The Great Depression

Chapters 22 and 23

A Nation in Trouble

Many industries struggle after WWI Boom– Lumber, mining, steel

Farms Struggle– Price-Supports – a plan where the government

will buy any left over crops

Struggling Americans live on credit – buy now pay later

Stock Market Crash

Stock Market – buying and selling shares/pieces of a company

Buying on speculation – buying stocks with a hope of a quick profit

Buying on margin – buying stocks on borrowed money

– HUGE RISK!!!!

Black Tuesday – bottom falls out, stocks crash

Bank Failure

After the stock market crashed people wanted their money– Went to banks to close accounts

Banks ran out of money Almost ½ of all banks in the US failed

Life During the Depression

Unemployment was 25% Shantytowns – small towns of shacks

– “Hoovervilles” – after President Hoover

Breadlines, Soup Kitchens Dust Bowl – massive drought and dust

storms ruin the farming industry on the Great Plains

Hoover Struggles

President Hoover tried and failed to help the nation– Bailouts

Hoover Dam was a success

NEW DEAL

Franklin D. Roosevelt (FDR) elected president in 1932

100 Days – the first 100 days of his presidency many New Deal Laws passed– Regulate and Restore Banks– Public Works– Help Farmers– Food Clothing and Shelter– Fair Practices in Business– Fireside Chats

See table on Pg 706 for specifics

Critics of New Deal

Deficit Spending – the government spending more money than it has

2nd New Deal – More of the same Grapes of Wrath – John Steinbeck

Did the New Deal Work

Yes – it helped many people due to its programs

No- it cost to much money and created to much regulation on business

Not until WWII would America be able to recover from the Great Depression