The Great Depression and the New Deal

The Great Depression The Great Depression and the New Dealand the New Deal

The Great DepressionThe Great Depression

The New DealThe New Deal

The Second New Deal and Its’ EffectsThe Second New Deal and Its’ Effects


Causes of the DepressionCauses of the Depression Roaring 20s help Herbert Hoover get elected in Roaring 20s help Herbert Hoover get elected in

19281928 Several underlying problems during 1920s boomSeveral underlying problems during 1920s boom

Farm Problems-After WWI demand for crops and crop Farm Problems-After WWI demand for crops and crop prices fallprices fall

Wealth is distributed unevenly- Rich become richer, Wealth is distributed unevenly- Rich become richer, workers became less poorworkers became less poor

Easy Credit- debt grows as people can’t pay off creditEasy Credit- debt grows as people can’t pay off credit


Stock Market CrashStock Market Crash Investors buy stock on Investors buy stock on speculationspeculation- hope the stock - hope the stock

would go upwould go up October 1929- Market up and down; scared investors October 1929- Market up and down; scared investors

sell all stocksell all stock October 29, 1929October 29, 1929 Black TuesdayBlack Tuesday 1st example of 1st example of business cyclebusiness cycle- growth and slow down - growth and slow down

of economyof economy When the market collapsed, the When the market collapsed, the Great DepressionGreat Depression

began- 1929-1941began- 1929-1941 Banks collapse- ppl. pulled all savings from banksBanks collapse- ppl. pulled all savings from banks banks close banks close Businesses closed, unemployment rises- 1933: 25% URBusinesses closed, unemployment rises- 1933: 25% UR Hawley Smoot tariffHawley Smoot tariff- Gov’t passes extremely high tariff, only - Gov’t passes extremely high tariff, only

hurts economyhurts economy


Hoover and the Great DepressionHoover and the Great Depression While most Americans kept their job, wages were While most Americans kept their job, wages were

drastically cutdrastically cut Bread lines, soup kitchens, homeless shelters become Bread lines, soup kitchens, homeless shelters become

common--. American Dream impossiblecommon--. American Dream impossible HoovervillesHoovervilles created- tents/shacks built on vacant lots created- tents/shacks built on vacant lots

for homelessfor homeless Some farmers prosper- grow own foodSome farmers prosper- grow own food most lost their most lost their

farms to banks- tenant farmersfarms to banks- tenant farmers 1930s- terrible drought in the Great Plains1930s- terrible drought in the Great Plains Dust BowlDust Bowl Farm families had no choice but to migrateFarm families had no choice but to migrate Dust Bowl Dust Bowl

refugees were known as refugees were known as OkiesOkies

The Great DepressionThe Great DepressionHoover’s Response FailsHoover’s Response Fails Urged Americans to go about their business as Urged Americans to go about their business as

usualusual Laissez FaireLaissez Faire attitude attitude says Americans should says Americans should

take care of themselves- no gov’t take care of themselves- no gov’t welfarewelfare Believed gov’t should help businesses, not Believed gov’t should help businesses, not

control themcontrol them Organized Organized Boulder DamBoulder Dam- gave power and water - gave power and water

and work to millionsand work to millions Begins passing measures to reform bankingBegins passing measures to reform banking

Federal Home Loan Bank ActFederal Home Loan Bank Act lower interest rates lower interest rates for mortgagefor mortgage

Reconstruction Finance CorporationReconstruction Finance Corporation Finance big Finance big business, money will business, money will trickle downtrickle down to citizens to citizens


The Bonus ArmyThe Bonus Army WWI vets march on WWI vets march on

the White House lawn the White House lawn demanding promised demanding promised bonus checksbonus checks

Hoover uses force to Hoover uses force to remove Bonus Army remove Bonus Army soldiers from local soldiers from local shantytownsshantytowns


FDR Takes ChargeFDR Takes Charge 1932: Democrat 1932: Democrat Franklin D. RooseveltFranklin D. Roosevelt wins wins

electionelection FDR campaigns using “FDR campaigns using “New DealNew Deal” plan” plan

Gov’t should play active role in ending DepressionGov’t should play active role in ending Depression FDR uses the “FDR uses the “Brain TrustBrain Trust”, group of close advisers, ”, group of close advisers,

to help plan New Dealto help plan New Deal Frances PerkinsFrances Perkins-first woman to serve in a cabinet -first woman to serve in a cabinet

positionposition

The New DealThe New DealThe First Hundred DaysThe First Hundred Days FDR passes 15 new bills (First New Deal)FDR passes 15 new bills (First New Deal)relief, recovery, relief, recovery,

reformreform Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation (FDIC)- insured (FDIC)- insured

bank depositsbank deposits Agricultural Adjustment ActAgricultural Adjustment Act (AAA)- provides financial aid to (AAA)- provides financial aid to

farmersfarmers Tennessee Valley AuthorityTennessee Valley Authority (TVA)- Gov’t builds dams along (TVA)- Gov’t builds dams along

TN River to provide jobs and electricityTN River to provide jobs and electricity Civilian Conservation CorpsCivilian Conservation Corps (CCC)- provide jobs for young (CCC)- provide jobs for young

menmen National Recovery AdministrationNational Recovery Administration (NRA)- set minimum (NRA)- set minimum

wage, govern competition in businesswage, govern competition in business Public Works AdministrationPublic Works Administration (PWA)- built bridges, dams, (PWA)- built bridges, dams,

power plantspower plants FDR immediately starts a FDR immediately starts a bank holidaybank holiday- close all banks for 3 - close all banks for 3

daysdays Begins giving weekly speeches on radio to reassure the nationBegins giving weekly speeches on radio to reassure the nation

Fireside ChatsFireside Chats

Migrant Mother

Photo by Dorothea Lange


Opposition to the New DealOpposition to the New Deal Some thought New Deal was too radical, Some thought New Deal was too radical,

some thought it didn’t do enoughsome thought it didn’t do enough Most complained New Deal was making Most complained New Deal was making

the gov’t too big and powerfulthe gov’t too big and powerful These critics formed the These critics formed the American American

Liberty LeagueLiberty League- thought FDR was - thought FDR was socialistsocialist


FDR has 3 very outspoken critics:FDR has 3 very outspoken critics: Francis TownsendFrancis Townsend- favors giving checks to - favors giving checks to

citizens and money would “filter” outcitizens and money would “filter” out Charles CoughlinCharles Coughlin- said FDR wasn’t doing - said FDR wasn’t doing

enough to fight Depressionenough to fight Depression Huey LongHuey Long- Proposes a “Share Our Wealth” - Proposes a “Share Our Wealth”

solution- high taxes on wealthy, cut taxes for solution- high taxes on wealthy, cut taxes for middle classmiddle class

The Second New DealThe Second New Deal

GoalsGoals:: Promote general welfarePromote general welfare Intervene to protect citizens’ rightsIntervene to protect citizens’ rights


Works Progress AdministrationWorks Progress Administration (WPA)- built/improved (WPA)- built/improved nations’ highways, etc.nations’ highways, etc.

New programs expensiveNew programs expensive gov’t uses gov’t uses deficit spendingdeficit spending (spending money you don’t have)(spending money you don’t have)

FDR creates the FDR creates the Social Security ActSocial Security Act- unemployment - unemployment insurance for workers/pension plan for retireesinsurance for workers/pension plan for retirees

FDR still trying to help farmersFDR still trying to help farmerselectricity- electricity- Rural Rural Electrification Admin (REA)Electrification Admin (REA)

Gov’t gives price supports (Gov’t gives price supports (subsidies)subsidies) to farmers to farmers Surge in labor union membershipSurge in labor union membership Wagner ActWagner Act

guaranteed employees the right to join and labor unionguaranteed employees the right to join and labor union


Act also granted Act also granted collective bargainingcollective bargaining- right to - right to negotiate between employer and employeenegotiate between employer and employee

1936-FDR re-elected1936-FDR re-elected Supreme Court begins to question FDR’s Supreme Court begins to question FDR’s

authority to create ND programsauthority to create ND programs SC nullifies the NIRA and AAASC nullifies the NIRA and AAA FDR decides to “FDR decides to “pack the courtspack the courts””

FDR proposed increasing number of SC justices from FDR proposed increasing number of SC justices from 9 to 15, “packing court” with ND supporters9 to 15, “packing court” with ND supporters

SC suddenly starts ruling in favor of FDR’s policiesSC suddenly starts ruling in favor of FDR’s policies

After his reelection in 1936, and as a reaction to opposition he was getting from the Supreme Court, FDR attempted to "pack" the Court by enlarging it (by 6 judges) and then appointing justices who would agree with his approach. This cartoon is a commentary on the Roosevelt "court-packing" episode.


Effects of the New DealEffects of the New Deal Women’s role in society Women’s role in society

expands b/c of expands b/c of Eleanor Eleanor RooseveltRoosevelt

ER fights for AA rightsER fights for AA rights Black Black CabinetCabinet- AA leaders to advise - AA leaders to advise FDRFDR

FDR runs for a 3rd and 4th FDR runs for a 3rd and 4th term in 1940 and 1944term in 1940 and 1944

FDR had created a solid FDR had created a solid supportive groups of supportive groups of DemocratsDemocrats New Deal New Deal CoalitionCoalition

Southern whites, AA, farmers, Southern whites, AA, farmers, northern workers, immigrantsnorthern workers, immigrants


Legacy of the New DealLegacy of the New Deal New Deal increases size of Fed. Gov’t- New Deal increases size of Fed. Gov’t-

some programs still aroundsome programs still around ND didn’t end Depression, but helped ND didn’t end Depression, but helped

restore economyrestore economy FDR rejected FDR rejected laissez fairelaissez faire economics- economics-

leads to leads to welfare statewelfare state provide for all US provide for all US citizenscitizens

Documents

The Great Depression and the New Deal