Election of 1928

• Herbert Hoover elected President (R)
• Later be blamed for the Great Depression

Herbert Hoover

• Secretary of Commerce under Harding & Coolidge
• Mine engineer from Iowa
• Never held public office

Over Production

• Problem for farmers
• Produced more food than consumers needed
• Caused a surplus that drove down prices

Overspectulation

• People bought shares of stock they thought would rise in prices quickly, and after prices went up they would sell the stocks for a profit.

October 29^th,1929

• Stock-market crashed
• Black Tuesday
• The bottom fell out of the market as well as the nations confidence
• 16.4 million shares were dumped that day-record #

Great Depression

• Signaled by the Stock Market crash(not the only cause)
• Period during 1929-1940 in which the economy plummeted and unemployment skyrocketed

Underconsumption

• Production of goods increased; employment under the number of workers stood still while wages went up very slowly
• 2/3 of nations families were earning less that $2,500 per year
• The protective tariff is designed to protect US product from foreign competition

Unequal distribution of income

• Some 30,000 families has as much income as did 11 million families.
• Rich families became richer and poor families became poorer.

Psychological Causes

• Pessimism & panic- people ran to banks in large numbers and withdrew all their money which caused the banks to close down.
• clusters of shacks where homeless people lived was a "Hooverville"
• Jobs were scarce and if you did find one it didn't pay much

Election of 1932

• Franklin D. Roosevelt elected (D)
• Promise to help the "forgotten man"
• Elected during the worst year of the Great Depression
• Two-term governor of NY & distant cousin of President Roosevelt

Franklin Delano Roosevelt

• Known as FDR
• Elected 4 times
• Married Eleanor Roosevelt- who worked along side her husband in finding methods to alleviate suffering of the people during the Great Depression

The New Deal

• FDR's Policy to help the US get out of the depression
• focused on three goals: Relief for the needy, economic recovery, and financial reform.
• Commonly known as the three R's.

The New Deal

• First 100 days-time period when many "new deal" bills were introduced into Congress
• Relief Programs-immediate action to halt the economy's downfall
• Recovery Program-"pump-primping" temporary programs to restart the flow of consumer demand

Works Progress Administration

(WPA)

• Employed 8.5 million workers.
• Included construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

Civilian Conservation Corps

(CCC)

• Put young men 18-25 to work building roads, developing parks, planting trees, and helping in soil-erosion and flood-control projects
• By the time the program was ended 3 million young men had passed through the CCC

Agricultural Adjustment Act

(AAA)

• Protected farmers from price drops.
• Provided crop subsidies to reduce production, educational programs to teach methods of preventing soil erosion.

Subsidy

Social Security Administration

(SSA)

• Provided pensions, unemployment insurance, and aid to blind, deaf, disabled, and dependent children.

Federal Deposit Insurance Corporation

(FDIC)

• Insures deposits in member banks for up to $100,000
• Created in response to banking crises of the Great Depression

Fireside Chats

• FDR spoke directly to the nation using the radio
• 1930's & 1940's are known as the golden age of the radio

Frances Perkins

• Appointed by FDR
• Secretary of Labor
• 1st women to hold a cabinet position in the Federal  Government
• Helped to enact the SSA and writing minimum wage laws.

Huey P. Long

• Made political contributions during FDR admin.
• Put people to work by funding different public projects(schools, bridges, airports, roads)
• Created Share Our Wealth Society- promoted taxing the rich and giving to the poor

Black Cabinet

• A group of black advisers that were gathered together by FDR to help him find solutions for the suffering black community.

Brain Trust

• Roosevelt's personals advisers who were influential in the decision-making policies of the New Deal
• They were highly educated individuals

Amendments during the New Deal

• 20th Amendment- established presidential succession and stated how often Congress would meet.
• 21st Amendment- repeal of Prohibition; nullified the 18th. only amendment passed to overturn an earlier amendment.

Good Neighbor Policy

• FDR policy
• Made an attempt to improve the relationship between the US and Latin America
• Intent was for one nation not to interfere with matters of another nation

Court Packing Plan

• Purpose was to reorganize the judicial branch of the Supreme Court by replacing six of the justices
• FDR felt judicial branch was not working well with the other two branches to enact "New Deal" policies
• Wanted to increase total number of justices to 15 members.

October 29th, 1929

• Investors had lost about $30 billion by mid November; equal to the total amount spent in World War 1

The New Deal

• Reform program- permanent programs for citizens against economic disaster