widespread criticism.
    2. “Hoovervilles” emerged as makeshift homes, highlighting the neglect faced by many Americans under Hoover's administration.
II. Dust Bowl
  A. Depression + Drought
    1. Severe drought conditions contributed to significant agricultural failures during the Great Depression.
  B. Black Blizzards
    1. Dust storms, referred to as Black Blizzards, devastated farmland and displaced farming families.
  C. Exodus to California
    1. Many affected families migrated to California searching for improved living conditions and employment.
  D. Mexican Repatriation/Deportation
    1. Significant repatriation efforts impacted Mexican-Americans, leading to forced deportations during this period.
III. New Deal Goals
  A. Economic Stimulus
    1. The New Deal sought to provide immediate economic relief and stimulate growth through various programs.
  B. Improve Regulation
    1. Reforms aimed to prevent factors that led to financial collapse and enhance market regulations.
  C. Psychological Stimulus
    1. A key goal was restoring confidence in the government and economy among the public.
  D. Modernize Infrastructure
    1. Significant investments in infrastructure were aimed at creating jobs and modernizing facilities.
IV. The Role of FDR
  A. Wealthy Background
    1. Franklin D. Roosevelt's privileged upbringing influenced his political perspective and policies.
  B. Importance of Disability
    1. FDR's experiences with disability contributed to his empathetic leadership style during difficult times.
  C. Charisma and Use of Mass Communications
    1. FDR utilized mass communication effectively, connecting with the public and advancing his ideas.
V. Restoring Confidence in the System
  A. "First 100 Days"
    1. FDR introduced a wave of reforms focused on economic recovery in his initial three months in office.
  B. Securities and Exchange Commission (SEC)
    1. Created to oversee the stock market and protect investors from fraud and unfair practices.
  C. Banking Reforms
    1. Glass-Steagall Act established barriers between commercial and investment banking.
    2. Federal Deposit Insurance Corporation (FDIC) was designed to insure bank deposits for increased financial security.
  D. Social Security Act (1935)
    1. The Act provided social benefits but faced criticism for excluding various demographic groups.
VI. Job Creation and Infrastructure Modernization
  A. Works Progress Administration (WPA)
    1. The WPA provided employment for artists, theaters, and musicians.
    2. WPA Murals served to beautify public spaces with artistic works.
    3. WPA Histories of Slavery documented personal narratives from former slaves.
  B. Civilian Conservation Corps (CCC)
    1. The CCC focused on conservation projects while providing jobs for young men.
  C. Public Works Administration (PWA)
    1. The PWA funded large-scale infrastructure projects to stimulate job growth.
  D. Tennessee Valley Authority (TVA)
    1. The TVA aimed to provide rural electrification and improve community living standards.
VII. Legacies of the New Deal
  A. The New Deal shaped long-term changes in the American economic landscape and government policies that influenced future economic strategies.