The Great Depression and the “New Deal”.pptVIP

The Great Depression and the “New Deal” How the greatest economic crisis in American history shaped American politics, culture and society I. The Stock Market Crash Republican responsibility for the economy Stock market outraces real economic growth The problem of buying stock “on margin” Public concern over the stock market by 1929 The crash “Deflationary Psychology” II. The Great Depression Initial governmental optimism Catastrophic unemployment figures Urban poverty, especially for immigrants, is the worst State and local governments as well as private charities can do little II. The Great Depression Corporate failures Drop in farm income Even the wealthy had problems --Howard Johnson restaurant chain “Riding the rails” looking for work III. Contributing Causes to this Economic Catastrophe American farmer in trouble Unstable American foreign trade The Gold standard forsaken in Europe Weak and vulnerable American banks Large individual debt Corporate profits enriched only a few IV. The Response of the Hoover Administration Positive statements aggravate the Depression crisis Hoover’s background Hoover’s actions to stem the economic crisis Creation of the Reconstruction Finance Corporation (1932) “Trickle Down” Solutions IV. Hoover’s Response (cont.) Unemployment continued and farm prices dropped dramatically Violent farm protests by 1932 Hoover was limited by his own governmental philosophy Hoover championed “voluntarism” as a solution IV. Hoover’s Response (cont.) Growing inability to compromise with Congress Hoover’s unpopularity grows His name becomes synonymous with the Depression Economic and Political blunders The Bonus March (Summer of 1932) V. The Election of 1932 Democrats nominated Franklin Roosevelt FDR’s background Republicans nominated Hoover Roosevelt’s campaign FDR projects the image that he will take action as President Results of the Election VI. “The New Deal”: A “Revolution”? Origins of the phrase Contrast with progressivism Major succ