The document summarizes the causes and consequences of the 1929 stock market crash, including overproduction, underconsumption, and speculation, which led to bank failures and widespread unemployment and depression globally. It examines why President Hoover was blamed for not believing the federal government should intervene in the economy, while FDR and the New Deal aimed to provide relief for victims, recovery from depression, and reform of the economic system through agencies and acts that strengthened banking and provided relief jobs to prime the pump of the economy.

1. The Great Depression and The New Deal

4. “ I have no fears for the future of our country...it is bright with hope.” Herbert Hoover

5. “ This nation asks for action, and action now.” FDR

6. Causes of the stock market crash in October 1929:

8. Consequences of the crash?

11. What were the basic purposes of the New Deal? Relief for victims of depression Recovery from depression Reform for the economic system

12. How did the New Deal work to strengthen the monetary system? Emergency Banking Relief Act Federal Deposit Insurance Corporation

13. What kind of relief measures were taken by the New Deal?

18. How were these suppose to “Prime the Pump”?

19. People get money Spending creates demand for goods Stimulates production & jobs People get money