2. Reasons for the Crash and other
factors that led to depression
• The stock market was a relatively new thing stocks vs. gold (traders and buyers were
inexperienced)
• Buying on margin - a license to print money
• Panicked selling over almost a week caused
the Wall St. market to collapse on Black
Tuesday, Oct 29, 1929
ke
did ma
ot caus
dn
rash di
e.
The c
g wors
rin
e suffe
th
it
ssion e
e Depr
e th
3. Other economic problems
• The price of wheat had been falling since 1927:
over-production didn’t drop so prices did farmers’ mortgages suffered: no cash means no
new tractors
• Manufacturers were over-producing consumer
goods = few consumers = layoffs = less
spending money = fewer consumers
• USA protectionist tariffs = trade barriers for all
• Germany’s inability to pay reparations affected
the Allies’ ability to repay loans to USA
4. The Beginning was Worst:
Looking at Canada
• Canada’s economy was very closely connected to
the USA - trading/branch plants/investors:
– Wheat (40% of world supply)
– Newsprint (65% of world supply)
• As the economy failed people lost their jobs and
the ability to pay rent: vagrancy meant jail time
• To collect POGEY or the “DOLE” (Relief
vouchers) one had to publicly declare her poverty:
why would so may do without relief?
• Private charity/soup kitchens
5. Laissez Faire - let it be
Women and
their children
suffered as
men looked for
work, often
“riding the rods”
8. Franklin D. Roosevelt
1932-1945
• Democrat
• Called Keynes a “fool”
(interesting)
• “Nothing to fear…”
• New Deal - 3 Rs
• First 100 Days
Relief
Recovery
Reform
9. FDR listened to the
economist:
“SPEND YOUR
WAY OUT OF
DEPRESSION”
John Maynard Keynes
(“Canes”)
ug
ig eno
b
ent is
m
govern e problem
Only
h
l with t
to dea
h
10. Herbert Hoover vs.
Roosevelt
• Hoovervilles
• Hoover’s strategy was to lower interest rates the problem was too big!
• FDR’s 100 days in 1933
–
–
–
–
–
Close banks for three days
New Deal = “alphabet agencies”
Every letter to the President will be answered
End Prohibition
create CONFIDENCE and give LEADERSHIP
29. Search for arguments on the
effectiveness of
The New Deal:
•
•
•
•
Statistics New Deal
Effectiveness New Deal
Criticism New Deal
New Deal Extended the
Depression
• Benefits of the New Deal
• Damage of the New Deal
Notes de l'éditeur
RELIEF / / RECOVERY / / REFORM
Owners let tenants use the land for a share of the crops produced.
Using handouts, have students names the agencies on the stamp.
Ex. re. success: private power companies were opposed to the TVA
Hoover Dam
Harry Hopkins – use handouts to discover which agencies he ran:
Ie. first = FERA = May 1933 Fed Emerg Relief Agcy(p. 120 from Howarth text)
next = WPA = April 1935 Works Progress Admin p.121 Howarth text)
Caption: Meanwhile What About the Main Line Express?
Source/Date: Saturday Evening Post, August 18, 1934
Ultimate Source(if different):
Creator: Herbert Johnson
Remarks: One of many anti-New Deal cartoons in the Post. All the utopian, dreamy experiments are holding up the business express -- a common conservative critique.
Anti-New Deal Cartoon, 1936
Title New Deal: Cartoon, 1943 Artist Granger
Description NEW DEAL: CARTOON, 1943. American cartoon by Clifford Berryman, 1943, illustrating President Roosevelt's remark that 'Dr. Win the War' was supplanting 'Dr. New Deal' in the priorities of his administration.
