(25) p.724-725           I. The Great Depression

1. The stock market crash, along with other factors, caused a domestic crisis called The Great Depression.

1. The stock market crash caused many people to lose much of their life savings and even their lives.

2. An unbalanced economy also led to the depression. 

   1. Farm income shrank

   2. Textile, lumber, mining, and railroad industries declined.

   3. Automobile sales were slow and lay-offs occurred.

3. The Credit Crisis caused major economic problems.

   1. Thousands of banks closed

   2. Farmers could not pay for their equipment, so they had to be taken back.

   3. People defaulted on their car loans and home loans.

4. Joblessness and poverty hit Americans hard. 

   1. Unemployment was high

   2. People lived in “Hoovervilles” or shanty towns, made out of cardboard boxes. 

   3. People had no money for food, so they waited in long lines for soup, bread, and a cup of coffee.

(25) p.     II. FDR Takes Charge

1. As soon as he became president, he promised to fix the problems. 

   1. Two days after his inauguration, he ordered all the banks to close. Congress immediately passed the Emergency Banking Relief. This helped banks to reset. It also helped ensure people’s money.

   2. FDR gave fireside chats to regain the public’s confidence and explain to Americans what was happening.

   3. FDR had his Brain Trust group work on his New Deal, These were programs that created jobs and gave relief to the poor. Such as FERA, CCC, AAA, FDIC, TVA, etc.

Three ways escaped during the Great Depression was through:

1. Radio - Listening to different radio channels that entertained you was a way to forget about things. Daytime dramas such as soap operas also popularized.

2. Movies - A form of entertainment that helped immerse viewers into a whole different world.

3. Writing and Painting - Creating your own escape with your imagination helped.