Chapter 17 and 18
Section 1
I Can Statements
Discuss the weaknesses in the economy
of the 1920s.
 Explain how the stock market crash
contributed to the coming of the
depression.
 Describe how the depression spread
overseas.

Causes of the
Depression
During the Roaring Twenties, many
Americans enjoyed what seemed like an
endless era of prosperity. Then, in October
1929, the mighty bull market crashed. As
production fell and unemployment rose, the
US economy lurched into a period of
dramatic decline. Years after the Great
Depression began, many Americans came
to see this contraction as a regular feature
of the nation’s business cycle.
Causes of the Depression
In 1928, Republican leaders exuded
confidence about their party and their
country.
 The Roaring Twenties had been a
Republican decade.
 In 1920, Americans sent Warren G.
Harding to the White House and four
years later Calvin Coolidge—neither
election was close.

Causes of the Depression
Both Presidents watched the country
grow increasingly prosperous.
 Consumption went up, the gross
national product went up, and the stock
market went up.
 Economist said, times were good in
America—and they were only getting
better.
 Republicans took credit for the bullish
economy, and Americans agreed.

Causes of the Depression
1928—Republicans chose Herbert
Hoover—a public servant.
 Born in Iowa, he was orphaned as a
child.
 He overcame personal tragedy and
eventually graduated from Stanford
University with a degree in geology, and
worked as a mining engineer.
 Retired early and devoted himself to
public service.

Causes of the Depression
Causes of the Depression
He came to attention of America during
WWI, first as the coordinator of the
Belgium relief program and head of the
Food Administration.
 He had also served as Secretary of
Commerce.
 His philosophy was simple but effective.
 Stressed the importance of competition,
but also voluntary cooperation between
labor and management.

Causes of the Depression
He promised “a chicken in every pot, a
car in every garage” and spoke about
ending poverty in America.
 Americans voted for Hoover, prosperity,
and the continuation of a Republican
government.
 When he took office America was full of
confidence.
 Few could image the economic disaster
that was just 7 months in the future.

Causes of the Depression





Prosperity was not as deep or as sturdy as
Hoover claimed.
All through the economy, there was
troubling signs.
Farmers were struggling.
They made up one fourth of the workforce.
Crop demands created by WWI, harvest
yields had been increase and more land
put under the plow.
Causes of the Depression
Farmers had bought costly tractors and
other mechanized farm equipment.
 They amassed huge debt and additional
mortgage payments followed.
 After the war, demand for American
crops fell sharply.
 Despite the drop, postwar production
remained high because of increasing
mechanized farm equipment and more
intensive farming methods.

Causes of the Depression
Farms were getting bigger and yielding
bumper crops at harvest.
 However, farmers were failing to sell off
their huge crop surpluses and pay their
debts to banks and other institutions.
 The result was a rural depression that
affected millions of Americans.
 Hard-pressed to pay their debts, forced to
sell in a glutted and competitive world
market, and confronted by several natural
disasters, farmers did not share in the
boom of the 1920s.

Causes of the Depression
They did not have the cash to buy the
new consumer goods produced by
industries.
 They lived on credit from month to
month, often on the verge of financial
ruin.
 Any downward slide hit farmers first and
hard.

Causes of the Depression
Unlike farmers, industrial workers
participated in the success of the nation.
 Many purchased Model T Fords along
with a variety of other consumer
products.
 Though not wealthy, industrial laborers
were in a better financial position than
their fathers had been a generation
before.

Causes of the Depression
Problem was while wages grew gradually,
workers productivity increased
dramatically.
 Between 1923 and 1929, output per
person-hour jumped 32%, but worker’s
wages went up only 8%
 During the same period, corporate profits
from worker output rose 65%.
 All these figures pointed to the fact that
during the 20s, the rich became much
richer, and industrial workers simply
became less poor.

Causes of the Depression
There was such a small number of rich
Americans dominated such a large
percentage of the country’s total wealth.
 In 1929, the wealthiest 0.1% of the
population earned about the same
amount of money as the bottom 42%.
 This uneven distribution of the nation’s
wealth created economic problems.

Causes of the Depression
More than 60% of all Americans had a
yearly income of less than $2,000 a
year.
 24,000—of the wealthiest families had
an annual income of more than
$100,000, which was 50x more than
most families were earning. But these
wealthy families did not eat 50x more
food than lower-income families.

Causes of the Depression
They did spend a great deal on
consumer products, but not enough to
keep the economy booming.
 A healthy economy needs more people
to buy more products, which creates
even more wealth.
 In this way, a healthy economy avoids
underconsumption that can limit
economic growth.

Causes of the Depression
The uneven distribution of wealth
pointed to an uncertain future.
 From overproduction of the farmers to
underconsumption of the low-income
industrial worker, these problems
created economic instability.
 Too many did not have enough to buy
what they needed or wanted.
 For a time, the expansion of credit
partially hid this problem.

Causes of the Depression
Americans bought automobiles,
appliances, radios, and other goods on
credit.
 Using installment plans, they paid a
small percentage down and the rest
over a period of months or years.
 By the end of the decade, 80% of
radios, and 60% of cars were purchased
on installment credit.

Causes of the Depression
Americans even bought stock on credit,
making such stock purchases on
margin.
 Every year, Americans accumulated
more debt.
 In the past, they feared debt and put off
buying goods until they had cash to pay
for those items.
 However, easy credit changed this
behavior during the 1920s.

Causes of the Depression

The growing credit burden could mask
the problems of Americans living beyond
their means for only so long before the
economy imploded.
The Stock Market Crashes
By 1929, some economist observed that
soaring stock prices were based on little
more than confidence.
 Prices had no basis in reality.
 Although other experts disagreed, it
became clear that too much money was
being poured into speculation.
 Investors were gambling; often with
money they did not even have, on stock
increases to turn a quick profit.

The Stock Market Crashes
If the market’s upward climb suddenly
reversed course, many investors would
face economic devastation.
 September 3, 1929, the stock market
began to sputter and fall.
 Prices peaked and then slid downward in
an uneven way.
 After the Dow Jones average dropped 21
points in one hour on Oct. 23, many
investors concluded that the boom was
over.

The Stock Market Crashes
They lost confidence—the very thing
that had kept the market up for so long.
 The next day, Oct. 24, came to be
known as Black Thursday.
 With confidence in the stock market
failing, nervous investors started to sell.
 Stock in General Electric that one sold
at $400 a share plunged to $ 283.

The Stock Market Crashes
Across the US, investors raced to pull
their money out of the stock market.
 On Oct. 29, Black Tuesday, the bottom
fell out.
 More than 16 million shares were sold
as the stock market collapsed in the
Great Crash.
 Billions of dollars were lost.
 Whole fortunes were wiped out in hours.

The Stock Market Crashes




Many speculators who had bought stock on
the margin lost everything they had.
President Hoover tried to soothe Americans by
insisting that the “business of the country is on
a sound and prosperous basis.”
But by Nov. 13, the Dow Jones average had
dropped like a brick from its September high
381 to 198.7.
The Great Crash represented another
hallmark of the nation’s business cycle, which
explained the periodic growth and contraction
of the economy.
The Stock Market Crashes
The Stock Market Crashes
The Stock Market Crashes
The Great Depression Begins
The stock market crashed marked the
beginning of the Great Depression, a
period lasting from 1929-1941 in which
the economy faltered and
unemployment soared.
 It did not start the depression by itself;
the crash sparked a chain of events that
quickened the collapse of the US
economy.

The Great Depression Begins
One of the first institutions to feel the
effects of the stock market crash was
the country’s banking system.
 The crisis in confidence continued as
frightened depositors feared for their
money and tried to withdraw it from their
banks.
 Few banks could survive a sustained
“run” of requests by depositors for their
money.

The Great Depression Begins





In 1929, 641 commercial banks failed. A
year later, 1,350 failed.
And a year after that, 1,700 went under.
By 1932, many Americans believed that no
banks would be left standing.
Another cause of many bank failures was
misguided monetary policy.
During the 1920s, the Federal Reserve,
which regulates the amount of money in
circulation, cut interest rates to stimulate
economic growth.
The Great Depression Begins
But in 1929, worried about investor’s overspeculation, the “Fed” limited the money
supply to discourage lending.
 As a result, there was too little money in
circulation to help the economy after the
stock market crash.
 When stock prices fell this sent investors to
the banks to secure whatever hard money
they had left and the banks were cleaned
out of currency and forced to close.

The Great Depression Begins
The Great Depression Begins
The Great Depression Begins
The collapse of stock prices, combined
with reduced consumer spending, spelled
trouble for American business.
 Business leaders believed that the survival
of their companies depended on production
cutbacks, to maintain price levels, and
layoffs, to reduce payroll.
 While their stocks were still falling,
companies began closing plants and
forcing workers onto the growing list of the
unemployed.

The Great Depression Begins
Henry Ford closed several of his Detroit
factories, putting 75,000 out of work.
 Problems of production cut kept getting
bigger and bigger.
 As businesses closed plants and fired
workers to save money, more Americans
lost their jobs.
 As unemployment grew and income
shrank, consumers spent less moneybusinesses cut production even more,
closing more plants and firing more
workers.

The Great Depression Begins
1933—25% of all workers had lost their
jobs.
 Government tried to protect products
from foreign competition.
 Hawley-Smoot Tariff—raised tariffs on
foreign imports to a level that they could
not compete in the American market.
 European countries retaliated and
enacted their won protective tariffs.

The Great Depression Begins
The Hawley-Smoot Tariff added to the
problems of the Depression.
 American manufactures and farms had
a glut of unsold products, internationally
high tariffs closed markets.
 Disastrous to American producers and
globally as well. This helped to destroy
international trade.
 Hawley-Smoot Tariff was one cause of
the depression spreading globally.

The Great Depression Begins
Reparations payments, war debt
payments, and an international
imbalance of trade caused a shaky
economic structure.
 Germany ceased reparations payments,
and the US agreed to suspend France
and Britain’s war debt.
 European nations experienced the same
cycle of business failures, bank
collapses, and high unemployment.

What Caused the Great
Depression
People disagree on the exact causes of the
Great Depression.
 Some believe that the contraction in the
money supply, the twin events of the stock
market crash in 1929, and bank failures in
1930 left too little money in circulation.
 John Maynard Keynes said a lack of
government interference in the economy
led to the depression. He recommended
the government spend more money when
the economy slows.

What Caused the Great
Depression
For sure, problems in consumption
contributed to it.
 Economic hardships in 1929 in Europe and
rural America, coupled with an uneven
distribution of wealth and over-speculation
in the stock market, created dangerous
economic conditions.
 When combined with poor and misinformed
economic decision by Congress and
President Hoover, the Great Depression
resulted.

The Great Depression
The Great Depression
The Great Depression
The Great Depression
Section 2
I Can Statements
Examine the spread of unemployment in
America’s cities.
 Discuss the impact of the depression on
rural Americans.
 Explain the human and geographical
factors that created the Dust Bowl.

Section 2: Americans
Face Hard Times
The stock market crash signaled the end of
boom time and the beginning of hard times.
As investors mourned their losses,
Americans watched the economy stagger
into the Great Depression. In the cities and
on the farms, desperate poverty gripped the
nation. Even after prosperity returned,
those who lived through the crisis would
remember the pain and worries of the
depression. Tested by extreme hardship,
this generation of Americans forged a
character and will strong enough to
overcome economic ruin and restore
prosperity.
Misery and Despair Grip
America’s Cities
The depression touched every
American, Americans either experienced
it or knew someone who experienced
the hardships and loss caused by the
catastrophe.
 1921-1929—annual average
unemployment rates never rose above
3.7%.
 1933—it was 24.9%

Misery and Despair Grip
America’s Cities
Millions of workers were able to keep
their jobs, however, most had their
wages or hours cut.
 Many brought home paychecks that
were 10, 20, and sometimes 30% less
than pre-depression checks.
 Many families turned to public soup
kitchens or breadlines to get free scraps
of food.

Misery and Despair Grip
America’s Cities
Whole families descended into hunger
and homelessness.
 As Americans lost their jobs and used
their savings they had to scrounge to
keep from going hungry.
 They sold furniture, pawned jewelry to
buy food or pay rent.
 If they ran out of money, they were
evicted from their homes, and ended up
on the street.

Misery and Despair Grip
America’s Cities
Homeless people slept on park
benches, in empty railway cars, or in
cardboard boxes.
 Many lived together in Hoovervilles,
makeshift shantytowns of tents and
shacks built on public land or vacant
lots.
 Many built homes out of scrap lumber,
tar paper, tin, and glass.

Misery and Despair Grip
America’s Cities
One of the largest Hoovervilles sprang
up in the middle of Central Park in New
York City.
 They covered themselves with
newspapers, called Hoover blankets, to
keep warm.
 They looked for jobs with their empty
pant pockets turned inside out, a sign of
poverty, known as Hoover flags.

Misery and Despair Grip
America’s Cities

Thousands found no
escape from their
misery.
Misery and Despair Grip
America’s Cities
Misery and Despair Grip
America’s Cities
Misery and Despair Grip
America’s Cities
Poverty Devastates Rural
America
The number of unemployed, homeless,
and hopeless increased like a causality
list in some great war.
 In rural America, people fared no better,
and sometimes their conditions were
worse.
 Farmers had suffered before the
Depression, falling commodity prices,
and accumulating debt had left them
devastated. Many lost their farms.

Poverty Devastates Rural
America
Crop prices fell and new debts added.
To add to the problem, the Great Plains
were suffered through a drought that lasted
for years.
 Many lost their farms and traveled around
looking for work trying to survive.
 Low prices were paid for crops they grew.






1919—wheat $2.16
1932—wheat $0.38
1919—cotton $41.75
1932—cotton 4.6 cents
Poverty Devastates Rural
America
They could not generate enough money to
continue farming; they could not pay their
debt, purchase seeds, repair equipment,
and buy necessities.
 Frustration caused some farmers to protest
by burning or dumping their product.
Example—farmers dumped 1,000 gallon of
milk.
 1930-1934—Nearly 1 million farmers failed
to pay their mortgages and lost their farms.

Poverty Devastates Rural
America





Banks foreclosed on lands and homes, and
repossessed farming equipment. Banks then
sold what they could at public auctions.
Some remained tenant farmers, other left
looking for other work.
Water was a constant source of problem on
the Great Plains.
Normal rainfall seldom exceeded 20 inches a
year.
This means, drought on the Great Plains were
often more devastating than those in the East
and Midwest.
Poverty Devastates Rural
America
New farming methods made the drought
conditions worse.
 Farmers plowed under natural grasses to
plant winter wheat. This caused a shift of
the ecological balance of the region.
 The grass was not there to prevent the
topsoil from blowing away.
 1932—Drought, loose topsoil, and high
winds resulted in a disaster on the Plains.

Poverty Devastates Rural
America
Wind kicked up dust storms that began to
blow east.
 These clouds of dust and dirt could rise to
8,000 feet off the ground and travel as fast
as 100 miles per hour and blotted out the
sun.
 Most started in the southern Plains, in
Texas, Oklahoma, Kansas, New Mexico,
and Colorado.
 This area became known as the Dust Bowl.

Poverty Devastates Rural
America
These storms killed cattle, birds, and
blanketed rivers, and suffocated fish.
 Dust seeped in to homes covering
everything.
 The dust storms displaced twice as
much dirt as Americans had scooped
out to build the Panama Canal.
 Many had no choice but to migrate from
the region. Most were called Oakies no
matter where they were from.

Poverty Devastates Rural
America
They packed their cars and trucks with
their possessions and headed west.
Some 800,000 migrated out of Missouri,
Arkansas, Oklahoma, and Texas.
 Many moved to California, thinking jobs
were there, to find they were few and far
between.
 Big operations survived on the Plains
and eventually dams provided irrigation.

Poverty Devastates Rural
America
Poverty Devastates Rural
America
Poverty Devastates Rural
America
Poverty Devastates Rural
America
Few Americans Escape Hard
Times
Hoover used the word depression to
describe the state of affairs thinking it
sound better than “panic” or “crisis.”
 The depression became a very personal
affair; men who lost their jobs and couldn’t
find work felt they betrayed their family.
 Some men deserted their families.
 Those that did work lived in fear of losing
their job and also guilty they had a job.

Few Americans Escape Hard
Times
Wives and children also suffered.
Birthrates plummeted.
 Mothers tried to stretch incomes, sew
clothes, and take on odd jobs, anything
to help the family survive.
 Family discipline declines, children quit
school, ran away from home, some
families grew stronger, and others broke
apart.

Few Americans Escape Hard
Times
Americans on the bottom rung of the
economic ladder—the poorest of the poor,
often minorities were left with no financial
resources.
 In 1932, unemployment among African
Americans was around 50%. They often
relied on emotional resources of family,
and religion to cope.
 As the Oakies moved west, competition
was intense between them and Mexican
American farm workers.

Few Americans Escape Hard
Times
Few Americans Escape Hard
Times
Few Americans Escape Hard
Times
Few Americans Escape Hard
Times
Section 3
I Can Statements
Discuss how Hoover’s initial
conservative response to the depression
failed.
 Explain the changes in the President’s
policies as the crisis continued.
 Describe how Americans reacted to
Hoover's relief programs.

Section 3: Hoover’s
Response Fails
From big cities to small towns, the Great
Depression spread misery far and wide
across America. The unemployed and the
homeless crowded into shantytowns. Giant
dust storms swallowed the Great Plains.
Yet as the crisis depended, Herbert Hoover
struggled to respond to the nation’s
problems. As a result of Hoover’s failed
response, in 1932 Americans would turn to
a new leader and increased government
intervention to stop the depression.
Cautious Response to
Depression Fails
Herbert Hoover did not cause the
depression, but many looked at him to
solve the crisis.
 He will try many different approaches,
but fail to find the right formula.
 In the beginning, he tried a hands-off
policy. He thought this was a natural
occurrence in the business cycle.

Cautious Response to
Depression Fails
He asked business and industrial
leaders to keep employment, wages,
and prices at current levels.
 He called for the government to reduce
taxes, lower interest rates, and create
public-works programs.
 Felt this would encourage more
production and consumption; he also
asks wealthy Americans to give to
charity.

Cautious Response to
Depression Fails
However, it relied too much on voluntary
cooperation.
 He then asked state and local
government to provide jobs and relief
measures, however most did not have
the means necessary to combat the
crisis.
 He opposed public assistance.

Hoover Adopts More Activist
Policies
Poor Americans called trucks pulled by
horses or mules “Hoover wagons,”
campfires “Hoover heaters,” and
cardboard boxes “Hoover houses.”
 He then decided to use federal
resources to battle the depression.
 Established Reconstruction Finance
Corporation to give a billion dollars in
loans to railroads and large business.

Hoover Adopts More Activist
Policies
Also gave loans to banks to help struggling
businesses.
 Hoover believed if the government lent
money to bankers, they would lend to
businessmen, businessmen would hire
workers, production, and consumption
would increase —known as trickle-down
economics.
 Didn’t help because banks did not increase
their loans or use loans to hire workers.

Hoover Adopts More Activist
Policies

One success was
the construction of a
dam on the
Colorado River—
Hoover Dam.
Brought muchneeded employment
to the Southwest.
Hoover Adopts More Activist
Policies
Hoover Adopts More Activist
Policies
Americans Protest Hoover’s
Failures
The President became a symbol of
failure.
 Some blamed capitalism, while others
wondered about the responsiveness to
democracy.
 Many felt the answer was a rejection of
capitalism and the acceptance of
socialism or communism.

Americans Protest Hoover’s
Failures
Although some questioned the ability of
America’s capitalistic and democratic
institutions to overcome the crisis, most
Americans never lost faith in their country.
 World War I veterans were seeking the
bonus that Congress had promised them.
 Bonus Army —1924 Congress provided for
a lump sum payment to veterans in 1945.

Americans Protest Hoover’s
Failures
They started calling for early payment to
support themselves.
 Congress passed a bill to provide for
early payment, but Hoover vetoed the
bill.
 To protest, veteran groups marched on
Washington.
 20,000 set up camps and occupied
empty government buildings.

Americans Protest Hoover’s
Failures
Riots broke out when the police tried to
evict them.
 Hoover, called for General Douglas
MacArthur and federal troops to clear
the area.
 MacArthur used force—1,000 marchers
were tear-gassed and many injured.
 This shocked Americans—this
guaranteed Hoover no chance of
winning reelection.

Americans Protest Hoover’s
Failures
Americans Protest Hoover’s
Failures
Americans Protest Hoover’s
Failures
Charts and Graphs
Causes
•Overproduction and underconsumption of agricultural crops.
•Uneven distribution of income.
•Gradual accumulation of consumer debt.
•Widespread stock market speculation.
The Great Depression
Effects
•Banks and businesses fail.
•Unemployment soars.
•Personal incomes shrink.
•Countries enact high tariffs to protect their products from foreign
competition; world trade declines.
•American loans to Europe dry up.
Charts and Graphs
Chapter 18
Section 1
I Can Statement
Analyze the impact Franklin D.
Roosevelt had on the American people
after becoming President.
 Describe the programs that were part of
the first New Deal and their immediate
impact.
 Identify critical response to the New
Deal.

Section 1: FDR Offers
Relief and Recovery
The Great Depression challenged the faith
of Americans that democracy could handle
the crisis. Faced with similar
circumstances, people in Germany, Italy,
and Japan had turned to dictatorships to
deliver them from despair. The New Deal
had great significance because America’s
response to the Great Depression proved
that a democratic society could overcome
the challenges presented by the severe
economic crisis.
Roosevelt Takes Charge
Franklin D. Roosevelt had enjoyed a
privileged life.
 1905--Franklin married his distant
cousin Eleanor Roosevelt. Teddy
Roosevelt gave the bride away.
 Franklin Roosevelt served in the New
York Senate, as Assistant Secretary of
the Navy, and governor.

Roosevelt Takes Charge
1921—FDR slipped off his boat into the
cold water of the North Atlantic. He later
awoke with a fever and severe pain in
his back and legs.
 Two-weeks later he was diagnosed with
Polio.
 He will never recover full use of his legs.

Roosevelt Takes Charge
Roosevelt Takes Charge
Roosevelt Takes Charge
With Eleanor’s help, he made a political
comeback—Elected governor of New
York.
 When he ran for president he pledged a
“New Deal” to combat the depression.
 1932 Election

 Democrat: Roosevelt
 Republican: Hoover
Roosevelt Takes Charge
Both advocated different approaches to
solving the Great Depression.
 Hoover—relief should come from the
state and local governments and private
agencies.
 Roosevelt—strong action and leadership
from the federal government.
 Roosevelt won by more than 7 million
votes.

Roosevelt Takes Charge
To help plan the New Deal, Roosevelt
sought advice from a diverse group of
men and women— “Brain Trust”
 He chooses two Republicans to be in his
Cabinet, and Frances Perkins, the first
women Cabinet member in history.
 He relied heavily on Eleanor; she served
as his eyes and ears.

Roosevelt Takes Charge
The First Hundred Days
During the first hundred days in office,
Roosevelt proposes and Congress
passed 15 bills —First New Deal.
 It had 3 goals: relief, recovery, and
reform —relief from the immediate
hardship and to achieve long-term
economic recovery.

The First Hundred Days

Achievements of the First Hundred
Days:
 Federal Deposit Insurance Corporation






(FDIC)
National Recovery Administration (NRA)
Civilian Conservation Corps (CCC)
Public Works Administration (PWA)
Agricultural Adjustment Administration (AAA)
Tennessee Valley Authority (TVA)
Home Owners’ Loan Corporation (HOLC)
The First Hundred Days
His first issue— bank. A banking panic
gripped the nation as depositors lined up
at the banks to withdraw their savings as
more and more banks failed.
 He called Congress into special session
and convinced them to pass the
Emergency Banking Bill that gave the
President many powers—including
declaring a 4-day bank “holiday”

The First Hundred Days
This gave banks time to get accounts in
order before re-opening.
 Eight-days into his Presidency he gave an
informal radio speech to Americans—
fireside chats.
 This became a way for him to
communicate with the American people.
 In the first fireside chat he tried to calm
fears about the banking system—this
helped when banks reopened—people
didn’t rush to withdraw their funds.

The First Hundred Days
The First Hundred Days
Federal Deposit Insurance Corporation
(FDIC), insured banks deposits up to
$5000.
 Glass-Steagull Act —banks not allowed
to invest in the stock market.
 Securities and Exchange Commission
(SEC) —regulates stock market and
makes it safe for investments.

The First Hundred Days
The First Hundred Days
These reforms helped restore
confidence in the economy; runs on
banks ended and the stock market
stabilized.
 Next a number of programs tried to help
the plight of the farmer.
 For years, the supply of crops grown by
farmers exceeded demand and prices
dropped so low that it was no longer
profitable to grow them.

The First Hundred Days
Agricultural Adjustment Act– sought to
end overproduction and raise crop
prices, by providing financial aid, paying
farmers subsidies not to plant on part of
their land or kill excess livestock.
 Many Americans felt this was wrong
when so many where going hungry, but
farm prices did rise.

The First Hundred Days
The First Hundred Days
Americans living in the Tennessee River
Valley were some of the poorest; few had
electricity, running water, or sewage
systems.
 Tennessee Valley Authority (TVA) built
dams in the Tennessee River Valley to
control floods and generate power.
 They also replanted forests, built fertilizer
plants, created jobs, and attracted industry
with the promise of cheap labor.

The First Hundred Days
The First Hundred Days
The First Hundred Days


Civilian
Conservation Corps
(CCC)—provided
more than 2 million
jobs to young men.
They replanted
forests, built trails,
dug irrigation
ditches, and fought
forest fires.
The First Hundred Days
Federal Emergency Relief Act (FERA)—
federal funds to state and local agencies
to help unemployed.
 Civil Works Administration (CWA)–
provided jobs on public-works projects.
 Home Owners’ Loan Corporation
(HOLC)—loaned money at low interest
rates to homeowners who could not
meet mortgage payments.

The First Hundred Days
Federal Housing Administration– bank
loans used for building and repairing
homes.
 500 million appropriated for FERA was the
largest peacetime expenditure by the
government to that time.
 National Recovery Administration (NIRA)—
developed codes intended to govern whole
industries—established minimum wages
and minimum prices for goods that
business sold.

The First Hundred Days
The idea was to increase the wages of
workers so they would buy more goods
and raise prices so companies could
make a profit.
 Public Works Administration– built
bridges, power plants, and government
buildings. Ex. NYC’s Triborough Bridge,
the Overseas Highway (links Miami and
Key West), and Bonneville Dam on the
Columbia River.

The First Hundred Days
Opposition Emerges to the New
Deal
Some thought the changes were too
radical; others thought it was not radical
enough.
 The chief complaint was it made the
federal government too powerful.
 Critics said the government was telling
business how to operate, spending large
sums of money, and piling up a huge
national debt.

Opposition Emerges to the New
Deal
Many felt it was destroying free enterprise
and undermining individualism.
 They formed the American Liberty League.
 Others said that Roosevelt hadn’t done
enough, especially the socialists.
 His most significant criticism came from
those rooted in the populist movement—
Spokesmen of the poor, challengers of the
power of the elite.

Opposition Emerges to the New
Deal
Francis Townsend—wanted a program
to give $200 a month to citizens over 60
(filter out society).
 Father Charles Coughlin—had a weekly
radio program, which at first supported
the New Deal, but later accused FDR of
not doing enough to end the depression.

Opposition Emerges to the New
Deal

Senator Huey
Long—gave folksy
speeches in which
he proposed high
taxes on the wealthy
and large
corporation and
redistributing their
income among the
poorest Americans
Section 2
I Can Statements
Discuss the programs of social and
economic reform in the second New
Deal.
 Explain how New Deal legislation
affected the growth of organized labor.
 Describe the impact of Roosevelt's
court-packing plan on the course of the
New Deal.

Section 2: Second New
Deal
FDR’s goals for the first New Deal were
relief, recovery, and reform. Progress had
been made, but there was still much work
that needed to be done. Beginning in early
1935, Roosevelt launched an aggressive
campaign to find solutions to the ongoing
problems caused by the Great Depression.
This campaign known as the second New
Deal, created Social Security and other
programs that continue to have a profound
impact on the everyday lives of Americans.
Extending Social and Economic
Reform
In his fireside chats, press conferences,
and major addresses, he explained the
issues facing the nation.
 He said that the complexities of the
modern world compelled the federal
government to “promote the general
welfare” and to intervene to protect
citizen’s rights.

Extending Social and Economic
Reform

Second New Deal—addressed
problems of the elderly, the poor, and
the unemployed; created new publicworks projects, helped farmers, and
enacted measures to protect workers’
rights.
Extending Social and Economic
Reform

Works Progress Administration--$5
billion for new jobs. Harry Hopkins was
in charge—built or improved roads,
dredged rivers, and promoted soil and
water conservation. Even provided for
displaced artists.




Employed 8 million
Spent 11 billion
Built 650,000 miles of highway
125,000 public buildings
Extending Social and Economic
Reform
Funded projects like San Antonio River
Walk and part of the Appalachian Trail.
 Federal deficit--$461million in 1932 →
$4.4 billion in 1936.
 This lead to criticism about
wastefulness, but economist John
Maynard Keynes said deficit spending
was needed to end the depression.

Extending Social and Economic
Reform
Putting people to work on public projects
put money into the hands of consumers
who would buy more goods; stimulating
the economy— pump priming.
 The US was one of the few
industrialized nations that did not
provide some form of pension for the
elderly.

Extending Social and Economic
Reform
Social Security Act—created a pension
system for retirees, unemployment
insurance for workers who lost their
jobs.
 Also created insurance for work-related
accidents and provided aid for povertystricken mothers and children, the blind,
and disabled.
 Second New Deal tried to further help
farmers.

Extending Social and Economic
Reform
Only 10% of all farms had electricity,
because it wasn’t profitable.
 Rural Electrification Administration
(REA)—loaned money to electric utilities
to build power lines, bringing electricity
to isolated rural areas—more than 80%
of American farms had electricity by
1950.

Extending Social and Economic
Reform
Changed the relationship of the federal
government and farmers—government
was committed to providing price
supports, or subsidies for agriculture.
 Many projects had a huge impact on the
development of the American West

 Central Valley irrigation system (California)
 Bonneville Dam
Labor Unions Find a New Energy
During the Great Depression there was
an upsurge of union activity.
 Roosevelt felt the success of the New
Deal depended on raising the standard
of living for industrial workers, improving
the whole economy.
 National Labor Relations Act– called the
Wagner Act recognized the rights of
employees to join unions and gave
workers the right to collective bargain.

Labor Unions Find a New Energy
This meant they could negotiate with
unions about hours, wages, and working
conditions.
 Created the National Labor Relations
Board to look into workers’ complaints.
 Fair Labor Standards Act—gave workers
more rights.

 Established a minimum wage, initially 25 cents
per hour.
 Maximum workweek of 44 hours
 Outlawed child labor
Labor Unions Find a New Energy
American Federation of Labor—
represented skilled workers.
 Congress of Industrial Organizations
(CIO)—a competing organization
 1936—United Automobile Workers Union
(UAW) staged a sit-down strike, in Flint
Michigan. They refused to leave the
workplace until a settlement was reached.

 Lasted 44 days
 General Motors recognized their union
 1940—9 million belonged to unions
Challenges to the New Deal
1926—FDR received 61% of the vote.
 Main challenger to the New Deal—The
Supreme Court
 Schechter Poultry v. US—the Supreme
Court ruled the President had no power
to regulate interstate commerce, and the
National Industrial Recovery Act
unconstitutional.

Challenges to the New Deal
Later ruled a key part of the Agricultural
Adjustment Act unconstitutional.
 Feb. 1937—FDR unveiled a plan to
dilute the power of the sitting Justices of
the Supreme Court.

 Called for adding 6 new Justices.
 Said Constitution doesn’t specify a number.
 Court-packing plan—many accused him of
trying to increase presidential power and
upset the balance between the 3 branches.
Challenges to the New Deal
Court turned his way.
1927—Court was more willing to accept a
larger role in the federal government.
 But the court-packing plan weakened him
politically and the public began to be much
less willing to support further legislation.
 1935-1936—conditions were improving,
and FDR cut back federal spending,
Federal Reserve raised interest rates,
making it difficult for business to expand
and for consumers to buy new goods.


Challenges to the New Deal
Unemployment soared and nearly all the
gains in employment and production
were wiped out.
 Republicans gained seats in Congress,
even though the Democrats retained
control, FDR chose not to force more
reforms.

Chart
Program
Year
Effects
Social Security Act (SSA)
1935
Established a pension system and unemployment insurance,
provided payments to workers injured on the job, the poor and
people with disabilities.
Works Progress Administration (WPA)
1935
Employed millions of people for government projects ranging
from highway construction to arts programs.
Rural Electrification Administration (REA)
1935
Provided loans to eclectic companies to build power lines,
bring electricity to isolated areas.
National Labor Relations Act (Wagner Act)
1935
Outlawed unfair labor practices, granted workers the right to
organize unions and to bargain collectively; created the
National Labor Relations Board.
National Youth Administration (NYA)
1935
Trained and provided for jobs and counseling for unemployed
youth between the ages of 16 and 25.
Banking Act of 1935
1935
Finalized the creation of the FDIC and made insurance for
dank deposits permanent; created a board to regulate the
nation’s money supply and interest rates on loans.
US Housing Authority (USHA)
1937
Subsidized construction of low-cost public housing by
providing federal loans.
Fair Labor Standards Act
1938
Banned child labor, established a minimum hourly wage, and
set the work week at 44 hours.
Food, Drug, and Cosmetic Act
1938
Prohibited the mislabeling of food, drugs, and cosmetics, and
ensured the safety and purity of these products.
Section 3
I Can Statements
Describe how the New Deal affected
different groups in American society.
 Analyze how the New Deal changed the
shape of American party politics.
 Discuss the impact of Franklin D.
Roosevelt on the presidency.

Section 3: Effects of the
New Deal
The New Deal provided desperately needed
relief from the depression and enacted
reforms that guarded against economic
catastrophe. It did not end the depression.
World War II, with its massive military
spending, would do that. Yet, the New Deal
mattered enormously because it brought
fundamental change to the nation. It
changed the role of the federal government
in the economy, the power of the
presidency, and the relationship of the
American people and their government.
Women Help Lead the New Deal
The New Deal helps provide some
women opportunities to increase their
political influence and promote women’s
rights.
 Eleanor Roosevelt– transformed the
office of First Lady to that of action and
deep involvement in the political
process.

Women Help Lead the New Deal
 She represented the President; toured the






nation
Helped in campaigns
Offered advice on political matters
Wrote a newspaper column
Causes included: public health, education, arts
in rural areas, and flood control.
Once traveled 60,000 miles in 2 days.
Frances Perkins —Secretary of Labor—
first women Cabinet member. Helped to
end child labor and establish a minimum
wage.
African Americans Make
Advances and Face Challenges
1934—50% of African Americans were
unemployed.
 Eleanor urged the President to improve
the situations for African American.
 She protested against racial
discrimination.
 President invited many African American
leaders to advice him— Black Cabinet.
He didn’t always take their advice.

African Americans Make
Advances and Face Challenges

Supported no civil rights reforms and
many New Deal programs hurt African
Americans.
The New Deal Affects Native
Americans
FDR attempted to improve the lives of
Native Americans, by making changes
to policies.
 Indian New Deal—reverses the
conditions started by the Dawes Plan in
1887. Provided funding for the
construction of schools and hospitals.

The New Deal Affects Native
Americans
Indian Reorganization Act—gave tribal
control over American Indian land, and
stopped discouraging the practice of Indian
religious and traditional customs.
 Gave them more control over their destiny.
 Other programs of the New Deal hurt
Native Americans.

 Ex. Navajo Livestock Reduction the government
said Navajo sheep were causing soil erosion on
the Colorado Plateau. Ordered thousands of
sheep be sold or killed.
The New Deal Creates a New
Political Coalition
New Deal Coalition—political force that
brought together southern whites,
northern blue-collar workers—especially
those with immigrant roots—poor midwestern farmers, and African Americans.
 Before the New Deal, most African
Americans voted Republican, in the
1930s they started to vote Democratic.

The New Deal Creates a New
Political Coalition
This coalition gave Democrats a majority
in both houses of Congress, and helps
to elect Roosevelt in 1932 and secures
the White House six out of the next 8
presidential elections.
 New Deal also helps to unify the nation;
social and ethnic divisions diminished
and immigrant communities gained a
deeper sense of belonging.

The Role of Government Expands
New Deal greatly expands the size and
scope of the federal government.
 It did not end the depression, but it
helped to restore the American
economy.
 The federal government also broke with
the tradition of laissez-faire, now the
government accepted responsibility for
spurring economic growth, or pump
priming.

The Role of Government Expands
For the first time, the government
became the employer for the
unemployed and sponsor of work
projects.
 The New Deal helped to strengthen
capitalism and make possible the
economic boom of the post-World War II
era.

The Role of Government Expands
FDIC and SEC—restored trust in banks
and the stock market.
 FHA—low-interest loans and increasing
homeownership.
 Wagner Act—boosted union
membership
 Minimum wage—improved purchasing
power of the bottom rung of the
economic ladder.

The Role of Government Expands
Created child labor laws, workers’
compensation laws, and unemployment
insurance.
 Had a huge impact on rural America.

 TVA and Booneville Dam—reduced flooding
 Rural Electrification—electricity to the
Southeast and Northwest.

Welfare State—assumes responsibility
for providing welfare of children, poor,
elderly, sick, disabled, and unemployed.
The Role of Government Expands
Broker State—government as a mediator
 Safety Net—government provides
safeguards and relief programs that
protected them against economic disaster.
 CCC—restored forests and preserves the
environment.
 New land for national parks—Shenandoah,
Kings Canyon, and Olympic.

The Role of Government Expands
Some projects had mixed results—TVA
projects on the Columbia River
generated power, but destroyed
traditional hunting, fishing, and Native
American burials.
 The greatest changes made in the office
of President itself—gave the executive
branch much more power.

The Role of Government Expands
Also the style of President—use of the
media and his communication method.
 During WWII he exercised a tremendous
authority over every aspect of American
life.
 When he ran for an unprecedented 3rd
term, he broke an unwritten rule,
established by George Washington.
 1951— Twenty-second Amendment was
ratified, limiting the President to two
consecutive terms.

Charts
Cause and Effect
Causes
•Stock market crash
•Failure of farms and business
•Sharp decline in prices and production
•Failure of banks
•Massive unemployment and low wages
•Homelessness and Hooverville's
•Drought, crop failures, and Dust Bowl
▼
The New Deal
Effects
• Millions employed in new government programs
•Banking system is stabilized
•Regulated stock market restores confidence
•Social-insurance programs aid elderly and poor
•Agricultural subsidies help farmers
•Government takes a more active role in economy
▼
Connections to Today
•Social Security and other New Deal programs still exist
•Size and role of federal government still debated
•Costs and benefits of social welfare programs still debated
Chart
FDR’s Effect on the Presidency
•Increased power of the President and the executive branch.
•Made mass media, such as radio, and essential tool in advertising and
promoting policies.
•Expanded the role of the President in managing the economy.
•Expanded the role of the President in developing social policy.
•Won third and fourth term leading to passage of the Twenty-second
Amendment, which limited Presidents to two consecutive terms.
Section 4
I Can Statements
Trace the growth of radio and the
movies in the 1930s and the changes in
popular culture.
 Describe the major themes of literature
of the New Deal era.

Section 4: Culture of the
1930s
Mass entertainment, such as The Wizard of
Oz, flourished during the New Deal years
as Americans sought escape from the
worries of the depression. And, for the first
time, the government played an active role
in the arts, creating programs that put
artists to work . It was the golden age for
entertainment, and the movies, music, and
works of literature produced during this era
hold a unique place in American culture.
Movies and Radio Captivate
Americans
Entertainment was big business during
the 30s.
 1935—2 in 3 houses owned a radio
 1939—9 in 10 did
 1939—2/3 of Americans attended one
movie a week.
 Stars in the industries made fortunes.

Movies and Radio Captivate
Americans
Americans went to the movies during
the Depression, as a means of
escapism—sought relief through a good
laugh, a good cry, a lyrical song, or
seeing good triumph over evil.
 The Wizard of Oz —had all 4; promised
weary audiences that their dreams really
would come true.
 http://www.youtube.com/watch?v=PSZx
mZmBfnU

Movies and Radio Captivate
Americans
Snow White and the Seven Dwarfs —
animated film
 http://www.youtube.com/watch?v=HI0x0
KYChq4
 Top Hat —stared dancers Ginger
Rogers and Fred Astaire.
 Gone With the Wind —Civil War epic
 http://www.youtube.com/watch?v=GQ5I
CXMC4xY

Movies and Radio Captivate
Americans
Movies reflect the public’s mistrust of big
business and government—Gangster
movies very popular.
 Often showed declining trust in the
government and law enforcement—later
showed confidence restored.
 Some showed the faith and strength of
average people—Frank Capra
 Showed everyday people struggling with
hardship.

Movies and Radio Captivate
Americans
Mr. Smith Goes to Washington —
celebrated American idealism and
triumph of the common man over
adversity.
 The radio broadcasts featured
comedians (Bob Hope), soap operas,
(Guiding Light), variety shows and
humorists (Will Rogers), and dramas
(Lone Ranger)

Movies and Radio Captivate
Americans
Movies and Radio Captivate
Americans
Also used for information—news,
fireside chats, and political commentary.
 Music was also a diversion for hard
times.
 Swing music played by big bands—
introduces disc jockeys.
 Most popular vocalist Bing Crosby.
 http://www.youtube.com/watch?v=iTUK
HMlbYGA

The New Deal and the Arts
First funding for the arts by the federal
government.
 Federal Art Project—offered a variety of
opportunities to artists.
 Funded theaters, musicians, writers
(recorded history and folklore of the
nation), artists (murals on buildings), and
photographers (Dorothea Lange— “Migrant
Mother” documented the plight of the
farmer).
 Grant Wood—American Gothic

The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The New Deal and the Arts
The Literature of the Depression
Many featured working class heroes—
blamed failure on political and business
leaders.
 John Steinbeck— The Grapes of Wrath
was about a family escaping the Dust Bowl
only to encounter exploitation, disease,
hunger, and political corruption.
 William Faulkner— The Sound and the
Fury.
 Comic strips and Comic books—Flash
Gordon, Dick Tracy, and Superman.

The Literature of the Depression
http://www.youtube.com/watch?v
=LRjpqJozOcI
The Literature of the
Depression
The Literature of the Depression