USA in the 1930's

Effects of the Great Depression

Wall Street Crash 1929 which hit USA first and then effected the rest of the world
Cycle of Prosperity turned into the Spiral of Depression
By 1932 the entire banking system was close to collapsing
People have been suffering the depression for two years, unemployment had risen to over 12 million, widespread poverty and homelessness
President Hoover believed that the government should not interfere
There was no Social Security (Welfare) or unemployment pay, some people were starving to death on the streets
The unemployed relied on charity handouts,soup kitchens and orginsations like the Salvation Army
Hoovervilles were camps set up by the unemployed and homeless families
Farm prices fell by 70% and thousands of farmers were made homeless, the machinery meant fewer jobs, intnsive farming and high winds/droughts turned the land into dustbowls
1931 veterans wanted their wartime bonuses, however Hoover used the army on them, they were given the name Bonus Army
By the election in 1932 people lost faith in Hoover, despite his claims that recovery was just around the corner
F.D.Roosevelt won the vote and offered the voters a New Deal

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FDR believed that the governemnt should take action
Use its powers to reduce unemployment and promote economic recovery by kick starting the Cycle of Prosperity
Relief, recovery and reform were iportant
In the short term, the government would tax and borrow to pay for public works and relief for the poor
First step restore confidence in the banks
First hundred days, Roosevelts New Deal quickly took shape
The New Deal was built up by Alphabet Agencies which dealt with perticular problems
Once a week he would go on the radio and explain what he had done to end the depression. They came to know as 'Fire Side Chats'. The first chat explained how the Emergency Banking Act would rstore the sysyem

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TVA - Tennessee Valley Authority- dams, canals and power stations, covered seven states and helped an entire region to recover
CCC - Civilian Conservation Corps- temporary relief/jobs for unmarried men between 16-25- tree planting, flood prevention, road building
HOLC - Home Owners Loan Corporation- brought mortgages from banks, offered homeowners long term payments, stopped millions of people losing their homes
PWA - Public Works Administaration- built schools, hospitals, roads for skilled workers
CWA - Civil Works Administration- 1933-4 jobs for over 4 million men, roads, playgrounds, sports fields- later became WPA
NRA - National Recovery Administration- Blue Eagle Badge- minimum wage, health and safety
AAA - Agricultural Adjustment Administration- paying farmers to destroy 30% of their crops and grow less
WPA - Works Progress Administration- created 3 million jobs building schools, roads, post office- by 1941 it had spent $11 billion
Wagner Act gave new rights to employees and labour unions
SSA- Socail Security- old age pensions, unemployed benefit

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The Republicans thought that it was too costly and a waste of tax payers money
Huey Long thought they did not do enough and wanted higher taxes on the rich and a massive redistribution of wealth
The EBA restored confidence
HOLC helped people who were homeless
The AAA ended overproduction but the Supreme Court made it illegal. In the Second New Deal it became Soil Conservation Act
The TVA stopped flooding in Winter and droughts in Summer. It created cheap hydroelectricity
During the Second New Deal a national welfare system was set up
Industry was helped through NRA
It helped the USA become a Superpower in the WW2
The war through conscription greatly reduced unemployment and supplied massive orders from their allies

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