The Depression and the New Deal

The Depression and the New Deal1929-1939The Great DepressionEssential QuestionWhat were the factors that brought about the Great Depression?The BoomA long period of rising stock prices convinced Americans to invest heavily in the stock marketEveryone was trying to get rich quickly

The CrashFearing that the boom would end, some investors started selling their stockPrices declined and people panickedInvestors sold millions of stocks a day for three daysBlack Thursday: panicked traders sold almost 13 million shares

An Unbalanced EconomyOverproduction caused a drop in pricesFactory owners slowed productionFactory owners cut wages and laid off workers1920s Growing gap between the rich and the poor75% of American families lived in poverty or were on the edge of itDepression

Credit CrisisBorrowed money fueled the economy in the 1920sMany consumers could not meet loan or credit paymentsSmall banks collapsedLarge banks invested in the stock marketLarge banks collapsed

Joblessness and Poverty1932 25% of Americans out of workThose who managed to keep their jobs often worked part time and for reduced wagesHungry people waited in long lines to get bread, coffee or soup from soup kitchensFamilies or individuals who lost their homes built shelters out of old boxes or debrisShanty towns or Hoovervilles: groups of homeless people who build shelters

Depression

Shanty town

Hooverville

Average Prices (1932-1933)Sirloin Steak (per pound)27 centsChicken (per pound)22 centsBread (20oz loaf)5 centsPotatoes (per pound)2 centsBananas (per pound)7 centsMilk (per quart)10 centsPeggy Terry, a young girl from Oklahoma City, told how each day after school her mother sent her to the soup kitchen:If you happened to be one of the first ones in line, you didnt get anything but water that was on top. So wed ask the guy that was ladling out soup into the buckets everybody had to bring their own bucket to get the soup hed dip the greasy, watery stuff off the top. So wed ask him to please dip down to get some meat and potatoes from the bottom of the kettle. But he wouldnt do it. From Hard Times by Studs Terkel

Hoover and the CrisisHoover believed, depression cannot be cured by legislative action or executive pronouncementCharities, churches and volunteers worked heroically to provide reliefEventually Hoover recognized the government needed to take steps to combat the Depression1931 Authorized additional federal spending on public works to create jobs

The Bonus ArmyWWI veterans who marched on Washington to demand bonuses promised by the governmentCamped outside WashingtonPolice tried to disband the camp and two people were killedHoover called in the army and veterans and their families fled in terrorCitizens were horrified that the government attacked its own citizensHoover seemed out of touch with ordinary Americans

Bonus Army

Making ConnectionsWhat impact did the Great Depression have on employment?

How did Hoover respond to the economic crisis?

Essential Question: What were the factors that brought about the Great Depression?Roosevelts New DealEssential QuestsionHow did Franklin Roosevelts Leadership bring about change in the U.S. economy?Franklin D. RooseveltDemocratic governor of New YorkDefeated Republican President Hoover in the Election of 1932Struck by polio in 1921 leaving his legs paralyzedPromised the American people a new deal

Restoring ConfidenceInaugural Address: the only thing we have to fear is fear itselfPromised to put people to workOrdered all banks closed for 4 days to help them reorganize and reopen (Emergency Banking Relief Act)Fireside chats helped FDR gain publics confidence

Fireside ChatsAmericans huddled around their radios on march 12, 1933 to hear newly elected president, Franklin D. Roosevelt, in his first fireside chat: Let us unite in banishing fear. We have provided the machinery to restore our financial system, and it is up to you to support and make it work. It is your problem my friends, your problem no less than it is mine. Together we cannot fail. In the fireside chats, Roosevelt calmly but confidently explained in simple terms the nations problems.

LAWS AND REGULATIONS AFFECTED BY THE NEW DEALBankingLaws and regulationsAgriculture Stock MarketRelief for the poorPublic WorksConservation of ResourcesindustryJobs and ReliefProgramsCivilian Conservations CorpsAcronymCCCCharacteristicsEmployed 3 million young people to plant trees, reforest areas, improve national parks, etc.

Jobs and ReliefProgramsFederal Emergency Relief AdministrationAcronymFERACharacteristicsGave money to the states for use in helping the needy

Jobs and Relief ProgramsAgricultural Adjustment ActAcronymAAACharacteristicsWanted to raise farm prices quickly and control production

Jobs and Relief ProgramsTennessee Valley AuthorityAcronymTVACharacteristicsControl flooding, advance conservation and development, bring electricity to rural areas on the Tennessee River

Jobs and ReliefProgramsNational Recovery AdministrationAcronymNRACharacteristicsEncouraged businesses to set minimum wage and abolish child labor

Assessing the New DealDid not cure the nations illsDepression dragged onDarkest days (1932-1933) had passed

Making ConnectionsSummarizing: What steps did Roosevelt take to restore confidence in banks and in the stock exchange?Analyzing: How did work relief programs benefit the economy?

Answer the Essential Question: How did Franklin Roosevelts Leadership bring about change in the U.S. economy?

Life During the Depression

Essential QuestionHow did the Great Depression affect economic activity and social traditions of Americans, especially minorities?Dear Mrs. RooseveltI am writing to you for some of your old soiled dresses if you have anyI am in the seventh grade in school but I have to stay out of school because I have no books or clothes to ware (wear)If you have any soiled clothes that you dont want to ware I would be very glad to get them.Yours TrulyFrom Dear Mrs. Roosevelt

Women go to WorkDesperation drives them into the workforce despite many men being out of workMany families survive on a womans incomeWorked harder at homeSewed their own clothesBaked their own breadCanned their own vegetablesRan laundry businesses or turned their homes into boarding housesOpened doors for women in public life Frances Perkins: first female cabinet memberEleanor Roosevelt campaigned vigorously for women and families in need

Women

The Dust BowlEnvironmental disaster on the Great PlainsNew farm technology ruined grass roots that held the soil in placeDrought in 1931 dried out the soil and it blew awaySand drifts as high as 6 feetPeople left the Plains and became migrant workers

The Plight of MinoritiesAfrican AmericansLess than half have jobs in the SouthJobs taken away by white people who lost theirsMany migrated to citiesNAACP helped them join unionsRoosevelt appointed many to federal posts

The Plight of MinoritiesLatinosAbout 2 million living in the USResentment against Mexican Americans growsGovernment forces many to leave500,000 leave in the early years of the Great Depression

Entertainment and the ArtsThe Depression produced two separate trends in the entertainment and the artsEscapism: light or romantic entertainment that helped people forget about their problemsSocial Criticism: portraits of the injustice and suffering of Depression America

Radio and the MoviesRadio soap operasAdventure programs (Dick Tracy and Superman)85 million went to the movies every weekSnow White and the Seven Dwarves (1937)Wizard of Oz (1939)Gone with the Wind (1939)

Making ConnectionsAnalyzing: What was the Dust Bowl? How did advanced farming technology contribute to it?

Answer the Essential Question: How did the Great Depression affect economic activity and social traditions of Americans, especially minorities?

Effects of the New DealEssential QuestionWhy did some people support Roosevelts New Deal and others oppose it?Critics of the New DealFDR thought big business would help found the New DealBig business viewed the government expansion of power as a threat to individual libertiesPreferred laissez-faire

Demanding More ReformSome believed the president had not gone far enoughLouisiana Senator Huey LongCalled for taxing the rich heavilyWanted to redistribute that money to the poorVery popularAssassinated in 1935

The Second New DealMid 1930s Economy improved slightly but the Depression was not overFDR took bolder stepsRaised taxes on the wealthyCreated jobs with the Works Progress Administration (WPA)Social Security Act: created a tax on workers and employers to provide monthly pensions for retired people. Also launched the welfare system.Unemployment insuranceFair Labor Standards Act (FLSA): Banned child labor and set minimum wage at 40 cents per hour

WPA Works Progress Administration651,087miles of highways, roads built124,031bridges repaired125,110public Buildings Erected8,198public parks created853 airports built or improved2,565murals painted17,744sculptures created

Roosevelts Court Packing PlanSecond New Deal was challenged by the Supreme CourtFDR proposed increasing the number of Supreme Court Justices from 9 to 15Planned to fill the six extra spots with supporters of the New DealCourt Packing Plan cost Roosevelt much support but the Supreme Court backed off the Second New Deal

The End of the New Deal1937 seemed an economic recovery was in full swingRoosevelt cut spending on programs1938 Roosevelts Recession Another economic downturn proved the economy was not fully recoveredAs the 1930s came to an end, dangerous events in Asia and Europe caused Americans to turn their attention to foreign affairs

Answer the Essential QuestionWhy did some people support Roosevelts New Deal and others oppose it?