Chapter 26 FRANKLIN D. ROOSEVELT AND THE NEW DEAL

What can we learn from these photos? Using the internet and your phone/netbook, find out as much as possible about these 2 iconic photos from the Great Depression. Look for things like: - Who took the photo? - When and where was it taken? - Who are the people in the photos? - What is their story?

What is the “Great Depression” After researching the 2 photographs select 2 more photographs that capture the Great Depression. Research the background of each photo (When, where and by whom was it taken) Research the subject of the photo Explain your reason for selecting it and explain how it represents large issues or trends during the Great Depression

An Endless Party 1920s optimism drove increase in expectations of continual improvement Many Americans became convinced that the old boom and bust cycle of business was a thing of the past. Let the good times roll!!

Causes of the Great Depression Post WWI effects on the economy Trouble for farmers Too many people in debt Uneven distribution of wealth

Post WWI Effects on the Economy After WWI the countries of Europe did not have to buy all their products from us. They started making their own goods. High protective tariffs cut into trade. Tariffs are taxes on goods coming into the country. If people in Europe can’t sell stuff to us, they won’t have money to buy our stuff. European countries also put high tariffs on our goods to retaliate. During the war, many European countries borrowed money from American banks. After the war, because of the tariffs and the slow down of their economy, they could not pay back those loans, putting American banks in financial trouble.

Trouble for Farmers Because of new equipment, farmers were producing more crops on the same amount of land. This overproduction caused prices to drop and farmers could not pay back their loans. European countries did not need to buy food from us after the war, they started growing their own food.

New Farming Technology

Too Many People in Debt During the 1920’s, people got over-extended with easy credit. To buy all of the new things (cars, refrigerators, washing machines, vacuum cleaners, etc.) many people used the installment plan. This plan meant that people would make monthly payments on the products. When people lost their jobs or the banks called the loans, many lost everything. Some people were playing the stock market on credit. They could buy on margin which meant that they could buy stock by putting 10% down and promising to pay the other 90% later. If the stock value went up, they make a lot of money. If the value went down, they often couldn’t pay the banks the 90% owed.

Newer Nicer Home

Too Many Toys

Uneven Distribution of Wealth During the 1920’s, the rich were getting richer and the poor were getting poorer. This impacted the economy by the end of the decade. The poor people could not afford to buy all the new appliances that the businesses were producing. After all the rich people had several cars and a house full of appliances, there was no one left to buy the stuff. The businesses started filling warehouses with unsold goods and had to lay workers off.

Rich and Poor

Rich and Working Class

The Great Crash - Speculation 1928: Soaring stock prices attracted individual, corporate investment 1929: Stock market crashed Directly affected 3 million Credit crunch stifled business Businesses laid off workers

The Great Crash New 1920s economy failed to distribute wealth broadly enough Money used for profits, dividends, and stock speculation should have been used for wage increases Productivity increased 43%, wages only by 11%

Unemployment, 1929–1942

Effects of the Depression Hardship affected all classes The middle class lost belief in ever-increasing prosperity Thousands of young homeless, jobless

Hoover and Voluntarism Hoover initially sought solution through voluntary action, private charity Eventually aided farmers with Farm Board to buy surpluses and bankers with loans through Reconstruction Finance Corporation

The Bonus Army Bonus Army & General MacArthur Resisted Democratic efforts to give direct aid to the unemployed Perceived as indifferent to human suffering

Bank Failures, 1929–1933

The Emergence of Roosevelt Franklin Roosevelt Born to wealth and privilege 1921: Crippled by polio 1928: Elected governor of New York Talented and persuasive politician 1932: Defeated Hoover with farmer- worker- immigrant-Catholic coalition

The Hundred Days FDR inaugural inspired with the term “nothing to fear, but fear itself” Banking system saved from collapse Fifteen major laws provided relief Tennessee Valley Authority was the most ambitious one New Deal aimed to reform and restore, not nationalize, the economy The 3 “R’s” Relief, Recovery, & Reform

The Tennessee Valley Authority

Roosevelt and Recovery National Recovery Administration Industries formulated codes to eliminate cut-throat competition, ensure labor peace codes favored big business, unenforceable 1935: NRA ruled unconstitutional Agricultural Adjustment Act of 1933 farmers paid to take land out of cultivation prices increased, mainly because of government payments, but Dust Bowl helped by cutting supply sharecroppers, tenant farmers dispossessed

Roosevelt and Relief 1933: Harry Hopkins placed in charge of RFC to direct aid to unemployed 1933: Civilian Conservation Corps provided employment to young people 1935: Works Progress Administration placed unemployed on federal payroll Programs never sufficiently funded

WPA – Works Progress Administration Spent $11 Billion to give jobs to over 8 million workers Many projects built parks, airports, roads, and public buildings Also hired professionals they hired photographers, historians, artists, archaeologists Post office murals, slave narratives, and Angel Mounds were all done by the WPA

Angel Mounds

Slave Narratives & daily Life

Art projects

Helping the Young People NYA – National Youth Administration Created jobs and provided education, counseling, and recreation for young people Built Helfrich Park Pool House

American Liberty League Liberty League was made up of those who said Roosevelt was going too far. They attacked the New Deal by saying it assaulted property rights. Contained a lot of rich industrailst

Challenges to FDR Father Charles Coughlin advocated nationalizing banks, anti-Semitism Francis Townsend called for $200 per month pensions to all those over 60 if they spent it within the month Huey Long and the Share the Wealth Clubs called for redistribution of wealth by seizing private fortunes

Roosevelt’s Critics Father Charles Coughlin – catholic priest from Detroit Wanted guaranteed annual income and nationalization of the banks Had as many as 40-45 million listeners Eventually shut down because of anti-Semitism

The Old People’s Doctor Dr. Francis Townsend Doctor and health officer from California Proposed a pension plan for the elderly A little like Social Security

The Kingfish Huey Long Governor / Senator from Louisiana He wanted to be President Created “Share our Wealth” clubs across the country Wanted a 100% tax on everything over $1,000,000

Workers and Old People Social Security Act Wager Act Created old age insurance for folks 65 and older Provided Unemployment insurance Gave Aid to families with dependent Children and the Disabled Wager Act Protected collective bargaining and the worker’s right to join labor unions Set up the National Labor Relations Board

Social Security 1935: Social Security Act passed Criticisms Too few people would collect pensions Unemployment package inadequate Established pattern of government aid to poor, aged, handicapped

Labor Legislation 1935: Wagner Act 1938: Fair Labor Standard Act Allowed unions to organize Outlawed unfair labor practices 1938: Fair Labor Standard Act Maximum hour Minimum wage Rural Electrification Administration brought electricity to 90% of farmers who did not have it in 1930

Impact of the New Deal Had a broad influence on the quality of life in the U.S. in the 1930s Helped labor unions most Helped women, minorities least

Rise of Organized Labor 1932: National Recovery Act spurred union organizers Congress of Industrial Organization (CIO) formed by John L. Lewis CIO unionized steel, auto industries 1940: CIO membership hit 5 million, 28% of labor force unionized

The New Deal Record on Help to Minorities Crop reduction program allowed whites to fire or evict blacks, Hispanics Public works programs helped by providing employment New Deal figures convinced minorities that the government was on their side 1934: Indian Reorganization Act gave American Indians greater control

Women at Work Position of women deteriorated in ‘30s Jobs lost at a faster rate than men Hardly any New Deal programs help Progress in government Frances Perkins, Secretary of Labor, the first woman cabinet member Women appointed to several other posts Eleanor Roosevelt a model for activism

End of the New Deal 1936: New Deal peaked with Roosevelt’s reelection Congress resisted programs after 1936

The Election of 1936 FDR’s campaign Attacked the rich Promised further reforms Defeated Republican Alf Landon Democrats won lopsided majorities in both houses of Congress FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

The Election of 1936

The Supreme Court Fight Supreme Court blocked several of FDR’s first-term programs 1937: FDR sought right to "pack" Court Congressional protest forced retreat FDR’s opponents emboldened

The New Deal in Decline 1936: Cutbacks for relief agencies 1937: Severe slump hit economy Roosevelt blamed, resorted to huge government spending 1938: Republican party revived

The New Deal and American Life New Deal’s limitations Depression not ended Economic system not fundamentally altered Little done for those without political clout Achievements Social Security, the Wagner Act Political realignment of the 1930s