Great Depression and New Deal(2)

8/18/2019 Great Depression and New Deal(2)

1/76

The Great Depression

and New Deal


2/76

Fundamental Causes of

the Depression• Drop in farm prices• Massively uneven distribution

of income

• “Get rich quick” schemes in real

estate and especially in stocks

• Overextension of credit

• Increased inventories of oods• Immediate cause! October "#$#

stock market crash Many consumers in the"#$%s bouht items such as

this ironer on credit


3/76

The Day the Bubble Burst

• October $#& "#$#

• More than "'

million shares

traded in one day• (tock market lost

)*% billion

• +einnin of the

“Great

Depression”

,he tradin floor of the -e. /ork (tock 0xchane in "#$#


4/76

Banking System Collapse

• +anks investedheavily in the

market

• 1ollapse of

market led to

bank failures

• Many depositors

panicked& leadinto even more

bank failures2orried depositors .ait outside a bank hopin to

.ithdra. their savins


5/76

Hoovers !esponse

• 3resident 4oover

over.helmed

• +elieved that private

charity .as best suitedto solve problems

• Most efforts failed

• 5econstruction 6inance

1orporation achieved

some success

3resident 4erbert 4oover


6/76

Hoovervilles

• (ettlements ofshacks inhabited by

transients and

unemployed

• Derisively named

after 3resident

4oover

• Many cities andto.ns had at least

one


7/76

The Bonus "rmy

• 3atman +ill .as tomove up bonus

payments from "#78

to "#**

• 9eterans camped near

the 1apitol to support

the bill

• +ill failed in 1onress• 4oover:s removal of

vets made 4oover

appear heartless

2ith the ;


8/76

Dis#ussion $uestions

"< 2hich of the fundamental causes of the Depression.ould have been the easiest to fix& in your vie.=

0xplain<


9/76

The %le#tion of &'()

• 5epublicans

renominated 4oover

• Democrats nominated

6ranklin D< 5oosevelt• 4oover:s inability to

solve the Depression

became the chief issue

• 6D5 .on in a

landslide

4oover 5oosevelt


10/76

Franklin Delano !oosevelt

• +orn in ">>$• Distant relative of

,heodore 5oosevelt

• Married to 0leanor5oosevelt& ,5:s niece

• 3olitical career mirrored

,5:s

• ?ost "#$% election forvice president

• 3araly@ed in "#$" One of only three photos of 6D5in a .heelchair& taken in "#7"


11/76

FD!s First *naugural "ddress

• Attempted to restoreconfidence in theAmerican people

• “,he only thin .e haveto fear is fear itself


12/76

The +New Deal,

• -amed after a phrase in6D5:s "#*$ nomination

speech

• +ecame the nickname for

6D5:s economic proram

• 1onsisted of three

separate aspects!

• 5elief • 5ecovery

• 5eform6D5 campainin in "#*$


13/76

The +Brain Trust,

• Group of advisers .hoassisted 6D5 in makin

early economic policy

• Members included 3rofs<

Moley& ,u.ell& and +erle

• Members had varyin

opinions about

Bumpstartin the economy• 0ventually disbanded to

make .ay for other experts

Adolph +erle 5exford ,u.ell


14/76

The First Hundred Days

• ,hreeCmonth period afterinauuration

• 6lurry of leislative activity

• “4oneymoon” period bet.een6D5 and 1onress

• (a. most of -e. Deal:s relief

proram established& includin!

• Aricultural AdBustment Act

• ,ennessee 9alley Authority

• GlassC(teaall +ankin Act

6D5 sinin the ,9A into la.


15/76

Solving the Banking Crisis

• "#*%"#**! -early "%&%%% banks closed

• Michian overnor

ordered bankin

“moratorium” in state

• 6D5 chaned .ordin to

bank “holiday”

• +anks closed for four daysfor inspection

• GlassC(teaall Act created

6DI1

A policeman stands uard outside a

closed -e. /ork bank


16/76

Fireside Chats

• 5adio “talks”• 6D5 spoke plainly

.ith audience

about issues and

concerns

• ;sually conducted

in an informal

manner • 6D5 ave *% chats

.hile in office6D5 addresses the nation durin a "#*8 fireside chat


17/76

+-ump -riming, and the Dole

• 6ederal 0merency 5elief Act passed in "#**

• 605A pumped money into the

economy for Bob prorams• Also provided relief for the

unemployed

• (pent billions on public .orks

throuh 1ivil 2orksAdministration and

0merency 2ork 5elief

prorams4arry 4opkins


18/76


"< 2hy do you think 4oover had such a difficult time

.innin the reelection in "#*$=

$< Do you think that federal spendin specifically to

create Bobs for Depression victims .as a ood idea&or .ould it have been better to ask the states and

private charities to take a larer role in the relief

efforts= 2hy=


19/76

• Aricultural AdBustmentAct of "#** souht to

reduce farm surpluses

• 5esettlement

Administration

• 6arm (ecurity

Administration

• 5ural 0lectrificationAdministration

• Aricultural AdBustment

Act of "#*'

FD!s Farm -rogram

A poster advertises help to farmers available

throuh the 5esettlement Administration


20/76

The Dust Bowl. Causes

• Overcultivationof land in the

Great 3lains

• (ustained

drouht

throuhout

reion

• 4ih .inds ble.a.ay loose

topsoilA dust cloud approaches the to.n of (tratford& ,exas& in "#*8


21/76

The Dust Bowl. *mpa#t

• More than 8%%&%%% left

homeless

• (torms ble. lare

amounts of dust from the3lains into cities such as

1hicao and +uffalo

• “5ed sno.” fell on

to.ns in -e. 0nland


22/76

The -light of the +/kies,

• 6armers from Oklahomafled the Dust +o.l

• 2ent to 1alifornia for

farm Bobs• 3ossibly "8 percent of

Oklahoma:s population

became mirants

A .oman and her child rest beside their

car durin their trip .est


23/76

Hardships

• “1amps”

unsanitary

• 2aes decreased

for lare numbers• 1alifornia passed

an “antiCOkie”

la.

A mirant camp in 1alifornia


24/76

The +0igrant 0other,

• One of the most famous -e. Dealera photos

• (hot for the 5esettlement

Administration byDorothea ?ane

• ,aken in 1alifornia in

6ebruary or March "#*'


25/76


"< 2hy do you think Great 3lains farmers durin theDepression used unsound cultivatin practices that

led to the Dust +o.l=

$< Do you think -e. Deal farm prorams .eredesined to reform the practices that led to the price

collapse= 2hy=


26/76

1ork2Based !elief -rograms

• 6D5 consideredunemployment a maBor&

immediate problem

• 2orkCbased prorams seen

as a desirable alternative tothe dole

• (everal prorams .ere

created to provide .ork invarious occupations

• (ome sa. the “make .ork”

prorams as boondolesA -e. Deal .orkCbased relief

proram at a 6lorida rock quarry


27/76

Civilian Conservation Corps

• 3rovided Bobs for youn menaed ">$8

• Eobs included .ork on

environmental proBects

• One of the most popular -e.

Deal prorams

• “0nlistees” .ere paid

)*% per month& .ith )$8of that sent home to

their families


28/76

,his Illinois 111

recruitment posterhihlihts “A /oun

Man:s Opportunity for

2ork& 3lay& (tudy& and

4ealth


29/76

National 3outh "dministration

• 3rovided partCtime Bobs forurban youths .ho .anted

to remain in school

• 3articipants paid )')7%

per month for “.ork study”

Bobs

• 0mployed both male and

female students

,.o youn men of the -/A

.ork on an airplane enine


30/76

-ubli# 1orks "dministration

• Money iven tocontractors for

public .orks

• Administered by

(ecretary Ickes

• +uilt brides&

schools& airports&

roads& -avy ships• (pent more than

)' billion


31/76

Civil 1orks "dministration

• Mainlyconstructed

brides and

buildins

• (pent over )"

billion in less

than a year

• Many consideredit a boondole

• Abandoned in

"#*712ACbuilt public .orks proBects included thisMinnesota hih.ay


32/76

1orks -rogress "dministration

• 1reated in "#*8• 4eaded by 4arry 4opkins

• 6ocused on public .orks

such as brides& roads&run.ays

• Also included arts proBects

• (ome proBects famous

F1amp David& Dealey3la@a (ins similar to this one alerted the

public that a site .as a 23A .orks

proBect


33/76

In addition to public

.orks proBects& the

23A also providedadults .ith Bob trainin

as .ell as enrichment

opportunities


34/76

1-". Supporting the "rts

• 23A also provided fundin for

various arts prorams

• 2ritin& theater& photoraphy&

and paintin prorams


35/76

Federal Theater -ro4e#t

• 3art of the “6ederal One” proBect

• 4eaded by 4allie 6lanaan

• “?ivin -e.spapers”

• Included Orson 2elles& Eohn

4ouseman& and Arthur Miller

• 5an into several controversies


36/76

Federal "rt -ro4e#t

• (peciali@ed in visual arts

• 1reated more than

$%%&%%% .orks

• Included art production&art instruction& and art

research


37/76

Federal 1riters -ro4e#t

• Allo.ed .riters to.ork directly for

the overnment

• 2riters paid a

“subsistence”

.ae

• (everal famous

.riters participated


38/76


"< 2hy did many see the .orkCbased relief prorams of the -e. Deal as a desirable alternative to the dole=

$< In your vie.& .hich of the -e. Deal relief prorams .as the

most effective= 0xplain<

*< Do you think the focus on .orkCbased relief prorams for theyoun F111 and -/A .as .orth.hile= 2hy=

7< If you had been president in the midC"#*%s& .ould you have

felt promotin the arts .as a valid use of federal funds to

fiht the Depression= 2hy or .hy not=8< (hould the federal overnment have taken on so much debt in

order to provide .ork proBects for unemployed= 0xplain<


39/76

National *ndustrial !e#overy "#t

• 1enterpiece of -e.Deal recovery proram

• (ouht to promote fair

competition& raise

.aes and prices& and

institute collective

barainin

• 1reated “codes of faircompetition”

• 0nforced by the -5A


40/76

The N!"s Blue %agle

Merchants proudly

supported the -5A

by prominently postin +lue 0ale

posters at their

places of business


41/76

The +Si#k Chi#ken, Case

• A.L.A. Schechter Poultry Co. v<U.S. F"#*8

• (upreme 1ourt unanimously

struck do.n the -I5A• Decided that 1onress hadiven the president too muchla.makin po.er

• Also ruled that -I5A violatedthe 1onstitution:s commerceclause (upreme 1ourt 1hief Eustice

1harles 0vans 4uhes


42/76

The +Nine /ld 0en,

• (upreme 1ourtdominated by

conservatives

• 6D5 unable to make

appointments to 1ourt• 1ourt declared several

-e. Deal prorams

unconstitutional• 6D5 believed that the

1ourt .as hamperin

needed relief and reform


43/76

FD!s +Court2-a#king, -lan

• 6D5 determined to preserve -e. Deal reforms• Introduced leislation for revampin the Budiciary

• ?a. .ould allo. him to appoint one ne. Bude

for every (upreme 1ourt member over ae H%• 2ould increase (upreme 1ourt to a maximum of

"8 members

• 3lan soundly defeatedJ 6D5 lost political support

• 1ourtCpackin battle ended as a dra.


44/76

New Deal +"gitators,

• Opposed -e. Deal before a national

audience

• All felt 6D5 had one

too far& or not far

enouh

• -one had much

influence on the "#*'election or on the

-e. Deal in eneral


45/76

The "meri#an 5iberty 5eague

• (a. 6D5 as a “traitor tohis class”

• +elieved the -e. Deal

.as leadin the country

to.ard socialism

• (everal famous members

• 1hallened the leality

of the 2aner Act• Disappeared by "#7%


46/76

Father Charles Coughlin

• 1atholic priest .ho usedradio to reach mass

audience

• 6irst a -e. Deal

supporterJ later a critic

• (ympathetic to antiC

(emitic policies of 4itler

and Mussolini• 6ederal broadcast rules

eventually forced

1ouhlin off the air

6ather 1harles 1ouhlin speaks at a stadium


47/76

Huey 5ong. +The 6ingfish,

• ?ouisiana overnor and senator• +elieved -e. Deal hadn:t done

enouh

• 3roposed “(hare the 2ealth”

proram

• Assassinated in "#*8

• 5evenue Act of "#*8 incorporated

some of ?on:s ideas

(enator 4uey 3< ?on


48/76

The Townsend -lan

• 3roposed a monthly pension of)$%% for all citi@ens over '%

• ,o be paid for by a national

sales tax

• 5ecipients required to spend

entire payment each month

• ,o.nsend 3lan roups spread

across nation• (ocial (ecurity Act

Dr< 6rancis ,o.nsend


49/76

The %le#tion of &'(7

• 6D5 decided to seek asecond term

• 5epublicans nominated

Kansas Governor Alf

?andon

• 6D5 .on in a landslide


50/76

Election of 1936: Results


51/76

+New Deal Coalition,

• Diverse coalition of various roups .ho supported6D5 in "#*'!

• ?abor unions

• ;rban political machines• 5acial and reliious minorities

• (outhern .hites

• Groups areed on little besides the -e. Deal

• +ased on this frame.ork& Democrats dominated the

federal leislature from "#*$"#>%


52/76

FD!s Se#ond *naugural "ddress

“I see millions of families tryin to liveon incomes so meaer that the pall of

family disaster hans over them day by

day<

I see millions .hose daily lives in city

and on farm continue under conditions

labeled indecent by a soCcalled politesociety half a century ao<

I see millions denied education&

recreation& and the opportunity to

better their lot and the lot of their

children<I see oneCthird of a nation& illCclad& illC

housed& illCnourishedL”

6ranklin D< 5oosevelt

Eanuary $%& "#*H,he cover of the proram for 6D5 and

9ice 3resident Garner:s inauuration


53/76


"< 4o. effective do you think the -I5A .as at solvin the problemof industrial recovery= 0xplain<

$< Do you feel that the (upreme 1ourt overstepped its checksCandC balances function in strikin do.n -e. Deal leislation= (houldthe rules have been “bent” for -e. Deal prorams= 2hy or .hy

not=*< (ome believed that .ith his courtCpackin plan& 6D5 .as

seekin dictatorial po.ers< Do you believe this criticism .as Bustified= 2hy or .hy not=

7< Do you feel that 5oosevelt:s reelection in "#*' .as due more to public approval of the -e. Deal or to his personal popularity=2hy=

8< 2hich of the -e. Deal “aitators” do you think .ere most Bustified in their criticism of 6D5 and the -e. Deal= 2hy=


54/76

New Deal !eform 0easures

• (ouht to ensure that conditionsleadin to Depression did not

reoccur

• Many reforms radically chaned

American society

• (everal -e. Deal prorams

and reforms still in effect today

• (ocial (ecurity• 3ure food and dru la.s

• ,ennessee 9alley Authority

• 6DI1


55/76

So#ial Se#urity "#t of &'(8

• 6irst suested by6rances 3erkins

• 3rovided for

• OldCae pensions

• ;nemployment

insurance

• Aid to

dependents• 6unded by a payroll

tax


56/76

National 5abor !elations "#t

• Also kno.n as the“2aner Act”

• Allo.ed for collective

barainin

• 3rotected rihts oflaborers to form unions

• Also created the -?5+

6D5 sins the 2aner Act as ?abor

(ecretary 3erkins looks on


57/76

Fair 5abor Standards "#t

• Guaranteed a federalminimum .ae

• (et at $8 cents per hour

in "#*>

• Guaranteed overtime

pay at “time and a half”

• 3rohibited “oppressive

child labor”

,he 6?(A prohibited children Fsuch

as the one sho.n in this photo from

.orkin in ha@ardous Bobs


58/76

Tennessee 9alley "uthority• 1reated to assist ,ennessee 9alley area

• 4eaded by David ?ilienthal

• 3rovided flood control and cheap hydroelectric po.er

• Also protected the social and economic .elfare of

people in the area


59/76

Help for Homeowners

• 4ome O.ners ?oan1orporation! lo.C

interest loans for

current homeo.ners

• 6ederal 4ousinAuthority! loans for

home repair and ne.

buildin proBects

• ;nited (tates 4ousin

Authority! lo.Ccost

public housin

6ederal 4ousin Authority loo


60/76

Food: Drug: and Cosmeti# "#t

• (ined into la. in "#*>Jstrenthened 6DA

• (et standards for and

reulated quality of food

• 0valuated safety and

leitimacy of drus

• 1ontrolled product

advertisin

?ashC?ure& a cosmetic eyeliner .hich

blinded at least one user& .as one

product banned by the 6DA


61/76

Se#urities and %;#hange Commission

• 1reated throuh (ecurities

Act of "#** and (ecurities

0xchane Act of "#*7

• ?a.s required truth in sales of

securities and fair treatment of

investors

• (01:s purpose to providemarket stability and protect

investorsEoseph 3< Kennedy&

the first head of the (01


62/76

Creation of the +1elfare State,

• -e. Deal sinaled the beinnin of the “.elfare state”

• Government became the

overseer of citi@ens: .elfare

from “cradle to rave”• Many -e. Deal reform

prorams still reatly affect

American life

• (ome see the costs and level of

overnment involvement as

dra.backs

6D5 sinin the (ocial (ecurity

Act into la.


63/76

1omen of the New Deal %ra

0leanor 5oosevelt

Mary Mc?eod +ethune 6rances 3erkins

Marian Anderson


64/76

FD! and Civil !ights

• (inificant debate reardin 6D5:scivil rihts record

• 5efused to support antiClynchin la.

• Did not .ork to interate armed

forces

• 6031 ensured equal opportunity for

African Americans in overnment and

defenseCindustry Bobs• Appointed African Americans to

overnment positions 5alph +unche


65/76


"< Do you feel that -e. Deal .elfare proramsexceeded the federal overnment:s authority=

0xplain your ans.er<

$< 2hat functions does the (ocial (ecurity

Administration serve= In your vie.& .hich of these

is the most important= 2hy=

*< On a scale from A to 6& ho. .ould you rade 6D5:s

civil rihts record= 2hy=


66/76



67/76

-opular Culture in

the New Deal %ra• Music of 2oody Guthrie

• -ovels of Eohn (teinbeck

(The Grapes of Wrath)

• "#*%s movies

• 4umorist 2ill 5oers

• 5adio:s impact on

American life (The Warof the Worlds

A "#*%sCera movie theater


68/76

1oody Guthrie

• 6olk siner • 2rote “,his ?and Is /our

?and” and other sons

about DepressionCera life

• Inspired several "#'%s folk

siners

• Died in "#'H


69/76

>ohn Steinbe#k

• Kno.n for his novelsabout 1alifornia

• The Grapes of Wrath

describes the Eoad family:s

travels from Oklahoma to1alifornia

• 3raised and critici@ed by

many• -ovel .on 3ulit@er 3ri@eJ

soon made into a film


70/76


71/76

1ill !ogers

• American humorist• 5adio and movie star and

ne.spaper columnist

• (atiri@ed politics and

current events

• Killed in "#*8 plane crash


72/76

The War of the Worlds

• 3roduced by Orson 2elles• 0pisode on “Mercury

,heater on the Air”

• -early caused mass panic

• Anxiety over events in

0urope heihtened fear

Orson 2elles


73/76

The %le#tion of &'@?

• 2endell 2illkie& the “darkhorse” GO3 candidate

• 6D5 allo.s himself to be

drafted for third term

• 6D5 .ins& but .ith a

smaller marin of victory

than in "#*$ and "#*'

2endell 2illkie


74/76


75/76

The 5ega#y of the New Deal

• 0nlarement ofovernment

• Deficit spendin

• 2elfare state

• Inspiration for

future .elfare

prorams& such as

?+E:s “Great(ociety”

6D5 shakes hands .ith ,exas -/A directorand

future president?yndon Eohnson


76/76


"< Do you think that Guthrie and (teinbeck accurately depictedlife durin the Depression= 2hy or .hy not=

$< 2hat impact did the films of the "#*%s have on life in theDepression era< 2hy=

*< Do you believe that mass hysteria such as that .hichoccurred .ith The War of the Worlds could happen today=2hy or .hy not=

7< Do you think American forein policy .ould have beendifferent had 2endell 2illkie .on the "#7% presidential

election= 2hy=8< Do you think that the -e. Deal effectively solved the

problems of the Depression= 2hy or .hy not=

Documents

Great Depression and New Deal(2)