| | - The Great Depression
- Stock Market Crashed in 1929
- Problems with the economy
- 1. Too much consumer spending on credit
- 2. Many factories were in the process of expanding based on previous sales trends
- When people stopped spending to pay for the products they already had, many businesses closed or laid off workers
- 3. A lack of regulation in the stock market
- President Herbert Hoover was president when the Depression started
- Hoover believed in
- Hoover believed the poor and unemployed could be helped through charities and other private organizations
- Before long people were ready for a new policy - Hoover was seen as doing too little and the economy was not improving.
- Presidential Election of 1932
- Hoover vs Roosevelt
- Franklin Roosevelt proposed the
- F.D.R. won the election and started programs to help the poor and fix the economy
- Works Progress Administration
- Gave people jobs
- Social Security program
- Financial Aid to Farmers
- The Dust Bowl
- Programs paid farmers not to grow crops
- Also low cost loans to the farmers
- Another F.D.R. program...
- Interest rates to control the rate of inflation (increasing price of goods)
- Lowering the interest rates would Increase inflation which would
- Another program
- F.D.I.C.
- F.D.I.C. helped prevent banks from closing because people had confidence in getting their money if the bank closes
- Summary of New Deal
- Slide 30
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