Things were going well, everyone wanted in Many borrowed money to buy more stocks

Transcription

1 Chapters 30-33

2 Bull Market Steady rise in stock prices Speculative Buying Things were going well, everyone wanted in Many borrowed money to buy more stocks Bear Market Steady drop in stock prices Fearful of losing EVERYTHING people rushed to sell their stock = prices fall Black Tuesday October 29, 1929

3 Banks lend Money to stock market investors Stock Market Crashes Investors can t repay loans Banks no longer looked safe Bank Runs Panicked depositors rush to withdraw their savings Causing banks to run out of money

4 Assembly Line- Mass Production More products were produced than people could buy Wealth Gap Business leaders were getting rich, but not workers For awhile workers bought on credit could not last Underconsumption not buying as much as produced Deep in debt Had everything they wanted Farmers hit especially hard increased unemployment

5 Federal Reserve System Discount rate = rate of interest bank can borrow at The FED began raising these rates = harder to get loans Tariffs Hawley-Smoot Tariff Act raise tariffs on imported goods Caused a tariff war with Europe making it hard for U.S. goods to be sold overseas

6 Ideology ideas, beliefs, values Conservative Approach Value: self-reliance, individual responsibly Prefer status quo = the way things are Opposed governmental efforts Business cycle decline panic recovery is normal

7 Liberal Approach During Progressive Era believed government should be involved in protecting average Americans Wanted increased spending on Public Works government funded construction Pushed for new taxes on corporations and the few wealthy that were left Social welfare aid to people in need

8 Radical Approach Looks for BIG changes Socialists- government own means of production Communists- the state owns all property and distribute the wealth Encouraged the working class to rise up against capitalist As the depression continued followers increased

9

10 Conservative Response He feared federal relief would undermine selfreliance His job to generate optimism and restore confidence = economy would bounce back Reconstruction Finance Corporation (RFC)- issued government loans to banks, railroads, and other big businesses also loans to states for projects Trickle-down theory = this money would eventually make it to the average person, as companies began hiring

11 Veterans promised money from WWI, that was to be paid in 1945 they wanted the money early Camped out in D.C. Hoover ordered troops to remove the veterans used tear gas and tanks Did not help Hoover win supporters Defeated for President in 1932

12 Focus on Relief = Immediate assistance to help with basic necessities (food, money, employment) Recovery =Policy or program designed to promote growth in the economy Reform = Policy or program designed to prevent another depression Congress quickly passed a number of bills Known as the First Hundred Days The New Deal

13 Just to name A FEW of the programs Emergency Banking Act gave federal government power to help reopen banks TVA funded construction of flood control dams and power plants in Tennessee CCC put young men to work building parks, playgrounds, and planting trees Federal Securities Act regulated the sale of stocks and bonds Banking Act established federal deposit insurance

14 Right wing = CONSERVATIVES Thought New Deal went too far in expanding the role of government Thought some New Deal programs were unconstitutional Left wing = LIBERALS Thought the New Deal should give even more aid to needy Demagogue = political leader who appeals to people s emotions Term for outspoken leaders from either side that spoke against FDR

15 Later New Deal programs (after 1935) In response to critics Just to name A FEW of the programs Rural Electrification Administration built power plants and strung line to bring power to the country WPA put millions to work building bridges public buildings, and parks, also created jobs for artists, musicians, photographers, and writers creating for the public good Social Security Act provided pensions for elderly workers

16 In 1935 the Courts started to overturn some of the New Deal Programs They ruled that FDR had taken more power than the constitution provided the President Some programs should have been decided by the legislative branch NOT Executive branch To battle the Supreme Court decisions FDR tried Court Packing = he tried to get congress to pass a law that would allow him to replace every Supreme Court Justice over 70 This idea did NOT pass BUT, the court did soon start to support some of these government programs

17 It expanded the role of government It made many American believe in a right to economic security A job, adequate wages, a decent home, medical care, a good education Welfare The New Deal did not end the depression, but if did help many people cope/survive

18 World War II