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Leading up to the Great Depression
During World War I, the federal spending was three times larger than tax collection. A severe recession resulted when the government cut back spending to try to balance the budget.
Throughout the 1920’s, around 1,200 mergers will take over more than 6,000 independent companies. By 1929, only 200 corporations will control over half of all American industry. -
The Rise Begins
Unlike the rest of the economy, the stock market begins it’s remarkably rise. -
Stock Market Crashes
The crash begins on October 24th which earned the name black thursday. On October 29th stock prices plummet and banks start recalling loans. In the month of October, total losses reach $16 billion, By the end of the year, total losses reach $40 billion. -
Bonus Bill
Wright Patman, Texas congressman, introduces legislation authorizing immediate payment of “bonus” funds to WWI veterans. This piece of legislation was called the “bonus bill,” which was passed in 1924. -
The Riot Begins
In parts of the United States, “food riots” begin to break out. People smash the windows of grocery stores and steal things like fruit, canned good, bacon and ham. -
Bank of the United States
The Bank of the U.S. in New York collapsed, making it the largest single bank failure in U.S. history. -
Jobs
By 1932, over 13 million Americans’ had lost their jobs and incomes were reduced by percent.
Since the stock market crash, construction on homes had dropped by 80 percent, and more than 273,000 families were evited from their homes. -
Reconstruction Finance Corporation
Congress established the Reconstruction Finance Corporation (RFC) that lent $2 billion in recovery aid to banks, building and loan associations, farming organizations and insurance companies.
Franklin D. Roosevelt becomes president, beating Herbert Hoover -
Throughout the Year 1933
The U.S. Gross National Product which measures how many goods and services are produced annually, dropped by 33 percent
Unemployment reaches 25 percent, the highest level during the depression years.
Out of the nations 25,000 banks, more than 11,000 close throughout the year -
National Recovery Administration
The National Recovery Administration (NRA) is establish and provides grants totaling $5 million. They also tried to maintain some form of price and wage control. -
Bank Holiday
To prevent a third run on banks and to shore up the banking system, Roosevelt announces a three-day “bank holiday.” -
Emergency Bank Act
Congress passes the Emergency Bank Act of 1933, which will help three-quarters of the nations closed banks open by the end of the month. -
Firseside Chat
President Roosevelt explains to America what is happening in the U.S. banking system, during his first radio “fireside chat” which is an informal conversation on the radio. -
Civilian Conservation Corps
The Civilian Conservation Corps (CCC) is established to provide jobs for men, ages 17 to 27, in national and state parks. -
Tennessee Valley Authority
The Tennessee Valley Authority (TVA) is created. The TVA is a federally run hydroelectric power program. They also run dams, produce and sell fertilizer and develop recreational land. -
Federal Deposit Insurance Company
As a way to insure Americas’ bank deposits, the Federal Deposit Insurance Company (FDIC) was created. -
Civial Works Administration
The Civils Works Administration (CWA) established. A program to help provide jobs for up to 4 million people. -
Works Progress Administration
President Roosevelt signs legislation creating the Works Progress Administration. This administration helped employ 8.5 million people. Tey improved and created roads, highways and bridges. -
National Youth Administration
The National Youth Administration is set up to help men and women who are not allowed in the CCC. It has two levels, a student work program and an out of school program so that way all ages can take advantage of the program. -
Social Security Act
The Social Security Act is made law by President Roosevelt. -
FDR President Again
Franklin D Roosevelt is elected as president again and won every state in the Union except Maine and Vermont -
Roosevelts Recessions
Unemployment rises, despite President Roosevelts New Deal programs. -
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Coming to an End
Preperations fo World War II stimulated Americas ecomony, beining the end to the Great Depression -
Raising the Economy
To stimulate the weak economy, President Roosevelt ask Congress for $3.75 billion. -
Third Term
Franklin D. Roosevelt gets elected for his thrid term as president.
