The Great

Depression
Causes

Economic Practices

Buying for Profit

Buying on Margin - down payment made to

the broker for the asset

Lack of Government Regulations Laissez

faire government does not get involved in
business

Stock Inflation when the level of stock

prices continues to increase

Stock Market & Banking

Collapse/Crisis

Stock Deflation price of stocks

deflates

Bad Bank Loans (widespread default

on loans)

Overproduction

Technology Improvements

Decreased Demand Domestically and

Internationally - High Tariffs

Toll on Farming Industry

Loan Defaults
Drought

Wealth Distribution Issues

Gap Increase
Income Gap

The Great Depression

Effects

Economic Factors

Stock Prices remain low

Unemployment High

Workers Yearly Wages

Business Failures

Bank Closures

Social Factors

Children, Families, & Women (Hoovervilles,

Dorthea Lange)

Farmers (Dust Bowl, Grapes of Wrath John

Steinbeck)

African-Americans, Mexican-Americans,
Migrant Workers

The New Deal

Created by newly elected President Franklin Delano Roosevelt

The New Deal was a series of domestic programs enacted in the

United States between 1933 and 1938

programs were in response to the Great Depression, and focused

on what historians call the "3 Rs": Relief, Recovery, and Reform

Relief for the unemployed and poor

Recovery of the economy to normal levels

Reform of the financial system to prevent a repeat depression

The Hundred Days

Period of intense activity between FDR and congress immediately

after his election

Congress passes 15 major pieces of New Deal legislation during

this time

Laws expanded role of national government

Bank Holiday March 5, 1933, all banks were closed to prevent

further withdrawals

Passed Emergency Banking Relief Act, which authorized

authorities to inspect banks for sustainability.

New Deal Programs

Emergency Banking Act

National Recovery Act (NRA)

Social Security Act

Agricultural Adjustment Act (AAA)

Federal Emergency Act

Federal Deposit Insurance Corporation (FDIC)

National Youth Administration (NYA)

Works Progress Administration (WPA)

Civilian Conservation Corp (CCC)

National Labor Relations Act, Wagner Act

Public Works Administration (PWA)

Securities & Exchange Commission (SEC)

Tennessee Valley Authority (TVA)