Chapter 26: The Great Depression and the New Chapter 26: The Great Depression and the New DealDeal

Section 1: Hoover and the CrashSection 1: Hoover and the CrashSection 2: Roosevelt and the New DealSection 2: Roosevelt and the New Deal

HerbertHerbert HooverHoover became president in 1828 became president in 1828

But…. he became But…. he became president at a time where president at a time where America was just starting America was just starting to have some money to have some money issues.issues.

Businesses had made so Businesses had made so much stuff that they much stuff that they couldncouldn’’t sell it all – and t sell it all – and they even had to lay off they even had to lay off some workers.some workers.

Some people were buying Some people were buying so much stuff on credit so much stuff on credit that theythat they’’d never be able d never be able to pay off their bills.to pay off their bills.

Stock market Stock market prices were prices were rising and people rushed to rising and people rushed to buy stocks (stocks donbuy stocks (stocks don’’t t always keep going up and always keep going up and if theyif they’’ve gone up they ve gone up they might be coming back might be coming back down some).down some).

A A ““littlelittle”” 1920 1920’’s s stock market crashstock market crash timeline timeline::

A.A. September 3September 3rdrd, 1929: Stock values reached a, 1929: Stock values reached a highhigh point. point.B.B. Prices then wentPrices then went downwarddownward..C.C. On October 23On October 23rdrd: prices dropped : prices dropped a lota lot and people started and people started

to try and sell.to try and sell.D.D. The falling prices The falling prices scaredscared buyers who thought they might buyers who thought they might

drop even more.drop even more.E.E. October 24October 24thth: a record number of shares was traded.: a record number of shares was traded.F.F. By October 29By October 29thth, Black Tuesday, , Black Tuesday, investors sold even more investors sold even more

stocks at low prices.stocks at low prices. This was called the Crash of 1929. This was called the Crash of 1929.G.G. Banks began to demand that people pay back the money Banks began to demand that people pay back the money

they had they had borrowedborrowed to buy the stocks. to buy the stocks.H.H. BanksBanks ran short of money to give people to repay their ran short of money to give people to repay their

loans.loans.I.I. Many banks did not have enough cash on hand to pay Many banks did not have enough cash on hand to pay

back their customers and back their customers and closedclosed..J.J. BusinessesBusinesses sold less and less because people just didn sold less and less because people just didn’’t t

have any money.have any money.K.K. Many businesses Many businesses laid offlaid off workers. workers.L.L. Thousands of people lost their Thousands of people lost their jobsjobs and millions went and millions went

hungryhungry

The Dow Jones in 1929The Dow Jones in 1929

The Dow-Jones is an index that shows how 30 large publicly owned companies based in the United States have traded

during a standard trading session in the stock market.

America had other depressions, but none America had other depressions, but none had this much suffering and lasted this long, had this much suffering and lasted this long,

so itso it’’s called:s called:

The Great DepressionThe Great Depression It also affected millions It also affected millions

of people around the of people around the worldworld

More pictures of this time

Now – you would think President Hoover Now – you would think President Hoover would do everything he could to help out, would do everything he could to help out,

but…but… He believed in He believed in ““rugged individualisrugged individualis

mm ”” He didnHe didn’’t support the idea of t support the idea of

government support for the poor government support for the poor what we call what we call social welfare.social welfare.

He wanted volunteers to help other He wanted volunteers to help other people.people.

One thing Hoover tried: to balance One thing Hoover tried: to balance the federal budget by cutting the federal budget by cutting government spending and raising government spending and raising taxes, but… that pulled more money taxes, but… that pulled more money out of the economy and actually out of the economy and actually made things worse.made things worse.

People blamed him for everything People blamed him for everything that went bad.that went bad.

Hoover Hog / Hoover Blanket / Hooverville / Hoover Hoover Hog / Hoover Blanket / Hooverville / Hoover FlagFlag

By 1932, millions of people lacked food and By 1932, millions of people lacked food and shelter – and it was time for a presidential shelter – and it was time for a presidential

electionelection

You donYou don’’t really know t really know him, but does Herbert him, but does Herbert Hoover seem like the Hoover seem like the guy youguy you’’d want d want running things 4 more running things 4 more years?years?

The country felt the The country felt the same way and elected same way and elected Franklin Delano Franklin Delano Roosevelt (FDR)Roosevelt (FDR)

Right away he did some things to help Right away he did some things to help out:out:

He told the country: He told the country: ““the only thing we have the only thing we have to fear…. is fear itself.to fear…. is fear itself.””

He declared a He declared a ““bank bank holidayholiday”” and closed all and closed all the banks.the banks.

He promised only safe He promised only safe and secure banks would and secure banks would be allowed to re-open.be allowed to re-open.

He kept letting the He kept letting the country know things country know things would be okay – he would be okay – he even had even had ““fireside chatfireside chatss””

One way a lot of presidents get judges One way a lot of presidents get judges is by what they do in their first is by what they do in their first 100 100

days days in officein office

That goes back to That goes back to FDR and all the FDR and all the things he tried to things he tried to do right away.do right away.

Roosevelt also promised aRoosevelt also promised a ““New DealNew Deal”” for Americans for Americans

ReliefRelief for the for the hungry and jobless.hungry and jobless.

RecoveryRecovery for for agriculture and agriculture and industry.industry.

ReformReform to change to change the way the the way the economy worked.economy worked.

Some Some FDRFDR personal personal information…information…

He was a distant cousin He was a distant cousin of Teddy Roosevelt of Teddy Roosevelt (4(4thth).).

He was married to his He was married to his cousin.cousin.

(5(5thth cousin). cousin). When he was 39 he When he was 39 he

caught polio .caught polio . For the rest of his life For the rest of his life

he walked with canes, he walked with canes, or rode in a wheelchair.or rode in a wheelchair.

Most people didnMost people didn’’t t even know.even know.

Anna Anna ““EleanorEleanor”” Roosevelt Roosevelt

One of the more One of the more active wives of a active wives of a presidentpresident

A symbol of A symbol of strength in women strength in women of the timeof the time

FDR started many new programs to FDR started many new programs to help out (some still affect us today)help out (some still affect us today)

ProgramsPrograms AccomplishmentsAccomplishmentsPWAPWA

(Public Works (Public Works Administration)Administration)

Created jobs by having people build Created jobs by having people build

highways, bridges and public workshighways, bridges and public works

TVATVA(Tennessee Valley (Tennessee Valley

Authority)Authority)

Planned Planned developmentdevelopment of the Tennessee of the Tennessee

Valley Region (including a dam) Valley Region (including a dam)

CCCCCC(Civilian Conservation (Civilian Conservation

Corps)Corps)

Hired young men to plant trees, build dams, Hired young men to plant trees, build dams, and work on other and work on other conservationconservation projects projects

FDICFDIC(Federal Deposit (Federal Deposit

Insurance Corporation)Insurance Corporation)

Protected the money of depositors in Protected the money of depositors in

insuredinsured banks banks

WPAWPA(Works Progress (Works Progress Administration)Administration)

Established large scale national works Established large scale national works programs to create programs to create jobsjobs

NYANYANational Youth National Youth Administration)Administration)

Set up programs for Set up programs for young peopleyoung people people and people and

helped them continue their education helped them continue their education

Social Security Social Security ActAct

Provided workers with unemployment Provided workers with unemployment insurance and insurance and

retirementretirement benefits. benefits.

Roosevelt wasnRoosevelt wasn’’t perfect in t perfect in everything he did.everything he did.

There were some There were some people that didnpeople that didn’’t t like that he used like that he used deficit spending.deficit spending.

Spending money Spending money they didnthey didn’’t have t have yet.yet.

People escaped through People escaped through entertainment entertainment

This entertainment was often not This entertainment was often not realisticrealistic

MoviesMovies

RadioRadio

SwingSwing