1929 Stock Exchange Crash and Franklin Roosevelt and the New Deal.

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1929 Stock Exchange Crash and Franklin Roosevelt and the New Deal. by Mind Map: 1929 Stock Exchange Crash and Franklin Roosevelt and the New Deal.

1. Stock Exchange Crash

1.1. -the end of World War I was an era of enthusiasm, confidence and optimism.

1.1.1. -In the optimism people take their savings from under their mattresses and from the banks and invest them.

1.2. -In the 1920s, many invested in the stock market so stock prices began to rise

1.2.1. in 1928 had become a place where people believed they could become rich.

1.3. -On March 25, 1929, the stock market suffered a mini-fall.

1.3.1. At this time those who advised caution were labeled as pessimistic and ignored.

1.4. Margin

1.4.1. the buyer would pay only part of his own money

2. Black Thursday - October 24, 1929.

2.1. -A crowd gathered outside the New York Stock Exchange on Wall Street.

2.2. -a group of bankers gathered their money and invested a large sum back into the stock market.

2.3. -At the end of the day, many people were buying shares again but four days later, the stock market fell again.

3. President Herbert Hoover.

3.1. rugged individualism

3.1.1. believed that if you were in trouble you should help yourself and not expect others to help you.

3.2. Hoover’s money was used to create jobs to build things like the Hoover dam.

3.2.1. In 1932 he gave $300 million

4. Franklin Delano Roosevelt and the New Deal.

4.1. -In the 1932 elections, Hoover was defeated by the Democratic candidate.

4.2. -Roosevelt had promised the American public a "New Deal".

4.3. On March 4, 1933, the height of the Great Depression

4.3.1. Franklin Roosevelt delivered his first speech at Capitol Plaza in Washington.

4.4. He promised to act quickly in the face of the "dark realities of the moment"

4.4.1. and assured that "he would wage a war against the emergency".

4.5. The new president declared a four-day bank holiday

4.5.1. to prevent people from withdrawing their money from banks.

5. The First Hundred Days.

5.1. -He asked Congress to end the ban by legalizing alcohol.

5.2. -The National Industrial Recovery Act guarantees the right of workers to unionize and negotiate

5.3. In May, it signed the Tennessee Valley Authority Act

5.3.1. allows the federal government to build dams along the river

5.4. They passed a law that paid commodity farmers.

6. The Second New Deal.

6.1. -Despite of President Roosevelt the Great Depression continued.

6.1.1. In August, Roosevelt signed the Social Security Law

6.2. in the spring of 1935

6.2.1. Roosevelt launched a second more aggressive series of federal programs.

6.3. In April, it created the Progress Works Administration (WPA)

6.3.1. to provide employment for the unemployed.

6.4. On December 7, 1941, the Japanese bombed Pearl Harbor and the United States entered in the second World War

6.4.1. The effort stimulated the industry and ended the Great Depression.

6.4.2. Many of the New Deal programs are still in place.