The Great Depression1929-1939

Did FDR’s New Deal create the issues the American economy faces today?

Causes of the Great Depression• Causes of Great Depression• Stock Market Crash – 10/29/29

– Over speculation• Run on the Banks

– 28 states without banks by end of 1932• Credit/Lack of savings

– Cessation of purchasing with loss of money and jobs• American Economic Policies with Europe

– Smoot-Hawley Tariff – 1930– Reciprocal trade cut-offs

• Drought– Dust Bowl– Grapes of Wrath by John Steinbeck

Bank Failures in the US

New Deal• Beer-Wine Revenue Act• Emergency Banking Relief Act• FDIC• HOLC• FCA• FERA → WPA and Social Security• PWA• CCC• TVA• SEC• FHA

Supreme Court and the New Deal• NRA

• President could set the codes for• Wages• Hours of work• Level of production• Prices of finished goods• Fair competition

• Schechter v. US• President assumed powers granted to Congress• Regulated more than interstate commerce

• NLRA – granted workers the right to join unions and collectively bargain

• Packing the Court