The Great Depression and Roosevelt's Election
The Great Depression of 1929-1933 devastated the American economy, leading to Franklin D. Roosevelt's election as president.
Highlight: The Wall Street stock market crash of 1929 triggered the Great Depression, resulting in widespread business failures, bank closures, and unemployment.
Key impacts of the Great Depression included:
- 100,000 businesses failed, including thousands of banks
- 13 million Americans were jobless by 1933 (25% unemployment rate)
- US Gross National Product declined by 50%
Roosevelt's election promise to improve Americans' lives resonated with voters. He assembled a team of experts called the "Brains Trust" to develop the New Deal.
Definition: The New Deal was Roosevelt's series of programs aimed at providing "Relief, Recovery, and Reform" (the 3 R's) to combat the effects of the Great Depression.
The First New Deal (1933-1934)
Roosevelt's initial New Deal focused on three main areas:
-
Bank Reform:
- Temporarily closed all banks for inspection
- Passed the Emergency Banking Act
- Introduced "Fireside chats" to explain policies via radio
- Created the Security Exchange Commission to regulate stock markets
-
Relief Programs:
- Established the Federal Emergency Relief Administration
- Hired unemployed workers for government projects
- Created the Civilian Conservation Corps for young men
-
Economic Recovery Measures:
- Formed the Agricultural Adjustment Administration to help farmers
- Implemented the National Industrial Recovery Act
- Developed the Tennessee Valley Authority to combat poverty and environmental issues
Example: The Civilian Conservation Corps employed about 3 million young men to work on projects in national parks, planting trees, and other conservation efforts.
