chapter 23 the great depression and the new deal
TRANSCRIPT
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Chapter 23 The Great Depression and the New Deal
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Hoover and the Crash
• A Collapsing Economy– Industries like coal mining, railroads, and clothing
manufacturing were declining through the 1920s– The stock market continued to rise as the
economy was on the decline
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Hoover and the Crash
• Stock Market Crashes– On Wednesday, October 23, 1929 stock prices fell
and investors lost $4 billion.• Brokers who lent people money to buy on margin
started to recall their loans, and investors who could not pay had to sell their stocks. This caused prices to drop even more
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Hoover and the Crash
• October 29, 1929- Black Tuesday- the stock market collapsed completely– Stock prices plummeted– Millionaires lost their fortunes overnight
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Hoover and the Crash
• The Great Depression Begins– The stock market crash marked the start of a 12-
year economic and social disaster known as the Great Depression
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Hoover and the Crash
• Troubled Industries– One major cause of the Great Depression was
overproduction• Factories were producing more than people could
afford to buy
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Hoover and the Crash
• Industries that supported prosperity in the 1920s began to decline– Spending on construction fell by more than $2
billion – car sales dropped by more than one third in 1929
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Hoover and the Crash
• Crisis in Banking– Banks across the country started to fail• 5,500 banks closed between 1930-1933
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Hoover and The Crash
• The Downward Spiral– With people unable to buy what factories were
producing, many workers lost their jobs….and then had even less money with to buy stuff….which caused more workers to lose their jobs….which then caused more factories to close or declare Bankruptcy
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Hoover and The Crash• The Human Cost– Urbanization caused the depression to affect
more people
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Hoover and The Crash
• The Unemployed– Between 1929 and 1933 the unemployment rate
went from 3% to 25% (13 million people were unemployed)
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Hoover and The Crash
• Growing Poverty– Jobless people lined up at soup kitchens– People tried to sell apples or pencils on the street– Tried to pick up trash for food
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Hoover and The Crash
• In big cities, homeless people built communities of rundown shacks– Known as Hoovervilles
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Hoover and The Crash
• Hoover Responds– Many Americans blamed President Hoover for the
Depression
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Hoover and The Crash
• advisers recommended that Hoover let the Depression work itself out
• Hoover believed that business leaders and local governments should help the people (Not The Federal Government)
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Hoover and The Crash
• Hoover met with executives and local governments to encourage them to help people
• Hoover soon realized that the federal gov’t needed to get involved – formed that Reconstruction Finance Corporation
(RFC)
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Hoover and The Crash
• The Bonus Army
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Why was President Hoover receiving blame for the Great Depression? What will the American people want from their next president?
Homework pages 782 and 790 Key Terms and People Due Wed
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Roosevelt and the New Deal
• Election of 1932• Franklin D. Roosevelt vs. Herbert Hoover
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Roosevelt and the New Deal• Roosevelt beat Hoover 472 electoral votes to
59
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Roosevelt and the New Deal
• During the campaign FDR pledged “a new deal for the American people”– The term New Deal would come to describe his
way of getting the U.S. out of the Depression
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This great Nation will endureas it has endured, will revive
and will prosper. So, first of all,let me assert my firm beliefthat the only thing we have
to fear is fear itself…”
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Roosevelt and the New Deal
• The day after Roosevelt took office he declared a bank holiday– Tried to stop banks from closing– Created the Emergency Banking Relief Act
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Roosevelt and the New Deal
• Tried to restore Americans’ confidence in their banks and the economy by delivering fireside chats
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Roosevelt and the New Deal
• Roosevelt’s plan to bring back the economy was broken into three parts– Relief for the jobless– Promote economic recovery– Reform the economic system
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Roosevelt and the New Deal
• Relief for the Jobless– During FDR’s first hundred days he signed a record
15 new bills• Relief for the jobless• Economic recovery• Reforms to prevent future depressions
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Roosevelt and the New Deal
• Federal Emergency Relief Administration (FERA) was created to provide financial assistance to unemployed
• Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) were created to give people jobs
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• CCC hired people to work in national parks, forests, wilderness areas– Men would plant trees, build reservoirs, construct
parks• WPA paved 650,000 miles of roads, built
75,000 bridges and 80 airports
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• AAA - Agricultural Adjustment Administration, 1933CAA - Civilian Aeronautics Authority (now Federal Aviation Administration), 1933CCC - Civilian Conservation Corps, 1933CCC - Commodity Credit Corporation, 1933CWA - Civil Works Administration, 1933FAP - Federal Art Project, part of WPA, 1935FCA - Farm Credit Administration, 1933FCC - Federal Communications Commission, 1934FDIC - Federal Deposit Insurance Corporation, 1933FERA - Federal Emergency Relief Administration, 1933FHA - Federal Housing Administration, 1934FMP - Federal Music Project, part of WPA 1935FSA - Farm Security Administration, 1935FTP - Federal Theatre Project, part of WPA 1935
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• FWP - Federal Writers' Project, part of WPA 1935HOLC - Home Owners Loan Corporation, 1933NIRA - National Industrial Recovery Act, 1933NLRB - National Labor Relations Board, 1934NRA - National Recovery Administration, 1933NYA - National Youth Administration, part of WPA 1935PWA - Public Works Administration, 1933RA - Resettlement Administration, 1935REA - Rural Electrification Administration, 1935SEC - Securities and Exchange Commission, 1934SSB - Social Security Board (now Social Security Administration), 1935TVA - Tennessee Valley Authority, 1933USHA - United States Housing Authority, 1937WPA - Works Progress Administration, 1935
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Roosevelt and the New Deal
• Promoting Economic Recovery– National Recovery Administration (NRA) tried to
improve wages and raise prices to boost the economy
– Public Works Administration (PWA) was created to help improve the nations infrastructure and to created jobs (Lincoln Tunnel)
– Tennessee Valley Authority (TVA) was created to build dams along the Tennessee river that would prevent flooding and provide electricity
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Roosevelt and the New Deal
• Reforming the Economic System– Purpose was to try to prevent future depressions• Federal Deposit Insurance Corporation (FDIC) was
created to protect bank depositors• Federal Power Commission (FPC) controlled the oil and
gas industries
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Roosevelt and the New Deal
• Roosevelt was popular and won reelection in 1936 but had many people that opposed his ideas.
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• Roosevelt 523 Electoral Votes• Alf Landon 8 Electoral Votes
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Roosevelt and the New Deal
• Supreme Court– Declared several New Deal programs to be
unconstitutional– In response FDR designed a “court packing plan”• Wanted to appoint six new justices so he would have
the majority and be able to continue the new deal
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Roosevelt and the New Deal
• Many people opposed the New Deal and FDR, believing it would restrict individual freedom
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Roosevelt and the New Deal
• Huey Long-a senator that created the Share Our Wealth plan
• Francis Townsend-called for the gov’t to pay Americans over 60 $200 each month as long as they spent all the money
• Charles Coughlin-believed the gov’t should take over the banks
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Share Your Wealth Plan• No person would be allowed to accumulate a personal Net Worth of more than
300 times the average family fortune, which would limit personal assets to between $5 million and $8 million. A graduated capital levy tax would be assessed on all persons with a net worth exceeding $1 million.
• Annual incomes would be limited to $1 million• Every family was to be furnished with a homestead allowance of not less than
one-third the average family wealth of the country. Every family was to be guaranteed an annual family income of at least $2,000 to $2,500
• An old-age pension would be made available for all persons over 60.• Free education and training for all students to have equal opportunities in all
schools, colleges, universities.• The raising of revenue and taxes for the support of this program was to come
from the reduction of swollen fortunes from the top, as well as for the support of public works to give employment whenever there may be any slackening necessary in private enterprise
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Legacy of the New Deal
• Social Security (1935)– Old-Age Insurance was guaranteed to retired
people• Retired people would collect a pension that would be
paid for by a payroll tax
– Also included Aid to Dependent Children and aid to the disabled
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Legacy of the New Deal
• Lasting Labor Reforms– Wagner Act (National Labor Relations Act)• Guaranteed workers rights to organize into unions• Upheld the right for collective bargaining• Membership in unions tripled during the 1930s
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Legacy of the New Deal
• Unions became powerful during the 1930s– United Auto Workers launched a sit-down strike at
the nation's largest auto factory in 1936– Lasted six weeks and the strikers won their
demands for higher wages and shorter hours
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Life in the Great Depression
• Eleanor Roosevelt
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Legacy of the New Deal
Was the New Deal Successful?
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It’s no use! He doesn’t see the fire is out.
• According to the cartoon, what problem has the New Deal caused?
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Life in the Great Depression
• The Dust Bowl – A drought in 1930 resulted in widespread crop
failure and sent storms of dust swirling across the land
– These dust storms lasted for five years– 100 million acres of farm land was turned into a
wasteland
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Life in the Great Depression
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Life in the Great Depression
• Causes of the Dust Bowl– Modern methods of farming destroyed the land• Farmers would clear a large amount of land and
remove the thick layer of sod that held the soil in place• With that thick layer gone there was nothing to hold
the soil in place
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Life in the Great Depression
• Black Blizzards– Black blizzards made noon seem like midnight,
buried fences, seeped into houses, and killed people and animals.• “We went to school with headlights on and with dust
masks on.”
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Life in the Great Depression
• Okies Head West– Thousands of people left their farms and moved
west to the farmlands of California– Known as Okies because many came from
Oklahoma– Many people found the condition in California just
as miserable• Unable to buy land, competed with local workers to
pick crops
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Life in the Great Depression
• Arts and Media of the Depression– Many authors and artists tried to capture the toll
the Great Depression had on people• John Steinbeck
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Life in the Great Depression
• Movies and Radio– Some movies dealt with the real social problems
of the era• Grapes of Wrath• The Public Enemy
– Most movies were created to help people forget the problems• King Kong• Mickey Mouse• star Shirley Temple
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Life in the Great Depression
• Movies and Radio– Radio was a part of everyday life• Listeners would listen to bands, comedians, and soap
operas
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