-
Period: to
1930's Economic Overview
The 30's was a difficult time to live in for all people, many people lost everything. It began with poor leadership from Hoover, so when FDR came in he had a lot of ground to make up. FDR made great change, while also making a few mistakes along the way. FDR and the federal government were responsible for creating half of a billion jobs. Still 10 year of economic struggle can cripple a nation for years. The market did not get to where it was previously until 1954 where it beat and all time high. -
Hoover Signs Smoot-Hawely Tarrif Act
This act was meant to help farmers, but also raised taxes on 900 imported products. Other countries retaliated setting off a trade war. -
Dust Bowl
Excessive farming and improper soil care lead to a drought in the great plains affecting 23 states. This was the worst drought in 300 years and congress spent $65 million on resources for farmers to continue to produce both crops and live stock. -
Hoover creates Department of Veteran Affairs
The VA is a system that helps Veterans get back on their feet after serving their country. They allocate money to Veterans to help pay for schooling, bills, and food. -
Bank of Tennessee fails
After the failure of the Bank of Tennessee many of its affiliates failed, leading to depositors to rush to pull their savings out. These "bank runs" can quickly put a bank out of business. -
Bank of the United States failed
the Bank of the US was the 4th largest bank and the largest bank failure. -
Economic Overview of 1930
In 1930 the economy shrank 8.5%, unemployment rose to 8.7%, prices fell 6.4%, and the national debt was roughly $16 million -
Drought in farmlands continues
Worst drought in the 20th century for Arkansas -
Food riots break out in Minneapolis
With farmland struggling there is not enough food to go around -
Economic Overview of 1931
In 1931 it seems like little was done to pull our country out of a dark time. The Economy shrank 6.4%, unemployment rose to 15.9%, prices fell 9.3%, and the national debt rose to $17 million. -
Congress created Reconstruction Finance Corporation
Created to lend $2 billion to financial institutes and more states to prevent further failures -
Hoover sings the Revenue Act of 1932
Raise the the top tax rate to 63% from 25%. He wanted to reduce the federal deficit and thought it would restore faith in the economy, but it worsened the depression -
Growth
Bank failures slowed, construction contracts increased 30 percent, and department store sales rose 8 percent. -
Economic Overview of 1932
Economy bottomed out after shrinking to 27%, DOW bottomed out at 41.22. The economy shrank 12.9 percent, unemployment rose to 23.6 percent, and prices fell 10.3 percent. -
FDR becomes president and Creates the New Deal
32nd president of the US he was put into a difficult position, he comes out strong with the New Deal to reverse the downward economic spiral. The goal was relief, recovery, and reform for those who were hardest hit. -
FDR stops the run on gold
He abandons the gold standard, he ordered the exchange of private gold for money -
The Agricultural Adjustment Act paid farmers to limit crops
This raised prices but was put in place to slow the damage to farmlands to allow for more farming down the road -
Tennessee Authority Act & Securities Act
TA: Built power stations in the poorest areas of the country. This allowed power distributed throughout the country. SA: Required companies to educate investors when issuing stocks -
Home Owners Loan Corporation
HOLC refinanced mortgages to prevent foreclosures, this was a means to stop the homeless population from rising -
National Recovery Act
Outlawed child labor, created a minimum wage, and limited the work day to 8 hours -
More Dust Storms hit Farmland
48 more dust storms hit the Midwest. Farmers slaughtered pigs to decrease supply and boost prices, from this FDR created the Federal Surplus Relief Corporation to use excess products to feed the poor -
Economic Overview of 1933
FDR created over 10 million jobs and found ways to help the people of the United States. The economy shrank 1.3 percent, unemployment rose to a record 24.9 percent, prices rose 0.8 percent. The national debt was $23 billion. -
Gold Reserves Act
Prohibited the private ownership of gold, doubling the proce and changing the cost of gold since -
Black Sunday
Worst dust storm ever recorded, FDR passed the Soil Conservation Act that taught farmers how to sustain crops -
More changes to Economy
The Federal Housing Administration provided Federal mortgage insurance. The Securities and Exchange Commission regulated the stock market. The FCC consolidated all federal regulation of telephone, telegraph, and radio communications. -
Economic Overview of 1934
Temperatures across the country were very high, for 29 consecutive days the temperatures were over 100 degrees, droughts cover 27 states and 80% of the country reported dry conditions.The economy grew 10.8 percent in response to the New Deal Programs unemployment fell to 21.7 percent prices rose 1.5 percent, the debt rose to $27 billion. -
Positive incentives for farmers
The Soil Conservation & Domestic Allotment Act paid farmers to plant soil-building crops. Allowing for more farming and production of crops and livestock. 5/20 Rural Electrification Act helped farms to generate electricity for their areas. 4/26 The Resettlement Administration trained and provided loans to farmers. -
Rights for workers
The National Labor Relations Act/Wagner Act protected workers' rights and created the National Labor Relations Board. Allows for more people to be happy in their work place. -
Economic Overview of 1935
8.5 million jobs were created and social security was created in order to help the unprivileged to stay afloat during a hard time. Economy grew 8.9 percent, unemployment fell to 20.1 percent, prices rose 3.0 percent, and the debt rose to $29 billion. -
Hottest Summer on Record
June: 8 states felt the result of temperatures of 110 degrees or hotter, July: 12 other states had temperatures of 110 degrees or hotter, August: Texas had record breaking temperatures of 120 degrees. 5,193 people died as a result of the heatwave. -
Economic Overview of 1936
FDR raised the top tax rate to 79 percent, the economy grew 12.9 percent, unemployment shrank to 16.9 percent. Prices rose 1.4 percent. The debt grew to $34 billion. -
More Development
Wagner-Steagall Act funded state-run public housing projects. Bonneville Power Administration began selling power from the Bonneville Dam. Measures were put in place to get help attaining farm land and keeping your land -
Economic Overview of 1937
In an attempt to start chipping away at the nation debt FDR cut spending and sent the economy back into depression. For the year, the economy grew 5.1 percent, unemployment fell to 14.3 percent, and prices rose 2.9 percent. The debt rose to $37 billion. -
FDR abolished mark to market accounting
Many believe this is attributed to the mass of banks that began to close in 38'. The rule forced banks to write down their real estate as values fell. -
Economy Begins to grow
After the economy was thrown back into depression, just a year later it was coming back up and this was the beginning of the end of the depression -
Economic Overview of 1938
For the year, the economy shrank 3.3 percent, unemployment rose to 19 percent, prices fell 2.8 percent. The debt remained steady at $37 billion. -
Federal Security Agency
Administered Social Security, federal education funding, and food and drug safety. Once again the government attempts to pull the poor out in order to help build all parts of the economy. -
Hitler Invades
Poland is invaded by the Nazis and FDR gets approved by congress to lift the embargo of weapons to France and Great Britain -
Economic Overview of 1939
Droughts began in the South East
Economy grew 8 percent, unemployment fell to 17.2 percent, and prices remained flat. The debt rose to $40 billion.
