The Great Depression

1. Tues. Oct. 29th, 1929 - NYC Stock market crashed, causing a depression that would last until 1942

2. Middle class depended on their jobs

2.1. Middle class stopped consuming things and it ruined the whole country

2.2. and b/c of low savings, they had to cut back on their purchases

3. Hoover also organized some private relief agencies for the unemployed

3.1. Congress did not understand that the world had become a GLOBAL ECONOMY

4. Trouble with banks

4.1. Austrian banks borrowed from German banks and appealed to the BANK OF INT'L SETTLEMENT (Fr veto)

4.1.1. Austrian banks and loaning German banks therefore were forced into bankruptcy

4.1.2. and b/c German banks had borrowed from Americans, U.S. banks began to go bankrupt, wiping out life savings of thousands of Americans

5. The New Deal

5.1. Step One-Banking History

5.1.1. Step Two-Security Exchange Comission

5.1.2. Step Three-Gold Standard

5.2. Nira and Nra created

5.2.1. Liberty League formed

5.3. TVA used

5.3.1. AAA formed in 1933

5.4. CCC made in 1933 to get work for young boys

5.4.1. NYA, FERA and Wagner act created to help produce work

5.5. Social security created in 1935

5.5.1. Paid unemployment and old age pensions

5.6. Food stamp act of 1939

5.6.1. Gave surplus food away to the poor