Life in the Great Depression and FDR’s New Deal Goal 9 Essential Idea Poor conditions of the Great Depression led to FDR’s election. FDR’s New Deal helped stabilize the American economy. Life in the Great Depression Who: People in cities Getting in lines: 12 million people lost their jobs and the unemployment rate was 25% People waited in “breadlines” or outside soup kitchens hoping for charity Notice anything ironic? What two eras of American history are represented in this picture? Hobos Hobos: Many people could not find jobs at home Hobos snuck on to train cars and went from town to town looking for work Hoover “stuff” Hoovervilles – Communities of shacks that people lived in Hooverblankets – Newspapers that people slept under “Hoover-stuff” Hooverflags – empty pockets that were turned inside-out, representing poverty Do you think Hoover will get reelected? Farmers Suffering Who: Farmers Problem #1: Overfarming – farmers had farmed improperly, robbing the topsoil of nutrients and drying out the soil The Dust Bowl Problem #2: A drought (lack of rain) casued the soil to turn to dust The Dust Bowl: Farmers were unable to farm because their farmland was barren Huge dust storms would suffocate cattle and carry dust as far as New York City Escapism How many Americans coped: Looked to entertainment to escape reality Notable movies: Gone with the Wind Wizard of Oz Walt Disney: Disney invented Mickey Mouse in 1928 FDR Elected Election of 1932: Franklin Roosevelt (FDR) won in a landslide At the inauguration, he famously said “we have nothing to fear but fear itself” The Hundred Days Beginning of FDR’s First Term: Known as the “First Hundred Days” Fireside chats – FDR began making weekly radio messages to American citizens The New Deal - FDR got Congress to pass 15 new laws that established new programs The First New Deal New Deal programs had _____ purposes: relief, recovery, and reform Relief: Give Americans immediate help Recovery: Give Americans a way to recover long-term Reform: Fix problems that had led to the Great Depression Saving the Banks Saving the Banks Emergency Banking Relief Act: This act allowed the Treasury Department to give licenses to stable banks Saving the Banks In his first fireside chat, FDR told Americans to put their money back in the banks, and they did FDR ended the banking crisis in a week Reforming Banks 1. FDIC Stands for: Federal Deposit Insurance Corporation What it did: insured bank accounts up to $100,000 Securities and Exchange Commission 2. SEC Stands for: Securities and Exchange Commission What it did: regulated the stock market and prevented fraud Agricultural Adjustment Administration Saving Farms and Businesses What was the problem? Low prices and overproduction had hurt farms and businesses 1. AAA Stands for: Agricultural Adjustment Act What it did: paid farmers not to produce as many crops or livestock, causes prices to rise National Recovery Administration 2. NRA Stands for: National Recovery Administration What it did: regulated businesses to create more jobs The Blue Eagle Cut work hours, limited factories to two shifts, and set a minimum wage Companies who participated go a “blue eagle” label, and the government encouraged Americans to buy from them Civilian Conservation Corps Saving Jobs 1. CCC Stands for : Civilian Conservation Corps What it did: paid young men to plant trees, fight forest fires, build reservoirs and parks, etc. (also taught 40,000 of them to read and write) Tennessee Valley Authority 2. TVA Stands for: Tennessee Valley Authority What it did: paid workers to build dams in the Tennessee area, which gave electricity to rural areas Public Works Administration 3. PWA Stands for: Public Works Administration What it did: paid workers in construction to build highways, dams, sewer systems, schools, and government facilities FDR’s Early Successes The New Deal’s Impact on the Economy: The New Deal did not immediately restore prosperity However, it saved banks, farms, businesses, and jobs The New Deal’s Impact on the American People: It changed the spirit of Americans People were inspired by FDR and filled with hope NEW DEAL RECAP