Time Period II (1890's - 1940's)

Key Points:

• Over production and mechanization cause farmers to go into debt and were unable to pay back loans
• Industrial production slowed as individuals were unable to purchase goods
• Banks failed because of bad loans and speculation in the stock market
• Massive unemployment continued to cause more economic instability and failures in many markets
• Herbert Hoover did very little to combat the Depression so many blame him for the conditions in the country
• World markets were impacted by the depression slowing world trade

Key Points:

• FDR's response to the Great Depression based on 3 R's (relief, recovery and reform)
• Redefined the role of the Federal Government by creating more responsibilty for the people
• Called for Bank Holidays to help banks recover from the bank runs and created insurance for people's money in the bank (FDIC)
• Government created programs provided people with job opportunities, funding for industry bail-outs and overall economic stimulus
• Some programs were controversial because they decreased production and increased prices
• Supreme Court overruled and invalidated many New Deal Programs