The Great Depression

Event (1929-1939)

• Increased unemployment• Increased prices, decreased wages• Increased debt• Banks & businesses closed• Homelessness increased• Unstable/weak economy

Great Depression

Causes• Crisis in the farm sector

• Easy Credit & the Uneven Distribution of Wealth

• Stock: Buying on margin (speculation) Stock Market Crash (Black Tuesday)

Effects• Crop prices fell after WWI.

Farmers borrowed $ for new equipment/expand farms. Can’t pay back. Bank take farms.

• People buy expensive luxury items on credit. Cannot afford to pay back.

• Bought stock on credit. Stock prices crash. Can’t pay banks back.

President Hoover (1928-32)

• Rugged Individualism: Believed people should help themselves.

• Failed to provide direct relief (food, jobs, homes)

• Boulder Dam: Provided a few jobs, but not enough.

• Bonus Army: WWI veteran were promised a bonus (money), but did not get it. Hurt Hoover’s image.

President Franklin Roosevelt (FDR)

• Elected in 1932 (4 terms)• Promised direct relief• Possessed optimism that attracted voters• New Deal: FDR’s plan to get US out of GD

*Goals: Relief for needy, economic recovery, & financial reform.

• Bank Holiday: Closed all banks & only reopened financially sound ones.

Fireside Chats

• Informal speeches given by FDR to American public via the radio

• Encouraged Americans to put faith back into banks & support other reforms