Name: __________________________________________________ Date: ________________________

The Great Depression and The New Deal

Economy in Chaos p. 82
Black Tuesday – Stock Market Crash of 1929

Causes of the Great Depression

Overspeculated of Stocks People borrowed money to purchase
Overspeculate: to believe stocks that they could not repay when
something has more value than it the stock prices crashed.
actually does
Collapse of the banking system Banks collapsed causing people lose their
life savings that was in the banks.
Tariffs High tariffs (taxes) on imported goods
Tariffs – taxes on imported goods discouraged trade
- lasted from 1929 into the 1930’s
- longest period of unemployment and low economic activity
- many banks and businesses failed
- ¼ or 25% of Americans were unemployed
- large numbers of people homeless and hungry
- unemployment is the number of people looking for a job

Struggling Farmers p. 83
- during WWI there was a high demand for crops, farmers made more money

- during roaring 20’s demand dropped, prices dropped, farmers made less
money.

- farmers plowed up millions of acres of grassland to plant wheat.

- long period of drought, no rain over a long period of time, caused erosion

- soil blue away causing dust storms covering everything

- time in Great Plains was called the Dust Bowl

Name: __________________________________________________ Date: ________________________

Help is on the Way – Kinda p. 84

- President Herbert Hoover was a successful businessman

- Believed that government SHOULD NOT try to solve problems of poverty

(poor) and unemployment

- Believed businesses should spark economy

- President Hoover’s inaction led to more businesses closing causing even higher
unemployment.

- People were left homeless

- Homeless people made their own little shacks and villages called Hooverville.

Help in Troubled Times p. 84

- During Great Depression 12 million people or about 25% were unemployed

- Churches and other groups (charities) opened soup kitchens to help feed
unemployed and homeless. Charities are organizations set up to help others in
need.

- Some soup kitchens were open for three meals a day, others just for one

- Up to 3,000 people may show up at a soup kitchen in one day.

- People would wait hours just to get a meal.

Time for Change and Recovery p. 85
- Franklin D. Roosevelt (FDR) – was elected president in 1932 for fresh and new
ideas, created hope for people.

- FDR believed it’s the government’s duty to aid citizens.

- created a government program called the New Deal.

Name: __________________________________________________ Date: ________________________

New Deal p. 85-88

- FDR New Deal 1) create jobs to reduce unemployment
had three goals
2) provide government funding to jump start economy
3) ensure another economic crisis never happens again

Key Features of the New Deal

Federal Work Created jobs to build parks, schools, courthouses,
Programs bridges, dams, and other useful public works projects
Environment Created jobs to complete conservation projects, such
Improvement as planting trees
Programs
Farm Assistance Assist farmers keep their land and provided assist to
Programs learn best farming practices
Increased rights for Workers treated more fairly. Established a minimum
labors wage that employers had to pay employees.
New Deal Programs
Civilian Conservation The CCC put people back to work by expanding and
Corp (CCC) developing national parks. Workers lived in camps.
CCC projects included soil conservation, tree planting,
and flood control.
Works Progress Employed people to build highways, bridges, public
Administration (WPA) buildings, parks, and airports. WPA paid artists to
create statues and paint murals on buildings
Tennessee Valley TVA built dams to control floods and generate
Authority (TVA) electricity. Attracted people and jobs to area because
of the electricity produced from the dams
Other Programs
National Youth Give college students jobs
Administration (NYA)
Federal Housing Helped people find homes and buy houses in difficult
Authority (FHA) economic times
Social Security Act Provided assistance to the elderly and people that are
disabled.
America Recovers
- New Deal worked and America slowly worked its way out of the depression
Name: __________________________________________________ Date: ________________________

Distractions from the Great Depression p. 89

- People’s spirits were uplifted by lively music, good books, and athletes
Duke Ellington - jazz music turned into a
new sound called Swing

- famous African-American
musician, pianist, composer
during the 30’s

Margaret - famous author from

Mitchell Atlanta

- wrote book called Gone

with the Wind

- book was about the life in

the south before, during,
and after the Civil War

Jesse Owens - Famous athlete that stood

up to Adolf Hitler at the
1936 Olympic games in
Germany
- won four gold medals
Name: __________________________________________________ Date: ________________________

Key Terms:

overspeculate – to believe something has more value than it actually does.

stock – shares of ownership in a company

tariff – a tax on goods from other countries (imports)

drought – a long period of dry weather with little to no rain

soup kitchen – places set up to provide meals to unemployed and homeless

people

debt – money owed to another person

minimum wage – lowest amount of money that an employer can pay their
employee

Additional Notes:
Name: __________________________________________________ Date: ________________________