Please enable JavaScript.
Coggle requires JavaScript to display documents.
Period 7 (Effects of the Crash (African Americans (Their unemployment rate…
Period 7
Effects of the Crash
20 percent of all banks closed, wiping out 10 million savings accounts.
-
The U.S. Gross National Product dropped from $104 billion to $56 billion in four years, while the nation’s income declined by over 50 percent.
-
-
-
-
Poverty and homelessness increased, as did the stress on families, as people searched for work.
-
Women
Declining incomes presented severe challenges for mothers in the feeding and clothing of their children
More women sought work, and their percentage of the total labor force increased.
-
-
African Americans
-
-
-
-
Civil rights leaders could get little support from President Roosevelt, who feared the loss of white southern Democratic votes.
Causes of the Crash
Stock Market Speculation
The many people that invested in stock speculated that the price of a stock would go up and that they could sell it for a quick profit.
-
-
-
Weak Farm Economy
The prosperity of the 1920s never reached farmers, and severe weather and a long drought added to farmers’ difficulties.
Government Policies
The government did little to control or regulate business. Congress enacted high tariffs which protected U.S. industries but hurt farmers and international trade.
Global Economic Problems
U.S. insistence on loan repayment in full and high tariffs policies weakened Europe and contributed to the worldwide depression.
-
FDR
New Deal
His New Deal programs were to serve three R’s: relief for people out of work, recovery for business and the economy as a whole, and reform of American economic institutions.
First Hundred Days
The Glass-Steagall Act - increased regulation of the banks and limited how banks could invest customers’ money
The Emergency Banking Relief Act - authorized the government to examine the finances of banks closed during the bank holiday and reopen those judged to be sound
-
-
The Farm Credit Administration - provided low-interest farm loans and mortgages to prevent foreclosures on the property of indebted farmers
The Federal Emergency Relief Administration - 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 Public Works Administration - allotted money to state and local governments for building roads, bridges, dams, and other public works
The Civilian Conservation Corps - employed young men on projects on federal lands and paid their families small monthly sums
The Tennessee Valley Authority - hired thousands of people in one of the nation’s poorest regions to build dams, operate electric power plants, control flooding and erosion, and manufacture fertilizer