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The Great Depression and the New Deal
One factor in the Great Depression was the crashing of the Stock Market on October 29, 1929, a day later named Black Tuesday.
On that one day investors dumped more than 16 million shares of stock
The crash led to panic among people in business and industry and triggered a banking crisis
Many companies began to layoff workers because consumers were spending less in fear of economic troubles
The Stock Market Crashes
People throughout the country lost jobsFarms across the country began to fail due to the
drop in prices of foodMany farms and landowners faced foreclosure –
when a bank or lender takes property from someone who has not made payments
Thousands were left homeless and flocked to shanty villages called Hoovervilles, a reference to President Herbert Hoover, who many blamed for the depression
Times got even worse when drought and dust storms swept throughout the country
Hard Times for Americans
In 1932 Roosevelt destroyed President Hoover in the election for President
After his landslide election Roosevelt immediately set to work of repairing the nations economy
Roosevelt delivered fireside chats over the radio to help calm American’s fears and deliver his plans
FDR's Fireside Chat: Unemployment
The beginning of Roosevelt’s presidency was later called “the Hundred Days” referring to FDR’s first 100 days as President
His plan was called the New Deal
FDR
The New Deal centered around 3 R’s1) Relief – for those suffering2) Recovery – of the economy3) Reforms – that would prevent another
depression in the futureRoosevelt created the Civilian Conservation
Corps (CCC) which paid Americans to work in projects like planting trees and improving parks
The Agricultural Adjustment Act (AAA) gave farmers a subsidy to grow fewer crops in order to bring the price back up
The New Deal
The Public Works Administration (PWA) managed all of the New Deal plans dealing with work and projects
In 1934 the Securities and Exchange Commission (SEC) was created to serve as the watchdog over the stock market
These are just some of the various “Alphabet Soup” programs that FDR created
The New Deal
Many Republicans were angered at the amount of spending and government power being used to create the New Deal
The Supreme Court also ruled that parts of the New Deal were unconstitutional
In response FDR put forth what was called the “court packing plan (or scheme)” to add justices that would favor the New Deal to the Supreme Court
After that threat the Supreme Court began to support more of FDR’s plans and gave way to the Second New Deal
Trouble for the New Deal
The Works Progress Administration (WPA) had workers building roads, subways, airports, and even zoos.
Social Security provided financial assistance to the retired and elderly (65 or older) and provided money for people who had lost their jobs
Second New Deal
While the New Deal did help Americans get back to work the economy still struggled throughout the 1930’s.
The New Deal made FDR incredibly popular among the people, especially poor whites and African-Americans. Because of this many African-Americans began voting for a Democrat for the first time.
Parts of the New Deal including Social Security, minimum wage, and projects that were completed are still part of our country today.
Impact of the New Deal