How Many Americans Invest in the Stock Market

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					The Great Depression &
    the New Deal
The Great Depression began when
the stock market crashed in 1929.

                       •Many Americans had
                       invested in the stock market.

                       •Some used all their savings
                       to buy stocks.

                       •Others bought stocks with
                       money borrowed from banks.

                       •From 1925 to 1929, stock
                       prices increased, so people
                       borrowed more $ to buy more
In October 1929, stock
Prices began to fall.

People tried to sell stocks,
but no one wanted to buy

On October 29, 1929, the stock market
crashed as prices dropped rapidly. This day
is known as Black Tuesday.
1. ½ of all Americans were
   poor.                          6. The government
2. Farmers overproduced              refused to interfere
   during WW1; they could            in business—”laissez faire”
   not sell them.
3. Factories also produced
   more than people could


                     Herbert Hoover was President
                     when the Great Depression began.

• He was sure it would end by itself.

• In 1932, he asked Congress to start an
   agency that would lend money to banks
   and businesses.

• Hoover’s plan failed!
    •25% of Americans were unemployed
    •many salaries were lowered
    •people became homeless
By 1933,
1 million people
lived in

The shack and box
“towns” were called
this because the American
people blamed President
Hoover for the depression.
                           Schools closed because teachers
                                  could not be paid.

                             Bread & apples cost only 5 cents,
                             but jobless people couldn’t even
                                        pay for that!

Many waited in lines for
bread, soup, coffee, and
 other free food items.
Beginning in 1931, a seven year drought destroyed farms on
                      the Great Plains.

The soil dried up and blew away, causing great dust storms.

      This became known as the
             Dust Bowl.
Farmers could no longer earn a living.

Thousands of farmers sold their farms
and moved west to California.

                                         They traveled from place
                                         to place working on farms.

                                         This made them migrant
                                         farm workers.
  The Bonus Army
   In the summer of 1932, 20,000 WW1 veterans went to Washington, DC,
   to demand the bonus money the US government had promised them.

•They were supposed to wait
until 1945, but were hungry!

•They didn’t want to wait any more.
                            When President Hoover refused
                            to pay the bonuses, the angry
                            veterans camped out in DC to

                            They became known as the
                            Bonus Army.

                              President Hoover sent
                              General Douglas MacArthur
                              and federal troops to force
                              the veterans to leave
                              Washington, DC.

This made most Americans mad at Hoover for
attacking the veterans.
By 1932, most Americans wanted a new president.
Franklin Delano Roosevelt (FDR)
Promised a “New Deal” for the
American people in his inaugural
address on March 4, 1933.

He told a frightened nation:
“The only thing we have to fear
is fear itself.”
 FDR‟s New Deal
•closed all banks nationwide 2 days after
 becoming President;

•safe banks were allowed to reopen after
 government examination;

•people were encouraged to put savings
 in banks again;

•first 100 days in office worked with
  Congress to pass new programs.
 Goals of the “New Deal”

1. Relief from poverty and hunger.

2. Recovery from the depression.

3. Reform (change) to prevent
   future depressions.
 New Deal,
 New Agencies…
 …to carry out the goals of relief, recovery &

•money to the poor

•helped farmers

•provide jobs for unemployed

•assist people with getting food, clothing &
 other goods.
Tennessee Valley Authority (TVA)
•build dams to control floods
•build power plants that used waterpower to make electricity

Other government agencies hired people to build
bridges, plant tress and clean streets.
 Correcting the Problems that caused the

• provides insurance for money        • made it safer for people to
   in savings accounts (banks).       invest in the stock market.

• no longer would people lose their
  money if banks failed.
           Social Security Act (1936)

• all workers must pay a special tax

• in return, workers receive
 pensions when they retire
 at age 65

• provided money for poor
  families with children
First Lady: Eleanor Roosevelt

               •very popular

               •traveled across the country to
                work for equal rights for:
               --African Americans

                                     When a women’s group
                                     refused to allow the
                                     African-American singer
                                     to sing inside its building,
                                     Eleanor Roosevelt invited
                                     her to sing in front of the
                                     Lincoln Memorial.

 Ms. Anderson sang “America” in front 75,000 people.

In 1955, she became the first African American to sing regularly
    with the Metropolitan Opera Company in New York City.
America: My Country „Tis of Thee
         My country,' tis of thee,
          sweet land of liberty,
              of thee I sing;
      land where my fathers died,
       land of the pilgrims' pride,
        from every mountainside
            let freedom ring!
First Female
Cabinet member
FDR appointed

Frances Perkins

as Secretary of Labor.
      Stacking the Supreme Court
                                                Felix Frankfurter
                                                was the first
                                                appointed a
                                                Supreme Court

By 1944, FDR had appointed 7 of the 9 Supreme Court Justices.
     The Black
• A group of African American
  leaders who often met with
  President Roosevelt.

• Mary McLeod Bethune was
  one prominent member of
  this group.

• Bethune led the Office of
  Minority Affairs from

• Many African Americans
  became Democrats during
  the New Deal.
          Results of the New Deal
   made the federal government larger and more
    powerful than ever;
   increased taxes;
   the national debt grew larger;
   helped America by providing relief to the poor
    and hungry;
   New Deal agencies built bridges, dams, roads,
    and airports;
   saved the American democracy from the dictators
    that took control when other nations experienced

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