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The Great Depression and the New Deal

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The Great Depression and the New Deal 1933-1939 The country needs and demands bold, persistent experimentation. It is common sense to take a method and try it. – PowerPoint PPT presentation

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Title: The Great Depression and the New Deal


1
The Great Depression and the New Deal
  • 1933-1939
  • The country needs anddemands bold, persistent
    experimentation. It is common sense to take a
    method and try it. If it fails, admit it frankly
    and try another. But above all, try something.
  • Franklin Roosevelt, 1932

2
The Election of 1932
  • 11 million Americans unemployed (1932)
  • Republicans re-nominated Herbert Hoover at
    convention in Chicago
  • Republican Platform- praised Republican
    anti-depression policies, sort of promised to
    end prohibition
  • Democrats met in Chicago (June 1932) nominated
    Franklin D. Roosevelt
  • Democrat Platform- end prohibition, linked
    depression to Hoover Republicans, balance
    budget, social programs economic reforms

3
Franklin Roosevelt (FDR)
  • Born to a wealthy family- NY
  • 5TH cousin to Theodore Roosevelt
  • graduated Harvard
  • Served NY legislature
  • Governor of NY
  • Nominated VP (1920 with James Cox) LOST!
  • Assistant Sec. of Navy- just like TR!
  • 1921- Struck with Polio- wore metal braces on
    legs
  • FDRS WIFE- Eleanor Roosevelt (FDRs distant
    cousin!)
  • Roosevelt commanded public media- deep concern
    for the forgotten man seen as a traitor to his
    class
  • Accepted his party nomination in person (a 1st
    set a precedent).--- Promised a new deal for
    America

4
The Election Campaign 1932
  • Democrats (FDR)- attacked Republicans
  • FDR presented himself as vibrant (Roosevelt is
    Robust)
  • Preached the New Deal for forgotten man
    (remained vague on details)
  • Speeches written by members of the Brain Trust
    (young college professors who later developed
    new deal programs
  • Promised bold experimentation
  • Theme Song- Happy Days Are Here Again

5
Hoovers Campaign
  • Remained in the Whitehouse at first- working
    through lunch etc.
  • Supporters- the Worst is Past It Might Have
    Been Worse
  • Hoover took to the stumpfaith in American
    enterprise, individual initiative, urged support
    for Hawley-Smoot Tariff

6
FDR Wins
7
How did FDR win?
  • Dissatisfaction with Hoover- Change!!!
  • The New Deal Coalition- black Americans (esp. in
    Northern cities) abandoned the Republican Party
    voted for FDR
  • Black voters joined white working class, farmers
    others to elect FDR
  • Inauguration day- March 4,1933- speech attacked
    moneyed interests- vowed war on depression,
    the only thing we have to fear is fear itself
  • Hoover believed that the uncertainty fear
    surrounding FDRS victory made the depression
    worse!

8
FDR THE 3 Rs
  • New Deal Programs had 3 goals
  • Short-Term (1st 2 years)
  • Relief- FDR favored direct relief to individuals
  • Recovery- use deficit-spending on public works
    to revive economy (short range)-1st 2 years
  • Long Term
  • Reform- (Long Term) reform current past
    abuses that had brought on the Depression.
  • Restructure capitalism not replace it
  • The Bank Holiday- FDR closed the banks on his
    first full day in office (March 6-10)
  • Government examiners would inspect banks- banks
    reopen if financially sound
  • when banks reopened- deposits outnumbered
    withdrawals (Emergency Banking Relief Act 1933)

9
The New Deal- The 1st Hundred Days
  • FDR called a joint session of Congress (majority
    Democrat)
  • 1st Hundred Days- members passed a large number
    of bills programs (many old progressive ideas)
  • Old Progressive ideas unemployment insurance,
    old age insurance (SS), min. wage, restriction of
    child labor, conserve develop natural resources
  • Congress gave some of its legislative power to
    the President- later the SC will rule against New
    Deal programs based on this
  • AP Test writers- want you to know which
    programs were not part of New Deal also.

10
Banking Monetary Recovery Relief
  • Emergency Banking Relief Act (1933)- gave
    president power to regulate bank transactions
    foreign exchange reopen solvent banks.
  • Glass-Steagall Banking Reform Act- FDIC
    introduced (originally insured deposits up to
    5000)- virtually ends chronic bank failures.
  • 1933- FDR took US off gold standard managed
    currency inflation relieve debtors
    stimulate new production. (US purchases gold for
    35 oz. 1934--- up from 21 in 1933)
  • Feb. 1934- FDR returned US to gold standard for
    international trade only gold coins collectors
    items

11
Job Creation
  • FDR uses fireside chats to encourage inform
    the citizens.
  • FDR urged pump priming government
    assistance to encourage industrial recovery.
  • Civilian Conservation Corp (CCC)- young men hired
    by US to help with reforestation, firefighting,
    flood control, swamp drainage sent money home.
  • Helped conserve natural resources human
    resources
  • 2. Federal Emergency Relief Act (FERA)- 3
    Billion to states for public works put adults to
    work!

12
CIVILIAN CONSERVATION CORPS
  • Created in April 1933.
  • Within 4 months, 1300 CCC camps were in
    operation.
  • 300,000 men in 1933 between ages 18 and 25
  • Signed up for 6 months and made 30.00 a month.
  • 1933 and 1941 over 3,000,000 men served in the
    CCC .
  • Goal Keep teenage young men off the street and
    away from the job market.
  • Develop job skills and improve environment

CCC
13
Planted trees, built public parks, drained swamps
to fight malaria, restocked rivers with fish,
worked on flood control projects and a range of
other work that helped to conserve the
environment.
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17
Housing Relief
  • Agricultural Adjustment Act (AAA)- MILLIONS to
    farmers to meet mortgages.
  • Home Owners Loan Corporation (HOLC)- Refinance
    mortgages on non-farm home loans (helped about 1
    million).
  • Job Creation-
  • 1933 (late)- Civil Works Administration (CWA)-
    under auspices of FERA both HEADED BY HARRY
    HOPKINS provided jobs during winter of 1933 to
    10s of thousands (leaf raking)- highly
    criticized!

18
TVA
TENNESSEE VALLEY AUTHORITY
  • 1933- 1st Hundred Days (13 Billion Dollars)
  • Develop a poor section of the Southeast U.S.
  • Stimulate the economy and produce cheap
    electricity.
  • Control floods, planting new forests.
  • set up to test fairness of utility rates.
  • 94 percent of property owners and 98 percent of
    tenants did not have electricity.
  • 30 percent of property owners and 41 percent of
    tenants had no toilet facilities whatsoever

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20
TVA
TENNESSEE VALLEY AUTHORITY
  • 65 percent of property owners and 78 percent of
    tenants had to travel at least 300 yards to get
    their household water.
  • 8 percent of property owners and 3 percent of
    tenants owned radios (usually battery operated).
  • 39 percent of property owners and 23 percent of
    tenants had phonographs (including record players
    that were operated with a hand crank).

21
TVA
TENNESSEE VALLEY AUTHORITY
  • 50 percent of property owners and 25 percent of
    tenants read newspapers.
  • 26 percent of property owners and 16 percent of
    tenants owned automobiles.
  • 7 percent of property owners and 4 percent of
    tenants owned trucks.

22
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24
TVA MAP
TENNESSEE VALLEY AUTHORITY
25
TVA CRITICISM
CRITICISM OF THE TVA
26
Critics of the New Deal
  • Critics on the right left found the New Deal
    lacking
  • Unemployment was still high after the programs
    passed in the 1st 100 days
  • Father Charles Coughlin- Catholic priest (Mich.)
    with a radio show (40 million fans) wanted
    social justice.
  • Senator Huey P. Long (Louisiana)- Share Our
    Wealth Program Make Every Man a King every
    family would get 5000 (by taking money from
    rich)
  • Threatened to challenge FDR for presidential
    nomination in 1936 but was killed by an
    assassin.

27
Critics of the New Deal
  • Dr. Francis Townsend- retired doctor supported
    by senior citizens.
  • Called for old age help- 200 month to citizens
    60 years old or older to be spent within a month
    later FDR Congress will create Social Security
    based on the idea.
  • 1935-Works Progress Administration (WPA)-
    employment for useful projects (brought on by
    criticism) headed by Harry Hopkins.
  • 11 Billion on 1000s of public buildings,
    bridges, roads (9 million people employed over 8
    years).
  • Federal Number 1- part of WPA employed actors,
    writers, musicians highly criticized program.
  • Sent writers to collect oral histories slave
    narratives!! Etc.

28
wpa
WPA
  • Works Progress Administration (WPA), the New
    Deals main relief agency.
  • People employed by the WPA at its peak was more
    than 3 million
  • 2,500 hospitals
  • 5,900 schools
  • 13,000 playgrounds
  • 125,000 public buildings

29
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31
WPA
32
Women the New Deal
  • Secretary of Labor- Francis Perkins 1st woman
    cabinet member in the US.
  • Mary McLeod Bethune- director of Office of
    Minority Affairs- highest ranking
    African-American woman.
  • Margaret Meade- (1901-1978) anthropologist
    helped popularize cultural anthropology.

33
SOCIAL SECURITY ACT
  • One of the most important features of the New
    Deal.
  • 1935- Established a retirement for persons over
    65 funded by a tax on wages paid equally by
    employee and employer.
  • Old age insurance
  • Protect Americans who were unable to support
    themselves.
  • Unemployment compensation
  • Compensation to disabled workers and assistance
    to widows and children

34
Industry Labor
  • National Recovery Administration (NRA)- part of
    the NIRA combined immediate relief with long
    range recovery industries work out fair
    competition set wages hours worked.
  • Unions granted right to organize, collective
    bargaining through union reps!
  • Yellow dog contracts forbidden
  • Restrictions on child labor
  • blue eagle" program-
  • 1935- NRA declared unconstitutional by SC
    Schechter sick chicken case.

35
NATIONAL INDUSTRIAL RECOVERY ACT
  • Also called the National Recovery Act.
  • Helped businesses organize codes setting prices
    and minimum wage.
  • Put people back to work at decent jobs, wages and
    working conditions.
  • Businesses were not forced to join this.

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37
NATIONAL INDUSTRIAL RECOVERY ACT
38
Industry Labor
  • 2. Public Works Administration (PWA)- ALSO PART
    OF THE NIRA Industrial recovery unemployment
    relief.
  • Headed by Harold Ickes
  • 4 Billion spent over 4 years 34,000 projects
    (public buildings, highways, parkways)
  • Grand Coulee Dam

39
Repeal of Prohibition
  • Gave federal government extra revenue
  • 1st 100 days- legalized wine beer
  • 1933- officially repealed by 21st Amendment
    (1933)

40
Paying Farmers not to farm
  • Farmers suffered from low prices overproduction
  • Mortgages foreclosed corn burned as fuel,
    destruction of crops to drive up prices
  • Agricultural Adjustment Act (AAA) used artificial
    scarcity est. parity prices (same real value
    as in 1909-1914).
  • US govt paid farmers to reduce crop acreage
  • To pay for the program- Tax processors of farm
    products consumers pay higher prices for
    consumers (TAXING ONE GROUP GIVING MONEY TO
    ANOTHER)
  • Effect- raised farm incomes
  • Criticized for waste destruction of needed crops
    animals
  • SC declared it unconstitutional 1936- PART ABOUT
    COLLECTING TAX FROM PROCESSORS TO PAY FARMERS.

41
Paying Farmers not to Farm
  • 2. Soil Conservation Domestic Allotment Act
    (1936)- caused farmers to withdraw acreage from
    production plant soil saving crops like
    soybeans.
  • 3. 1938- Second AAA- continued conservation
    payments acreage restrictions on specific crops
    parity payments
  • NO TAXATION OF PROCESSORS TO PAY FARMERS
  • Farmers got fairer prices bigger share of
    national income

42
The Dust Bowl
  • Causes over production in the 1920s (over
    plowing, dry farming techniques), drought of
    1933.
  • Areas affected- eastern Colorado to western
    Missouri Oklahoma Arkansas most affected!
  • In 5 years- 350,000 Okies Arkies moved to
    California
  • John Steinbeck- The Grapes of Wrath-
  • Frazier-Lemke Farm Bankruptcy Bill- suspension of
    foreclosures on farms for 3 years. (1935)
  • 2. Resettlement Administration- remove
    near-farmless farmers to better land.
  • CCC planted more than 200 million trees on
    prairies.

43
Reforming Bankers Business
  1. Federal Securities Act Truth in Securities Act
    (1st 100 days)- required promoters to swear to
    the soundness of stocks bonds.
  2. 1934- Securities and Exchange Commission (SEC)-
    A watchdog for the stock market. (still exists).
  3. The Public Utility Holding Company Act (1935)-
    death sentence for the utility holding company
    unless deemed useful economically.

44
The New Deal Labor
  • After the Supreme Court axed the blue eagle-
    Congress wanted to ensure protection of labor.
  • The Wagner (National) Labor Relations Act
    (1935)- asserted the right to labor to organize
    bargain collectively (with its own reps).
  • Unskilled workers began to organize John L.
    Lewis (United Mine Workers) formed Committee for
    Industrial Organization (CIO) WITHIN THE AFL.
    (AFL wanted to organize according to skill
    trade)
  • 1936- AFL suspended CIO UNIONS associated with
    AFL
  • Lewis CIO- moved into the auto industry (used
    sit-down strike) General Motors Sit Down
    Strike
  • GM- RECOGNIZED CIO AS SOLE BARGAINING AGENT
  • 2. Fair Labor Standards Act (1938)- set up min.
    wage (40 cents/hour) max. hours (40 hours per
    week) outlawed child labor (under 16 18 if
    dangerous)
  • Excluded blacks, agricultural workers, women,
    Mexican-Americans
  • Labor organization boomed supported FDR DEMS
  • 1938- CIO broke with AFL COMPLETELY 1940 4
    MILLION STRONG (INCLUDING 200,000 BLACKS)
  • CIO- FAVORED ORAGNIZATION OF ALL WORKLERS IN A
    PARTICULAR INDUSTRY.

45
Criticisms of the New Deal
  • Waste, incompetence, confusion, cross-purposes,
    graft
  • Employment of Communists, leftist professors
  • FDR accused of being too cozy with Jewish
    interests (RosenField) (The Jew Deal)
  • Growth of the national government- Federal
    government became the single largest business
  • Growth of the national debt- to 40,440, 000,000
    by 1939.
  • Class warfare- Why soak the successful?
  • FDRs court packing scheme purging of Congress
    (one man super government)

46
1936 Election
  • Democrats re-nominated FDR on New Deal Programs
  • Republicans nominated Alfred M. Landon
    (MODERATE) Platform condemned New Deal deficit
    waste
  • Key Republican backers- Hoover the Liberty
    League (wealthy conservatives bound to fight
    against New Deal Socialism)
  • Landon carried only Vermont Maine
  • Democrats retained majorities in Congress (2/3 in
    House Senate)
  • Class warfare needy economic groups vs. greedy
    economic groups
  • FDR strong coalition blacks, South, urbanites
    poor (New Immigrants- Catholics Jews)
  • FDR appointed Catholics' to one of every four
    federal judgeships

47
FDRs Court Packing Scheme
  • 7 of 9 cases involving New Deal programs declared
    unconstitutional by 1937.
  • Court was ultra-conservative (6 of 9 SC members
    over 70 years old)
  • FDR asked Congress for a bill- permit him to add
    a new justice to the SC for every member over 70
    who would not retire (max. membership15).
  • Congress (both houses parties) condemned the
    proposal dictator bill attempting to thwart
    checks balances.
  • Justice Owen Roberts- (conservative) began
    voting with liberals
  • SC upheld other New Deal proposals SS, Wagner
    etc.
  • Congress voted full pay to Justices over 70 who
    retired one justice replaced by Hugo Black (New
    Dealer)
  • Court Packing- major political mistake by FDR
    ARROUSED CONSERVATIVES OF BOTH PARTIES.

48
FDR's COURT PACKING
49
The Roosevelt Recession
  • 1933-1937 (FDRs 1st Term)- did not end the
    Depression.
  • 1936- unemployment 15 (down from 25 in 1933)
  • Recovery modest
  • 1937- economy took a downward turn.
  • Causes
  • Social Security taxes- had begun to take money
    from payroll checks less money to spend.
  • FDR administration cut back on spending (job
    creation).
  • April 1937- FDR adopted theories of John Maynard
    Keynes (Keynesianism) US policy for decades.

50
The New Deal Comes to a Close
  • 1937 FDR urged Congress (more conservative now)-
    to reorganize national administration
    efficiency failed.
  • 1939- The Reorganization Act- gave FDR limited
    powers to reform the national administration
    Executive Office of White House created.
  • New Dealers accused of having huge war chest-
    relief checks often came about election time??
  • 2. Hatch Act (1939)- act barred federal
    administrative officials from campaigning except
    highest policy makers forbade use of government
    finds for campaigning.
  • Forbade collection of campaign funds from people
    getting relief checks.
  • By 1938- the NEW DEAL HAD LOST MOMENTUM
  • 1938- Republicans (1st time) made gains in
    Congressional elections

51
Impact of the New Deal
  • A program of Reform-not revolution (restructure
    capitalism-not replace it)
  • New Deal had partially reduced unemployment
    reviving the economy
  • Democratic Party a major party
  • Helped African-Americans others survive
    Depression
  • US did not fully emerge from Depression until
    massive military expenditures of WWII.
  • Failures of the New Deal
  • Did not directly confront racial prejudice
  • Did not integrate armed forces
  • Did not contain programs to protect civil rights
  • Did not establish Bureau of Indian Affairs
  • Did not nationalize basic industries
  • Did not recognize unionization of migrant workers

52
Brother, Can You Spare a Dime ?
  • When Bing recorded this song in October, 1932,
    one out of every four Americans who wanted work
    could not find work.
  • The banking system was near collapse.
  • Record sales had plummeted because Americans did
    not have the money for such luxuries.
  • No song captures the dark spirit of the Great
    Depression more than "Brother, Can You Spare a
    Dime?"
  • Bing recorded the song shortly before President
    Roosevelt's election and it went to No. 1 in the
    charts.

Bing Crosby
53
Brother, Can You Spare a Dime ?
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, to the sun, brick,
mortar and lime Once I built a tower, now
it's done. Brother, can you spare a dime?
54
Brother, Can You Spare a Dime ?
Once in khaki suits, gee we looked swell, Full
of that Yankee Doodly Dum, Half a million boots
went marching 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. Hey don't
you remember, I'm your pal? Buddy, can you spare
a dime? 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, to the sun, brick,
mortar, and lime Once I built a tower, now
it's done. Brother, can you spare a dime?
55
Brother, Can You Spare a Dime ?
Once in khaki suits, gee we looked swell, Full
of that Yankee Doodly Dum, Half a million boots
went marching 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. Say,
don't you remember, I'm your pal? Brother, can
you spare a dime?
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