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The Great Depression and the New Deal 1933-1939 Chapter 34

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Title: The Great Depression and the New Deal 1933-1939 Chapter 34


1
The Great Depression and the New
Deal1933-1939Chapter 34
2
FDR Politician in a Wheelchair
3
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4
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5
Polio
  • 1921
  • Changed his character
  • Courageous
  • Patience
  • Tolerance
  • Compassion
  • after trying to wiggle my big toe for two years,
    everything else was easy

6
Eleanor Roosevelt
  • FDR asset
  • Conscience of the New Deal
  • Traveled for him
  • Most active first lady
  • Influenced policies of national government
  • Battled for impoverished and oppressed
  • Controversial figure
  • Loved by liberals and hated by conservatives

7
FDR political appeal
  • Amazing
  • Turn on the charm
  • Great speaker
  • Sponsored heavy spending in New York to overcome
    Depression
  • Forgotten Man FDRs deep concern for the
    Depressed
  • Traitor to his class

8
I pledge you, I pledge myself to a new deal for
the American people
  • Smith cast aside for FDR
  • Platform
  • Repeal of Prohibition
  • Against the Hoover Depression
  • Balanced budget
  • Social and economic reforms

9
Presidential Hopefuls of 1932
10
Campaign of 1932
  • FDR wants to be seen as robust and eager
  • Attacks Republican

11
Brain Trust
  • Small group of reform minded intellectuals,
    mostly college professors
  • Later authors of the New Deal
  • Wrote speeches that contradicted themselves or
    went against later

12
Happy Days Are Here Again
  • FDRs theme song
  • Fit his style
  • Optimistic
  • Promises bold experimentation

13
Hoover
  • Remains isolated in White House
  • Prosperity is just around the corner
  • Tried to produce fear if FDR elected
  • Has to finally campaign

14
Hoovers Humiliation in 1932
15
Results
  • FDR
  • 22.8 million
  • 472 electoral votes
  • Hoover
  • 15.7 million
  • 59 electoral votes

16
New Voting Blocks
  • Blacks vote Democrat
  • Suffered worst from the Depression
  • Vital element in Democratic Party

17
Depression hurt Republicans
  • Americans want a new deal not the new deal
  • Any democratic candidate could have won
  • Anti-Hoover election

18
Lame Duck Period
  • Hoover could not start any long range projects
  • FDR uncooperative
  • Hoover tries to bind FDR to anti-inflationary
    policies to make New Deal impossible
  • Washington deadlocked
  • American economy comes to a halt

19
FDR and the Three Rs Relief, Recovery, Reform
20
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21
Inauguration 1933
  • Nationally broadcast
  • Government must wage war on the Depression
  • Let me assert my firm belief that the only thing
    we have to fear is fear itself

22
Bank Holiday
  • March 6-10, 1933
  • Democratic Congress in special session
  • Hundred Days
  • Unprecedented legislation to deal with crisis
  • If he set the White House on fire we would say
    at least he got a fire started somewhere

23
Three Rs
  • Relief
  • Short range
  • Help for people and economy
  • Recovery
  • Short range
  • From Depression
  • Reform
  • Long range
  • Reform abuses in system

24
Congress
  • Felt panic in America
  • Rubber stamp FDRs policies
  • Gave President more power

25
Intuition
  • FDR worked off the cuff
  • Next move depended on outcome of last move
  • Public desperate for any movement, even in wrong
    direction

26
Many essential New Deal programs passed in
Hundred Days
  • Owed reforms to Progressive movement
  • Many long overdue
  • Unemployment insurance
  • Old age insurance
  • Minimum wages
  • Conservation and development of natural resources
  • Child labor restrictions

27
Roosevelt Tackles Money and Big Banking
28
Emergency Banking Relief Act
  • Gives President power to
  • Regulate banking transactions
  • Foreign exchange
  • Reopen solvent banks

29
Fireside Chats
  • 35 million listen
  • Gave assurances that it was now safe to keep
    money in banks
  • Banks begin to reopen

30
Glass-Steagall Banking Reform Act
  • Creates the Federal Deposit Insurance Corporation
    (FDIC)
  • Government insures your money up to 5,000

31
Beer-Wine Revenue Act
  • Government needed tax money
  • Later the 21st Amendment repeals 18th Amendment

32
Gold Standard
  • Orders all private holdings of gold turned in and
    redeemed in paper money
  • Takes nation off gold standard
  • Managed currency on its way

33
Managed Currency
  • Wants inflation for debtor relief
  • Stimulate new production
  • Price of gold goes up to 35 an ounce
  • Amount of money in circulation increases
  • Back on limited gold standard in 1934

34
Creating Jobs for the Jobless
35
Prime the Pump
  • Using government money to get the economy rolling
  • FDR would use government money to give jobs to
    unemployed
  • 25 in 1933

36
CCC
  • Civilian Conservation Corps
  • Most popular of New Deal programs
  • Government camps offer employment
  • Mostly young men
  • Reforestation, fire fighting, flood control,
    swamp drainage
  • Required to send money home

37
FERA
  • Federal Emergency Relief Act
  • Give adults jobs
  • Harry Hopkins
  • 3 billion to states for direct dole or state
    works projects

38
AAA
  • Agricultural Adjustment Act
  • Millions given to farmers to help them meet their
    mortgages
  • Gave farmers subsidies for every acre they did
    not sew
  • Later declared unconstitutional

39
HOLC
  • Home Owners Loan Corporation
  • Provided refinancing of small homes to prevent
    foreclosures
  • Bolted middle class homeowners to Democratic party

40
CWA
  • Civilian Works Adminstration
  • Branch of FERA
  • Temporary jobs during winter
  • Boondoggling

41
A Day For Every Demogogue
42
Demagogues
  • Appear to relieve suffering of Americans
  • Basically conservative

43
Father Charles Coughlin
  • Catholic Priest
  • Inflated currency and nationalize banks
  • Attacks New Deal
  • Becomes anti-Semitic and Fascist
  • Radio broadcasts popular until told to stop

44
Huey Long
  • Kingfish from Louisiana
  • Most dangerous man in America
  • Share Our Wealth program
  • 5,000 for every family
  • Luxury tax on wealthy
  • Maximum wealth
  • Candidacy for President
  • Assassinated

45
Dr. Francis Townsend
  • Plan for guaranteeing a secure income
  • 2 federal sales tax
  • Everyone over 60 receive 200 a month
  • Stimulate the economy by making them spend it
  • Becomes social security

46
A Helping Hand For Industry and Labor
47
National Recovery Administration
  • NRA
  • Most complex and far reaching
  • Assist industry, labor and unemployed

48
Industry
  • Work out fair competition
  • Anti trust laws suspended
  • Codes for wages, hours, levels of production and
    prices

49
Labor
  • Right to organize and bargain collectively
  • Yellow dog contracts forbidden
  • Child labor restrictions

50
NRA Movement
  • Patriotic parades
  • Blue Eagle in store windows
  • We Do Our Part slogan
  • Upswing in business activity

51
Problems
  • Too much sacrifice
  • National Run Around
  • Violations of codes
  • Supreme Court rules unconstitutional in Schechter
    v. US

52
Public Works Administration
  • PWA
  • Industrial recovery and unemployment relief
  • Headed by Harold Ickes
  • 4 billion on 34 projects
  • Grand Coulee Dam
  • More electric power than the TVA
  • Irrigated farms and increased production
  • Appreciated after WWII

53
Paying Farmers Not To Farm
54
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55
1. Have you completed your Chapter 33 Concept
Checks? 2. Have you Completed your Third
Practice EOI?
56
AAA of to wobbly start
  • Started after cotton crop planted in 1933
  • Much plowed under and many animals killed to stop
    surplus
  • Looked sinful

57
Subsidized scarcity effect
  • Raised farm income
  • Increased unemployment
  • Hurt many parties involved

58
Soil Conservation and Domestic Allotment Act of
1936
  • Farmers given money to plant soil conserving
    crops rather than to lie fallow
  • Emphasis on conservation

59
Second Agricultural Adjustment Act
  • 1938
  • Acreage restrictions on certain commodities
  • Parity payments
  • Farmers get larger share of national income

60
Dust Bowls and Black Blizzards
61
Dust Bowl
  • 1933 drought
  • Texas up to Nebraska
  • Tore topsoil off land

62
Causes
  • Marginal land under cultivation during WWI
  • Dry farming techniques
  • Mechanization

63
Okies
  • Thousands leave ruined farms
  • Many move to California looking for migrant jobs
    on farms
  • Depicted in Grapes of Wrath by John Steinbeck

64
Attempts to help
  • Frazier-Lemke Farm Bankruptcy Act
  • Suspension of mortgage foreclosures for 5 years
  • unconstitutional
  • Resettlement Act
  • Remove marginal farmers to better land
  • Trees planted in plains to keep soil down

65
Native Americans
  • Indian Reorganization Act
  • Indian New Deal
  • Reverse Dawes Assimilation
  • Encourages tribes to establish self government
  • Preserve native crafts
  • Returns lands to their control
  • Some Indians thought it demeaning

66
Battling Bankers and Big Business
67
Truth in Securities Act
  • Stop abuses brought on in speculation
  • Tell truth about stock values

68
Securities and Exchange Commission
  • SEC
  • Regulate the stock market
  • Limits on speculation

69
Public Utility Holding Company
  • Stopped being able to hold huge shares in
    utilities with a minimum amount of money

70
The TVA Harnesses the Tennessee River
71
TVA
  • Huge experiment in regional development and
    public planning
  • Government corporation
  • Thousands given jobs in poor region
  • Build dams, operate electric power plants,
    control flooding and erosion, manufacture
    fertilizer
  • Sold electricity well below other power companies
  • Set standard for prices around the country

72
Results
  • Full employment
  • Cheap electric power
  • Low cost housing
  • Restoration of soil
  • Flood control
  • Improved navigation of Tenn River
  • Would stimulate more dams being built
  • Socialistic???

73
Housing Reform and Social Security
74
FHA
  • Federal Housing Administration
  • Boost to homeowners and builders
  • Insuring bank loans for new houses and repairing
    old ones

75
USHA
  • United States Housing Authority
  • Lend money to local areas to build low cost
    housing
  • Fell short of need
  • Opposition to expansion

76
Social Security
  • Affect lives for generations
  • 1935
  • Federal insurance program
  • Collected through payroll deductions
  • Monthly payments to elderly (65)
  • Unemployment compensation
  • Blind, disabled, dependent children and mothers

77
Result in the 1930s
  • Republicans insist on a cult of work not leisure
  • Inspired by European nations
  • Government now recognizes its responsibility for
    welfare of its citizens

78
New Deal For Unskilled Labor
79
Labor becomes assertive
  • NRA allows them to organize
  • Walk outs in 1934
  • San Francisco turned bloody

80
National Labor Relations Act of 1935 Wagner Act
  • Creates National Labor Relations Board
  • Asserts labors right to organize
  • Union memberships shoots up from 3 million to
    over 10 million by 1941
  • Unskilled labor begins to organize

81
Committee For Industrial Organization - CIO
  • John L. Lewis
  • Began under the AF of L
  • Unskilled labor
  • Split

82
General Motors Strike - 1937
  • Sit down strike closed plant
  • Could not hire scabs
  • Troops not given by governor or President
  • Union wins
  • United Auto Workers formed
  • Leaders of union were driven off

83
Steel Strike in 1937
  • US Steel had voluntarily agreed to recognize CIO
  • Strikes in smaller firms
  • Violence broke out
  • Agree to recognize CIO

84
Fair Labor Standards Act
  • Last major New Deal measure
  • Victory for unions
  • Minimum wage (40 cents an hour)
  • Maximum work week (40 hours)
  • Child labor restrictions (under 16)

85
Unions thrive under FDR
  • Built a solid voting block
  • CIO renamed Congress
  • Blacks and whites in CIO
  • Feuds with AFL for years

86
Landon Challenges the Champ in 1936
87
FDR re-nominated
  • Democrats feel confident
  • Millions of Americans felt relief

88
Republicans
  • Hard to find someone to challenge FDR
  • Alfred Landon of Kansas
  • Moderate
  • Platform condemns New Deal
  • American Liberty League
  • Conservatives who fight against the New Deal
    programs

89
I welcome their hatred
  • Denounced those who would hide behind the flag
    and Constitution

90
Landslide
  • Republicans carry 2 states
  • FDR
  • 27.7 million
  • 523
  • Landon
  • 16.6 million
  • 8 electoral votes
  • Democratic majorities in Congress

91
Class warfare
  • Economic needy against greedy economic groups
  • Third parties turn to FDR
  • Lincoln was dead to Blacks
  • Socialists turn to FDR

92
Forgotten Man
  • FDR appeals to forgotten man
  • Dont bite the hand that doled the
  • Powerful coalition forms
  • Southern blacks
  • Urbanites
  • Poor
  • New immigrants (Catholics and Jews)
  • 1 of every 4 new judges were Catholic

93
Nine Old Men on the Supreme Bench
94
20th Amendment
  • Moves the inauguration to the 20th of January
    instead of March
  • Congress takes office on January 3rd
  • Sweeps away the post election lame duck period by
    six weeks

95
Mandate
  • FDR sees reelection as mandate for the New Deal
  • Supreme Court stood in his way
  • They went against 7 of 9 New Deal cases
  • FDR did not appoint 1 member in first term

96
Conservative Bench
  • Old guard justices
  • Felt it their duty to curb socialistic tendencies
  • Majorities in both houses show what Americans
    wanted
  • Court should get in line

97
Court Reform Bill
  • FDR wants to expand the court from 9 members to
    15
  • Appoint new member for everyone over 70 years old
  • Six new justices would give FDR majority on court
  • FDR does not read the public who believes the
    Court a sacred cow

98
The Court Changes Course
99
Court Packing
  • Congress and nation do not like the scheme to
    pack the Court
  • Voted against it
  • Basic liberties seemed in jeopardy
  • FDR loses
  • Hurt his reputation for a while

100
Court changes course
  • Conservative Justice Owens begins to support New
    Deal
  • 1937 support minimum wages for women and reverse
    decision from last year
  • Congress votes Justices full pay after 70
  • Conservative retires and Hugo Black appointed

101
Court reform bill passed
  • Dealt with lower courts only
  • FDR loses first major battle
  • Dont tamper with Supreme Court!
  • FDR will make 9 appointments later on
  • Aroused conservatives in both parties
  • New Deal slows down

102
The Twilight of the New Deal
103
First Term
  • New Deal does not end Depression
  • Unemployment at 15
  • Pump priming works modestly
  • Nation moving forward

104
Roosevelt Recession
  • 1937
  • Economy takes a down turn
  • Government policies cause this
  • Social security begins
  • Cut back on government spending

105
John Maynard Keynes
  • Economist
  • FDR embraces his ideas of deficit spending
  • Planned deficit spending
  • Turning point in governments relation to the
    economy

106
Remaining New Deal reforms
  • Reorganization Act
  • To reorganize National Administration to make it
    more efficient
  • Finally passed 2 years later

107
Relief checks
  • Usually came right before an election

108
Hatch Act
  • Administrative officials could not campaign
    politically and solicit money
  • Forbid use of government funds for political
    purposes
  • Could not collect campaign contributions from
    people receiving relief payments
  • Limited campaign contributions and expenditures
    in 1940

109
New Deal losing momentum
  • By 1938
  • 1938 elections saw Republicans cut into
    Democratic majority
  • International crisis coming into play

110
New Deal or Raw Deal?
111
Foes of the New Deal
  • Waste, incompetence, confusion, contradictions,
    graft
  • Leftists and communists in government
  • Roosevelt was too Jewish

112
Business community shocked
  • Dont confuse noise with movement
  • Leap before you look attitude of FDR

113
Bureaucracy
  • US government becomes largest business in the
    country
  • States fade into background

114
Balanced budget dies
  • 19 billion to 40 billion
  • Handout state
  • Trying to squander itself into prosperity
  • Undermine virtues of thrift and initiative
  • Instead of going west, Americans went on relief

115
Business bitter
  • Labor and agriculture pampered
  • Felt business could get us out of Depression if
    government would get off their backs
  • Private enterprise being stifled by government
    planning
  • States rights being ignored

116
FDR criticized
  • One man super government
  • Browbeat Supreme Court and Congress
  • Opposed Congressmen who opposed his policies

117
Failed to cure the Depression
  • Need more deficit spending?
  • Gap between production and consumption not closed
  • Many still unemployed
  • WWII gets us out of Depression but also increase
    national debt to 258 billion

118
FDRs balance sheet
119
New Dealers defend their record
  • Relief was their main goal at first
  • Graft yes, but haste was needed and makes for
    waste

120
Government morally responsible to prevent mass
hunger by managing the economy
  • Balance the human budget
  • Use the government dont fear it
  • Collapse of the economy avoided
  • Fairer distribution of wealth
  • Citizens retain self respect

121
May have saved capitalism
  • War not against capitalism but capitalists
  • Purged America from some of its worst abuses
  • Mild dose of socialism may have saved US from
    moving all the way

122
Bold reform without a revolution
  • Left thinks they did not go far enough
  • Right thinks they went too far
  • Hamiltonian in believing in government
  • Jeffersonian in concern for forgotten man
  • Helped preserve democracy in America when
    democracies were disappearing around the world

123
(No Transcript)
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