The Great Depression and the New Deal: Causes, Human Impact, and Political Consequences - , Study notes of World History

Download The Great Depression and the New Deal: Causes, Human Impact, and Political Consequences - and more Study notes World History in PDF only on Docsity! The Great Depression & the New Deal Thursday, September 24, 2009 11:35  Economic Crisis of the 1930s o The worse economic crisis before during and since o Was also a psychological depression  People stop having hope  Getting married  Having kids Significance 1. the impact that it had in American Economics 2. Had an impact on the political landscape 3. Had a great impact on the international affairs  The New Deal o Franklin Roosevelt (FDR)  Response to the great depression by the democratic party  This put them in power for the next two decades  Lots of years of power because of the great depression and the new deal 1. Causes of the Great Depression a. Stock market price of 1929 i. Bull market crashed in Oct of 1929 1. Had a big impact on investor confidence 2. It served as a catalyst (not so much a cause) a. Created a gloom in the financial market ii. This led to the collapse of businesses 1. Banks a. 6000 banks failed between 1929 and 1933 2. Industrial producer a. Industrial plants 3. 10000 business failed between 1929 and 1933 4. 3 months after the collapse 300000 jobs were lost per week a. Human cost of the depression b. Flaws in the economy in the 1920s i. Two principal causes 1. Lack of regulation in the financial system a. Banks and financial houses had no rules b. Banks, insurance companies and financial markets were connected 2. Too Much Credit (Buying in market) 3. Over production and under consumption a. Probably the biggest cause of the great depression 4. Unequal distribution of wealth a. Most of the profit went to the wealthy at the upper class or upper middle class SEC: Securities and exchange commission  The Human Impact of the Depression o Unemployment o This is where most people felt the impact o Working men were the average number of people who lost their job o Farmers were depressed already from the 1920's o 25% unemployment rate  Mostly men  Not including women and people of color o As a result of the great depression there was a change in the social landscape  Marriage rate lowered  White males declined  Birth rates declined  Increase in suicide rate (not confirmed)  Stud Terkel  Wrote a book called " Hard Times" 1970's  Recorded people who had lived in the 1930's  interviewed all kinds of people and compiled their stories o Stigma left psychological scars  Shaving all the time  Political Impact o Herbert Hoover  Interesting because he was the more dynamic and that has the most promise  From Ohio  With Classic American Values  Went to Stanford University  Put himself through college  Worked in government  Helped in refugee relief during the 1920's  Understood how politics worked  Not a conservative o Then the depression came!  Used the deflationary tactic  same tactic governments of Europe used  Cut back on government expending  Keep interest rate stable  1929 - 1931  This was not solving the recession  He tried to convince Americans that things would get better  He kept saying "prosperity is around the corner"  People lost trust in Hoover