II) The Great Depression A) Causes: 1) Farming Surplus – low prices, high unemployment, less global demand for U.S. “foodstuffs.” 2) Durable Goods – unforseen quality in cars, stoves. High sales initially leads to lower demand later 3) Unequal Classes – very rich or very poor. (smaller middle class) 4) Less Gov’t action – few safeguards on unstable stock sales, or bank instability 5) Unstable Corporate Growth – stocks bought on margin/credit. ** Black Tuesday – 10/1929**

B) The Business Cycle Related Terms : GNP – Gross National Product; sum of goods and services produced in a year. U.S. has the #1 GNP in the world.

C) Hoover’s Inaction – “Hoovervilles” 1) Used “Trickle Down” approach to economic recovery: Providing breaks to corporations who should then support more jobs/growth 2) Did NOT create programs that would provide immediate (soup kitchens) or long-term relief (Social Security) 3) Relied on “Rugged Individualism” philosophy, or that things were getting better. 4) Bonus Army – incident with WWI vets who wanted their pensions early (during depression)

Audio and Video Clips: The Great Depression

D) Roosevelt’s New Deal ( )  Worked under Wilson, and served as governor, cousin to T.R.,  Great Tools: speaking, manipulation, charisma, connections, money, negotiation.  Philosophy – the foundation of the Democratic Party today: “That gov’t exists to help people.”  Examples of his Leadership in a dark period:

1) Leadership of FDR  Fireside Chats – uses his charisma and ease to relieve people’s fears Eleanor Roosevelt – the first true 1 st lady. Immensely popular, and helps to extend achievements of women to the workplace, creates social programs for the poor; UN Declaration of Human Rights Eleanor Roosevelt – the first true 1 st lady. Immensely popular, and helps to extend achievements of women to the workplace, creates social programs for the poor; UN Declaration of Human Rights “Brains Trust” – top advisors in his cabinet that helped him deal with depression from different angles; create programs. (John Maynard Keynes) “Brains Trust” – top advisors in his cabinet that helped him deal with depression from different angles; create programs. (John Maynard Keynes)

 1 st 100 Days – critical steps in the first months of his Presidency. Established the 3 R’s: Relief, Recovery, Reform. * Created Pump-Priming approach. * Ultimate goal was to prevent the collapse of U.S. economy… created numerous emergency actions to accomplish this: Banking “Holiday,” wages set, prices controlled, soup kitchens

2) Complication The Dust Bowl – massive dust storms began in Overworked land, lacking root systems.

 Expanded Power – introduced several programs without Congressional approval/vote. AAA, FERA, SEC, NRA, CCC. (Imperial? Dictatorial?) (Alphabet Soup – see next slide)  Physical Ability – strong mind and will despite ravages of polio. Utilized heavy braces. Rarely photographed in chair…why?  Elected to four terms (a break with Washington’s tradition). Reason?

3) Criticisms of the New Deal a) Deficit Spending – “in the red” b) Era of Big Gov’t – begins, becomes the #1 employer. U.S. Bureaucracy grows and many fear we will become communist. U.S. Bureaucracy grows and many fear we will become communist. To “help” people through Social Security or Welfare, the gov’t must hire people to oversee the programs. To “help” people through Social Security or Welfare, the gov’t must hire people to oversee the programs. Fear of over-dependence on gov’t increase. Fear of over-dependence on gov’t increase.

c) F.D.R.’s Power – expands, taking on Congressional power…some illegally. Done to deal with emergency Done to deal with emergency AAA, NRA declared unconstitutional… (Schechter Poultry vs U.S.) AAA, NRA declared unconstitutional… (Schechter Poultry vs U.S.) d) Court packing – attempt by FDR to add justices (from 9-15) ? Rejected by Congress e) Breaking Precedent – elections, seen as a pseudo-dictatorship. * Fixed by 22 nd Amendment (1951)

Images  Despite remarkable leadership from the “man of the century,” the New Deal did not save us from Depression  What did?

UNIT 5/6 Exam  33 Multiple Choice – 55pts.  1 Essay – 45 pts. (Thematic) – P.3 (DBQ) – Period 2 (DBQ) – Period 2  Topics: Progressive Era (Reform and Imperialism), WWI, Roaring 20’s, Great Depression ( )