Chapter 21
The Great Depression and the New
Deal
What you will learn today…
I CAN TRACE EVENTS THAT LED TO THE
BEGINNING OF THE GREAT
DEPRESSION
I Can discuss Reasons for the economic
tailspin
Warm Up
Read “Witness History” on page 702
and answer…
 Why might Americans have invested
their money in stocks instead of putting
it into savings accounts?

Stock Exchange: buying and
selling shares
Record levels in Sept. 1929
Stock bought on margin
Borrowed from brokers, who
borrowed from banks
If the value fell, no $ to pay loans
Investors began selling, stock prices fell
Brokers demanded payment, investors
forced to sell stock
October 21-23: millions of shares sold
per day
October 24th, 1929
“Black
Thursday”
13 million shares sold
October 29th 16 million shares
exchanged hands
Stock prices plummeted
NYSE closed for a few days
Great Depression
Nations economic output
1929: $104 billion
1932: $58 Billion
What caused the economic tailspin? 4
reasons
1. Unbalanced economy
farm income, textile, lumber,
mining, railroads all declined in early
1920’s
Auto workers laid off
Growing gap between rich and
most Americans
1929: 1% owned 1/3 of $
75% in poverty level
2. Credit Crisis
Small banks suffered from defaults
on loans
1930-1933 9,000 banks closed
millions lost money (no FDIC)
3. International Depression
European companies borrowed
from American banks
To repay U.S. WWI debts
4. Joblessness and poverty
By 1932, 25% unemployed
Shantytowns or Hoovervilles
Horrible conditions for poor
Churches, charities, and
volunteers worked to provide
relief
Governments held some of the
wages for soup kitchens

What did you learn?
Can you trace the events that led to the
Great Depression ?
 Can you discuss Reasons for the
economic tailspin?

Group Work
 Read page 704-5 and answer #1-2 in
notebooks


After watching 102 Minutes that Changed
America…

How did it make you feel watching the events
unfold?

Did this video help you remember what
happened on 9-11-01?

What will you not forget about what you saw?
Thursday September 10
Warm Up: Read Witness History on
page 709 and answer….
 What does Charley Bull suggest about
life for people who left home to become
hobos?

In Class Assignment
Read Sections 1-2 and take notes we
haven’t covered yet.
 Homework to put in notebooks:
 P. 704-5 #1-2
 P. 708 #4-6
 p. 711 #1-2
 (Notice the Hooverville in Seattle on page
713)
 P. 717 #4-6
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What you will learn… (Chapter 21 Sec 3)
What you will learn…. I can describe how the
American people reacted to Hoover’s relief
programs.
Warm Up: Read Rugged Individualism p 720 and
answer in notes… Why did Gray depict Annie
as determined and self-reliant?
Hoover Turns to Volunteerism
 Asked businesses to keep employment, wages
and prices same
 Government to reduce taxes, lower interest
rates, create public works program

Too many people, too much help needed, charity
not enough for current problem
Turns to More Activist policies
Reconstruction Finance Corp.
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1932 Hoover and Congress established
Reconstruction Finance Corporation.
With an initial working capital of 1/2 billion
dollars, this agency became a government
lending bank designed to provide indirect relief
by assisting insurance companies, banks,
agricultural organizations, and hard pressed state
and local governments. (Hoover Dam)
(Trickle Down Economics)
Socialists and communists surge
Fascists lose appeal
Bonus March
Veterans from as far west as Oregon journey
to Washington D.C., to demand immediate
payment of WWI bonuses.
 Stayed in Washington until 1932.
 General Pelham Glassford had led some of
the veterans and called them his boys.
 Veterans camped on the Anacostia Flats near
Potomac River.

General Douglas MacArthur

Hoover refused to meet with veteran
leaders; he ordered army to tear down the
camp.
Tear gas used to clear out the veterans and
their families.
 General MacArthur used force against
veterans; Hoover’s image tarnished.

Book Work: read page 723 and 725 and answer
two critical thinking questions for each
 Do #4-6 on page 724


What did you learn… (Chapter 21 Sec 3)
Reflective Writing
 Describe how the American people reacted to
Hoover’s relief programs?

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What you will learn… (Chapter 22 Sec 1)

I Can describe the programs that were part of
the first New Deal and their immediate impact.

I can identify critical responses to the New Deal

Warm Up: Read Overcoming Fear on page 732
and answer… What was the main goal of
Roosevelt’s speech?
Election 0f 1932 (Chapter 22
Sec 1)
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Franklin D. Roosevelt (Democrat) vs. Herbert Hoover
(Republican).
Hoover was the incumbent president presiding over
the worst economic collapse in the nation’s history.
The campaign took place against the background of
Great Depression.
Roosevelt campaigned vigorously to prove that despite
his disability he could vigorously undertake the job of
President.
Hoover tried to depict Roosevelt as an extremist who
would bring ruin to the country, but with 1/4 of work
force unemployed, Roosevelt won an overwhelming
victory.
Key Quotes: FDR’s Inauguration Speech
This Nation asks for action,
and action now. Our
greatest primary task is to
put people to work. I shall
ask congress for broad
executive power to wage
wars against the
emergency.
The Hundred Days
Roosevelt called for steep cuts in federal
spending and a balanced budget during his
campaign, but he later built large deficits in
building government programs to deal with
the Depression.
 First Three Months of FDR’s Administration,
1933.
 Burst of Congressional legislative action to
address problems of the Depression.
 Focus on RELIEF and RECOVERY.

The First New Deal 1933-34
Emergency Action
 Bank Holiday.

March 1933.
 Closed Banks for reorganization.
 Restored Confidence in Banking.
 eventually created FDIC (Federal Deposit
Insurance Corp.)

focus on cooperation, pragmatism.
 political shift to the left by FDR after 1935.

National Recovery Administration
New Deal Agency established by President Franklin D.
Roosevelt.
 Part of National Industrial Recovery Act, 1933; led by
Hugh Johnson.
 Established to encourage fair business practices in
order to help business recovery and workers during
Great Depression
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557 basic codes affected about 22 million workers.
Cooperating companies displayed symbolic Blue Eagle
emblem.
Helped to improve labor conditions and helped unionization
movement.
1935 Supreme Court found NRA unconstitutional
Agricultural Adjustment Act, 1933
subsidies for limits on production (wheat, corn, cotton)
 declared unconstitutional in 1936, but revived in 1938 with
modifications to meet Court challenge.
 1st successful effort to support farm prices by gov’t
 1st major policy to intrude on free markets.
 Imposition of taxes on processors to pay for program.
 Payment for acreage reduction/Production allotments.
 Henry Wallace, Sec. of Ag. promoted program.
 Established as part of the act was the Commodity Credit
Corporation, a crop loan and storage program; made pricesupporting loans and purchases of specific commodities.
 By 1936, the farm payment had reached $1.5 million

Tennessee Valley Authority
Also known as the TVA; designed to develop and improve a
whole region.
 It affected parts of seven states in the Tennessee River Valley.
 In most areas loggers had cut down the trees loosening soil
causing mass erosion.
 The T.V.A. replaced some of the trees to try and stopped
erosion.
 Built a series of dams on the Tennessee river to control floods.
President Roosevelt signs the
TVA
Act on May 18, 1933.hydroelectric
The
 Constructed
plants to attract more industry and
president is surrounded by
provide
power
members
of Congress
from theto homes.
TVA
region. At his
left shoulder is didn’t like the government production and
 Power
companies
Senator George Norris of
saletheofmanpower,
Nebraska,
for whom they claimed it was unfair.

Norris Dam is named. Senator
Norris was a strong supporter of
TVA.
FDR’s Employment Programs
CCC Civilian Conservation Corps
 CWA Civil Works Administration -schools and
roads, but:

Paid people to sweep up leaves in the parks.
 Paid unemployed actors to give free shows.
 Hired 100 people to scare pigeons away with
balloons from public buildings in Washington DC.

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PWA Public Works Administration

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Only for skilled unemployed – schools, roads and
military construction
FERA, Federal Emergency Relief Administration
What about the unskilled
unemployed?
In response to being accused
of ‘boondoggling’, when he
gave unemployed librarians
jobs cataloguing historical
documents, Hopkins replied:
‘Hell, they’ve got to eat
just like other people.’
In 1934, the CWA was shut down because
it was wasting money
Civilian Conservation Corps
"...Not a Panacea for all the
unemployment, but an essential step in
this emergency..."
 President Franklin Roosevelt.
 March 1933 13,600,000 unemployed.
 FDR employs 500,000 men 18-25.
 Work in parks and forests.

Critic- Huey Long
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The “Kingfish” Huey Long was a populist who
championed the cause of the working class and the
poor.
He also served as Governor for Louisiana and as a
U.S. Senator.
He was shot and killed by Dr. Carl Weiss in 1936.
Critic of FDR; nicknamed “The Kingfish”; Promoted
“Share the Wealth” Program: Tax 100% of all
income over $1 million.
Guarantee all citizens a car, a house, a pension, and
an education.
Not a practical program, but it made Long popular
with the poor.
Critic- Father Charles Coughlin
“Radio Priest” in Detroit Michigan.
 Criticized FDR in weekly radio program.
 10 million listeners.
 Critical of New Deal; especially farm
program; Coughlin charged that an
international conspiracy of bankers
existed.
 Fascist; Anti-Semitic overtones.

Critic- Dr. Francis E. Townsend

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Retired California Physician
He wanted the government to help older citizens.
open jobs for the younger unemployed.
He proposed that the government pay every
person over the age of 60 a monthly pension of
$200.
In return the recipient would agree to retire, also
they agreed to spend the entire $200 in the
month.
He ran for the 1936 election. He received a 2%
popular vote.
What did you learn…
 Reflective Writing
 Describe the programs that were part of the
first New Deal and their immediate impact?
 Identify critical responses to the New Deal?

Book Work:
 Comparing Viewpoints page 738 #1-2
 Info graphic page 734/5 #1-2
 Analyzing Political Cartoons page 737 #1-2
 Chapter 22 Section 1 Assess. P 739#4-6

What you will learn… (Chapter 22 Section 2)
 I Can explain how New Deal legislation affected
the growth of organized labor


I can describe the impact of Roosevelt’s court
packing plan on the course of the New Deal

Warm Up: Read Trying to Survive on page 740
and answer… Why did the child write a letter to
Roosevelt?
The Second New Deal 1935-1938
Chapter 22 Section 2
Focus on major REFORMS to the
American system.
 less cooperative with business.
 contributes to FDR’s reelection landslide
in 1936.

Nipomo, Calif. Mar. 1936. Migrant
agricultural worker's family.

"Seven hungry children. Mother aged
32, the father is a native Californian.
Destitute in a pea pickers camp,
because of the failure of the early pea
crop. These people had just sold their
tent in order to buy food. Most of the
2,500 people in this camp were
destitute."
Harry Hopkins

Hopkins rose to prominence during the Great
Depression as one of President Roosevelt's closest
advisors
Social Security Act, 1935
"We can never insure one hundred percent of the
population against one hundred percent of the
hazards and vicissitudes of life, but we have tried to
frame a law which will give some measure of
protection to the average citizen and to his family
against the loss of a job and against poverty-ridden
old age."-- President Roosevelt upon signing Social
Security Act
 In addition to several provisions for general welfare,
the new Act created a social insurance program
designed to pay retired workers age 65 or older a
continuing income after retirement.

Wagner Act - National Labor Relations
Board.
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Known as Wagner Act (Sen. Robert F. Wagner (NY-D).
Restored labor guarantees taken away by the
Schechter Court Decision.
Board supervised secret elections in plants to
designate unions.
The NLRB could investigate employers, they could
issue cease and desist orders if unfair practices were
brought to light.
Created in 1935 as part of New Deal legislation.
Right of employees to engage in collective bargaining
(to negotiate as a group with employers about wages,
hours and working conditions).
Auto Worker Sit-down Strikes, 1937
Election of 1936
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Kansas Governor Alfred Landon - Moderate Republican
Alf Landon, who was a former follower of Teddy
Roosevelt, believed in gov’t regulation of business.
poor speaker vs. the charm and political savy of FDR.
Roosevelt's personality + program captivated the
country, he was considered one of the most powerful
presidents in history.
Roosevelt won all states except Maine and Vermont.
This shows the growing support of the people for
Roosevelt’s program for the Great Depression.
FDR and the Court Packing
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1937 FDR attempted to increase size of
Supreme Court from 9 to 15.
FDR faced opposition in Congress
Recession of 1937-38 hurt economy.
1938 Congressional elections bring
conservative resurgence.
Court begins to change from the
Conservative tone to more liberal with
timely retirements.
FAIR LABOR STANDARDS ACT
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An act to maintain fair standards in the work
place.
Also known as Wages and Hours Law.
Enacted by Congress in 1938.
Set a minimum wage of 25 cents, eventually
raised to 1.00 in 1956.
Set maximum number of hours one person
could work in a week : 40 hours.
Eliminates products of, “oppressive child
labor”
The Dust Bowl
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During the Great Depression sections of the Midwest,
from Texas to the Dakotas, got scorched by the sun
ruining wide expanses of grass and crops.
the skies darkened as clouds of dust arose from the
sun-dried land.
as times the clouds were so thick, train engineers could
not read signals
as far as Cleveland and Memphis people wore masks for
protections against the “black blizzards”; sailors in the
Atlantic found traces of Nebraska soil.
families had to load their possessions into trucks and
cars and head west because land companies took over
what was left of their land.
over one million people headed west looking for work in
orchards, orange groves, and lettuce fields of
Washington, Oregon, and California.
What did you learn?
 Reflective Writing
 1)Explain how New Deal legislation affected the
growth of organized labor?
 2)Describe the impact of Roosevelt’s court
packing plan on the course of the New Deal?

Book Work: Read Events That Changed
America p 742-3 and answer Thinking Critically
 Political Cartoon page 746 #1-2
 Page 747 #4-6

What You Will Learn… (Chapter 22 Section 3)
 I Can describe how the New Deal affected
different groups in American society


I can analyze how the New Deal changed the
shape of American party politics
Warm up: Read The Caring First Lady on page
748 and answer… How did Eleanor Roosevelt
help support FDR’s administration?
 How did her work affect FDR’s popularity and
programs?

Great Depression and African
Americans (Chapter 22 Section 3)
Negative Effect of AAA on black
tenants. (50% unemployment)
 Great Migration continues North.
 “Black Cabinet” unofficial advisors of
FDR.
 Eleanor Roosevelt’s “My Day” writings
used to promote equality.

How successful was the New deal
at putting USA back to work?
Did it work?
New Deal programs were financed by tripling
federal taxes from $1.6 billion in 1933 to $5.3
billion in 1940.
 Excise taxes, personal income taxes,
inheritance taxes, corporate income taxes,
holding company taxes and so-called "excess
profits" taxes all went up.

Did it work?
The most important source of New Deal revenue
were excise taxes levied on alcoholic beverages,
cigarettes, matches, candy, chewing gum,
margarine, fruit juice, soft drinks, cars, tires
(including tires on wheelchairs), telephone calls,
movie tickets, playing cards, electricity, radios -these and many other everyday things were
subject to New Deal excise taxes, which meant that
the New Deal was substantially financed by the
middle class and poor people.
 A Treasury Department report acknowledged that
excise taxes "often fell disproportionately on the
less affluent."

Did it work?


New Deal taxes were major job destroyers during the 1930s,
prolonging unemployment that averaged 17%. Higher business
taxes meant that employers had less money for growth and
jobs. Social Security excise taxes on payrolls made it more
expensive for employers to hire people, which discouraged
hiring.
The National Industrial Recovery Act (1933) cut back
production and forced wages above market levels, making it
more expensive for employers to hire people - blacks alone
were estimated to have lost some 500,000 jobs because of the
National Industrial Recovery Act.
Did it work?

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The Agricultural Adjustment Act (1933) cut back farm
production and devastated black tenant farmers.
The National Labor Relations Act (1935) gave unions monopoly
bargaining power in workplaces and led to violent strikes and
compulsory unionization of mass production industries.
Unions secured above-market wages, triggering big layoffs and
helping to usher in the depression of 1938.
More cynicism:

For defenders of the New Deal, perhaps the most
embarrassing revelation about New Deal spending
programs is they channeled money AWAY from the
South, the poorest region in the United States.
 The largest share of New Deal spending and loan
programs went to political "swing" states in the
West and East - where incomes were at least 60%
higher than in the South.
 As an incumbent, FDR didn't see any point giving
much money to the South where voters were
already overwhelmingly on his side.
More cynicism:
Americans needed bargains, but FDR hammered
consumers -- and millions had little money. His
National Industrial Recovery Act forced consumers to
pay above-market prices for goods and services, and
the Agricultural Adjustment Act forced Americans to
pay more for food.
 FDR banned discounting with the Anti-Chain Store Act
(1936) and the Retail Price Maintenance Act (1937).

More cynicism:
Poor people suffered from other high-minded New
Deal policies like the Tennessee Valley Authority
monopoly.
 Its dams flooded an estimated 750,000 acres, an
area about the size of Rhode Island
 TVA agents dispossessed thousands of people.
 Poor black sharecroppers, who didn't own property,
got no compensation.
 FDR might not have intended to harm millions of poor
people, but that's what happened. We should evaluate
government policies according to their actual
consequences, not their good intentions.


Take notes on your own from Section 3
Book Work: page 753 Government Role in the
Economy and answer #1-2 (3 is extra credit)
 Info graphic page 754/5 and answer Thinking
Critically

What will you learn… (Chapter 22 Section 4)
 I Can trace the growth of radio and the movies
in the 1930s and the changes in popular culture


I can describe the major themes of literature of
the New Deal era.

Warm Up: Read Over The Rainbow page 758
and answer… Why did the song appeal to
people during the depression?
Chapter 22 Section 4
Escapism and activism in the movies
Radio
 Bob Hope and Jack Benny
 Will Rogers
 The Lone Ranger
 The Shadow
 Fireside Chats by FDR
 War of the Worlds (some thought it was real)

Swing music
 Duke Ellington, Bing Crosby

New Deal and the Arts
 Federal Art, Federal Writers and Federal Theater
projects
 Federally funded shows free to public

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Literature
Working class heroes
Grapes of Wrath by Steinbeck
Native Son by Richard Wright
Plays showed struggle of working class
Comic Strips
 Flash Gordon, Dick Tracy, and Superman

What did you learn?
 Can you trace the growth of radio and the
movies in the 1930s and the changes in
popular culture?


Can you describe the major themes of literature
of the New Deal era?
Group Work: Answer the following questions..
 1)What was the main reason for the popularity for
bands, movies, and radio programs during the 1930s?
 2)Why did the New Deal programs pay unemployed
artists like it paid unemployed carpenters and truck
drivers?
 3)Why did many depression era novels include
working class heroes?


Read The Golden Age of Hollywood page 763 and
answer the two questions.