A New Deal 03 04 2014 1 The Great Depression a The crash The Stock Market Crash i It had been growing in the 1920s Allowed for people to buy and sell stock The stocks were considered over inflated People were investing money that they couldn t afford to loose They were risking it This became a problem People were trying to sell but no one was buying In 1929 the stock market crashed The great depression began It did not cause it it only sparked it b Causes c How bad was it 1 By 1929 the countries ability to produce goods had raced passed the ability to buy stuff Consumer demand started to decrease We began to produce more stuff than people could buy We didn t have the money to spend on the products ii Unemployment 1 The demand for cars began to decrease This lead to unemployment because since they couldn t sell their products they had to lay off workers It s a spiraling effect late 1920s early 1930 s 25 of Americans were unemployed in the early 1930s i They were no longer making any money 1941 Ford instantly fired 75 000 people unemployment People lost their homes because they couldn t make any payments The farmers were devasted because their crops failed the dust bowl the drought This lead to crime to support their families ii The president at the time Herbert Hoover 1 He was unprepared to deal with that happened in the 1930s His response the economic problems was nothing The federal government should not actively get involved with people of the general public The country will turn around eventually 2 Hoovervilles cities of homeless people who couldn t get a job because there were none 2 The New Deal Peak of the Depression 1932 a FDR Franklin Delenor Roosevelt Ran against Hoover in 1932 He was paralyzed could not walk The public never knew that he was handicapped He offers a New Deal to the Americans It was inspirational He understood the radio He was able to talk directly to Americans over the radio He won the election in a landslide Hoover only won 5 states north east Electoral Votes FDR 472 HH 59 b Relief Recovery and Reform i It was always trial and error with his approach It wasn t extremely organized but it was his idea on how to approach the problems in the US It was divided into the 3 R s 1 Relief Get aid to people People are suffering not because they want to but simply because there was no other option 2 Recovery Get economy going again 3 Reform Make it that something like the Great Depression can never happen again ii CCC Civilian Conservation Core First new deal programs in 1933 Camp in Caldwell County NC They would have about 200 people in each camp It was designed to give jobs to single men from 18 25 They are considered trouble makers in society so they give them a place live and work in This gives men an opportunity to get off the streets gives them a job to make money and stimulate economic activity Allows for less unemployment They would plant trees deal with erosion build hiking trails busy work that was good for society It was the longest running until WWII iii WPA Works Progress Administration Give people jobs to they have money to spend It wasn t limited to single men It was much broader In 1930 8 million people worked under the WPA Elements of busy work as well more urban focused paving streets building new schools building post offices and sidewalks iv AAA Agricultural Adjustment Act had a huge impact on the south FDR was sympathetic towards farmers because they make our food they went through the drought It instituted a program to deal with the problems of farmers The govt would subsided certain crops wheat cotton tobacco The farmer would receive a certain amount of money based on acreage It provided a protection of farmers v Social Security Originally designed to create a pension fund for people over the age of 65 It would be financed through payroll taxes It was not designed to be a retirement program but a supplement for elderly citizens like a safety net It set up an employment insurance plan like if the company shut down It also created funds for people in American in society for the severely handicapped including children It was to help out people in times of need c Consequences i Critics Came from both sides 1 Keynes new idea about comics use federal govt to ease off of the bad times and slow down the good times allowing for economy to grow more evenly a Right very critical of FDR for the expense of the programs and increasing size of government To try to pay for the programs he tried to implement a tax on anyone making more than 50 000 dollars a year The wealthy hated him for this The government doubled the debt with the new programs ii The new deal offered real assistance to people It reinstalled confidence in Americans It did not completely end the great depression though Unemployment was still an issue Terms Hoover Stock Market Crash FDR CCC AAA WPA Social Security Great Depression 03 04 2014 03 04 2014