The Great Depression and The
New Deal
1929 - 1940
Stock Market Challenge
• What is the Stock Market?
• What causes something to be
valuable?
• What factors cause a stock to rise or
fall?
• What is the difference between a
recession and a depression?
Causes of The Great Depression
• The optimism of the 1920’s concealed
problems in the American economic
system
• In October of 1929, The stock market
crashed. It was at record lows and
everyone lost their life savings
• There were 3 main causes of the Great
Depression
#1) The “Crash”
• People over speculated on stocks, using
borrowed money they could not repay when
stock prices crashed
#2) No Bank safety net
• The federal reserve failed to prevent the
collapse of the banking system
#3) No international trade
• High tariffs discouraged
international trade
Severe impact on Americans
• A large number of banks and other
businesses failed
• One fourth of workers were without
jobs
• Large numbers of people were
hungry and homeless
• Farmers incomes fell to low levels
http://www.youtube.com/watch?v=aPtbekTh2qo&NR=1
“Brother Can You Spare a Dime”
A popular depression era song
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Sirloin Steak (per pound)
Chicken (per pound)
Bread (1 loaf)
Potatoes (per pound)
Bananas (per pound)
Milk ( a quart)
Cheese (per pound)
Canned Tomatoes
Oranges (I dozen)
Cornflakes (small box)
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.29 (cents)
.22
.05
.02
.07
.10
.29
.09
.27
.08
The New Deal
3 Goals (3 R’s)
Relief Recovery Reform
“The only thing we have to fear, is fear
itself” – FDR’s inaugural address
•
http://www.americanrhetoric.com/speeches/fdrfirstinaugural.html
• In the 1932 presidential election Herbert
Hoover ran for re-election against New
York Governor Franklin D. Roosevelt
(FDR)
• FDR easily won with the promise of a
new deal that would pull the country out
of the Depression
What was the New Deal?
• There were five (5) major features to the New Deal
Five parts of the New Deal
1. Social Security
2. Federal work programs
3. Environmental improvement
programs
4. Farm assistance programs
5. Increased rights for labor
New Deal Programs Worksheet
• Get with 6:00 clock partner
and the person on the left
go and get each of you a
textbook.
• Use text pages 732-734 to
fill in the New Deal Chart
• When you are done put
your textbooks away and
raise your hand for me to
check it.
Franklin Roosevelt's
“NEW DEAL”
• There were lots of
programs set up by the
New Deal, but here are 4
Primary programs to know!
#1)
SSA
Social
Security
Act
Set up as a
system of
pensions for
the elderly,
unemployed
and disabled
#2)
FDIC
Federal
Deposit
Insurance
Corporation
All Savings
accounts in
approved
banks were
insured and
protected by
the
government
**Remember the Federal Reserve FAILED to
protect the banks…The FDIC was created
So it would never happen again**
#3)
PWA
Public Works Things built
for public use
Administration
such as
parks,
schools,
roads, and
libraries
#4)
SEC
Securities
and
Exchange
Commission
Laws
regulating
the sale of
stocks and
bonds in the
Stock
Market
The SEC prevents corporations from cheating and
lying about their stock values and gains and losses
Great Depression Final thoughts
Though the New Deal programs had many
successes, it was ultimately WWII that ended
the Great Depression!
Though we have 3 main causes of the Great
Depression, a major key factor was
Americans large personal debts….We simply
borrowed and spent too much money that
we couldn’t pay back!