The Depression and the New Deal- Depression, New Deal; what happened, why?
What were the causes and conditions? How does the US react to these conditions and try
to resolve it… does it work? Dustbowl essay is pretty good resource along with text)
A) The Crash (Black Tuesday, Oct. 29, 1929)
B) Hoovers Reaction
Reconstruction Finance Corporation (RFC) in 1930
C) FDR: Relief, Recovery, and Reform
Alphabet agencies: FDIC, SEC, CCC, TVA, WPA, HOLC, FERA, PWA,
AAA, FCA, REA, NIRA, NRA, RA, FSA, NLRB, FLSA, NYA, CWA,
Glass Stegall Act (1933), Wagner Act (1935), AFL CIO, Social Security
New Deal (Democratic) Coalition.
D) Critics: Huey Long, Francis Townsend, Father Charles Coughlin, Upton Sinclair,
E) The Troubled Foreign Horizon (WWII coming in Europe).
Coolidge takes office. Called silent Cal.
Puritanical, conservative, cleans up the
Wins his own term next year. No one really has any good
Henry ford was one of his major supporters. Coolidge was all about
big business. Left white house in 1929. Hoover takes his place.
Hoover is well
qualified for the job. In fall of 1931 we head into the great depression.
Herbert Hoover takes office in March 1929. He looked back in his inaugural
address to a decade of prosperity, Stock market boomed after his inauguration.
Business confidence. In Sept 1929 stock prices suddenly broke sharply, and
fluctuate sharply up and down. A month later, Thursday October 24
sell occur in a larger volume than had ever been seen before.
Held on for a little
while, but then crashed on Black Tuesday Oct 19
Stock prices fell considerably. I.E. Dow Jones stock went from $381 in 1929 and
fell to $41 in 1933.
Gross National Product (GNP) stood at 104 billion dollars; by
1933 it stands a $74 billion dollars, wipes out 20 years of development.
Unemployment went from 3.1% in 1929 to 25% and rising in 1933. Over this
same period of time, farm income decline by 61%. Labor income falls by 42%.
600 banks failed, corporate empires collapsed, small businesses went bankrupt by
Effected MANY people, changed their psyche. Leaves an “invisible”
scar. Does not hurt EVERYONE, at least not as badly.
Hoovervilles; the homeless spring up all over.
The prices of major crops
fluctuate. People search for jobs.
Unemployment spikes up in about 1933. Stock
market crash did not cause the great depression, but was the final blow. There was
huge credit buying on the part of the consumer in the 1920s, this couldn’t go on