Mr. Bennett 8th Grade

The Great Depression Chapter 23

Stock Market crash on October 29, 1929 – Black Tuesday

Overproduction

Decline in American consumer spending

Decline in housing market

Causes

Defaulting on loans

Banks closing

Companies forced into bankruptcy

Causes

Unemployment rose to 25% by 1933

Hoovervilles – towns of rundown shacks outside major cities, newspapers were called “hoover blankets”

Heads of households were out of work

People lost savings accounts

Effects

Met with business executives and encouraged city and state governments to create public works projects

Created the Reconstruction Finance Corporation to fund critical businesses and banks

Bonus Army – Congress had approved a bonus payment of $1,000 to all veterans of WWI to be paid in 1945. Veterans wanted their money earlier due to the Depression. Hoover refused and 20,000 veterans marched to Washington. The government responded with tear gas, tanks, and machine guns. Political downfall of Hoover.

Hoover’s Reaction

Elected in 1932 because Hoover did little to combat the depression. Got 57.4% of the popular vote.

His advisers were known as the “brain trust”

Promised a “New Deal”

Relief for the jobless

Economic recovery

Franklin D. Roosevelt – FDR

Reforms to prevent future depressions

Bank Holiday – four day closing of the nation’s banks to halt bank failures

Fireside chats – radio talks used by FDR to reach out and restore confidence to the American people

Alphabet Programs – series of public works programs to put people back to work and to restore confidence in the banking system

FDR

Signed a record 15 new bills.

Goals: relief for the jobless, economic recovery, reforms to prevent future depressions.

First Hundred Days

What were FDR’s goals for combatting the Depression?

List and describe one program he created to achieve each of his goals.

Example: Goal- relief for the jobless-program=Civilian Conservation Corps: gave jobs to young men doing things like building parks and bridges.

Checkpoint

Goal Program What it Did

Unemployment Relief CCC Built bridges, planted trees

Supreme Court ruled several New Deal programs unconstitutional

FDR proposed adding 6 new Supreme Court Justices

Though this would help him pass and keep more of New Deal programs. Conservative judges opposed and thought he was

“packing the courts” with liberal judges as a political power play.

Obstacles to the New Deal

Congress shot down his “Court Packing” plan.FDR still got to appoint eight new Justices

during his presidency.

Conservatives thought that FDR went too far to regulate businesses.

Liberals thought he did not do enough to help the poor

Critics of the New Deal