Great Depression and New Deal

GREAT DEPRESSION

AND NEW DEAL

GREAT DEPRESSION AND NEW DEAL Introduction

General Conditions Reactions

Great Depression FDR Recovery Relief Challengers Reform

SEC FDIC

New Deal (1933-1940) Legacy

THEMES Conditions faced

during the Great Depression

Roosevelt’s New Deal: Three R’s Recovery Relief Reform

Challengers to Roosevelt

Evaluating the New Deal’s legacy




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STATISTICS OF HARD TIMES

HUMAN TOLL Unemployment

1933: 13 million were unemployed

1933: 25% unemployment

Many others had pay and hours cut

STOCK MARKET CRASH It began on October 29,

1929 as prices plummeted. This day was known as “Black Thursday”

a record 16 million stocks were sold

By mid-November losses were estimated to be about $30 Billion $378,000,000 in today’s

dollars At it’s lowest, the

market lost 80% of its value.

PROBLEMS FACING FARMERS

Farmers in the midwest faced financial ruin

Drought, Dust storms and low prices caused by overproduction

PROBLEMS FACING FARMERS Dust storms

occurred during the summers of 1934-39

Dust drifts were often several feet deep

Dust destroyed crops and property

TRAVELING WESTWARD Many Americans

from the Midwest traveled westward in hope of finding farming jobsOver 350,000

traveled to California

Often referred to with the slur “Okies”




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BONUS MARCH 1932 In 1924 Congress

rewarded veterans of the WWI with a bonus to be paid in the 1940s

Veterans demanded their bonus early; 10,000 marched to Washington, D.C.

Congress and President Hoover refused their demands

The military destroyed the tent-city and the movement disbanded

ANGER WITH GOVERNMENT

Many focused their anger at President Hoover

Hoovervilles: Names for shanty towns where many homeless built shelters and lived

1932 was an election year and many American wanted a new president.

HOOVERVILLE




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NEW DEAL PRESIDENT FDR – Franklin D.

Roosevelt Served as

Governor of New York

President1933-1945

Suffered from Polio as an adult and had limited use of his legs

FDR’S PLAN “It is common sense to take a method

and try it. If it fails, admit it frankly and try another. But above all, try something.”

FDR’S PLAN Keynesian Economics

Use gov. spending to grow economyDeficit spending

FDR’S PLAN Recovery: Bring about economic

recovery of the United States


recovery of the United States Relief: Provide immediate direct

economic relief to the American people through jobs.


recovery of the United States Relief: Provide immediate direct

economic relief to the American people through jobs.

Reform: Reform the system to avoid another Great Depression in the future.




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RECOVERY MEASURES Goal: Bring

about economic recovery of the United States

Examples:EBA

EMERGENCY BANK ACT (EBA) By early 1933,

more than 5,000 banks had closed their doors

EMERGENCY BANK ACT (EBA) Law enacted in 1933

Banks were required to take a four day holiday

Banks were inspected to ensure soundnessWeak banks restructured and healthy banks

re-opened right awaySignificance: restored faith in banking

system



Examples:EBAAAA

AGRICULTURAL ADJUSTMENT ACT (AAA) 1933 Background

Farmers produced a surplus which undercut the ability of farmers to turn a profit.

Farmers paid to restrict crop production Government bought surplus

AAA

Quantity

$



Examples:EBAAAATVA

TENNESSEE VALLEY AUTHORITY (TVA) 1933 Built dams in the

Tennessee Valley Deigned to end

erosion and promote flood control

Brought cheap electric power to areas

Encouraged long term economic growth in the region.

TENNESSEE VALLEY AUTHORITY (TVA) 1933






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RELIEF MEASURES1933-1935 Goal: Provide

direct economic relief to the American people through jobs.

Examples:WPA and PWA

FEDERAL EMERGENCY RELIEF ACT (FERA)/ WORKS PROGRESS ADMINISTRATION (WPA) 1935

Umbrella agency that directly employed over 8 million workers

125,000 buildings were constructed; hospitals, schools, post offices, etc.

Money for the arts was allocated to employ writers, performers, and artists

PUBLIC WORKS ADMINISTRATION (PWA) Spent $6 Billion for private contractors Built large-scale public works such as

dams, bridges, hospitals, and schools.

RELIEF MEASURES1933-1935 Goal: Provide

direct economic relief to the American people (jobs)

Examples:WPA and PWACCC

CIVILIAN CONSERVATION CORPS (CCC)

Put men to work and helped the environment

Types of workPlanted treesBuilt

campgroundsHiking trails

Average pay$35.00/ month

CHECK UP! How did

Roosevelt utilize the philosophy of Keynesian Economics to provide the nation with relief and recovery?

Evaluate this policy.

What does this cartoon reveal about the changing role of government under FDR’s leadership?

CHECK UP!




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BELLWORK Why would

some people oppose FDR’s plans of Recovery, Relief, and Reform?

CHALLENGERS TO THE NEW DEAL New Deal did too

little

DID TOO LITTLE -FRANCIS TOWNSEND Doctor from

California Old Age Pension

Plan $200/month to all

over age 60 Money had to be

spent within 30 days One problem – it

would have bankrupted the nation

DID TOO LITTLE – HUEY LONG Governor and

Senator from Louisiana

Limit all annual incomes to $1 million

Limit personal fortunes to $5 million

U.S. families guaranteed Homestead ($5,000) Annual income($2,500)

DID TOO LITTLE – HUEY LONG“Is that a right of life when the young children of this country are being reared into a sphere which is more owned by 12 men than it is by 120,000,000 people?...We have to limit fortunes. Our present plan is that we will allow no one man to own more that $50,000,000. We think that with that limit we will be able to carry out the balance of the program.” -Huey Long

Check Up!

Why would Huey Long’s philosophy seems dangerous to some people?

DID TOO LITTLE - AFRICAN AMERICANS FDR established

a group of African American advisors

Called “Black Cabinet”

Many believed enough was not done for minorities

DID TOO LITTLE - AFRICAN AMERICANS

CHALLENGERS TO THE NEW DEAL New Deal did not

go far enough:1. 2. 3.


go far enough:1. Francis

Townsend…2. Huey Long…3. African

Americans…

New Deal Went too Far:

NEW DEAL WENT TOO FAR - CONSTITUTIONALITY OF MEASURES

Several New Deal programs were eventually ruled unconstitutional by the Supreme Court

NEW DEAL WENT TOO FAR -CONSTITUTIONALITY OF MEASURES

The Judicial Procedures Reform Bill of 1937

Goal: Add six more

justices to the U.S. Supreme Court.

CHECK UP! How might FDR’s

court packing plan be perceived as a threat to the established balance of powers?

Consider the Kentucky and Virginia Resolutions and Marbury v. Madison as you discuss your answer.

NEW DEAL WENT TOO FAR -SOCIALISM New deal was

socialist in nature

Main Complaints:Too ExpensiveTaxed the rich too

much Too much

government interference in the economy

CHECK UP!

How could you use this piece of evidence to explain the fear that many Americans had of the New Deal?


go far enough:1. Francis

Townsend…2. Huey Long…

New Deal Went too Far:1. 2.

EVALUATING THE NEW DEAL

EVALUATING THE NEW DEAL

CHECK UP!5. Evaluate Roosevelt's New Deal policy.




SEC FDIC SSA Wagner Act


REFORM MEASURES Goal: Reform the

system to avoid another Great Depression in the future

ExamplesSECFDICSSAWagner Act

REFORMS Tax rates for the wealthiest individuals

and corporations were increased under the Wealth Tax Act



Securities and Exchange Commission (SEC)Created to regulate the Stock Market



Securities and Exchange Commission (SEC)Created to regulate the Stock Market

Federal Deposit Insurance Corporation (FDIC)Protected individual bank accounts up to

$5,000

REFORM - SOCIAL SECURITY ACT (SSA) 1935 Unemployment

Insurance Funded by employers

Aid to Dependents $ for widows, orphans,

disabled, etc. Old Age Pension

Funded by employers and employees

Initial Payment Estimates $10-$85/Month

REFORM - NATIONAL LABOR RELATIONS (WAGNER) ACT Protects the

right of workers to do the followingOrganize a unionCollectively

bargainstrike

CHECK UP! Identify three of the following New Deal

measures and analyze the ways in which each of the three attempted to fashion a more stable economy and more equitable society. (93)Agricultural Adjustment ActWagner ActSecurities and exchange commissionSocial Security Act

FORMAL FORMATIVE

Progressive Era

Social Reform

Economic Reform

Political Reform

New Deal

Relief

Recovery

Reform




SEC FDIC SSA Wagner Act


NEW DEAL LEGACY The New Deal did not end the

Great Depression but did help many

The U.S. did not reach full employment until WWII (11 years after the Depression began)

It established a safety net below which no American would be allowed to fall

It established the modern welfare system

Was the New Deal’s legacy positive or negative for the country?

WEBSITES OF INTEREST Dorothea Lange

Photos and Bio History of Social

Security Biographical Info

rmation about FDR

Franklin Roosevelt Museum on-line

http://www.loc.gov/exhibits/wcf/wcf0013.html

http://www.loc.gov/exhibits/wcf/wcf0013.html

http://www.ssa.gov/history/history.html

http://www.ssa.gov/history/history.html

http://www.whitehouse.gov/about/presidents/franklindroosevelt/



http://www.fdrlibrary.marist.edu/museum/



SOURCE http://college.ce

ngage.com/history/lecturepoints/index.html

http://college.cengage.com/history/lecturepoints/index.html




Documents

Great Depression and New Deal