THE GREAT DEPRESSION & THE NEW DEAL Honors World History WHAT CAUSED THE GREAT DEPRESSION? During the booming 20’s there was a massive amount of consumer spending. People were using credit to buy goods Investors were buying stocks on margin Industries and farms were overproducing after WWI THE BOTTOM FELL OUT Black Tuesday (Oct. 29, 1929) – 16 million shares were traded in the stock market…panic ensued. HERBERT HOOVER (1929-1933) HERBERT HOOVER (1929-1933) The stock market crash happened less than 8 moths after he took office. Hoover tried to combat the effects of the Great Depression with moderate govt. public works projects like the Hoover Dam, raising tariffs, and balancing the budget. His efforts were not enough. The American people used Hoover as a scapegoat to blame their problems on, and he lost the presidential election of 1932. THEODORE ROOSEVELT (1933-1945) FRANKLIN ROOSEVELT (1933-1945) Won the 1932 presidential election by a landslide. The first thing he did upon taking office was pass the 21st Amendment. Came up with the New Deal programs of Relief, Recovery, and Reform. Built the New Deal Coalition THE FIRST 100 DAYS The First 100 Days was a term given to the time span in which 15 laws were passed to help the U.S. recover from the Great Depression. THE NEW DEAL The "First New Deal" (1933–34) dealt with the pressing banking crises through the Emergency Banking Act & 1933 Banking Act. The Federal Emergency Relief Administration provided $500 million for relief operations by states and cities, while the short lived CWA (Civil Works Admin) gave localities money to operate make work projects in 1933-1934. The Securities Act of 1933 was enacted to prevent a repeated stock market crash. The controversial work of the National Recovery Admin was also a part of the First New Deal. THE NEW DEAL The “Second” New Deal was a term used to describe the second stage of FDR’s New Deal programs. Five Major Goals: improved use of national resources, security against old age, unemployment and illness, and slums clearance, as well as a national welfare program (WPA) to replace state relief efforts. NEW DEAL PROGRAMS WAGNER ACT The National Labor Relations Act (Wagner Act) was to guarantee the rights of the workers by supervising union elections and blocking unfair labor practices. PRESSING ISSUES The BIG issues taking place during the 1936 and 1940 Presidential Elections were the Great Depression and the looming war going on in Europe. In 1939 WW II began FDR won the 1940 election FDR’S BRAIN TRUST During their first one hundred days in office as the president’s advisors, the Brains Trust helped Roosevelt enact fifteen major laws. One of the most important initiatives was the Banking Act of 1933, which put an end to the banking panic. After the Brains Trust defended its reform-recovery program in 1933, it disbanded to make room for other advisers and lawyers capable of legislative draftsmanship. AAA The Agricultural Adjustment Administration helped farmers Part of the New Deal, the 1933 Agricultural Adjustment Act placed restrictions on farm production and paid government subsidies to growers of staple crops. Money for the payments was raised by a processing tax on middlemen. The object was to raise farm prices, but it proved counterproductive for tenant farmers and sharecroppers. It was declared unconstitutional in 1936. SEC The Securities and Exchange Commission oversees the stock market and helps to make sure another stock market crash doesn’t happen. THE POWER OF WORDS FDR needed a way to to give encouragement, as well as information to the people across the country. To do this, he did a series of 30 evening radio shows that were aired across the country. These shows were called Fireside Chats, and they helped to give people an understanding of the ND programs and gain confidence in the govt. THE DIRTY THIRTIES The Dust Bowl - During the drought of the 1930s, the unanchored soil turned to dust, which the prevailing winds blew away in huge clouds that sometimes blackened the sky. These choking billows of dust – named "black blizzards" or "black rollers" – traveled cross country from the Midwest, reaching as far as the East Coast and striking such cities as New York City and Washington, D.C. FAIR LABOR STANDARDS ACT The Fair Labor Standards Act set minimum wage at .40 cents an hour and the standard work week to 44 hours. Anything over 44 hours was considered overtime and the employee would get paid time and a half ( or .60 cents an hour). This act also prohibited child labor. Children under 18 could not do dangerous jobs (ex. Mining) and children under 17 could not work during school hours. SUPREME COURT PACKING PLAN By adding more justices to the supreme court FDR would be able to neutralize the justices that were against his New Deal programs. This Court Packing Plan was rejected by congress. MIGRANT/WOMAN MOTHER This was a famous picture of a woman and her children in a tent, from a Hooverville, during the Great Depression. FRANCES PERKINS Frances Perkins was the first female appointed to the president’s cabinet as the U.S. Secretary of Labor from 1933-1945. RECAP During years of 1937-1938 the Great Depression got worse. FDR told the people, “we have nothing to fear, but fear itself.” This speaks to the idea that fear can paralyze one from progress, from moving forward, from succeeding, despite any challenges. We need not fear tomorrow or the next day. The only thing we should be afraid of (and thus rebuff) is that fear which keeps us mired in self-pity and loss. If we can overcome that, we can move forward. The New Deal was an economic program created by FDR and his brain trust to help the U.S. recover from the Great Depression. 20 TH AMENDMENT The 20th amendment is a simple amendment that sets the dates at which federal (United States) government elected offices end. That the president takes office (is inaugurated) on January 20. It also defines who succeeds the president if the president dies. This amendment was ratified on January 23, 1933. 21 ST AMENDMENT The 21st amendment repealed the 18th amendment in 1933, which had mandated nationwide Prohibition on alcohol on January 17, 1920. The Twenty-first Amendment was ratified on December 5, 1933. HELPING THE UNEMPLOYED The CCC, WPA, PWA, and CWA were all programs set forth to help the unemployed. The New Deal’s economic philosophy was to get the U.S. economy out of the Great Depression. It worked to an extent, but wasn’t completely successful. # 33 is repetitive…the programs were partially successful. THE GRAPES OF WRATH This was a book about the Joad family moving from their Oklahoma farm to California and becoming migrant workers after fleeing the Dust Bowl. FEEDING THE HUNGRY Starvation existed in the U.S. during the Great Depression. The government handed out free food to those willing to stand and wait in the breadlines. END OF THE GREAT DEPRESSION The GD ended when WW2 started in 1939. The U.S. factories began to build war equipment and needed to hire more American workers. The U.S. officially entered WW2 in 1941 with the bombing of Pearl Harbor.