Chapter 22 Chapter 22

Crash and Crash and DepressionDepression

Photos by photographer Dorothea Lange

Herbert HooverHerbert Hoover

Herbert Hoover Herbert Hoover elected President in elected President in 1928: 1928:

““We are nearer to the We are nearer to the final triumph over final triumph over poverty than ever poverty than ever before in the history before in the history of any land”of any land”

Economy, business Economy, business and gov. all seemed and gov. all seemed strong, no limits were strong, no limits were placed on borrowingplaced on borrowing

Causes of the Great Causes of the Great DepressionDepression

1. Uneven Prosperity1. Uneven Prosperity::– Huge corporations Huge corporations

dominated industry: dominated industry: 200 companies owned 200 companies owned 49% of industry49% of industry

– Majority of people Majority of people (71%) earned less (71%) earned less than $2500 a year, than $2500 a year, with no savings. with no savings. Wealthy families Wealthy families (.1%) had over (.1%) had over $100,000. $100,000.

2. 2. Credit: Credit: – Huge debt in Huge debt in

America, over 60% America, over 60% borrowingborrowing

3. 3. Too Many Goods/ Too Many Goods/ Too Little Too Little DemandDemand

– Warehouses full, Warehouses full, but no marketbut no market

– Farmers in Farmers in trouble after WWItrouble after WWI

– Workers: most Workers: most still overworked still overworked and under paidand under paid

4.4. Playing the Stock Playing the Stock MarketMarket

– Speculation: Speculation: gambling on a gambling on a long shotlong shot

– Buying on MarginBuying on Margin

Stock/Stock MarketStock/Stock MarketWhat is stock?What is stock?

Who is a stockholder?Who is a stockholder?

What does a stockbroker do?What does a stockbroker do?

How does the value of stock increase?How does the value of stock increase?

How does the value of stock decrease?How does the value of stock decrease?

Who buys your stock from you?Who buys your stock from you?

Why do people Why do people Buy Stock?Buy Stock?If a company does If a company does well, stock holders well, stock holders benefitbenefit– Investing/Investing/

Dividend ChecksDividend Checks

Can be a quick and Can be a quick and easy way to make easy way to make moneymoney– Gambling/ Buy Gambling/ Buy

Low, Sell HighLow, Sell High

Why do Why do Companies Sell Companies Sell Stock?Stock?To enable their To enable their company to expandcompany to expand

Quick and easy way Quick and easy way to get money to to get money to – Hire more peopleHire more people– Increase # of Increase # of

storesstores– Improve Improve

technologytechnology

Investing:Investing: Stockholders are Stockholders are committing to the committing to the company for the “Long company for the “Long Haul”Haul”

Dividend checks each Dividend checks each quarter if company makes quarter if company makes profitprofit– McDonald’s makes McDonald’s makes

$10,000 in profits one $10,000 in profits one quarter, you own 1% of quarter, you own 1% of the stock in that the stock in that company, you make company, you make _______________._______________.

Reinvest or keep?Reinvest or keep?

Companies can count on Companies can count on your moneyyour money

Gambling/ Playing Gambling/ Playing the Stock Market:the Stock Market:No Commitment to the No Commitment to the CompanyCompany

““Buy Low, Sell High”Buy Low, Sell High”– Health South stock Health South stock

crashes!crashes!– Still a good companyStill a good company

Could buy for 3 cents!Could buy for 3 cents!

Buy 10, 000 shares, Buy 10, 000 shares, you pay _________you pay _________

Sell your stock at Sell your stock at $6.00 a share, $6.00 a share,

you make _____________!you make _____________!– Companies cannot count Companies cannot count

on your moneyon your money

What is Buying on Margin?What is Buying on Margin?

What is a loan shark?What is a loan shark?

How can a loan shark affect the How can a loan shark affect the Stock Market?Stock Market?

Major Issues today:Major Issues today:

Home MortgageHome Mortgage

What is a Mortgage?What is a Mortgage?

Buying a Home:Buying a Home:

What is a Fixed Interest Rate?What is a Fixed Interest Rate?

What is an ARM (Adjustable Rate Mortgage)?What is an ARM (Adjustable Rate Mortgage)?– 30 year Mortgage: 8.0%30 year Mortgage: 8.0%– 7 Year ARM: 5.0 %7 Year ARM: 5.0 %– 5 Year ARM: 4.5%5 Year ARM: 4.5%– 3 Year ARM: 4.0%3 Year ARM: 4.0%

What are the advantages to A Fixed Rate?What are the advantages to A Fixed Rate?

What are the disadvantages to A Fixed Rate?What are the disadvantages to A Fixed Rate?

What are the advantages to an ARM?What are the advantages to an ARM?

What are the disadvantages to an ARM?What are the disadvantages to an ARM?

TIMELINETIMELINESeptember 1929: September 1929: Professional investors felt Professional investors felt the market was in dangerthe market was in danger– No new customers were No new customers were

investinginvesting– Many began to sell off their Many began to sell off their

stocksstocks

October 24, 1929:Major October 24, 1929:Major SellingSelling– A group of bankers pooled A group of bankers pooled

money and tried to slow the money and tried to slow the rush by investingrush by investing

– Stabilized a bit, but on Monday, Stabilized a bit, but on Monday, falling againfalling again

October 29, 1929: BLACK October 29, 1929: BLACK TUESDAYTUESDAY– STOCK MARKET CRASHEDSTOCK MARKET CRASHED

Black Tuesday!!Black Tuesday!!

– The Stock The Stock Market Market Crash Crash triggered the triggered the Great Great Depression Depression

was not the was not the cause!cause!

– 16.4 million 16.4 million shares soldshares sold

Over 30 billion Over 30 billion in value lostin value lost

Initially only Initially only affected those affected those who had who had invested in the invested in the marketmarket

By mid-November, investors had lost about $30 billion

Workers are affectedWorkers are affected

As income and profits fell, factories As income and profits fell, factories began to closebegan to close

Workers lost jobs-most had no Workers lost jobs-most had no savings and now no income, more savings and now no income, more factories closed, more Americans out factories closed, more Americans out of work…began a downward cycleof work…began a downward cycle

BANKSBANKSPeople began to try to withdraw People began to try to withdraw savings from banks, but found that savings from banks, but found that their savings accounts had been their savings accounts had been vanishedvanished

Bank run 1929, Los Angeles

BanksBanksBanks had lent money to speculatorsBanks had lent money to speculators

Banks had invested depositors’ Banks had invested depositors’ money in the stock market hoping money in the stock market hoping for higher profitsfor higher profits

People rushed to get money, many People rushed to get money, many banks closedbanks closed

Over 5,500 banks closedOver 5,500 banks closed

Over 9 million savings accounts vanishedOver 9 million savings accounts vanished

MISTAKES BY GOVMISTAKES BY GOV..

Hawley-Smoot Tariff: intended to Hawley-Smoot Tariff: intended to protect American Industryprotect American Industry– Raised Tariffs by as much as 70%Raised Tariffs by as much as 70%– Shut down international tradeShut down international trade

Federal Reserve: had cut interest Federal Reserve: had cut interest rates in 1920s to encourage rates in 1920s to encourage spendingspending– This encouraged Risky SpendingThis encouraged Risky Spending

DEPRESSION AFFECTS THE DEPRESSION AFFECTS THE WORLDWORLD

US investments withdrawn from US investments withdrawn from postwar Europepostwar Europe– Unemployment roseUnemployment rose– Governments in danger of Governments in danger of

revolutionrevolution

Social Effects of the Social Effects of the DepressionDepression

Hardest hit were those at the Hardest hit were those at the bottom of the economic ladderbottom of the economic ladder–Last to be hired and 1Last to be hired and 1stst to be to be firedfired

Hoovervilles and Hoover BlanketsHoovervilles and Hoover Blankets–Nicknames to mock the Nicknames to mock the presidentpresident

HOBOS:HOBOS:Homeless, Homeless, unemployed unemployed Americans Americans searching for searching for workwork

Riding the railsRiding the rails

Mainly boys Mainly boys and young menand young men

THE DUST BOWLTHE DUST BOWLBecause of over Because of over cultivation of cultivation of fields, Midwestern fields, Midwestern lands had no trees lands had no trees to protect landto protect land

1932 drought, land 1932 drought, land dried up and had dried up and had nothing to help nothing to help hold the topsoilhold the topsoil

Winds created dust Winds created dust stormsstorms

Over 1,000,000 Over 1,000,000 people left people left Midwest and Midwest and moved to moved to CaliforniaCalifornia

Cities and Rural Cities and Rural AreasAreas

CITIES: people CITIES: people begged, went to begged, went to soup kitchens, soup kitchens, worked at any job worked at any job they could findthey could find

RURAL AREAS: RURAL AREAS: People grew food People grew food if possible, foraged if possible, foraged in woods, tried to in woods, tried to live off the landlive off the land

Stress on FamiliesStress on FamiliesFamilies had to live together in small Families had to live together in small apartments, 2-3 families per homeapartments, 2-3 families per homeDivorce rates:Divorce rates:– dropped b/c could not afford lawyersdropped b/c could not afford lawyers

Men felt like failures b/c they could Men felt like failures b/c they could not support familynot support familyWomen often forced from jobs: more Women often forced from jobs: more imp. For men to workimp. For men to work

Children in the Great Children in the Great DepressionDepression

Schools closedSchools closed– Children lost Children lost

educationeducation

Families Families couldn’t support couldn’t support their childrentheir children– Sent to Sent to

orphanagesorphanages

Discrimination in the Discrimination in the DepressionDepression

Whites began to take minorities jobsWhites began to take minorities jobs

Many relief programs would not help Many relief programs would not help minoritiesminorities

Some whites declared that blacks Some whites declared that blacks should not have jobs if whites were should not have jobs if whites were out of workout of work

Blacks were denied civil rights, Blacks were denied civil rights, education, voting, health care…education, voting, health care…

Lynching Lynching increasedincreased

Hispanics and Hispanics and Asians were Asians were deporteddeported

March 31, 1931: March 31, 1931: Scotsboro, ALScotsboro, AL

Scotsboro Scotsboro Boys: 9 black Boys: 9 black men accused of men accused of assaulting 2 assaulting 2 white men and white men and raping two raping two white womenwhite women

No evidenceNo evidenceAll 9 convicted and All 9 convicted and sentenced to death (youngest sentenced to death (youngest was 13)was 13)Appeals lasted until 1950Appeals lasted until 19501976 Governor Wallace 1976 Governor Wallace pardoned the boyspardoned the boys

Pulling togetherPulling togetherMajority of Americans pulled Majority of Americans pulled together to help outtogether to help out– Food HandoutsFood Handouts– Work for room and boardWork for room and board– Auctioneers left with no profits Auctioneers left with no profits

as neighbors kept bids lowas neighbors kept bids low

Escaping the Depression: Escaping the Depression: HollywoodHollywood

60-90 million 60-90 million Americans went to Americans went to the movies to see the movies to see beauty and beauty and glamour: to forget glamour: to forget their troublestheir troubles

Escaping The Depression:Escaping The Depression:RadioRadio

Radio comedy Radio comedy sketches and soap sketches and soap operas also operas also provided escapes:provided escapes:

President Hoover RespondsPresident Hoover Responds

Told people to have faith, that Told people to have faith, that conditions would improve soonconditions would improve soon

Met with heads of banks, railroads, Met with heads of banks, railroads, and other big business leadersand other big business leaders– Convinced them to maintain wages Convinced them to maintain wages

and keep workers at jobsand keep workers at jobs– By 1931, businesses could not do By 1931, businesses could not do

this; began to cut paythis; began to cut pay

Hoover insisted that Hoover insisted that voluntary action was bestvoluntary action was best

Felt that direct federal Felt that direct federal relief would destroy relief would destroy people’s self respectpeople’s self respect

Did begin Did begin public works public works programs: programs: public public buildings, buildings, roads, parks, roads, parks, dams to create dams to create jobsjobs– too little to too little to

impact the impact the depressiondepression

Only way to create enough Only way to create enough jobs to make an impact was jobs to make an impact was massive gov. spending massive gov. spending – Hoover refused to do this Hoover refused to do this

Had to have money for this to Had to have money for this to workwork–Where to get the money?Where to get the money?

Raise taxesRaise taxes

Government deficitGovernment deficit

Reconstruction Finance Reconstruction Finance CorporationCorporation

1932: Hoover wanted banks to loan 1932: Hoover wanted banks to loan money to corporations to expand job money to corporations to expand job hiringhiring

Extend loans and credit to banks, Extend loans and credit to banks, railroads, and other large corp.railroads, and other large corp.

Ordinary people believed gov. was Ordinary people believed gov. was helping richhelping rich

Emergency Relief and Emergency Relief and Construction ActConstruction Act

Hoover finally allowed massive Gov’t Hoover finally allowed massive Gov’t spendingspending– 1.5 million was given for public works1.5 million was given for public works– 300 million to states300 million to states

Not big enough a program to helpNot big enough a program to help– Economic collapse continuedEconomic collapse continued

Americans Respond to the Americans Respond to the DepressionDepression

Hunger Hunger MarchesMarches– Against large Against large

corporationscorporations– Against the Against the

gov’tgov’t““Feed the Feed the Hungry, Tax Hungry, Tax the Rich”the Rich”

Farmers Farmers RevoltRevolt– Began Began

destroying destroying crops to crops to try to raise try to raise prices and prices and blocked blocked roads to roads to prevent prevent deliveriesdeliveries

Bonus Army : Bonus Army : Summer 1932Summer 1932– 15,000 WWI Vets 15,000 WWI Vets

March on DCMarch on DC– Were promised Were promised

bonuses after WWIbonuses after WWITo be paid in 1945To be paid in 1945

– House: YesHouse: Yes– Senate : NoSenate : No

Most went homeMost went home– Many stayed in Many stayed in

abandoned buildingsabandoned buildings– Army was called in Army was called in

to remove themto remove them– ARMY VS. BONUS ARMY VS. BONUS

ARMYARMY

•Nation Horrified•Hoover accepts responsibility•Hurts him in 1932 election

Election of 1932Election of 1932HooverHoover– Federal Gov’t should not step in and try Federal Gov’t should not step in and try

to fix people’s problemsto fix people’s problems

FDRFDR– Large scale problems require the help Large scale problems require the help

of the gov’tof the gov’t

FDR won by over 7,000,000 votesFDR won by over 7,000,000 votes– Many voted AGAINST HooverMany voted AGAINST Hoover

““The only thing we have to The only thing we have to Fear, is Fear Itself”Fear, is Fear Itself”

Chapter 23: The New Chapter 23: The New DealDeal

FDR’s program of FDR’s program of (attempted)economic (attempted)economic recoveryrecovery

•Willing to try anything to restore hope of Americans

Sought advice from experts Sought advice from experts in business, agriculture, in business, agriculture, government, law, social government, law, social work…work…–Deliberately chose people Deliberately chose people who had different who had different viewpoints than himviewpoints than him

The First New The First New DealDeal

The First One Hundred Days:The First One Hundred Days:–FDR sent one bill after FDR sent one bill after another to Congressanother to Congress

Btwn March 9 and June 16, Btwn March 9 and June 16, Congress passed 15 major Congress passed 15 major acts for the New Dealacts for the New Deal

Banks and the Stock Banks and the Stock Market:Market:

FDR sworn in on FDR sworn in on March 3, 1933March 3, 1933

March 5 declares March 5 declares “Bank Holiday”“Bank Holiday”–Temporarily closes all banks to inspect their “health”

Emergency Banking Relief Emergency Banking Relief Act-Act- –inspect banks; those that inspect banks; those that were “ok” would be issued were “ok” would be issued a Treasury Department a Treasury Department LicenseLicense

–2/3 of banks re-opened 2/3 of banks re-opened March 15March 15

Fireside ChatsFireside ChatsA series of 30 A series of 30 radio addresses radio addresses given between given between 1933 and 19441933 and 1944– To give people To give people

confidence in confidence in the gov’tthe gov’t

FDIC- Federal FDIC- Federal Deposit Deposit Insurance Insurance CorporationCorporation

government government insurance on insurance on bank bank deposits up deposits up to $5000.to $5000.

S.E.C.S.E.C.Securities and Exchange Securities and Exchange CommissionCommission: : –gov’t agency to regulate the gov’t agency to regulate the stock market and prevent fraudstock market and prevent fraud

Companies had to provide Companies had to provide truthful and accurate truthful and accurate information to investorsinformation to investors

Alphabet “soup” Agencies:Alphabet “soup” Agencies:For Relief, Recovery and For Relief, Recovery and

ReformReform

A. A. A.A. A. A.Agricultural Adjustment ActAgricultural Adjustment Act- May 1933- May 1933

To raise prices by lowering output; gov’t To raise prices by lowering output; gov’t would would pay farmers pay farmers notnot to grow certain crops to grow certain crops– ProblemProblem: by May, most farmers had already : by May, most farmers had already

planted and began raising livestockplanted and began raising livestock

Farmers had to plow under @25% of their Farmers had to plow under @25% of their crops and slaughter @ 6 million pigletscrops and slaughter @ 6 million piglets

– Was successful Was successful at raising many farm at raising many farm incomes, but raised prices when many incomes, but raised prices when many consumers could not afford to pay extraconsumers could not afford to pay extra

C. C. C. C. C. C. Civilian Conservation CorpsCivilian Conservation Corps: :

Most highly praised agency, and Most highly praised agency, and Roosevelt’s favoriteRoosevelt’s favorite

18-25 year old men working to 18-25 year old men working to protect and preserve natureprotect and preserve nature– Planting trees, fighting fires, Planting trees, fighting fires,

building dams, parks, building dams, parks, campgrounds, trailscampgrounds, trails

Made around Made around $30 a month, $30 a month, and lived in and lived in camps near camps near where they where they worked.worked.

T.V.A.T.V.A.Tennessee Valley Tennessee Valley Authority:Authority:

Dam building Dam building project to control project to control floods, conserve floods, conserve forestland, and forestland, and bring electricity to bring electricity to one of the most one of the most depressed areas in depressed areas in AmericaAmerica

Constructed 20 Constructed 20 dams and dams and employed as many employed as many as 40,000 peopleas 40,000 people– Problem: many Problem: many

people were people were forced to leave forced to leave homes for new homes for new gov’t landsgov’t lands

– PollutionPollution

H.O.L.CH.O.L.CHome Owner’s Loan CorporationHome Owner’s Loan Corporation

Bought many mortgages of those who Bought many mortgages of those who could not make paymentscould not make payments– Restructured and refinanced to Restructured and refinanced to

make payments more affordablemake payments more affordable

Problems: only offered to those Problems: only offered to those still employed, and would still employed, and would foreclose just as a bank would if foreclose just as a bank would if payments not metpayments not met

F.C.A.F.C.A.Farm Credit Farm Credit Administration:Administration:

Helped farmers refinance Helped farmers refinance mortgagesmortgages

P.W.A. and P.W.A. and C.W.A.C.W.A.

Public Works Administration Public Works Administration and Civil Works and Civil Works AdministrationAdministration

Both designed to put average Both designed to put average Americans to work building and Americans to work building and improving highways, dams, improving highways, dams, sewers, waterworks and schoolssewers, waterworks and schools

– PWA- awarded contracts to PWA- awarded contracts to companies companies

– CWA- directly hired individualsCWA- directly hired individuals

Built 1,000 airports, 500,000 Built 1,000 airports, 500,000 miles of roads, and 40,000 school miles of roads, and 40,000 school buildingsbuildings

Employed over 4 million peopleEmployed over 4 million people– Problems: FDR worried about the Problems: FDR worried about the

ONE billion dollar cost and cut the ONE billion dollar cost and cut the program in 1934.program in 1934.

Legacy of 1Legacy of 1stst New New Deal: restored hope Deal: restored hope and gave and gave Americans Americans confidence in the confidence in the gov’t.gov’t.

The Second New The Second New Deal:Deal:

1935: FDR launched a series of 1935: FDR launched a series of new programs to speed up the new programs to speed up the economic recovery of the nationeconomic recovery of the nation

11stst New Deal had provided jobs, New Deal had provided jobs, but had not stimulated the but had not stimulated the economy as much as FDR economy as much as FDR hoped.hoped.

W.P.A.W.P.A.Works Progress Administration: Works Progress Administration:

Americans built highways, Americans built highways, roads, streets, public buildings, roads, streets, public buildings, parks, bridges, and airportsparks, bridges, and airports

Controversial Part: Federal Controversial Part: Federal Theatre Project financed artists Theatre Project financed artists and playwrightsand playwrights

N.L.R.B.N.L.R.B.National Labor Relations Board/ National Labor Relations Board/ Wagner Act:Wagner Act:

Gave unions the right to organize Gave unions the right to organize w/o interference from companiesw/o interference from companies

Problem: gave unions too much Problem: gave unions too much powerpower– Supreme Court struck it downSupreme Court struck it down

S.S.A.S.S.A.Social Security Act: 1935: Social Security Act: 1935: – viewed as an viewed as an insurance billinsurance bill, paid , paid

jointly by employee and employerjointly by employee and employer

Monthly retirement benefit (age 65)Monthly retirement benefit (age 65)

Unemployment insuranceUnemployment insurance

Disability InsuranceDisability Insurance

WelfareWelfare

Problem: took money out of Problem: took money out of paychecks to finance thispaychecks to finance this

F.L.S.AF.L.S.AFair Labor Standards Act:1938Fair Labor Standards Act:1938: more : more protection for workersprotection for workers

Established minimum wage (.25/hr)Established minimum wage (.25/hr)

40 hour work week40 hour work week

Banned child laborBanned child labor

Problems:Problems:– Companies cut pay, cut hours and cut child Companies cut pay, cut hours and cut child

laborlabor

Challenges/Limits of the New Challenges/Limits of the New Deal Programs:Deal Programs:

New Deal agencies did not extend to New Deal agencies did not extend to minorities and women:minorities and women:– Women paid less for the same workWomen paid less for the same work– Most jobs went to the “head” of the Most jobs went to the “head” of the

familyfamily– African Americans segregated furtherAfrican Americans segregated further

Not offered skilled, professional jobsNot offered skilled, professional jobs

Lower pay than whitesLower pay than whites

Roosevelt did not support Roosevelt did not support anti-lynching billsanti-lynching bills–Feared losing southern Feared losing southern supportsupport

–Did appoint more Did appoint more African Americans to African Americans to gov’t positions than any gov’t positions than any other presidentother president

The New Deal Does Too The New Deal Does Too Much:Much:

Republicans opposed FDR’s Republicans opposed FDR’s programsprograms– Overtaxes the richOvertaxes the rich– Is SocialisticIs Socialistic– Social Security penalizes Social Security penalizes

successful peoplesuccessful people– Puts limits on individual freedomsPuts limits on individual freedoms

American Liberty League: 1934: to American Liberty League: 1934: to organize opposition to the New Dealorganize opposition to the New Deal

The New Deal Does Not Do The New Deal Does Not Do Enough: Enough:

Progressives and Socialists Progressives and Socialists wanted morewanted more– Should create a new economic Should create a new economic

systemsystem– Gov’t should take over factories Gov’t should take over factories

and farmsand farms– Gov’t should redistribute wealthGov’t should redistribute wealth

Court Packing Gets Court Packing Gets Criticism:Criticism:

Supreme Court and FDR had butted Supreme Court and FDR had butted heads over many work programs: heads over many work programs: courts had ruled many courts had ruled many unconstitutionalunconstitutional

1937: FDR proposed a major court 1937: FDR proposed a major court reform billreform bill– No specific # had been set for judges;9 No specific # had been set for judges;9

had been traditionhad been tradition

– FDR wanted to add 6 more judges; FDR wanted to add 6 more judges; said it was to lighten the burden said it was to lighten the burden on the other 9; really wanted on the other 9; really wanted judges who would support himjudges who would support him

– Seemed to many that FDR was Seemed to many that FDR was acting like a dictator; acting like a dictator; compromising the 3 branchescompromising the 3 branches

– Senate quietly killed the billSenate quietly killed the bill

Union Activity Increases:Union Activity Increases:

1.Wagner Act- gave unions federal 1.Wagner Act- gave unions federal protectionprotection

2. AFL and CIO increase in 2. AFL and CIO increase in membershipmembership

3. Sit-down strikes: subs could not 3. Sit-down strikes: subs could not be brought in, companies were be brought in, companies were forced to deal with unionists. Many forced to deal with unionists. Many sit-downs turned violentsit-downs turned violent– Sit-down strikes were outlawed in 1939Sit-down strikes were outlawed in 1939

Recession of 1937: Recession of 1937:

Social Security Tax came directly Social Security Tax came directly out of paychecksout of paychecks

FDR cut back on many job programs FDR cut back on many job programs because of rising national debtbecause of rising national debt

Legacy of the New Deal:Legacy of the New Deal:New Deal did not end suffering, but it New Deal did not end suffering, but it changed America forever.changed America forever.– Voters began to expect Presidents to solve Voters began to expect Presidents to solve

their problemstheir problems– Accept more gov’t intervention in their livesAccept more gov’t intervention in their lives– Laborers demand more changes in the Laborers demand more changes in the

workplaceworkplace

Many new deal programs still around Many new deal programs still around today:today:– TVA, FDIC, Securities and Exchange Commission, TVA, FDIC, Securities and Exchange Commission,

Social SecuritySocial Security

New Deal’s Greatest New Deal’s Greatest AchievementAchievement: : – brought hope to Americabrought hope to America

New Deal’s Greatest Failure:New Deal’s Greatest Failure: – was to be a temporary solution was to be a temporary solution

to the Depressionto the Depression