Chapter 23
Describe A Depression
• Stocks
• Banks
• Unemployment
Pg. 690
ID Causes of the Depression
• Uneven Distribution of income
• EZ Credit
– Installment Buying
– Conspicuous Consumption
– Margin Buying
• Overproduction ( supply > demand)
– Mechanization
– Wages
• Unbalanced Foreign Trade
– U.S. Exports
• Laissez Faire
– No Enforcement Power in FED
– “No Action” Nat’l Gov’t
* Harding, Coolidge, Hoover
• Farm “Problem”
• Consumer Pessimism
• Spiraling Nature of an Economy
What Does the “New Deal”
Represent?
• End of Laissez Faire, New Role for
Government
• $$$$ $pend!!!!!!
• “Brain Trust”, President is economic leader
• Pragmatic Approach
ID…
1. Relief
• 3 R’s
2. Recovery
3. Reform
• “100 Days”
– New Deal Measures
ID Important New Deal Symbols &
Concepts
• Legislate Spending and Supervision:
The NRA
– NIRA (1933)
• The “Blue Eagle”
• “Alphabet Soup”
• “Fireside Chats”
LEGISLATION
• Glass-Steagall Act 1933
- (Emergency Bank Act)
– Banks
– FDIC
• Federal Securities Act 1933
– The SEC: Stock Market controls
• 21st Amendment
• AAA
– Lower Production, Conservation
• TVA
• CCC
•CWA
•HOLC
•FERA
ID New Deal Opponents in 1930’s
• SC
– Ruled NIRA Uncon. 1935
–
AAA
1936
• Conservatives (too much)
• Liberals (not enough)
- Huey long
ID “Court Packing” Plan of FDR
ID “The 2nd New Deal” or the 2nd
100 Days
• Farmers
– Soil Conservation Act
– 2nd AAA
– Resettlement
Administration (FSA)
• Workers
– WPA
– Nat’l Youth Admin
– Wagner Act
• (Nat’l Labor Relations
Act)
– SS Act
– Public Utilities
Describe the New Deal Coalition
•
•
•
•
Southern Whites
Minorities
Unions
Urban Groups
- workers, consumers
- small business
Pg. 713
ID New Deal Culture
“New Deal Art & Artists”
• Radio
• Woody Guthrie
• John Steinbeck
• Murals
• Baseball
ID Pros / Cons in Regard to the
New Deal
• Negative
– Waste
– Bureaucracy
– Socialistic
• Positive
– Evolution of American
Tradition
– Preserved Capitalism
Describe the Legacy of the New
Deal
•
•
•
•
•
•
•
Gov’tal Regulator / Death of Laissez Faire
Social Welfare Spending
Deficit Spending / Nat’l Debt
“Brain Trust” Economic Advisors
Unions Politicized
Preventive Mechanisms (Reforms)
Upgrade Presidential Power
– Economic Leader
Extra Information
Franklin D. Roosevelt’s New Deal
1. Franklin D. Roosevelt
2. New Deal
-- “New Deal for the American People”
-- Progressive leaders
-- Centralized planning
-- Strong roles for government
-- the 3 R’s: Relief, Recovery, & Reform
3. First “Hundred Days”
-- Bank Holiday
-- Civilian Conservation Corps (CCC)
-- Federal Emergency Relief Act
-- Civil Works Administration (CWA)
-- Agricultural Adjustment Act (AAA)
-- National Industrial Recovery Act (NIRA)
-- Tennessee Valley Authority (TVA)
4. Supreme Court attacks New Deal
-- NIRA, AAA, and other laws found to be
unconstitutional
5. Other laws of the New Deal
-- Works Progress Administration [1935]
WPA was a massive public works program
-- Wagner Act [1935] included National Labor
Relations Act which set up a National Labor
Relations Board which had the authority to
determine union representation
-- Social Security Act [1935]: pensions for the
elderly, unemployment compensation, money
for handicapped, and money for dependent
children
6. Roosevelt wins re-election in 1936
-- FDR 61% and Alf Landon 37%
7. FDR attacks Supreme Court in 1937
-- “court-packing” plan failed
8. Severe recession of 1937 – 38
-- FDR decides on deficit spending to stimulate
the economy
9. Grow of labor union membership
-- A.F.L. and C.I.O.
-- members increased from 3 million to 9 million
between 1933 and 1939
-- Fair Labor Standards Act [1938]
10. Dust Bowl
-- severe drought 1932 -36 in middle west from
Texas to Canada
-- Okies and Arkies head west
11. Other laws passed as part of the New
Deal
-- Farm security Administration [1937]: loans to
farm families
-- Rural Electrification Administration [1940]: loans
for building electric power lines
-- Soil Conservation and Domestic Allotment Act
[1936]: payments to plant soil-enriching crops
--Agricultural Adjustment Act [1938]: payments to
farmers for not growing crops
-- National Housing Act [1937]: loans for housing
-- Food, Drug, and Cosmetic Act [1938]: required
testing for effectiveness; listing of ingredients
on certain foods
-- Hatch Act [1939]: to keep government workers
out of political campaigning
12. Ways the New Deal affected America
-- idea that severe crisis does not require dictatorship
-- preservation of free enterprise
-- size, activity, and spending of federal government
-- idea that victims of bad economic conditions are
entitled to government help
13. Criticism and praise
A. Criticism
-- too much government power over
business and agriculture
-- socialism instead of free
enterprise and “rugged
individualism”
-- cost too high; waste of money
B. Praise
--free enterprise economy was in
extreme trouble and required
strong government intervention