Chapter 33 APUSH The Great Depression and the New Deal

Chapter 33 APUSH

The Great Depression and the New Deal

Herbert Hoover Believed that federal

government should not try to fix fix people’s problemspeople’s problems.

He believed direct reliefdirect relief would destroy people’s self-respect.

He believed it would create a big government which would violate

laissez fairelaissez faire.

Franklin Roosevelt

Believed government had a responsibility to help people in need and provide direct reliefdirect relief.

Believed capitalism and laissez faire needed to be reformedreformed.

Governmental involvement in people’s lives was a good sourcegood source

for those in need.

The Election of 1932The Election of 1932

•DemocratDemocrat Franklin D. Roosevelt, beat

the RepublicanRepublican, Herbert Hoover, who was running

for reelection.

•FDR FDR promised relief for the

unemployed, help for farmers and a balanced budget.

•ProhibitionProhibition, whether it should

be repealed or not.

•FDR and Hoover at FDR’s inauguralFDR and Hoover at FDR’s inaugural

•Americans believed FDR could get the country out of the depression and put people back to work……

•Democrats

•FDR appealed to the common man because

he was crippled

•Eleanor became the eyes and ears for her

husband

•Promised to help the people through the

Great Depression by direct governmental

involvement

CARTOON 1932

•The Dust BowlDust Bowl was an ecological and human disaster that took place in the southwestern

Great Plains region, including Oklahoma, in the 1930's.

•It was caused by misuse of land and years of sustained drought.

•Millions of hectares of farmland became useless, and hundreds of thousands of people were forced

to leave their homes----many migrated to migrated to CaliforniaCalifornia.

•As the land dried up, great clouds of dust and sand, carried by the wind, covered everything

and the word "Dust Bowl" was coined.

CARTOON 1932

•Many Americans were unsure exactly

what FDR meant with his New Deal.

•Interests group were lining up to protect

their self-interests in FDR’s New Deal.

CARTOON 1932

•One of the One of the immediate concernsimmediate concerns of of FDRFDR was to raise was to raise the the self confidenceself confidence of the people…….. of the people……..

•He had to get people back on their feet by putting He had to get people back on their feet by putting them them back to workback to work……..……..

•President Roosevelt began the “fireside chats” on a weekly basis as a way to reassure the American people. •His comforting voice, calming words, confidence in the country and the American people helped restore faith of

the American people in democracy.

chats

• Roosevelt’s 100 days100 days was very successful….FDR and Congress went

to work providing for direct reliefrelief, recoveryrecovery and reformreform.

• From March of 1933 to June of 1933, Roosevelt sent 15 proposals15 proposals to

Congress and all 15 were adopted15 were adopted

• Congress and President tried tried anything reasonableanything reasonable to overcome

the Great Depression.

100 days

NEW DEAL CARTOON

Govt. programs which provided direct relief to suffering Americans through govt.

spending……… Renew democracy Restore confidence in the banking Stimulate economy Put people back to work. Restore self confidence

Relief:Relief: ease suffering of the needyRecovery:Recovery: begin economic growth

Reform:Reform: help prevent future economic crises

How? FDR’s 3 R’sHow? FDR’s 3 R’s

Social EngineersSocial EngineersBrain Trust

Part of FDR’s New Deal……Agencies created by the US

Govt. to bring about the 3

R’s……Relief, Relief, Recovery, and Recovery, and

ReformReform.

FERA / 1933FERA / 1933Federal Emergency Relief ActFederal Emergency Relief Act

Distributed $500 million of direct aid to unemployed workers such as food, clothing and grants of money to cities.

alphabet

RELIEFRELIEF: : Ease Suffering of the Ease Suffering of the NeedyNeedy

WPA / 1933 to 1943WPA / 1933 to 1943Works Progress AdministrationWorks Progress Administration

Employed 8.5 million workers in construction and other jobs, but more

importantly provided work in arts, theater, and literary projects.

alphabet


•Works Progress Administration (WPA), the

New Deals main relief agency.

•People employed by the WPA at its peak was more

than 3 million

•2,500 hospitals

•5,900 schools

•13,000 playgrounds

•125,000 public buildings

CCC / CCC / 1933 to 19421933 to 1942Civilian Conservation CorpsCivilian Conservation Corps

•Sent 3 million young men to work camps to build bridges, replant forests and other conservation

tasks. •Develop job skills and improve environment.

• Removed surplus of workers from cities, provided healthy conditions for boys, provided

money for families.

alphabet


•Created in April 1933. •Within 4 months, 1300 CCC

camps were in operation. •300,000 men in 1933 between

ages 18 and 25 •Signed up for 6 months and

made $30.00 a month. •1933 and 1941 over 3,000,000

men served in the CCC . •GoalGoal: Keep teenage young men off the street and away

from the job market.•Develop job skills and improve

environment

Planted trees, built public parks, drained Planted trees, built public parks, drained swamps to fight malaria, restocked rivers swamps to fight malaria, restocked rivers with fish, worked on flood control projects with fish, worked on flood control projects and a range of other work that helped to and a range of other work that helped to

conserve the environment.conserve the environment.

Planted trees, built public parks, drained Planted trees, built public parks, drained swamps to fight malaria, restocked rivers swamps to fight malaria, restocked rivers with fish, worked on flood control projects with fish, worked on flood control projects and a range of other work that helped to and a range of other work that helped to

conserve the environment.conserve the environment.

HOLC / 1933HOLC / 1933Home Owners Loan CorporationHome Owners Loan Corporation

Prevented mortgage foreclosures. US Govt. bought up mortgages

and refinanced them so that homeowners could pay their

mortgages.

alphabet


NIRA / 1933NIRA / 1933 National Industrial Recovery ActNational Industrial Recovery Act

RECOVERYRECOVERY: : Begin Economic Begin Economic GrowthGrowth

•Created NRA to enforce codes of fair competition, minimum wages, and to

permit collective bargaining of workers.

•Also called the National National Recovery ActRecovery Act.

•Helped businesses organize codes setting prices and

minimum wage.

•Put people back to work at decent jobs, wages and

working conditions.

•Businesses were not forced to join this.

•Declared unconstitutional unconstitutional by the Supreme Court in 1935 because it violated

laissez fairelaissez faire.

AAA / 1933AAA / 1933 Agricultural Adjustment ActAgricultural Adjustment Act


•Protected farmers from price dropsprice drops and over over productionproduction..• US Govt. Paid farmersPaid farmers (subsidies)

•not to grow crops, produce dairy products such as milk and butter or raise pigs and lambs.

•Prevent another Dust BowlDust Bowl, teach farmers methods of preventing soil erosion.

TVA / 1933TVA / 1933 Tennessee Valley AuthorityTennessee Valley Authority

•Federal government built a series of dams to prevent flooding and

sold electricity. •First public competition with

private power industries.alphabet


•Develop a poor section of the Develop a poor section of the Southeast U.S.Southeast U.S.

•Stimulate the economy and Stimulate the economy and produce cheap electricity.produce cheap electricity.

•Control floods, planting new Control floods, planting new forests.forests.

•Bring this section into the 20Bring this section into the 20thth century.century.

94 percent94 percent of property owners and 98 percent of tenants of property owners and 98 percent of tenants did not have electricity. did not have electricity.

30 percent30 percent of property owners and 41 percent of tenants of property owners and 41 percent of tenants had no toilet facilities whatsoever had no toilet facilities whatsoever

65 percent65 percent of property owners of property owners and and 78 percent78 percent of tenants had of tenants had to travel at least 300 yards to to travel at least 300 yards to

get their household water. get their household water.

8 percent8 percent of property owners of property owners and and 3 percent3 percent of tenants owned of tenants owned

radios (usually battery radios (usually battery operated).operated).

39 percent39 percent of property owners of property owners and and 23 percent23 percent of tenants had of tenants had phonographs (including record phonographs (including record

players that were operated with players that were operated with a hand crank). a hand crank).

50 percent50 percent of property of property owners and owners and 25 percent25 percent of of tenants read newspapers.tenants read newspapers.

26 percent26 percent of property of property

owners and owners and 16 percent16 percent of of tenants owned automobiles.tenants owned automobiles.

7 percent7 percent of property owners of property owners

and and 4 percent4 percent of tenants of tenants owned trucks.owned trucks.

TVA MAP

TVA CRITICISM

Glass-Steagall Act created federally insured bank deposits ($5000 per investor at first) to

prevent bank failures.

REFORMREFORM:: Prevent Another DepressionPrevent Another Depression

FDIC / 1933FDIC / 1933Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation

Regulated stock market and restricted margin buying, and frauds.

REFORMREFORM:: Prevent Another DepressionPrevent Another Depression

SEC / 1934SEC / 1934 Securities and Exchange Securities and Exchange

CommissionCommission

The National Labor Relations The National Labor Relations Act Act ►The National Labor Relations ActThe National Labor Relations Act

also called the Wagner Actalso called the Wagner Act It guaranteed workers the right to organize unions without interference It guaranteed workers the right to organize unions without interference

from employers and to bargain collectively. from employers and to bargain collectively. The National Labor Relations Board The National Labor Relations Board (NLRB) (NLRB) which organized factory which organized factory

elections by secret to determine whether workers wanted a union. elections by secret to determine whether workers wanted a union. The The NLRBNLRB then certified successful unions. then certified successful unions. The new law also set up a process whereby dissatisfied union members The new law also set up a process whereby dissatisfied union members

could take their complaints to could take their complaints to binding arbitrationbinding arbitration, in which neutral party , in which neutral party would listen to both sides and decide issues. would listen to both sides and decide issues.

The The NLRBNLRB was authorized to investigate the actions of employers and had was authorized to investigate the actions of employers and had the power to issue “cease and desist” orders against unfair practices. the power to issue “cease and desist” orders against unfair practices.

Response to critics (Dr.Townsend and Huey Long), it provided

retirement pensions, unemployment insurance, aid to

blind, deaf, disabled, and dependent children.

REFORMREFORM: Prevent Another Depression: Prevent Another Depression

SSA / 1935SSA / 1935 Social Security ActSocial Security Act

•One of the most important features of the New DealNew Deal.

•Established a retirement for persons over 65 funded by a tax on wages paid equally by

employee and employer.

•Old age insurance

•Protect Americans who were unable to support themselves.

•Unemployment compensation

•Compensation to disabled workers and assistance to

widows and children

Criticisms of New DealCriticisms of New DealUS government and President too powerfulViolated laissez faireSupreme Court declared NIRA and AAA unconstitutionalCritics:

Father Charles CoughlinDr. Francis TownsendAl SmithHuey Long

Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt.Welfare state----Created a population of Americans who relied on the US Govt. to live

•Believed an international conspiracy of bankersinternational conspiracy of bankers existed and FDR was influenced by them.

•He called for the nationalization of banks and utilitiesnationalization of banks and utilities.(US Govt. controls banks, Socialism)Socialism)

•Fascist; Anti-Semitic overtones.

•A Roman CatholicCatholic priest.

•Radio Priest in Detroit Michigan.

•Criticized FDR in weekly radio program.

•10 million listeners.

•Criticized FDR’s farm program

•Spending all $200 would also be required to boost economic demand.

•Townsend Clubs created all over the nation.

•Influenced FDR’s creation of Social SecuritySocial Security

•He wanted the government to help older citizens.

•Retired California Physician.

•Suggested a $200 per month $200 per month pensionpension for people over 60.Open jobs for the younger

unemployed.

Successes of New DealSuccesses of New DealAMERICANS IN 1939 WHO WANTED THE NEW DEALNEW DEAL TO CONTINUE WAS 55%55%….. ….. 37%37% REGARDED IT AS A BAD INFLUENCE

AND WANTED A NEW PRESIDENT…………...Stimulated the economy

Put people back to work….

Improved morale and self-confidence of the people

US Govt’s. role changes and became directly involved in helping people

WWII ended the Great Depression not FDR’s New Deal

25% to 40% of

workers out of work

Was able to lower it to

14%

SocialismGreen PartyCommunism

SocialismGreen PartyCommunism

DemocratDemocrat IndependentReform

IndependentReform

RepublicanRepublican KKK KKK

LEFT CENTER RIGHT LEFT CENTER RIGHT

Anarchy Radical Liberal Moderate Conservative Reactionary Fascist

No GovtNo Govt Dictator Dictator

The New DealNew Deal walked a tightrope between the extreme positions of the left and rightleft and right.

CriticsCritics would claim it was unconstitutional, socialism, anti-laissez faire and went too far to the left.

OthersOthers would claim the New DealNew Deal didn’t go far enough to the left……

•Supreme Court was striking Supreme Court was striking down New Deal legislation.down New Deal legislation.

•Roosevelt proposed a bill to allow the president to name a

new federal judge for each who did not retire by age 70

and 1/2.

•6 justices over age limit.6 justices over age limit.

•Would have increased the number of justices from 9 to

15, giving FDR a majority of his own appointees on the court.

•The court-packing bill was not The court-packing bill was not passed by Congress.passed by Congress.

•Supreme Court was striking Supreme Court was striking down New Deal legislation.down New Deal legislation.

•Roosevelt proposed a bill to allow the president to name a

new federal judge for each who did not retire by age 70

and 1/2.

•6 justices over age limit.6 justices over age limit.

•Would have increased the number of justices from 9 to

15, giving FDR a majority of his own appointees on the court.

•The court-packing bill was not The court-packing bill was not passed by Congress.passed by Congress.

Supreme CourtSupreme CourtCongressional opposition was beginning to grow; Congressional opposition was beginning to grow; many of his laws, including the WPA, were taking many of his laws, including the WPA, were taking

a long time to get passed and met resistance.a long time to get passed and met resistance.

► Schechter v. United StatesSchechter v. United States The Schechter brothers had a poultry business in Brooklyn. The Schechter brothers had a poultry business in Brooklyn. They had been convicted in 1933 of violating the NIRA’s Live They had been convicted in 1933 of violating the NIRA’s Live

Poultry Code; they had sold diseased chickens and violated the Poultry Code; they had sold diseased chickens and violated the code’s wage-and-hour provisions. code’s wage-and-hour provisions.

Known as the “sick chicken case.”Known as the “sick chicken case.” The Supreme Court said that the Constitution did not allow the The Supreme Court said that the Constitution did not allow the

Congress to lend its powers to the executive; the Congress to lend its powers to the executive; the NIRA NIRA was was unconstitutional. unconstitutional.

This suggested that the Supreme Court would make similar This suggested that the Supreme Court would make similar decisions in regards to the New Deal. decisions in regards to the New Deal.

The Committee for Industrial The Committee for Industrial OrganizationOrganization

► The United Mine Workers union began to work with other The United Mine Workers union began to work with other unions to organize workers in industries where unions did unions to organize workers in industries where unions did not exist. not exist.

► To do this, they formed the CIOTo do this, they formed the CIO► They began with automobile and steel industries—two of They began with automobile and steel industries—two of

the largest industriesthe largest industries► In late December 1936, General Motors launched a sit-In late December 1936, General Motors launched a sit-

down strike do to the first sit-down strike due to the down strike do to the first sit-down strike due to the demotion of two workersdemotion of two workers

► Violence broke out in Flint when police launched a tear gas Violence broke out in Flint when police launched a tear gas assault on one of the smaller plants. assault on one of the smaller plants.

► Afterward, GM broke down and recognized the CIO union, Afterward, GM broke down and recognized the CIO union, United Auto Workers as its employees sole bargaining United Auto Workers as its employees sole bargaining organization. organization.

► This led to others using the sit-down strike as a method in This led to others using the sit-down strike as a method in other industries. other industries.

Documents

Chapter 33 APUSH The Great Depression and the New Deal