The Effects of the New Deal Learning Objective: To summarize the lasting effects of the Great Depression. http://www.pbs.org/wgbh/americanexperience/films/crash/

The Great Depression

Unemployment chart

Lasting Effects People saw themselves as survivors of a terrible battle Many feared losing their money and property again New Deal did not end the depression – government still not spending enough to jump start the economy WWII changed the situation

Larger Role for Government FDR increased the president’s power FDR proposed more bills and programs for Congress to consider than any other president Other nations saw the rise of strong leaders and a loss of freedom FDR’s concern for the poor help people keep their faith in democracy FDR expanded the federal government

Federal government became directly responsible for the people’s well-being in ways it had not been before: relief payments, served school lunches, program for providing pensions Federal government went into debt Deficit spending used to fund the New Deal and to pay for the war; deficit spending became part of the federal budget

New Deal Programs Today Several New Deal Programs continue today National Pension System – Social Security, pays out old-age pensions Oversight of Labor Practices – Created by the Wagner Act, National Labors Relations Board (NLRB) oversees labor unions and investigates disputes between management and labor

3. Agricultural Price Supports – pays farmers to raise crops for domestic use; farmers must agree to limit space devoted to certain crops 4. Protection for Savings – Federal Deposit Insurance Corporation (FDIC), insures bank deposits up to $100,000

5. Regulation of the Stock Market – Securities and Exchange Commission – makes sure companies follow fair practices for trading stock

Ongoing Political Debate Continued debate over whether federal or state government should be responsible for certain programs Democrats more likely to be liberal and favor government action to bring about social and economic reform

Republicans more likely to be conservative and favor fewer government controls and more individual freedom in economic matters

Japan Attacks Pearl Harbor On December 7, 1941 Japanese warplanes bombed the huge American naval base at Pearl Harbor in Hawaii. Before the day was over 2,400 Americans –both servicemen and civilians—died. President Roosevelt asked Congress to declare war on Japan. America enters World War II on the side of the Allies. 4 Days later Germany and Italy declare war on America

What Finally Ends The Great Depression? http://blogs.denverpost.com/captured/2010/03/18/captured-blog-the-pacific-and-adjacent-theaters/#more-1547 America enters World War II after the bombing of Pearl Harbor on Dec. 7th, 1941. New production of War supplies and need for food, oil, coal and people to fight the war effort FINALLY ends The Great Depression!

Pearl Harbor Today

Cue Questions What psychological impact did the Depression have on many Americans? How did the New Deal change the role of the federal government in American life? What finally pulled the United States out of its economic depression? Who do today’s political differences date back to the Depression?