Heimler’s History: The Great Depression

Introduction

• Focus on Unit 7 of AP U.S. History: The Great Depression
• Objectives:
  • Explain the causes and effects of the Great Depression on the economy

Causes of the Great Depression

• Stock Market Crash (October 29, 1929 - Black Tuesday)
  • A protracted process culminating on this date
• Agricultural Overproduction
  • Farmers in debt due to overproduction
  • High tariffs (e.g., Hawley-Smoot Tariff) limited global market sales
• Risky Investment Practices
  • Buying on margin (speculation)
  • Assumption of ever-rising stock prices led to high debt when market fell

Effects of the Great Depression

• Widespread Poverty and Homelessness
  • Foreclosures and rise of shantytowns ("Hoovervilles")
• Government Response: Hoover vs. Roosevelt
  • Hoover: Minimal government intervention, belief in self-correction of economy
  • Roosevelt: Heavy government intervention, expanded federal government

The New Deal

• Overview
  • Roosevelt’s response to mass unemployment and social upheaval
  • Transformation into a limited welfare state
  • Focus on "Three R's": Relief, Recovery, Reform

Relief for the Unemployed

• Public Works Administration (PWA)
  • Infrastructure projects: roads, dams, bridges
• Tennessee Valley Authority (TVA)
  • Electric power plants, flood control
• Civilian Conservation Corps (CCC)
  • Jobs in soil conservation and forestry

Recovery for Businesses

• National Industrial Recovery Act (NIRA)
  • Addressed competition, low wages
  • Established minimum wages, working hours, and price regulation

Reform of Economic Institutions

• Glass-Steagall Act (1933)
  • Increased bank regulations
  • Created Federal Deposit Insurance Corporation (FDIC) to insure deposits
• Securities and Exchange Commission (SEC)
  • Regulated stock market, prevented speculation and insider trading

Second Phase and Social Security

• Social Security Act (1935)
  • Income safety net for workers over 65

Criticism and Challenges

• Liberal Criticism
  • New Deal favored businesses over the unemployed
• Conservative Criticism
  • Viewed as federal overreach
• Supreme Court Challenges
  • Judicial limitations on New Deal measures
• Court Packing Scheme
  • Proposal to appoint additional Supreme Court justices to support New Deal
  • Strong opposition, never materialized

Legacy of the New Deal

• Established lasting reforms and regulatory agencies
• Political realignment of Black people, working class, and ethnic minorities to Democratic Party

Conclusion

• Summary of Unit 7 topics 9 and 10
• Encouragement for continued learning and subscription to the channel