The Great Depression & The New Era And The New Deal

Submitted By MONKEYFUNRUN
Words: 1590
Pages: 7
Open Document
Ch.24: The Great Depression & the New Era & the New Deal
-In 1933 after having the worse economic depression in US history, the American people were gripped by fear for their very survival.
-depression of 1930s lasted longer and caused more business failures.
-affected both middle and working classes.
-before it was over, Hoover & Roosevelt would devote 12yrs seeking the elusive path toward recovery.
CAUSES AND EFFECTS OF THE DEPRESSION (1929-1933)
-business boom 1920s collapse in October of 1929.
Wall Street Clash:
-stock prices kept increasing for 18 mnths.
-The Dow James Industrial Average of major stocks reached an all time high of 381.
-a investor who bought stocks at the time of Hoovers election would have doubled their money in less than a year.
Black Thursday and Black Tuesday:-on Black Thursday there was an unprecedented volume of selling on Wall Street and stock prices plunged.
-from October 29 and on, prices continued to decrease & by November, Dow Jones index fell from September high of 381 to 198.

Causes of the Crash:
-the depression was a result of a combination of factors that happened during the 1920s.
Uneven distribution of income:
-economic success wasn’t shared by all.
Stock market speculation:
-ppl no longer invested their $ to share profits.
-speculating the price of a stock would go ^ & they could sell it for profit.
-Buying on margin allowed ppl to borrow most of the cost of the stock.
-when stock prices dropped, market collapsed & they lost everything they borrowed & invested.
Excessive use of credit:
-advertising stimulated consumers’ desire for the exciting new appliances and cars that were being produced.
Overproduction of consumer goods:
-Business growth produced a volume of goods that workers with stagnant wages could not continue to purchase.
Weak farm economy:
-prosperity of 1920s never reached farmers who suffered from over production, high debts & low prices since the end of WWI.
-1930s was severe weather which added to farmers difficulties.
Government policies:
-Congress enacted high tariffs which protected the US industries but hurt farmers and international trade.
-neglect & bad practices would prove difficult for the gov’t to correct.
Global economic problems:
-Europe didn’t completely recovered from WWI but US failed to recognize Europe’s problems.
-war reparations burdened Germany throughout the 1920s.
-some relief came w/ US loans under the Dawes Plan but the loans were suspended.
Effects:
-Great Depression’s influence on American thinking and policies has even extended beyond the lifetimes of those who experienced.
-economic statistics serve as indicators that track the health of a nation’s economy.
-The US Gross National Product dropped whiles the nation’s income declined by over 50%.
-by 1933, unemployment had reached 13million ppl or 255 of workforce not including farmers.
-the power of fed. Gov’t would increase greatly as the people accepted dramatic, far-reaching changing in policies.
-social effects were poverty and homelessness increased , mortgage foreclosures and evictions became commonplace.
Hoover’s Policies:
-Hoover believed that the nation could get through difficult times if ppl took his advice about exercising voluntary action & restraint.
-Hoover hesitated to ask Congress for legislative action on the economy afraid that gov’t assistance to individuals would destroy their self-reliance.
-need for more direct gov’t action, he took the traditional view that public relief should come frm state & local gov’ts not the fed. Gov’t
Responding to a Worldwide DEPRESSION:
-through the Dawes Plan for the repayment of war debts, European prosperity was closely tied to that of the US.
Hawley-Smoot Tariff (1930):
-passed by the Rep. Congress set tax increases ranging from 31% to 49% on foreign imports.
-political purpose was to satisfy US business leaders who thought a higher
Show More

Related Documents: The Great Depression & The New Era And The New Deal

Evolution of the Presidency Essay

Evolution of the Presidency I. Deliberations at the Constitutional Convention A. Alternatives 1. Some proposed a plural executive. 2. Some wanted an executive council to have veto power over presidential actions. 3. Some (i.e. Alexander Hamilton) wanted a President with a life term. 4. Eventually, compromises brought about a single, elected President with a fixed term of office. B. Concerns of the Founders 1. Fear of an excessively strong President. 1a. Fear that the Presidency…

Words 1203 - Pages 5

Notes On Economics

Single Causation - there is only one cause for a series of negative events Three Basic Economic Laws Opportunity Cost everything that is lost for choosing another option Assumptions: A) only two goods are produced - consumer goods for direct personal use ex. to read, clothes, phone, shoes - capital goods business-to-business used by businesses to produce other goods ex. tractors, industrial equipment…

Words 8231 - Pages 33

The Discipline Of Teams

thus creating “clashing realities”. 2 ways to avoid clashing models: 1) Avoid – attempt to crush other models, believing that they do not exist; avoid conflict 2) Seek out and leverage model crash – enjoys tension; leads to insights of great insight and resolutions 3 elements of forming personal knowledge system: 1)…

Words 3700 - Pages 15

Vocab Apush Essay

Nathaniel Bacon led previous indentured servants and plundered Indian towns. Governor Berkeley condemned this action, which prompted Bacon and supporters to march to Jamestown (capital) and overthrow him. 10. Enlightenment: Advancement in political thought; skepticism towards belief not founded on science/logic. Idea that rationalism, logic, and reason solve all problems. Deism. 11. Great Awakening: Religious revival throughout the colonies. People started to question their religion and new…

Words 5758 - Pages 24

Final Study Guide Essay examples

STUDY GUIDE FOR EXAM #4 11 December 11:30 U.S. History 10613 -People in BLUE -Non us people are in -Military events in Green Battles = normal green Wars will be in this green Military idea and weapons are in -Domestic affairs like polices based and for us citizens in red -U.S Forein polices and affairs in pink -Other countries forein affairs are in brown -elections will be in orange -president Administrations and scandals is in purple Bataan Death March -The…

Words 3540 - Pages 15

Essay on Summary of History of Graphic Design by Meggs

Chapter 1: The Invention of Writing - From the early Paleolithic to the Neolithic period (35,000 BC to 4,000 BC), early Africans and Europeans left paintings in caves, including the Lascaux caves in Southern France. - Early pictures were made for survival and for utilitarian and ritualistic purposes. - Petroglyphs are carved or scratched signs on rock. - These images became symbols for what would be the first spokenlanguage. - Cuneiform – Wedged shaped writing, created in 3000BC. Started…

Words 14951 - Pages 60