workers with stagnant wages could not continue to purchase.
who had suffered from overproduction, high debt, and low prices since the end of World War I. As the depression continued through the 1930s, severe weather and a long drought added to farmers’ difﬁculties.
faith in business and did little to control or regulate it. Congress enacted high tariffs which protected U.S. industries but hurt farmers and international trade.
Years of neglect and bad practices would prove difﬁcult for the government to correct.
nations be repaid in full, but at the same time its tariff policies greatly reduced the sale of European goods in America. . Europe’s difﬁculties contributed to the depression in the United States, which in turn
became the worldwide Great Depression.
As the Great Depression dragged on for months, and then years, after the stock market crash of 1929, Americans grew increasingly hungry and desperate. Long lines outside soup kitchens and other private charities that distributed free or low cost food became a common sight in American cities.
While in retrospect it can be seen that the economic decline reached bottom in 1932, complete recovery came only with the beginning of another world war, in 1939. The Great Depression’s inﬂuence on American thinking and policies has even extended beyond the lifetimes of those who experienced it.
Some 20 percent of all banks closed, wiping out 10 million savings accounts. By 1933, the number of unemployed had reached 13 million people, or 25 percent of the workforce, not including farmers
Politically, Republican domination of government was at an end. . The power of the federal government would increase greatly, as the people accepted dramatic, far-reaching changes in policies.
Video: Effects of the Great Depression
alone—in thinking that prosperity would soon return.
nation could get through the difﬁcult times if the people took his advice about exercising voluntary action and restraint. Hoover urged businesses not to cut wages, unions not to strike, and private charities to increase their efforts for the needy and the jobless.
Document: President Hoover Encourages Private Charity
afraid that government assistance to individuals would destroy their self-reliance.
Gradually, President Hoover came to recognize the need for more direct government action. However,
he took the traditional view that public relief should come from state and local governments, not the federal government.
Hawley-Smoot Tariff (1930)
31 percent to 49 percent on foreign imports.
U.S. business leaders who thought a higher tariff would protect their markets from foreign competition.
European countries enacted higher tariffs of their own against U.S. goods.
Effect –reduce trade for all nations, meaning that both the national and international economies sank further into depression.
longer continue. Hoover therefore proposed a moratorium (suspension) on the payment of international debts. Britain and Germany readily accepted, not France.
The international economy suffered from massive loan defaults,and banks on both sides of the Atlantic scrambled to meet the demands of the many depositors withdrawing their money
Federal Farm Board
before the stock market crash, but its powers were later enlarged to meet the economic crisis. The board was authorized to help farmers stabilize prices by
temporarily holding surplus grain and cotton in storage. The program, however, was much too modest to handle the continued overproduction of farm goods.
Reconstruction Finance Corporation (RFC)
and other ﬁnancial institutions. Hoover reasoned that emergency loansfrom the RFC would help to stabilize these key businesses. The beneﬁts would
then “trickle down” to smaller businesses and ultimately bring recovery. Democrats scoffed at this measure, saying it would only help the rich.
stop banks from foreclosing on their farms and evicting them from their homes. Farmers in the Midwest formed the Farm Holiday Association, which attempted to reverse the drop in prices by stopping the entire crop of grain harvested in 1932 from reaching the market. The effort collapsed after some violence
Congress failed to pass the bonus bill they sought.
When two veterans were killed in a clash
with police, Hoover ordered the army to break up the encampment. General Douglas MacArthur, the army’s chief of staff, used tanks and tear gas to destroy the shantytown and drive the veterans from Washington. The incident caused many Americans to regard President Hoover as heartless and uncaring.
In 1932, a young New York City lyricist named E.Y. “Yip” Harburg, together with composer Jay Gorney, penned what is considered the anthem of the Great Depression, “Brother, Can You Spare a Dime?”
Democrats. Nominated New York Governor Franklin D. Roosevelt. Roosevelt pledged a “new deal” for the American people, the repeal of Prohibition, aid for the
unemployed, and cuts in government spending.
Results: voters’ minds, the only real issue was the depression, and which candidate—Hoover or Roosevelt—could do a better job of ending the hard times. Almost 60 percent of them concluded that it was time for a change
Not only was the new president to be a Democrat but both houses of Congress were to have large Democratic majorities.
Hoover was a “lame duck–He offered to work with the president-elect through the long period, but Roosevelt declined, not wanting to be tied to any of the Republican president’s ideas. The Twentieth Amendment (known as the
lame-duck amendment), passed in February 1933 and ratiﬁed by October 1933, shortened the period between presidential election and inauguration. The amendment set a new date, January 20, for the start of a president’s term in ofﬁce.
He would dominate the nation and the U.S. government for an unprecedented stretch of time, 12 years and
two months. He would prove to be one of the most inﬂuential world leaders of the 20th century.
Disability: Roosevelt was paralyzed by polio in 1921. even though he could never again walk unaided and required the
assistance of crutches, braces, and a wheelchair. Roosevelt’s greatest strengths were his warm personality, his gifts as a speaker, and his ability to work with
and inspire people.
her own right. She became the most active ﬁrst lady in history, writing a newspaper column, giving speeches, and traveling the country. She served as the president’s social conscience and inﬂuenced him to support minorities and the less fortunate.
in 1932, Roosevelt had said: “I pledge you, I pledge myself, to a new deal for the American people.” He had further promised in his campaign to help the “forgotten man at the bottom of the economic pyramid.”
New Deal programs were to serve three R’s:
1. relief for people out of work
2. recovery for business and the economy as a whole
3. reform of American economic institutions.
–Louis Howe was to be his chief political adviser.
— economic matters, Roosevelt turned to a group of university professors, known as the Brain Trust, which included Rexford Tugwell, Raymond Moley, and Adolph A. Berle, Jr.
Roosevelt appointed to high administrative positions were
the most diverse in U.S. history, with a record number of African Americans, Catholics, Jews, and women.
Roosevelt called Congress into a hundred-day-long special session. During this brief period, Congress passed into law every request of President Roosevelt. enacting more major legislation than any single Congress in history. So numerous were the new laws and agencies that they were commonly referred to by their initials: WPA, AAA, CCC, NRA.
depositors ﬂocked to withdraw funds. As many banks failed in 1933 (over 5,000) as had failed in all the previous years of the depression. To restore
conﬁdence in those banks that were still solvent, the president ordered the banks closed for a bank holiday on March 6, 1933. He went on the radio to
explain that the banks would be reopened after allowing enough time for the government to reorganize them on a sound basis.
FDR explains the bank holiday and bank crisis. On the Banking Crisis (March 12,1933)
Later in 1933, the ratiﬁcation of the Twenty-ﬁrst Amendment repealed the Eighteenth Amendment, bringing Prohibition to an end.
the ﬁrst of many ﬁreside chats to the American people. The president assured his listeners that the banks which reopened after the bank holiday were now
safe. The public responded as hoped, with the money deposited in the reopened banks exceeding the money withdrawn.
2. The Federal Deposit Insurance Corporation (FDIC)
3. Home Owners Loan Corporation (HOLC)
4. Farm Credit Administration
authorized the government to examine the ﬁnances of banks closed during the bank holiday and
reopen those judged to be sound.
Federal Deposit Insurance Corporation (FDIC)
Created federally insured bank deposits ($2500 per
investor at first) to prevent bank failures.
Them, guaranteed individual bank deposits up to $5,000.
provided reﬁnancing of small homes to prevent foreclosures.
provided low-interest farm loans and mortgages to prevent foreclosures on the property of indebted
2. Public Works Administration (PWA)
3. Civilian Conservation Corps (CCC)
4. The Tennessee Valley Authority (TVA)
offered outright grants of federal money to states and local governments that were operating soup kitchens and other forms of relief for the jobless and homeless. The director of FERA was Harry Hopkins, one of the presi-
dent’s closest friends and advisers.
directed by Secretary of the Interior Harold Ickes
– allotted money to state and local governments
for building roads, bridges, dams, and other public works. Such construction projects were a source of thousands of jobs.
employed young men on projects on federal lands and paid their families small monthly sums.
FDR’s “Tree Army”
Poster: “Great oaks from Little Acorns”
was a huge experiment in regional development and public planning. As a government corporation, it hired thousands of people in one of the nation’s poorest regions,
the Tennessee Valley, to build dams, operate electric power plants, control ﬂooding and erosion, and manufacture fertilizer. The TVA sold electricity to residents of the region at rates that were well below those previously charged by a private power company.
Industrial recovery program
The key measure in 1933 to combine immediate relief and long-term reform .
Directed by Hugh Johnson, the NRA was an attempt to guarantee reasonable proﬁts for business and fair wages and hours for labor. With the antitrust laws temporarily suspended, the NRA could help each industry (such as steel, oil, and paper) set codes for wages, hours of work, levels of production,and prices of ﬁnished goods. The law creating the NRA also gave workers the right to organize and bargain collectively. The complex program operated with limited success for two years before the Supreme Court declared the NRA unconstitutional (Schechter v. U.S.).
Sometimes called “the sick chicken case.” Unanimously declared the National Industrial Recovery Act (NIRA) unconstitutional on three grounds: that the act delegated legislative power to the executive; that there was a lack of constitutional authority for such legislation; and that it sought to regulate businesses that were wholly intrastate in character
farmers offered a program similar in concept to what the NRA did for industry.
Farm production control program
encouraged farmers to reduce production (and
thereby boost prices) by offering to pay government subsidies for every acre they plowed under. The AAA met the same fate as the NRA. It was declared unconstitutional in a 1935 Supreme Court decision.
2. Securities and Exchange Commission (SEC)
3. Federal Housing Administration (FHA)
4. new law took the United States off the gold standard in an effort to halt deﬂation (falling prices).
was added to the PWA and other New Deal programs for creating jobs. This agency hired
laborers for temporary construction projects sponsored by the federal government.
was created to regulate the stock market and to place strict limits on the kind of speculative practices that had led to the Wall Street crash in 1929.
gave both the construction industry and homeowners a boost by insuring bank loans for building new houses and repairing old ones.
relief and reform.
1. Works Progress Administration (WPA)
2. Resettlement Administration (RA)
1. National Labor Relations (Wagner) Act (1935)
2. Rural Electriﬁcation Administration (REA)
3. revenue act of 1935
4. The Social Security Act (1935)
much larger than the relief agencies of the ﬁrst New Deal, the WPA spent billions of dollars between
1935 and 1940 to provide people with jobs.
employed 3.4 million men and women who had formerly been on the relief rolls of state and local governments
Most WPA workers were put to work constructing new bridges, roads, airports, and public buildings. Unemployed artists, writers, and actors were paid by the WPA to paint murals, write histories, and perform in plays.
the National Youth Administration (NYA), provided
part-time jobs to help young people stay in high school and college or until they could get a job with a private employer.
under Brain Trust, Rexford Tugwell,
provided loans to sharecroppers, tenants, and small farmers. It also established federal camps where migrant workers could ﬁnd decent housing.
replaced the labor provisions of the National Industrial Recovery Act, after that law was declared unconstitutional. The Wagner Act guaranteed a
worker’s right to join a union and a union’s right to bargain collectively. It also outlawed business practices that were unfair to labor. A new agency, the National Labor Relations Board (NLRB), was empowered to enforce the law and make sure that workers’ rights were protected.
new agency provided loans for electrical cooperatives to supply power in rural areas.
Document: An Ordinary Georgian “Wants Lights!”
Federal taxes. Signiﬁcantly increased the tax
on incomes of the wealthy few. It also increased the tax on large gifts from parent to child and on capital gains (proﬁts from the sale of stocks or other properties).
reform that, for generations afterward, would affect the lives of nearly all Americans.
created a federal insurance program based upon the automatic collection of taxes from employees and employers throughout people’s working careers. The Social Security trust fund would then be used to make monthly payments to retired persons over the age of 65. Also receiving beneﬁts under this new law were
workers who lost their jobs (unemployment compensation), persons who were blind or otherwise disabled, and dependent children and their mothers.
In this letter to first lady Eleanor Roosevelt, an American protests the Social Security program, created two years earlier. For Social Security, the federal government took money out of working people’s paychecks in order to create a fund that gave payments to the elderly when they retired.
President Roosevelt sent his Social Security bill, named the “Economic Security Act,” to Congress in January 1935. Congress held committee hearings on the bill. Here, a representative of the National Association for the Advancement of Colored People (NAACP), a group dedicated to advancing the rights of African Americans, testifies before Congress about how the bill excludes certain groups of people.
New Deal programs and active style of personal leadership, the president was now enormously popular among workers and small farmers. Business, however,
generally disliked and even hated him because of his regulatory programs and prounion measures such as the Wagner Act.
Alf Landon- Republican nominee for president. Landon criticized the Democrats for spending too much money but in general accepted most of the New Deal legislation.
RESULT- Roosevelt swamped Landon, winning every state except Maine and Vermont and more than 60 percent of the popular vote. Behind their president’s New Deal, the Democratic party could now count on the votes of
a new coalition of popular support
Who voted for Democratic Party?
the cities, midwestern farmers, and labor unions. In addition, new support for the Democrats came from African Americans, mainly in northern cities, who
left the Republican party of Lincoln because of Roosevelt’s New Deal.
2. Conservative Critics
critics charged that relief programs such as the WPA and labor laws such as the Wagner Act bordered on
socialism or even communism.
Business leaders were alarmed by
(1) increased regulations
(2) the second New Deal’s prounion stance
(3) the ﬁnancing of government programs by means of borrowed money—a practice known as deﬁcit ﬁnancing.
Conservative Democrats, including former presidential
candidates Alfred E. (Al) Smith and John W. Davis, joined with leading Republicans in 1934 to form an anti-New Deal organization called the American Liberty League.
A White-Collar Worker Calls the New Deal “Downright Stealing”
Conservative critics of the New Deal disliked the new regulations on businesses and feared the long-term consequences of deficit spending, which they likened to socialism and the end of freedom. Some also expressed nativist or racist feelings that government programs helped people who weren’t “real Americans” and raised expectations for social equality. This author cleverly uses President Roosevelt’s own language like “mandate from the people” and “the forgotten man” to attack programs like Social Security.
1. Father Coughlin, ending “evil conspiracies”
2. Dr. Townsend–guaranteeing economic security for the elderly
3. Huey Long redistributing the wealth
candidates Alfred E. (Al) Smith and John W. Davis, joined with leading Republicans in 1934 to form an anti-New Deal organization called the American Liberty League.
became increasingly anti-Semitic and Fascist.
Act, a retired physician from Long Beach, California, became an instant hero to millions of senior citizens by proposing a simple plan for guaranteeing a
-proposed that a 2 percent federal sales tax be used to create a special fund, from which every retired person over 60 years old would receive $200 a month. By spending their money promptly, Townsend argued, recipients would stimulate the economy and soon bring the
depression to an end. The popularity of the Townsend Plan persuaded Roosevelt to substitute a more moderate plan of his own, which became the Social Security system.
“Kingfish” ” from Louisiana
“Share Our Wealth” program that promised a minimum
annual income of $5,000 for every American family, to be paid for by taxing the wealthy.
challenged Roosevelt’s leadership of the Democratic party by announcing his candidacy for president. Both his candidacy and his populist appeal were abruptly ended when he was killed by an assassin.
1. Father Coughlin, ending “evil conspiracies”
2. Dr. Townsend–guaranteeing economic security for the elderly
3. Huey Long redistributing the wealth
business recovery and the AAA for agricultural recovery by deciding that the laws creating them were unconstitutional. Roosevelt interpreted his landslide
reelection in 1936 as a popular mandate to end the obstacles posed by the Court.
hoped to remove the Court as an obstacle to the New Deal by proposing a judicial-reorganization bill in 1937. Critics called it a “Court-packing” bill. It proposed that the president be authorized to appoint to the Supreme Court an additional justice for each current justice who was older than a certain age (70.5 years). In effect, the bill would have allowed Roosevelt to add up to six more justices to the Court—all of them presumably of liberal persuasion.
the ﬁrst time in Roosevelt’s presidency, a major bill that he proposed went down to decisive defeat by a deﬁant Congress. Even a majority of Democratic senators refused to support him on this controversial measure.
In 1937, the Supreme Court upheld the constitutionality of several major New Deal laws, including the Wagner (Labor) Act and Social Security acts. Also, as it happened, several justices retired during Roosevelt’s second term, enabling him to appoint a majority on the Court and thereby ensure judicial support for
nonfarm workers) by 1941.
In 1935, the industrial unions, as they were called, joined together as the Committee of Industrial Organizations (C.I.O.). Their leader was John L. Lewis, president of the United Mine Workers union. In 1936, the A.F. of L. suspended the C.I.O. unions. Renamed the Congress of Industrial Organizations, the C.I.O. broke away from
the A.F. of L. and became its chief rival. It concentrated on organizing unskilled workers in the automobile, steel, and southern textile industries.
many companies still resisted union demands. Strikes were therefore a frequent occurrence in the depression decade.
Automobiles–General Motors plant in Flint, Michigan, in
1937, the workers insisted on their right to join a union by participating in a sit-down strike (literally sitting down at the assembly line and refusing to work). Neither the president nor Michigan’s governor agreed to the company’s request to intervene with troops. Finally, the company yielded to striker demands by recognizing the United Auto Workers union (U.A.W.). Union organizers at the
Ford plant in Michigan, however, were beaten and driven away.
Steel.- giant U.S. Steel Corporation voluntarily
recognized one of the C.I.O. unions, but smaller companies resisted. Memorial Day, 1937, a demonstration by union picketers at Republic Steel in Chicago ended in four deaths, as the police ﬁred into the crowd. Despite initial resistance, however, almost all the smaller steel companies agreed to deal with the C.I.O.by 1941.
In his first year in office, President Franklin D. Roosevelt was wary of running a budget deficit. Consequently many early New Deal programs attempted to create temporary (rather than permanent) direct aid programs and to bring
government planners, business and labor leaders together to create regulations. However, unemployment remained high and workers grew more militant. A wave of large and often violent strikes in 1934 put pressure on the government to do more to help workers.
1937, the workers insisted on their right to join a union Formed the U.A.W. and was recognized by General Motors.
provided a host of regulations on businesses in
interstate commerce. It established:
1. minimum wage (initially ﬁxed at 40 cents an hour)
2. maximum workweek of 40 hours and time and a half for overtime
3. child-labor restrictions on those under 16
Note: Supreme Court had declared unconstitutional an earlier law of 1916 prohibiting child labor. In 1941, however, in the case of U.S. v. Darby Lumber Co., the Supreme Court reversed its earlier ruling by upholding the child-labor provisions of the Fair Labor Standards Act.
Why did New Deal lose momentum in the late 1930’s?
1. Recession, 1937-1938
In the winter of 1937, however, the economy once again had a backward slide and entered into a recessionary period.
relief, the president hoped to balance the budget and reduce the national debt.
The writings of the British economist John Maynard Keynes taught Roosevelt that he had made a mistake in attempting to balance the budget. According to Keynesian theory, deﬁcit spending was accept able because in difﬁcult times the government needed to spend well above its
tax revenues in order to initiate economic growth. Deﬁcit spending would be like “priming the pump” to increase investment and create jobs. Roosevelt’s
economic advisers adopted this theory in 1938 with positive results. As federal spending on public works and relief went up, so too did employment and industrial production.
Democrats blocked further New Deal reform legislation. Also, beginning in 1938, fears about the aggressive acts of Nazi Germany diverted attention from domestic concerns toward foreign affairs.
unemployed fathers searched for work, and declining incomes presented severe challenges for mothers in the feeding and clothing of their children. To supplement the family income, more women sought work, and their percentage of the total labor force increased.
Women were accused of taking jobs from men, even though they did not get the heavy factory jobs that were lost to all, and most men did not seek the types of jobs available to women. Even with Eleanor Roosevelt championing women’s equality, many New Deal programs allowed women to receive lower pay than men.
search of farm or factory work that often could not be found. The novelist John Steinbeck wrote about their hardships in his classic study of economic
heartbreak, The Grapes of Wrath (1939).
Dust Bowl: “Okies” from Oklahoma and surrounding states migrated westward to California in search of farm or factory work that often could not be found. The novelist John Steinbeck wrote about their hardships in his classic study of economic heartbreak.
unemployment rate was higher than the national average.
Often, despite their extreme poverty,jobless African Americans were excluded from state and local relief programs.
Hard times increased racial tensions, particularly in the South where lynchings continued. Civil rights leaders could get little support from President Roosevelt, who feared the loss of white southern Democratic votes.
cans, who found low-paying jobs with the WPA and the CCC (even though these jobs were often segregated).
African Americans also received moral support from Eleanor Roosevelt and Secretary of the Interior Harold Ickes in a famous incident in 1939. The distinguished African American singer Marian Anderson had been refused the use of Constitution Hall in Washington, D.C.,
by the all-white Daughters of the American Revolution. Eleanor Roosevelt and Ickes promptly arranged for Anderson to give a special concert at the
Over one hundred African Americans were appointed to middle-level positions in federal departments by President Roosevelt. One of them, Mary McLeod Bethune, had been a long-time leader of efforts for improving education and economic opportunities for women. Invited to Washington to direct a division of the National Youth Administration, she established the Federal Council on Negro Affairs for the purpose of increasing African American involvement in the New Deal.
President Roosevelt took this action only after A. Philip Randolph, head of the Railroad Porters Union, threatened a march on Washington to demand
equal job opportunities for African Americans.
ment and drought in the Midwest caused a dramatic growth in white migrant workers who pushed west in search of work. Discrimination in New Deal programs and competition for jobs forced many thousands of Mexican Americans to return to Mexico.
Picture: Migratory Mexican field worker’s home on the edge of a frozen pea field. Imperial Valley, California.
WAS THE NEW DEAL REVOLUTIONARY
–New Deal in a positive light as a continuation of the Progressive reform movement.— In the late 1950s, Arthur M. Schlesinger, Jr.
–liberal historians such as Carl Degler went further and
characterized the New Deal as a third American Revolution that went far beyond earlier reforms. They argued that such measures as the NRA, the WPA, and the Social Security Act represented nothing less than a redeﬁnition of the role of government in American society
The unemployment rate rose sharply during the Great Depression and reached its peak at the moment Franklin D. Roosevelt took office. As New Deal programs were enacted, the unemployment rate gradually lowered. Virtually full employment was achieved during World War II. This graph does not indicate the numbers of people were “underemployed,” meaning those who did not earn enough to adequately provide for themselves and their dependents.
This cartoon uses characters from Lewis Carroll’s Alice in Wonderland story to criticize federal spending on New Deal programs. The cartoonist depicts President Franklin Roosevelt as the Mad Hatter; Postmaster General and Chairman of the Democratic Party James Farley as the March Hare; and Congress as the sleepy Dormouse.
The hard times of the Great Depression were even harder for African Americans, who were often the “last hired and first fired.” Particularly hard hit were black domestic workers (mostly female) and black tenant farmers (mostly male), the two broadly defined occupations that employed about 60% of all African Americans. As the National Urban League noted, domestic workers were easily fired by white employers when money was tight; one survey showed that about 43% of African Americans on relief in 1934 had been in domestic service. In the same article, the Urban League showed that black farmers stayed unemployed longer than white farmers. However black organizations also recognized and pushed for the New Deal’s programs to be an opportunity to improve incomes, skills, education, and housing for the black community, if “the temper of its administration” could “break away from the status quo” in the communities were programs were implemented.
The Century: America’s Time – 1929-1936: Stormy Weather
Online Lecture Review– Great Depression & New Deal
A series of interactive lectures by Michael Nagle, Professor of History & Political Science at West Shore Community College.
Cartoons depicting the New Deal from U. of Virginia
Great timeline of people and events of the Depression & The New Deal
1936 song about the Great Depression by the Carter Family
Find quiz Questions toward bottom.
Courtesy of Mrs. Pojer.
2. Write an introductory thesis paragraph. [Is it a yes thesis? Yes/but?] that directly addresses the question
3. Write an outline of the body paragraphs –
4. Be sure to include specific details/facts that make connections to the question and reflect knowledge of the time periods addressed – many of you struggled with this part on the most recent process essay
5. No conclusion is necessary
Your outline should also demonstrate your understanding of the historical context involved. What trends are driving US politics, government policies, economics and shaping American society at the time?
Remember, the goal of an AP response is to
1. answer the question fully in a sophisticated way that
2. demonstrates your understanding of US history.
–Progressivism and the New Deal
–Women’s suffrage and post-Second World War Feminism
–The New Deal and the Great Society
fashion a more stable economy and a more equitable society.
Agricultural Adjustment Act
Wagner National Labor relations Act
Securities and Exchange Commission
Social Security Act
respect to two of the following.
reformers of the New Deal period. Confine your answers to programs and policies that addressed the needs of those
living in poverty.
of industry and commerce since 1920 – with special interest programs giving financial aid, legal privileges, and other types of assistance. Assess the validity of this statement, giving attention to both periods (1920 -1932 and 1932 -1940).
of the Progressive Era. Assess the validity of this generalization.
Picture: Senator Gerald Nye
2. Black Thursday and Black Tuesday
3. Uneven distribution of income
4. Stock market speculation
5. Excessive use of credit
6. Overproduction of consumer goods
7. Weak farm economy
8. Government policies (laissez faire & high tariffs)
9. Global economic problems
Video: Causes of Great Depression
On Black Tuesday, October 29, the bottom fell out, as millions of panicky investors ordered their brokers to sell, when there were practically no buyers to be found.
Dow Jones index had fallen from its September high of 381 to 198. By 1932, three years later, stock prices would ﬁnally hit bottom at 41.
Economic success was not shared by all, as the top 5 percent of the richest Americans received over 33 percent of all income.
economic boom was permanent led to increased installment buying. Advertising stimulated consumers’ desire for the exciting new appliances and cars that were