The Great Depression
1929-1941
Causes of The Great Depression




People over speculated on stocks, using borrowed money
that they could not repay when stock prices crashed.
This means they bought their stock on credit or someone
loaned them the money.
The stock market crashed because people panicked and
started to sell their stock. As a result, stocks became
worthless.
The stock market crashed on October 29th, 1929, also
known as “Black Tuesday”.
The start of the Great Depression is often associated with
the stock market crash.
Causes of the Great Depression
continued




The Federal Reserve failed to prevent the collapse of the
banking system.
High tariffs made trade with other countries difficult.
Farm income shrank.
Industries declined which caused layoffs and lower
wages.
Impact and Effects of the Great
Depression on Americans






During an economic depression unemployment
rises, there is an increased number of
bankruptcies, and an increased number of poor
citizens.
During the Depression a large number of banks
and businesses failed.
One – fourth of workers were without jobs.
A large number of people were hungry and
homeless.
Farmers’ income fell to low levels.
Many people moved to Hoovervilles, which were
shacks made by homeless people, because they
were forced to leave their homes due to
economic reasons.
The Dust Bowl





The Southern Great Plains suffered an environmental
disaster during the 1930’s known as the “Dust Bowl”.
The hardest hit were western Kansas and Oklahoma,
northern Texas, and eastern Colorado and New Mexico.
Causes of the Dust Bowl included drought, high winds,
and careless farming techniques.
As a result thousands of farmers went bankrupt and had
to give up their farms. Many migrated to California and
became migrant workers, moving from place to place to
harvest fruits and vegetables
John Steinbeck’s novel, “The Grapes of Wrath”,
portrayed the difficulties of Dust Bowl farmers.
Roosevelt’s New Deal
President Franklin D. Roosevelt
succeeded Herbert Hoover in 1932
as president.
 Hoover was blamed for being
unable to solve the problems of
the Great Depression. He was
president when the Great
Depression began.
 Roosevelt created programs that
were aimed at economic relief,
recovery, and reform. They will be
known as the New Deal.
 The New Deal programs were
passed by Congress during the
“Hundred Days”. Other parts of
the New Deal will be passed in the
years to come.

New Deal Programs
The New Deal affected banking, the stock market,
industry, agriculture, public works, relief for the poor,
and conservation of resources.
 It reformed banking problems, farming overproduction,
and stock market risks
 The New Deal gave the federal government more control
over the nation’s economy as well as the idea that the
government must take responsibility for helping those in
need.
 Franklin Roosevelt spoke over the radio to explain his
New Deal programs to the American public. These will
be called “Fireside Chats”.

New Deal Programs continued

1.
2.
3.
4.
Specific New Deal Programs
Agricultural Adjustment Act – (AAA) Paid farmers not
to grow crops.
Civilian Conservation Corps – (CCC) Provided jobs for
young men.
Tennessee Valley Authority – (TVA) Built dams to
provide cheap electric power to seven southern states
and built schools and health centers. It improved the
economic life of an entire region.
Works Progress Administration – (WPA) Employed
men and women to build hospitals, schools, parks, and
airports.
New Deal Programs continued
5.

6.
7.
Public Works Administration – (PWA) Built ports, schools, and
aircraft carriers.
These (1-5) provided employment and income for Americans.
Federal Deposit Insurance Corporation – (FDIC) Insured savings
accounts in banks approved by the government
Social Security Act – (SSA) Set up a system of pensions for the
elderly, unemployed, and people with disabilities.
- The SSA created a tax on workers and employers. The
money provided the pensions for retired people.
- Another tax on employers funded unemployment insurance
payments to people who lost their jobs.
New Deal Programs continued




Social Security is best defined
as a retirement plan.
It was established to provide a
source of income for retired
workers, people with
disabilities, the elderly poor,
and children of parents who
could not support them.
Social Security was a lasting
reform of Pres. Roosevelt’s
New Deal program.
Social Security, the FDIC, and
unemployment insurance were
efforts to reform the U.S.
economy.
The Labor Movement



Workers benefited during the New Deal in that they
gained the right to form unions, the right to collective
bargaining (discussions between employers and union
representatives of workers over wages, hours, and
working conditions), child labor ban, and a minimum
wage of 40 cents an hour.
Union membership increased during the 1930s
The Wagner Act guaranteed workers the right to form
unions to bargain collectively with employers.
The End of the Great Depression


The Great Depression will last from 1929 to 1941.
On December 7th, 1941 the Japanese will bomb the U.S.
naval base at Pearl Harbor and force the U.S. into World
War II. Factories will begin producing war material thus
employing workers. Farmers will produce food and
crops needed for the war effort. Millions of men and
women will find themselves in the armed forces. By
entering the war, the U.S. economy will get the boost it
had been looking for.