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Depression and New Deal


Depression and New Deal Chapter 24 – PowerPoint PPT presentation

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Title: Depression and New Deal

Depression and New Deal
  • Chapter 24

Election of 1928
Hoovers solid reputation, Smiths
anti-prohibition stance that divided Democrats,
and the Coolidge Prosperity allowed for an easy
Republican victory
Herbert Hoover Republican Alfred E. Smith -
Hoovers Beliefs
Hoover believed in limited federal government
intervention, and generally left problems to the
state and local governments, as well as voluntary
associations and big business (which he did not
Great Depression Events
  • Events leading to the Depression were
  • 1928 Wave of stock investors speculating on
    borrowed money bought stocks in the hope of quick
  • Oct, 1929 Black Thursday and Black Tuesday
    stock market crash and runs on the bank to get
    money out

Stock Market Crash
The stock market and the economy continued to go
down throughout Hoovers Presidency
Causes of the Depression
  1. Buying stock and consumer goods with borrowed
    money (on credit through the installment plan)
    leading to debt for consumers and overproduction
    for businesses (who think more people are buying)
  2. Uneven prosperity of the 1920s (rich get richer,
    poor arent helped, farmers suffer)
  3. Lack of Global Trade high tariffs in the US and
    in other nations hurt trading opportunities and
    Europes lack of money during the 1920s means
    that we cant get bailouts from them

Hoovers Response
Hoover believed that the economy would turn by
itself and it took until late in his Presidency
to spend federal money He advocated for the
Hawley-Smoot Tariff (raised tariffs which hurt
more), Suspension of debt payments from Europe,
the Federal Farm Board to help farmers, and the
RFC gave emergency loans to important businesses
that were failing
Hoovers lack of action led to homelessness and
the development of shantytowns, which poor people
referred to as Hoovervilles
Great Depression Unemployment
The Bonus Army Incident
Hoover also refused to give federal aid to
farmers and drove away the Bonus Army (wanting
their WWI bonuses)
Election of 1932
Hoovers lack of popularity and Roosevelts
promise for a New Deal with spending cuts, the
end of prohibition, and unemployment aid helped
him win easily To make matters worse for Hoover,
the 20th Amendment was passed to remove him from
office quicker
Republican Herbert Hoover Democrat Franklin
Roosevelts Presidency
Roosevelt focused on the three Rs relief,
recovery, and reform and in the first hundred
days proposed several plans that Congress passed
known as the First New Deal He put around him a
Brain Trust of Individuals John Nance Garner
Vice President, Eleanor Roosevelt First Lady,
Secretary of Labor Frances Perkins, Interior
and PWA head Harold Ickes, Agriculture Henry
Wallace, Treasury Henry Morgenthau, NRA Hugh
Johnson, RFC Jesse Jones, CWA Harry Hopkins
Roosevelts Fireside Chats
  • On the Bank Crisis - Sunday, March 12, 1933
  • Outlining the New Deal Program - Sunday, May 7,
  • On the Purposes and Foundations of the Recovery
    Program - Monday, July 24, 1933

A Chat with FDR
  • Roosevelts Fireside Chats were designed to
    connect with citizens and explain to them what
    his programs were. With your New Deal Program
    write a radio broadcast explaining
  • The reason why the program is needed (what was
    the cause of this problem in the first place)
  • How this program will solve the problem (what it
    will actually do, how it will help)

New Deal and the Budget
  • Budget Expenditures
    CWA, WPA and FTP, Farmers Administrations
  • Budget Balancers
  • -Revenue Act (raising taxes on wealthy) and
    Social Security Act

Opposition to the New Deal
  • While most people backed Roosevelt
  • Conservatives claimed FDR was socialist, hurt
    business, and increased the deficit (American
    Liberty League)
  • Liberal Demagogues claimed he needed to
    nationalize banks (Coughlin), give money to
    retired people (Townsend), and that a Share Our
    Wealth program should be adopted (Huey Long)

Election of 1936
Roosevelts new programs won him a coalition that
consisted of the Solid South, immigrants,
farmers, labor, minorities, elderly, but not big
business (pro-union, Revenue Act) The national
strength of his coalition showed in his
overwhelming victory
The Court-Packing Bill
Despite Roosevelts political success, he was
unhappy that the 1930s Supreme Court ruled his
programs unconstitutional, and called for a bill
to replace the justices with new ones Roosevelt
failed and his opponents accused him of
court-packing, but he did ultimately get his
wish as many retired in the late 30s
The 1932 Supreme Court
The Recession of 1937
Caused by the Social Security Tax and cutbacks on
government spending to balance the budget because
it tightened the economy Afterwards, Roosevelt
adopted Keynesian economics and used deficit
Dust Bowl
  • The psychological impact of the Depression caused
    stress to millions, especially
  • Farmers with the Dust Bowl (many leave for
  • Families and Women with home duties and needing
    to supplement family income (birth and marriage
    rates down)

Unions in the 30s
Labor Unions were helped by the New Deal with the
organizations of the AFL (skilled labor) and the
CIO (unskilled workers) that won strikes (General
Motors Strike in Flint, MI) and cases (US v.
Darby Lumber Co. which upheld child labor laws)
Depression Gains and Setbacks
  1. African-Americans faced racial discrimination
    that made them the last hired and first fired,
    and they were purposefully excluded from some
    programs due to Roosevelts commitment to the
    South, but nonetheless voted overwhelmingly
    Democratic due to getting some New Deal help,
    appointments to federal positions, and the Marian
    Anderson concert
  2. Mexican-Americans were discriminated against and
    the amount of immigrants slowed dramatically once
    there was a lack of work
  3. Native Americans were helped by the Indian
    Reorganization Act and John Collier, both of
    which worked to give the natives back control
    over their lands

Escaping the Depression 30s Culture
Judy Garland in The Wizard of Oz (1939) and
Walt Disney with the Seven Dwarves (1937)
An even more homogenous culture existed in the
30s with radio and movies providing avenues of
escape from life (usually comedies), but growing
apprehension was clear with the War of the
Worlds radio announcement about an invasion from
Orson Welless War of the Worlds
Artists and Architects
Writers admired American resilience and the
enduring of capitalism, and were backed by the
government (WPA, FTP) to produce nationalist
writing, art, and music (jazz, swing)
projects Architects developed streamlining, which
took ideas of functionality and expanded them to
develop new designs
Streamlining buildings allows for air to better
travel around it
In a state of Depression
  • Pick one of the following types of people and
    create a diary entry that explains daily life for
    them in the 1930s. Give at least 3 things for
    them to do and hardships that they would have
  • African-American
  • Mexican-American
  • Artist, Writer, Musician
  • Labor Union Worker
  • Big Businessman
  • Mayor or Governor
  • Farmer