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The Great Depression


THE GREAT DEPRESSION& THE NEW DEAL 1928-1942 Unit 6 TWO MAIN THINGS TO REMEMBER Many people looked to the arts/movies/radio for an escape from their lives during the ... – PowerPoint PPT presentation

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Title: The Great Depression

The Great Depression The New Deal 1928-1942
  • Unit 6

Themes To Look For While You Are Reading
  • Notice how the 1920s were great for anybody that
    wasnt farming
  • Look at the credit habits of the 1920s and
    compare it to todays credit crisis
  • Keep mental or written notes about what happens
    after the Great Depression

Causes of The Great Depression
  • Daily Questions
  • To What did Hoover attribute the economic
    prosperity of the U.S in the 1920?
  • Why did so many American farmers face economic
    hardships in the 1920s
  • What was the causes of the soaring stock prices
    during the 1920s
  • How were the stock market crash and the collapse
    of the banking system related

Bell Work
  • Look at this picture from the Depression and
    write a short response to it.
  • This can be in your own words and is your opinion
  • Your response needs to be at least one paragraph

Where we Are
  • 20s start tough but things get better quickly.
  • By 1926 AVG wages had risen by 28
  • The number of millionaires doubled
  • A consumer economy one that depended on a large
    amount of spending by consumers. This was a
    change Americans-once very thrifty.
  • 1928 Herbert Hoover became president of the
    United States a republican--- the 30s had been
    good under the Republicans. (Campaigned in
  • Things had went well for republicans so lets

So good to so bad why????
  • Causes of the Great Depression
  • Unequal distribution of wealth---too many had
    nothing too few had a lot
  • Buying on Credit--- interest rates were low, pay
    was good, new electrical products. Americans
    bought what they wanted not needed.
  • Over Production in Agriculture Industry
  • The Spark --- The stock market crash of 1929

Causes Of The Great Depression
  • There was a gross abundance of speculation in the
    United States of America- speculation- where an
    individual or groups invest on certain ventures
    to become wealthy
  • Stocks, often bought on borrowed money, became
    unstable and often even the most secure stocks
    failed over night

  • Also you must factor in the business cycle that
    is characteristic of the Capitalistic Economic
  • This states that you will have periods of
    economic growth and economy contraction. Both
    are natural and both typically last about the
    same amounts of time

Fishers Nine
  • Irving Fisher outlined 9 factors interacting with
    one another under conditions of debt and
    deflation to create the mechanics of boom to
    bust. The chain of events proceeded as follows
  • (1) Debt liquidation and distress selling
  • (2) Contraction of the money supply as bank loans
    are paid off
  • (3) A fall in the level of asset prices
  • (4) A still greater fall in the net worth's of
    business, precipitating bankruptcies

Fishers Nine
  • (5) A fall in profits
  • (6) A reduction in output, in trade and in
  • (7) Pessimism and loss of confidence
  • (8) Hoarding of money
  • (9) A fall in nominal interest rates and a rise
    in deflation adjusted interest rates

Fishers Nine Simplified
  • 1) Not paying of Debts and Fear selling
  • 2) Money Supply Deceases as loans to Banks are
    paid off
  • 3) Peoples net worth decreases
  • 4) Business's net worth continue to decrease
    bankruptcy becomes inevitable

Fishers Nine Simplified
  • 5) Business profits fall
  • 6) People Buy Less Businesses fire employees and
    make less goods
  • 7) People view the economy negatively
  • 8) People Stop spending money
  • 9) Savings account interest rates decline in
    value Loan interest rates increase.

The Stock Market
  • Company wants to get started or expand,--- they
    need money
  • Go to public sale shares of Co. called stock
  • People bought stocks on Margin--- buying on
  • 1 share cost 100.00
  • You buy 10 shares --- 100.00 your money borrow
    900.00 sale make a profit.
  • Everyone was doing it
  • You buy a lot with a little--- stocks sold for
    more than they were worth
  • 1929 29 brokers loan 40 million a month
  • Bull Market A strong market

1929 The Good times End.
  • Bear Market--- stocks go down 100.00 stock drops
    to 20.00 now you have a problem.
  • Oct. 29, 1929--- Black Tuesday bottom fell out of
    the stock market--- people panic go to banks to
    withdraw money (Nov. 2, 1929 Dec 24, 1931 March
    18, 1933)
  • Banks cant pay--- close their doors
  • 9 million savings accounts gone
  • 1yr after crash 1300 banks closed
  • In next 3 yrs 5000 banks close
  • no banks to supply capitol business industry
  • We are now living in a Depression one that will
    become the greatest the world has ever witnessed

Friedman vs. Keynes
  • Milton Friedman (1912-2006) believed that the
    Depression was caused by a lack of money
  • The stock market collapsing and a run on failing
    banks left too little money in the hands of the
    common person
  • John M. Keynes (1887-1992) argued that the lack
    of government interference in the economy led to
    the Depression
  • Keynes would argue that the government needed to
    spend more when the economy was down

Friedman Keynes
Impact of the Depression/Life During the
  • The Farmers Prices for farm goods get lower 1929
    wheat 1.04 per bushel 1932 0.38
  • Prices drop so low Farmers cannot make profits on
    goods that are shipped to market.
  • Dust Bowl a severe drought in central southern
    Great Plains not weather only but also poor
    farming methods
  • Black blizzards Dusts storms 60 of people lost
  • Farmers tried to help each other ex Penny
    Auctions people lose farms others bid for
    pennies give back
  • Farmers could at least eat.

The Others
  • 25 of Americans were unemployed (maybe more)
  • Many people become homeless (1933 est. 1 million
    people homeless)
  • Some travel rails/some live in shantytowns
  • Hoovervilles make shift homes, cardboard, old
    cars, crates

The Others
  • Many men abandon families when they can no longer
  • Teens will hit the road and become Hobos
  • Hunger was a problem for some (very little govt.
  • Breadlines soup lines (Churches Charities)
  • NY every 1 out of 5 will suffer malnutrition
  • Minorities women lose jobs- some Asians
  • Immigration dropped
  • Birth rate declines
  • Marriage rates decline
  • 28 increase in suicide (more men)

  • Between 1921 and 1929 annual average unemployment
    rates never rose about 3.7
  • 1933s rate was 24.9- meaning that almost one in
    four Americans did not have a job.
  • According to the BLS the unemployment rate for
    Monday November 3rd was 6.1

The Effect On The Average American
  • There is an old saying that a recession is when
    your neighbor losses his job, a depression is
    when you lose your job

  • Many Americans did not feel the effects of the
    Depression at first, but as the years wore on
    every American would
  • This could be anything from having work hours or
    pay cut, loss of benefits, loss of job, or in the
    worst cases the lost of your home

Hoover as President
  • Hoover is blamed. Hoover blankets (newspapers),
    Hoover Flags (empty pockets)
  • 1932 hitch hiker If you dont give me a ride
    Ill vote for Hoover
  • Hoover sees his role as a cheerleader--- people
    call out for help they want basic needs met.

Why Hoover wouldnt help
  • Create a huge bureaucracy that would make the
    government too big
  • Inflate govt. budget already worried because WWI
    countries not paying loans
  • Would take away self-respect.
  • Ideas come from
  • Rugged Individualism idea that success comes
    through individual effort Private enterprise

  • Often times in bigger cities, those who lost
    their homes would gather together what they could
    and build homes in public places
  • Hoovervilles-named for Pres. Hoover- became
    common sites across the country

Rural Life
  • Though times were hard, many of those that lived
    in rural areas did not experience the Depression
    as those living in the cities did
  • In the following slides we well see just some of
    the good, the bad and the ugly sides to living in
    the country rather than the city
  • The Good-
  • You could grow your own food
  • More resources such as firewood, water, and game
    for hunting.
  • Typically you already had what you needed on hand
    (so you could fix a lot of what broke)
  • Already knew how to survive on very little
  • You had alternative ways to make a living
    (Moonshing for one )

The Bad and the Ugly
  • The Bad- you had few legal ways to make extra
  • You had most likely borrowed on credit for so
    long that you wouldnt have much credit at the
    stores where you shopped
  • What you couldnt hunt, catch, or grow wasnt
    readily available- things like clothes, gas for
    tractors, and even medical attention
  • The ugly- prices for whatever you grew were so
    low you could hardly pay for what you needed
  • An example of this
  • A lb. of cotton that brought 35 in 1919 brought
    6.52 in 1932
  • Because you had borrowed so much on your land
    banks could easily foreclose on your farm

The Dust Bowl
  • The Dust Bowl was caused by two overwhelming
  • 1) Over use of lands by both poor agricultural
    practices and simple over use
  • 2) A drought that had gone on for several years

Values of Harvest Crops In The Dust Bowl Regions
  • Colorado -51
  • Kansas -53
  • New Mexico -32
  • Oklahoma -49
  • South Dakota -57
  • Texas -45
  • Wyoming -40

Human Effects Of The Dust Bowl
  • Because so many families had lost their farms to
    the banks, and the dust bowl took any other
    chances of a livelihood, many families were
    forced to leave their homes
  • The textbook states that something like 800,000
    people left their homes in Missouri, Arkansas,
    Oklahoma, and Texas

Serious Health Problems
  • Those caught in the middle of dust storms were
    left with either damaged lungs or death due to
    inhalation of dust in the air they were
  • Even cows developed health problems and often
    died from eating dust coated grass which turned
    to fatal "mud balls" in their stomachs. High
    speed winds pushed grains of dust into things
    such as farm equipment, barns, and homes

Hoovers effort to help
  • Invite business leaders to White House get them
    to maintain wages and employment
  • Local issue city and state govt. should create
  • FED help. Reconstruction Finance Corporation
    (RFC) govt. loans money to major economic
  • Home Loan Bank Act helps banks get back on
    feet---no very beneficial why? Who would take out
    a loan if you cant pay back?
  • Hawley-Smoot Tariff highest import tax in
    history made things worse

Hoovers effort to help
  • Hoovers ideas promoted by Trickle Down economics
    too little too late
  • Hoover failed as presidentHe was from a small
    town--- never able to change and adjust to meet
    needs of times--- Hoover takes blame.

Unemployment Numbers Throughout The Depression
  • 1929-3.2
  • 1933-24.9
  • 1939-17.9
  • 1940-15
  • Even into the 1940s the rate averaged around 15
    to 16

Effects on the World
  • Australia
  • Australia's extreme dependence on agricultural
    and industrial exports meant it was one of the
    hardest-hit countries in the Western world,
    amongst the likes of Canada and Germany. Falling
    export demand and commodity prices placed massive
    downward pressures on wages. Further,
    unemployment reached a record high of 29 in
    1932,38 with incidents of civil unrest becoming
    common. After 1932, an increase in wool and meat
    prices led to a gradual recovery.

Effects on the World
  • Canada
  • Harshly impacted by both the global economic
    downturn and the Dust Bowl, Canadian industrial
    production had fallen to only 58 of the 1929
    level by 1932, the second lowest level in the
    world after the United States, and well behind
    nations such as Britain, which saw it fall only
    to 83 of the 1929 level. Total national income
    fell to 56 of the 1929 level, again worse than
    any nation apart from the United States.
    Unemployment reached 27 at the depth of the
    Depression in 1933.39 During the 1930s, Canada
    employed a highly restrictive immigration

Effects on the World
  • France
  • The Depression began to affect France around
    1931. France's relatively high degree of
    self-sufficiency meant the damage was
    considerably less than in nations like Germany.
    However, hardship and unemployment were high
    enough to lead to rioting and the rise of the
    socialist Popular Front.

Effects on the World
  • Germany
  • Germany's Weimar Republic was hit hard by the
    depression, as American loans to help rebuild the
    German economy now stopped.41 Unemployment
    soared, especially in larger cities, and the
    political system veered toward extremism. The
    unemployment rate reached nearly 30 in 1932.42
    Repayment of the war reparations due by Germany
    were suspended in 1932 following the Lausanne
    Conference of 1932. By that time Germany had
    repaid 1/8th of the reparations. Hitler's Nazi
    Party came to power in January 1933.

Effects on the World
  • Japan
  • The devaluation of the currency had an immediate
    effect. Japanese textiles began to displace
    British textiles in export markets. The deficit
    spending, however proved to be most profound. The
    deficit spending went into the purchase of
    munitions for the armed forces. By 1933, Japan
    was already out of the depression. By 1934
    Takahashi realized that the economy was in danger
    of overheating, and to avoid inflation, moved to
    reduce the deficit spending that went towards
    armaments and munitions. This resulted in a
    strong and swift negative reaction from
    nationalists, especially those in the Army,
    culminating in his assassination in the course of
    the February 26 Incident.

Effects on the World
  • Japan
  • This had a chilling effect on all civilian
    bureaucrats in the Japanese government. From
    1934, the military's dominance of the government
    continued to grow. Instead of reducing deficit
    spending, the government introduced price
    controls and rationing schemes that reduced, but
    did not eliminate inflation, which would remain a
    problem until the end of World War II.

Effects on the World
  • Latin America
  • Because of high levels of United States
    investment in Latin American economies, they were
    severely damaged by the Depression. Within the
    region, Chile, Bolivia and Peru were particularly
    badly affected.

Effects on the World
  • Netherlands
  • From roughly 1931 until 1937, the Netherlands
    suffered a deep and exceptionally long
    depression. This depression was partly caused by
    the after-effects of the Stock Market Crash of
    1929 in the United States, and partly by internal
    factors in the Netherlands. Government policy,
    especially the very late dropping of the Gold
    Standard, played a role in prolonging the
    depression. The Great Depression in the
    Netherlands led to some political instability and
    riots, and can be linked to the rise of the Dutch
    national-socialist party NSB. The depression in
    the Netherlands eased off somewhat at the end of
    1936, when the government finally dropped the
    Gold Standard, but real economic stability did
    not return until after World War II.46

Effects on the World
  • South Africa
  • As world trade slumped, demand for South African
    agricultural and mineral exports fell
    drastically. The Carnegie Commission on Poor
    Whites had concluded in 1931 that nearly
    one-third of Afrikaners lived as paupers. It is
    believed that the social discomfort caused by the
    depression was a contributing factor in the 1933
    split between the "gesuiwerde" (purified) and
    "smelter" (fusionist) factions within the
    National Party and the National Party's
    subsequent fusion with the South African

Effects on the World
  • Soviet Union
  • Having removed itself from the capitalist world
    system both by choice and as a result of efforts
    of the capitalist powers to isolate it, the Great
    Depression had little effect on the Soviet Union.
    A Soviet trade agency in New York advertised
    6,000 positions and received more than 100,000
    applications.50 This was a period of industrial
    expansion for the USSR as it recovered from
    revolution and civil war, and its apparent
    immunity to the Great Depression seemed to
    validate the theory of Marxism and contributed to
    Socialist and Communist agitation in affected
    nations. This in turn increased fears of
    Communist revolution in the West, strengthening
    support for anti-Communists, both moderate and
    extreme. Unlike the previous similar famine in
    Russia, information about the Soviet famine of
    19321933 was suppressed by the Soviet
    authorities until perestroika

Effects on the World
  • Soviet Union
  • In 1933 workers' real earnings sank to about
    one-tenth of the 1926 level.51 Common and
    political prisoners in labor camps were forced to
    do unpaid labor, and communists and Komsomol
    members were frequently "mobilized" for various
    construction projects.

Effects on the World
  • United Kingdom
  • The effects on the industrial areas of Britain
    were immediate and devastating, as demand for
    British products collapsed. By the end of 1930
    unemployment had more than doubled from 1 million
    to 2.5 million (20 of the insured workforce),
    and exports had fallen in value by 50. In 1933,
    30 of Glaswegians were unemployed due to the
    severe decline in heavy industry. In some towns
    and cities in the north east, unemployment
    reached as high as 70 as ship production fell

Effects on the World
  • United Kingdom
  • The National Hunger March of SeptemberOctober
    1932 was the largest53 of a series of hunger
    marches in Britain in the 1920s and 1930s. About
    200,000 unemployed men were sent to the work
    camps, which continued in operation until 1939.

FDR Brings About Change
  • Where Hoover stood no chance of losing in 1928,
    in 1932 there wasnt a chance of him winning
  • In July of 32 the Democrats nominated Franklin
    D. Roosevelt at their convention in Chicago

  • In 1910, Roosevelt ran (and won) for the New York
    State Senate from Dutchess County, NY which had
    not elected a Democrat since 1884.
  • He was appointed Assistant Secretary of the Navy
    by Wilson in 1913.
  • In 1920 Democrats chose Roosevelt as the
    candidate for Vice President on the ticket headed
    by Governor James M. Cox of Ohio, but the
    Cox-Roosevelt ticket was heavily defeated by
  • Roosevelt then retired to a New York legal
    practice, but few doubted that he would soon run
    for public office again.

Governor Roosevelt
  • He would later run and win the governorship of
    New York and served in that run until he ran for

Gaining The Nomination
  • FDR was relatively new to national politics
    especially compared to John Cactus Jack Garner
    and Al Yellow Dog Smith who were originally in
    the forefront of the nomination race

  • Irish Bootlegger Joseph Kennedy
  • Al Smith had the city bosses, but Roosevelt had
    NYs Democrats .
  • Roosevelt built his own coalition with personal
    allies like Joseph P. Kennedy
  • After Garner switched to FDR, he was given the
    vice presidential nomination.
  • With Garners support FDR had the nomination

  • FDR was from a wealthy family, with an Ivy League
    (Yale) education.
  • Along with the politically savvy Franklin came
    his extremely smart wife Eleanor

The Election
  • Roosevelt
  • Democrat
  • New York
  • Rm- John Nance Garner
  • Electoral vote 472
  • States carried 42
  • Popular vote 22,821,277
  • Hoover
  • Republican
  • California
  • Charles Curtis
  • 59
  • 6
  • 15,761,254

The New Deal
  • After winning, FDR pledged a New Deal to combat
    the depression- New Deal being a new take on TRs
    Square Deal
  • FDR formed his brain trust cabinet with a group
    of highly educated, and specialized men

FDR the New Deal
  • New Deal turns out to be a day to day operation
    to see what will work
  • The 3Rs
  • Recovery industry agriculture
  • Relief put back to work
  • Reform make sure a depression does not happen
  • 1932 Election changed the way America will view
    the responsibilities of Federal Government
  • The 1st 100 days goes quickly to work pushing

The First 100 Days
  • Within the first 100 days of FDRs presidency he
    pushed through Congress 15 bills which was a
    record pass
  • Relief, Recovery, Reform or Three Rs were
    FDRs main concerns

Deficit spending paying out more than you take in
Early Acts and Work
  • Emergency Banking Act 4 days bank holiday-all
    banks closed. Govt. will inspect banks only those
    that are stable will reopen
  • Fireside Chats talked with Americans about
    banks. Banks reopen 1st time since 1929 more
    deposits than withdrawals
  • Glass-Steagall Banking Act est. FDIC insures

Creating Jobs (Public works- govt. funded
  • Civil Works Administration CWA 2.5 million men
    employed in about 1 month build roads, schools,
    parks, etc
  • Civilian Conservation Corps (CCC) young
    unmarried men sent to work plant trees, clean
    beaches, build parks earn 25-50 a month.
  • NIRA National Industrial Recovery Act
    Established NRA National Recovery
    Administration--- focused on the economy

Creating Jobs (Public works- govt. funded
  •  Federal government regulates wages (min wage)
  • Controls production
  • Business not happy No recovery allowed too
    rigid did not work well
  • Agricultural Adjustment Administration (AAA)
    designed to help farmers
  • Gave government subsidies or financial assistance
  • Also paid farmers to not grow crops
  • Tennessee Valley Authority (TVA) FDR focused
    help on One of Americans least modernized regions
    will provide cheap electric (hydro) power, flood
    control, recreation areas

  • The TVA was one of FDRs first administrations
    and had two main goals
  • 1) To prevent and control flooding in the
    Tennessee River Valley
  • 2) To hydroelectric up the whole dern
    south-Ulysses Everett McGill

The Whole Dam System
Other New Deal Programs
  • The Federal Deposit Insurance Corporation-
    insured bank deposits up to 5,000
  • The National Recovery Administration- established
    a minimum wage and minimum prices for goods
  • The Public Works Administration- built bridges
    and highways also very similar to
  • The Civilian Conservation Corps- which dealt with
    forestry issues and fought forest fires

Too Much OR Too Little
  • Alfred E. Smith, like many Republicans felt as if
    the New Deal made the government, and Democrats
    too powerful
  • Francis Townsend, along with many radical
    Democrats felt that the New Deal was far too
    little, and that more should be done
  • Townsend purposed a pension plan funded by a
    national sales tax

Smith and Townsend
The New Deal Gets Hit From All Over
  • "The great betrayer and liar, Franklin D.
    Roosevelt, who promised to drive the money
    changers from the temple, had succeeded only in
    driving the farmers from their homesteads and the
    citizens from their homes in the cities. . . I
    ask you to purge the man who claims to be a
    Democrat, from the Democratic Party, and I mean
    Franklin Double-Crossing Roosevelt." Father
    Charles Coughlin

Long and Coughlin
Huey P. Long and FDR
  • Long and FDR clashed over just about everything.
  • FDR tried to use Long for popularity in the
    South, but Long had bigger intentions
  • Neither of the two gained much in the end, but
    Long was one of the few people FDR couldnt
    control completely

The Brain Trust
  • FDR did not work alone his hardworking cabinet
    and advisors became known as THE BRAIN TRUST
  • 1st president to appoint women to cabinet Frances
  • Also hires African Americans
  • Eleanor very active (protested Jim Crow)
  • All these efforts did not make a big impact
    America was still struggling.

The Second New Deal 1935
  • Many conservatives disagreed with FDR either on
    the fact of the power in the New Deals or the
    costs of them
  • period of bolder legislation will include more
    social welfare, stricter controls over business,
    stronger support for unions, more taxes for rich

  • The Second New Deal addressed the same problems
    that the first had, but was somewhat watered down
    to please the Republicans and those who had
    protested the first New Deal
  • Most of the administrations of the first New Deal
  • If they did not they were reworked and renamed.

  • WPA Works Progress Administration designed to put
    millions to work quickly- much like CWA will
    employ about 8 million public works cultural
    activities musicians, artist, historians. By 1941
    40 of unemployed now w/ WPA
  • --- earned reputation of being involved in making
    work projects We Pittle Around
  • 1930s only 10 of people in rural areas had

  • Rural Electrification Administration (REA)- govt.
    makes loans to get electricity means appliances
    benefits manufacturing
  • Wagner Act Legalized union practices,
    collective bargaining and closed shops
  • Fair Labor Standards banned child labor
    established minimum wage had been attempted under
    NIRA but declared unconstitutional this time it
  • Social Security Act old age pensions for
    workers, unemployment insurance, aid for
    dependent children, blind disabled
  • FDR Reelected in 1936

Critics of the New Deal
  • Women and minorities
  • NRA codes allowed womens wages to be lower
  • Jobs were given to men first
  • African Americans not offered jobs at the
    professional level
  • Did nothing to end discrimination

Critics of the New Deal
  • Republicans the New Deal does too much
  • NIRA declared to be unconstitutional along with
    other programs
  • Progressives Socialist (the political left)
    (Upton Sinclair EPIC end POV. In California

Critics of the New Deal
  • Huey Long. Gov LA, US Senator SOW share our
  • All American Families 500.00 dollars old age

  • Home

  • Free Education

  • 2,500 yr. income
  • Paid for by extremely high taxes on wealthy
  • Killed by son of a rich man
  • Modern critics--- responsible for Big government,
    heavy taxes

Court Packing Scheme
  • FDR frustrated by Supreme Court (unconstitutional
    NIRA, AAA) So he tried to pack the court
  • FDR ask Congress for 6 new Supreme Court judges
    Add a justice for each one over 70 pack w/ people
    that will support his programs
  • FDR would control Supreme Court--- attack on
    checks and balances---- aroused more opposition
    than anything FDR tried to do. (only major
    political defeat)

The Second New Deal
  • The Social Security Act- was an attempt to limit
    what were seen as dangers including old age
    poverty, unemployment, and the burdens of widows
    and fatherless children
  • Work Projects Administration- was the largest New
    Deal agency, employing millions of people and
    affecting most rural and western mountain
  • Banking Act of 1935- finalized the creation of
    the FDIC and made insurance for bank deposits
    permanent created a board to regulate the
    nations money supply and interest rates on loans
  • Fair Labor Standards Act- Banned child labor,
    established a minimum hourly wages, and set the
    workweek at 44 hours

The Social Security Act In Some Depth
  • The act had many flaws
  • Many domestic and farm workers were left out of
    the act
  • This largely effected African Americans and women
    who primarily held such jobs.
  • That being said the first recipient was Ida May

Fair Labor Standards Act The Wagner-In Some
  • The Fair Labor Standards act set a minimum wage
    at 25 cents per hour
  • 44 hours was the maximum allowed in a work week
  • The Wagner Acts official name was the National
    Labor Relations Act
  • It meant that labor unions could officially
    bargain for better pay and wages
  • Finally it created the National Labor Relations
    Board to handle workers complaints

Labor Unions In The Depression
  • Labor Unions increased in membership and thus
    power through the 1930s
  • FDRs pro-union policies were meant to raise the
    wages and standard of living for workers
  • Those higher wages would then be turned back into
    the economy
  • Roosevelt felt that a drop in union membership
    would have an adverse effect on the economy

John L. Lewis The CIO
  • John L. Lewis was then the president of the
    United Mine Workers Union
  • The UMW and other unions had grown tired of the
    AFL and split off to form the Congress of
    Industrial Organizations (CIO)

  • The CIO was typically made up of lower paid and
    ethnic workers
  • In Dec of 1938 members of the UAW (a CIO
    spin-off) staged a sit-down strike at a GM plant
    in Flint, Michigan
  • The strike lasted 44 days but ended when GM
    recognized the UAW and their demands

Holes In The New Deal
  • In 1935 the Supreme Court began looking at the
    New Deal from a Constitutional standpoint
  • In the case of Schechter Poultry v. United States
    the SC unanimously ruled that the President had
    no power in regulating interstate commerce and
    that the NIRA was unconstitutional
  • Shortly after this, the SC ruled parts of the
    Agricultural Adjustment Act unconstitutional
  • Roosevelt responded by saying that the court had
    set the country back to horse and buggy days
  • The work that FDR had done is his first 100 days
    was being erased

Court Packing
  • FDR, addressing Congress, unveiled a plan that
    would weaken the seated justices of the SC
  • His plan proposed adding as many as six new
    justices to the already sitting nine
  • This was based on FDRs feeling that those
    sitting on the bench were getting old and were

Critics Catch On To FDRs Plan
  • Many recognized FDRs plan and knew that these
    new justices would most likely be FDR supporters
    that would favor the New Deal
  • They criticized FDR of trying to pack the court
    with New Dealers

  • FDR might have convinced Congress to make the
    move to nine justices, but the court ruled in
    favor of the New Deal on several consecutive
  • Two of these upheld the Wagner Act
  • On two of the cases, Justice Owen Roberts
    provided the deciding vote
  • Many called Roberts voted were switched in time
    to save nine
  • Shortly after these votes Judge Willis Van
    Devanter left the court because he felt the court
    was not acting appropriately
  • This allowed FDR to appoint a New Dealer to the
    court and give him the power he needed

Switch In Time To Save Nine Van Devanter
Court Packing Cartoons
What Is The Effect Of All This?
  • After the New Deal, the government would play an
    ever increasing role in the lives of the American
  • Many New Deal administrations/acts are still
    around today (FDIC, Social Security, Headstart,
  • Besides the lasting effects, the New Deal had an
    enormously positive effect on the people of the

Changes Brought About By FDR
  • One social change is the role of the First Lady
  • Until Eleanor, the First Lady was seen and rarely
  • After Eleanor, First Women were often put in the

  • On a larger political scale, FDR made the
    Democrats what they are today.
  • Until this point, for the most part, the
    political parties were reversed
  • FDRs expanding the role of the government will
    continue to this day
  • FDR had also been hugely popular in the then
    Democratically Solid South
  • Even though he pushed for civil rights, many
    Southerners saw the New Deal as a saving grace
    during the Depression, and FDR as the man that
    brought it

The First New Deal
Hundred Days- Time between March 9 and June 16,
1933 when Congress passed 15 major acts to meet
economic crisis.
The Second New Deal
Effects of the New Deal
  • National debt 1933 21 billion dollars 1940 43
    billion dollars
  • Union Membership 1933 3 million people 1941
    10.5 million people
  • Many public work projects still exist
  • Fed agencies TVA,FDIC, Social Security

Two Main Things To Remember
  • Many people looked to the arts/movies/radio for
    an escape from their lives during the Depression
  • Remember the number from the 1920s
  • 60 to 100 million a week in the 1920s
  • The U.S government saw this and went to work
    putting together projects and legislation that
    kept many artists in work
  • In addition it allowed the government to regulate
    what was seen and pass the word along

  • Most of the movies produced were Good v. Evil
    types where good always wins
  • Think about Wizard of Oz- Dorothy gets the Wicked
    Witch of the West

Commentary On Society
  • In films like G-Men and Mr. Smith Goes to
    Washington the American ideal of government
    winning over greed and corruption were with the
    government and audiences alike because the main
    characters fought greed and corruption

  • The likes of Bob Hope, Studs Terkel, and Jack
    Benny all got their starts in radio during the
  • Radio programs of the 30s were much like the
    soap operas of today

  • Monopoly could not have been created at a better
    time in history.
  • The most popular aspect of it was the fact that
    you could own property in the game, even if you
    could not in real life
  • Many families, who could not afford a full game
    set, would improvise and create their own game
    pieces or rules

The New Deal And The Arts
  • Noticing that many artists and writers faced hard
    times by nature and were facing even harder time
    with the Depression, WPA director Harry Hopkins
    established the Federal Arts Project

  • The project commissioned artists and writers to
    produce anything from folk history books to
    murals and canning instructions to Broadway plays
  • Photographers like Dorothea Lange and Ansel Adams
    were hired by the Roosevelt administration to
    photograph the plight of those living in the

Literature of The Depression
  • Weve all had to or are going to have to read
    GRAPES OF WRATH which was written during the
    Depression about migrant workers going to
    California, but the novel was not the only form
    of literature that became popular in the

The Comic Book
  • Comic Books became hugely popular during the
  • Dick Tracey, Batman, and Superman all appeared
    for the first time during the Depression
  • These comics would eventually move to radio, and
    then to motion pictures but are still in print

Reflect Back Written Assignment
  • Oct 29,1929 Stock Crash, Fears, Rumors, what to
    do reflect back
  • Dec. 24, 1931 include life during Depression
  • Nov 8, 1933 A New Deal
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