Download Slide 1 - West Ada

I. Distal Causes
A. Overproduction of goods
1. As demand falls
B. Taxes on imports (tariffs)
1. Americans can’t afford foreign goods
2. Other countries, therefore, can’t afford American goods
II. Proximal Causes
A. Stock Market crash
1. People bought stocks on credit
2. Investors begin to sell due to concern about economy
3. Panic sets in
[4. “Black Tuesday” = stock market crash]
B. Bank failures
III. Effects
A. Factories slow/stop production
1. High unemployment
B. European economies collapse
C. African/Asia economies collapse
1. No demand for raw materials
IV. America’s Response
A. President Franklin D. Roosevelt (FDR)
B. “New Deal” (“alphabet soup”)
1. Money to farmers to keep land
2. Public Works projects
a. CCC- Civilian Conservation Corps=environmental projects, Nat’l
Parks
b. WPA-Works Progress Administration=artists, writers, etc
3. Social Security
a. Retired
b. Disabled
c. Unable to work for other reasons
4. Financial reforms (banks and stock market)
a. SEC- Securities and Exchange Commission=police stock
market
b.FDIC- Federal Deposit Insurance Corporation=guarantee bank
savings
5. Other reforms
a. TVA- Tennesee Valley Authority=dams for electric power
b. NLRB- National Labor Relations Board=unions and companies
c. NRA
d. PWA
e. FERA
f. AAA