U.S. History: Great Depression & The New Deal 1929-1941 Knight

U.S. History: Great Depression & The New Deal

1929-1941Knight

Presidents during the Great Depression

Herbert Hoover 1929-1933 Franklin D. Roosevelt 1933-1945

Causes of the Great Depression

• 1. Stock Speculation– Buying stock when the

price is low and selling it when the price rises in hopes of making a quick profit

– When stock market crashed many Americans were left with worthless stock

Review Roaring Twenties Video


• 2. Buying on the margin– People were able to

purchase stocks by paying as little as 10% of the stock’s value

– They then borrowed the rest of the money from the bank or the stock broker in hopes of repaying when the stocks increased


3. Overproduction

-various industries kept up production even though there was not a demand from the market

-Examples: Automobiles, crops, construction

*Supply exceeded demand which made prices fall

Causes of Great Depression

• 4. Uneven distribution of wealth– “The rich got richer

and the poor got poorer.”


• 5. Consumer Debt– Americans were in

debt due to installment buying in the 1920’s for household and farming goods


• 6. International Debt– U.S. lent millions of

dollars to the Allies in WWI and those countries were not able to repay loans


• 7. Lack of government regulation of businesses and the stock market


• 8. Stock Market Crash-October 29, 1929-Black Tuesday– The spark that began

the depression– 16 million shares of

stock were traded– By the end of 1929,

stock price losses exceeded that of the cost of WWI Crowd outside of Wall Street on Black

Tuesday

Effects of the Great Depression

• Effects on society– 25% of the workforce

were unemployed at its peak

– Wages were as low as $.10 per hour

– Blacks often first fired– Women who worked

for less than men were often retained

– Many sold produce on the street

View Great Depression Begins Video


• Effects on Cities– Cities tried to provide

relief with Red Cross and Salvation Army

– Breadlines were common

– Shantytowns developed outside of cities-came to be called Hoovervilles

– Poverty and crime spread throughout US

Hooverville with Christmas Tree

Salvation Army

Job Bureau

Welcome to Hooverville


Effects of Great Depression

• Effects upon farming– Farmers had more than

they could sell-prices dropped

– Farmers could not afford mortgages and many “lost the farm”


• Effects of families– Families moved in

together– Divorce rates rose– Young people waited

to get married and start families

– Women made their own bread, soap, clothes out of flour sacks, etc.

– Families rented out rooms of their houses Christmas dinner in Iowa, 1935

View 1930’s Summary Video










• Effects on the Economy– Gross National

Product fell from $103 billion in 1929 to $56 billion in 1933

– GNP is all of the goods and services produced in a year

Effects on the Economy-Cont.

• 20% of banks closed• Once bank closed all

money in it is lost• Investors and businesses

lost millions of dollars• Production was

drastically cut, costing jobs and plants to close down

Police guarding the banks as they are closed.


Hoover’s Policies during Depression

• Herbert Hoover was elected in 1928 promising “a chicken in every pot, a car in every garage.”– Was blamed for much

of the depression even though it was not his fault

– Hoover was in the wrong place at the wrong time

Herbert Hoover

Hard Times are still “Hoovering” over usView Hoover Video

Hoover’s Policies• Hoover did not feel it

was governments responsibility to provide direct relief to the people

• Hoover felt local governments should help and charities

Hoover listening to radio

Hoover Dam

Hoover’s Policies

• Reconstruction Finance Corporation– Helped faltering

railroads, banks, life insurance companies.

– *Hoover tried to stabilize key businesses.

Hawley-Smoot Tariff

• Passed in 1930 to help protect American businesses

• One of worst economic decisions Hoover made

• Causes depression to spread worldwide and brings world trade to a near stop

Representative W.C. Hawley and Senator Reed Smoot

Bonus Army and Bonus March

• 1932 thousands of WWI veterans marched to Washington asking for payment of bonus to be given in 1945.

• Veterans camped out in shantytown outside of the Capitol and White House

• Congress did not give them “bonus”

Bonus Army and Bonus March

Homeless Family searching for work and shelter

“Brother can you spare a dime”

• Lyrics to a famous song of the depression

• Song tells of hardships faced by Americans during the depression

• Lyrics– They used to tell me I was building a dream – And so I followed the mob. – When there was earth to plow or guns to bear, – I was always there, right on the job. – They used to tell me I was building a dream – With peace and glory ahead -- – Why should I be standing in line, just waiting for bread? – Once I built a railroad, I made it run, – Made it race against time. – Once I built a railroad, now it's done -- – Brother, can you spare a dime? – Once I built a tower, up to the sun, – brick and rivet and lime. – Once I built a tower, now it's done -- – Brother, can you spare a dime? – Once in khaki suits, gee, we looked swell – Full of that Yankee Doodle-de-dum. – Half a million boots went slogging through hell, – And I was the kid with the drum. – Say, don't you remember they called me Al, – It was Al all the time. – Why don't you remember, I'm your pal -- – Say, buddy, can you spare a dime? – Once in khaki suits, ah, gee, we looked swell – Full of that Yankee Doodle-de-dum. – Half a million boots went slogging through hell, – And I was the kid with the drum. – Say, don't you remember they called me Al, – It was Al all the time. – Why don't you remember, I'm your pal -- – Buddy, can you spare a dime?

Scottsboro Case

• 9 black teenage boys were accused of raping two white girls on a train

• An example of intolerance of the time period

• Inspired the book “To Kill a Mockingbird”

Scottsboro Boys

Dust Bowl

• A terrible drought and heavy winds blew the dry topsoil in the mid-west to the east.

• Made worse by poor farming practices (lack of crop rotation)

• Many farmers packed up and moved West to California

• Were called Okies (most moved from Oklahoma)

• Inspired book The Grapes of Wrath

Dust Storm in Colorado 1935

Family in Dust Storm

Dust Bowl

Dorothea Lange

• Photographer during the Great Depression whose photographs help bring aid to farmers out west

Dorothea Lange -1936

Migrant Mother -Lange’s most famous picture

Dorothea Lange’s Pictures

Election of 1932

• Franklin D. Roosevelt, Democrat, defeated Herbert Hoover by promising a “New Deal” for America

• FDR promised social programs that helped ease the depression

Hoover in 1932 Campaign

FDR at Political Rally in 1932

Roosevelt to Hoover: “Just leave them Herb. I’ll do it all after March 4th.”

Why a New Deal was needed?

1. Great Depression had worsened

2. American banking system was near collapse

3. Millions of people were jobless

4. Many businesses were bankrupt

FDR Reassures the nation

• “The only thing we have to fear is fear itself”-FDR

• Bank Holiday– All banks in US were

closed– Only banks that were

stable were reopened

• Fireside Chats– Radio addresses by FDR

to tell America what was going on and reassure them on “their level”

View Franklin D. Roosevelt Video

Goals of the New Deal

• The 3 R’s• Relief, Recovery, and

Reform• Relief to the people who

were poor, hungry, and unemployed

• Recovery to businesses that were failing

• Reform the economic institutions in the US

Alphabet Soup/ ABC Agencies

• EBRA-Emergency Banking Relief Act– Allowed federal govt. to

examine banks• FDIC-Federal Depository

Insurance Corporation– Guaranteed bank deposits

up to $5,000. Put faith back in banks

• FERA-Federal Emergency Relief Act– Gave federal money to

states to offer soup kitchens and help homeless

View New Deal Video


• PWA-Public Works Administration– Gave federal dollars to states

and local govt. to build roads, bridges, schools, etc.

• WPA-Works Progress Administration– Provided thousands of jobs

from 1935 to 1940– Built roads, schools, etc. but

also helped writers and artists

• CWA-Civil Works Administration– Worked on construction

projects

WPA mural on wall

CWA working on road construction


• TVA-Tennessee Valley Authority– Promoted regional

development and public planning in one of poorest regions in US

– TVA built dams, operated electrical power plants, manufactured fertilizer, and worked with flooding and erosion

Hydroelectricity plant built in Alabama by TVA

2005 Map of TVA locations: Red-dam, Purple-nuclear, Orange-fossil fuels

Alabama Video


• CCC-Civilian Conservation Corps– Employed young men

ages 18-25– Jobs included

outdoors fighting fires, restocking lakes with fish, restoring battle fields, cleaning up cemeteries, etc.


• NRA-National Recovery Administration– Guaranteed reasonable profits

for businesses and fair wages for labor

• AAA-Agricultural Adjustment Administration– Encouraged farmers to reduce

production. Gave money to farmers for NOT farming on land. 6 million pigs were slaughtered.

• *Both of these Acts were declared unconstitutional by the Supreme Court

Hog Reduction Program of AAA


• SEC-Securities and Exchange Commission– A federal agency that

regulates the stock market and limits speculation

• FHA-Federal Housing Administration– Insured bank loans on new

homes and old houses

FDR signing bills into law


• NLRA-National Labor Relations Act or Wagner Act– Passed in 1935– Wagner Act gave workers

the right to join a union and collectively bargain

– Outlawed unfair business practices

• Social Security Act-1935– Federal insurance program

that paid people over 65, disabled, and children whose parents are deceased

View Second New Deal Video

Movies and Radio• Movies remained very

popular during the Depression.– People wanted an

escape from tough times

– Gone with the Wind

• Radio was very popular– The Lone Ranger, The Shadow,

and

War of the Worlds

Criticisms of the New Deal

• 1. gave the government too much power

• 2. government borrowed too much money for programs

• 3. did not help minorities, elderly, and women enough (although African-Americans begin to leave the Republican Party and join Democratic)

Critics of the New Deal

• Father Charles Coughlin– Catholic priest who used

his radio show to oppose the New Deal.

– Called New Deal an “evil conspiracy” and a form of fascism

• Senator Huey Long– Previous Governor from

Louisiana who proposed the “Share our Wealth” Program.

– Provide $5,000 every year to families

Critics of the New Deal

• Supreme Court– Struck down NRA and AAA

as unconstitutional

• FDR proposed the Court Packing Bill or Judiciary Reorganization Bill– President could appoint new

justices for every one over 70 years old

– Would make the Supreme Court have 15 members and FDR could appoint 6 new ones

• FDR is widely criticized for this

Effects of the New Deal

• Keynesian economics– Deficit spending is ok in

difficult times• Unions grew more powerful• Social Security is established• Role of the US government is

greatly expanded• Government spending is

increased dramatically• Americans began to depend

on the government more• People who lived through this

era are greatly impacted for the rest of their lives

Video Quiz

Documents

U.S. History: Great Depression & The New Deal 1929-1941 Knight