The Great Depression and The New Deal

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The Great Depression and The New Deal
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Causes of the Great Depression
Problems in Industry
Consumer Spending
Problems in Farming
The Stock Market
Distribution of Wealth
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The Great Depression lasted from October 1929
until the economic recovery of the 1940s. On
October 29, Black Tuesday, the stock market
crashed, and continued to fall throughout the
coming weeks. As a result, the United States and
the world were thrown into a decade of poverty
and unemployment.
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• The depression affected all sectors of the
  economy.
• Farm owners and agricultural workers suffered
  from falling crop prices.

Sharecroppers Children Dorothea Lange
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• Businesses failed from a lack of investment
  support and a decline in the ability of the
  masses to afford their products.

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• Banks closed their doors as the nation's citizens
  hoarded their money and defaulted on loan
  payments.

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• Unemployment and abject poverty enveloped the
  nation.

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Herbert Hoover was President at the onset of the
depression. He believed in recovery, even in the
face of worsening conditions.
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Hoover believed the economy would right itself
without government intervention.
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The situation did not improve, and Hoover
established a program to build the Boulder
Dam. But it was too little too late.
http//www.sunsetcities.com/hoover-dam.html
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Hoover lost the Presidency to Franklin Roosevelt
in the 1932 election.
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Roosevelt promised the American people a New
Deal.
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FDR quickly shifted from a policy of
non-intervention to one of government regulation
and relief. During the first hundred days of
his Presidency, FDR and his highly trusted
advisors, known as the Brain Trust created the
New Deal.
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To restore public confidence in the government
FDR introduced his fireside chats. These were
radio talks where the President spoke directly to
the public.
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Three Goals of the New Deal
1. Relief for the Needy
2. Economic Recovery
3.Financial Reform
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Reforming Banking and Finance
One of the first acts was The Emergency Banking
Relief Act. 1.What was the purpose of this
act? 2.What was the Bank Holiday?
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Reforming Banking and Finance
The Glass-Steagall Banking Act 1933 was one of
the New Deal Reforms. 3.What was the purpose of
this act? 4.What is FDIC?
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Reforming Banking and Finance
The Federal Securities Act was another act passed
in the early days of FDRs administration. 5.
Explain this program and how it still affects the
stock market today?
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By using implied power to expand the powers of
the executive branch, FDR created a number of
agencies to aid agriculture, business, and the
unemployed.
Art. I Section 8 Clause 18 The necessary and
proper clause
http//www.nisk.k12.ny.us/fdr/index.html
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Alphabet Soup !

• Numerous New Deal programs
• were created. Most were known
• by letters instead of by their
• official names.
• Many of these agencies were
• designed to provide employment.

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AAA
Agriculture Adjustment Act 1938
6.What was the purpose of this act ? 7.Was it
successful, explain? 8.Why did some of AAA
policies upset many Americans?
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PWA
Public Works Administration
9.What was the purpose of this act ? 10.Give
examples of the types of projects completed by
PWA workers.
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CWA
Civil Works Administration
11.Why was this program established? Give
examples of construction completed by CWA. 12.
What did its critics say about CWA?
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CCC
Civilian Conservation Corps
13.Explain what this program provided.
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CCC Camp at DeSoto State Park, Alabama
Talladega National Forest was the site of CCC
work camps.
CCC workers at Fort Payne, AL
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FERA
Federal Emergency Relief Administration
14.What was the purpose of FERA? 15.How were the
funds used?
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NIRA
National Industrial Recovery Act 1933
16.What was the purpose of this act ? 17. What
agency did NIRA establish? 18.What were some of
the regulations established by this agency?
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HOLC FHA
Home Owners Loan Corporation 1933 Federal Housing
Administration 1934
19.Why were these programs established? 20.
Which one still exists today?
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TVA
Tennessee Valley Authority 1933
21.How was this program supposed to help people?
Give examples. 22.Does this program still exist
today? If so, what benefits does it provide?
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In 1935 a number of Supreme Court rulings
effectively dismantled the primary mechanisms of
the New Deal. The NIRA was ruled
unconstitutional on the grounds that it gave the
President and the federal government too much
power.
31
In 1936 the AAA was struck down along with nine
other New Deal laws. Reelected in 1936, FDR
called for a plan to increase the number of
Justices on the Supreme Court from 9 to15. He
could then appoint Justices who would support his
programs.
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The Court Packing Scheme
http//www.nisk.k12.ny.us/fdr/index.html
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(No Transcript)
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http//www.nisk.k12.ny.us/fdr/index.html
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FDRs actions were viewed as an attempt to over
ride the separation of powers established by the
Constitution.
http//www.nisk.k12.ny.us/fdr/index.html
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The Critics of the New Deal
FDR and Congress had designed programs that
benefited millions of Americans, but there were
many who criticized the New Deal.
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REA
Rural Electrification 1935
23.What was the purpose of this program?
http//www.ou.edu/special/albertctr/archives/gdweb
.htmwater
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The 2nd One Hundred Days 1935- 1938
Gaining a public mandate with the Democratic
successes in the 1934 midterm elections in the
House and the Senate, FDR set forth the Second
New Deal in 1935.
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Steps were taken in attempts to solve the
unemployment problem and stimulate economic
recovery. The legislation passed during this
period would be the framework of the New Deal
throughout the remainder of the decade.
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NYA
National Youth Administration
The NYA provided work centers, vocational
training, recreational jobs and workshops for
everything from music to journalism.
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FSA
Farm Securities Administration
Resettlement Admin. (later Farm Security Admin.)
lent funds to small farmers to buy land instead
of renting or sharecropping
Homeless family tenant farmers
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Social Securities Act 1935
What was the purpose of this act ? Was it
successful, was it expanded, Did it have long
lasting effects? Give explanations and examples.
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Fair Labor Standards Act
What was the purpose of this act ? Was it
successful, explain?
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National Labor Relations Act
What was the purpose of this act ? Was it
successful, explain?
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WPA
Works Progress Administration

• Headed by Harry Hopkins Constructed roads,
  schools, hospitals, libraries, airports, etc.
• Between 1935 and 1943 over 8 million people were
  employed, building 850 airports, 110,000 public
  buildings including schools hospitals, and
  libraries
• Employed teachers, writers, artists, actors, and
  musicians

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WPA
provided jobs for many people, especially artists
by commissioning them to create posters promoting
events and informing the public of important
issues.
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WPA Posters
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FDR did get the Supreme Court majority that he
wanted. One Justice changed his views and one
retired. During his terms in office he appointed
nine Justices. Only Washington appointed more.
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The economy showed signs of recovery but was set
back by the 1937 recession. Few additional
measures were put in place to cope with the
depression. Economic recovery took place under
the war economy of the early 1940s, with levels
of poverty and unemployment returning to
pre-depression levels.
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The Depression brought marked changes to the
political and entertainment culture of the United
States. A culture of dissent and disillusionment
produced ample political outlets, such as Huey
Long's Share Our Wealth program. Popular
culture was affected as well.
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Radio shows, most were comedies and soap operas,
took people's minds off their troubles.
Hollywood also flourished, as people flocked to
the theatres to escape their everyday world of
poverty and despair.
The Golden Age of Radio.
Brace Beemer, Lone Ranger, giving broadcast
McFredden Publication, photograph by R. E.
Smallman.
http//www.lib.umd.edu/LAB/
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In contrast, intellectuals and authors delivered
a sharp dose of realism. Many were directly
critical of capitalism and supported political
alternatives, such as socialism or communism.
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The Great Depression produced a distinct
political response that defined the Democratic
Party throughout the twentieth century some New
Deal policies, such as Social Security, are now
considered bedrock rights of American citizens.
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Under FDR, a new conception of the federal
government emerged, based on the belief in
economic regulation and social welfare.
WPA Poster New Deal aids farmers
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Resources
http//newdeal.feri.org/ http//newdeal.feri.org/
library/2 http//www.davison.k12.mi.us/DHS/staff
/Hewitt/webquests/newdeal/NewDealquest.htm http/
/www.davison.k12.mi.us/DHS/staff/Hewitt/hewitt3.ht
m http//www.ihffilm.com/ihf/hueylong.html http
//history1900s.about.com/library/photos/blygd42.ht
m