THE GREAT DEPRESSION CHAPTER 33

IMPORTANT: SHIFT OF BLACKS TO ELECTION OF 1932 The election of 1932 was important b/c it determined what direction the country would take in waging war against the Great Depression Attempted to portray optimism about the future, but most don’t feel it “The Worst is Past” “It Might Have Been Worse” “Prosperity is Just Around the Corner” Attempted to portray a sense of optimism about the future! Many of his speeches written by the ‘BRAIN TRUST’—small group of advisors to FDR WINNER IMPORTANT: SHIFT OF BLACKS TO DEMOCRATIC PARTY!!!!!! Optimism vs. Pessimism Franklin D. Roosevelt Herbert Hoover

“I pledge you, I pledge myself to a new deal for the FRANKLIN D. ROOSEVELT Democratic candidate for President in 1932 Life experiences had left him with patience, tolerance, compassion, and strength of determination Former Governor of NY where he used heavy state spending to help the needy Praised for helping the “FORGOTTEN MAN” Wife of FDR--Most active first Lady in American history Known as the “Conscience of the New Deal” Eleanor Roosevelt “I pledge you, I pledge myself to a new deal for the American people” --FDR (1932)

THE THREE “R’S” First thing President FDR did was declare a “BANKING HOLIDAY” so that banks would appear safe again! FDR’s goals for his program: RELIEF, RECOVERY, and REFORM Name for FDR’s program was called the NEW DEAL FDR’s program will eventually hit much of the Progressive ideas such as Social Security, Conservation, and labor restrictions!!!!!! 100 DAYS “Let me assert my firm belief that the only thing we have to fear is fear itself”

BANKING/MONEY REFORMS Emergency Banking Relief Act Gave the President power to regulate banking transactions and foreign exchange; open safe banks Goal was to make people want to use banks again b/c they felt they were safe again! FDR used radio to persuade people Radio speech became known as FIRESIDE CHATS Glass-Steagal Banking Reform Act Created the FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) Insured deposits up to $5000 Again—makes people feel banks are safe! See chart on page 776 Gold Reserves/Gold Standard All gold holdings by Americans had to be turned in Took America off the Gold standard Buying up the gold would create inflation and relieve debtors

JOB CREATION Major Works Programs Harry Hopkins One out of every four workers was unemployed during the Depression (25% unemployment) FDR believed in “PUMP PRIMING” or spending federal taxpayers money to get the economy going!!!!! Major Works Programs Civilian Conservation Corp (CCC) Harry Hopkins Agricultural Adjustment Act (AAA) Civil Works Administration (CWA) Works Progress Administration (WPA)

FDR’S OPPONENTS “Social Justice” “Share our Wealth” GOVERNOR HUEY LONG DR. FRANCIS TOWNSEND FATHER CHARLES COUGHLIN

THE NEW DEAL & WOMEN Frances Perkins Mary McLeod Bethune Eleanor Roosevelt First Labor Sec.

“Sick Chicken” case THE NEW DEAL & INDUSTRY/LABOR National Recovery Administration (NRA) Designed to assist industry, labor, and the unemployed “Sick Chicken” case Supreme Court case that ended the NRA Officially Schechter vs. US Public Works Administration (PWA) Intended for both industrial recovery and unemployment relief Wagner Act of 1935 Created the National Labor Relations Board Granted again the right of labor to organize and collective bargain

JOHN L. LEWIS & THE CIO Lewis head of the United Mine Workers Formed the Committee for Industrial Organization (CIO) Would focus on the needs of “unskilled” workers Used the “sit-down” strike often Would eventually join with AFL to become AFL-CIO

AGRICULTURAL ADJUSTMENT ACT (AAA) FARMERS & THE NEW DEAL AGRICULTURAL ADJUSTMENT ACT (AAA) Paid farmers NOT to farm and even destroyed crops and livestock to bring prices up!!!! Eventually declared UNCONSTITUTIONAL by the Supreme Court Eventually became more focused on CONSERVATION practices

THE DUST BOWL Caused by major drought during the Great Depression years Stretched from Colorado to Missouri Okies and Arkies —hurt badly by Dust Bowl; move to where work is, especially California Grapes of Wrath —written by John Steinbeck— displayed the plight of Dust Bowl period

Indian Reorganization Act THE NEW DEAL & INDIANS Indian Reorganization Act Passed in 1934 Encouraged tribes to establish local self-government Attempt to preserve their Native crafts and traditions Opposite of Dawe’s Severalty Act

FEDERAL SECURITIES ACT Securities and Exchange Commission (SEC) THE NEW DEAL & BUSINESS FEDERAL SECURITIES ACT Ensured that stock brokers had to give real prices and values on stocks and bonds Securities and Exchange Commission (SEC) Created to be watchdog of stock market

THE NEW DEAL & THE PEOPLE Tennessee Valley Authority (TVA) Goal is to help provide electricity to rural America Federal Housing Administration (FHA) Goal was to stimulate the building industry Provided small loans for improvements and completion of old houses Very successful program!

THE NEW DEAL & THE PEOPLE Social Security Act of 1935 Meant to help individuals in old age, disabled, blind, etc.

American Liberty League THE ELECTION OF 1936 FDR AL LANDON American Liberty League Group of wealthy conservatives organized to fight “socialism” in the New Deal

THE NEW DEAL & THE COURTS FDR felt that the Supreme Court was a roadblock to his programs SC had declared 7 of the New Deal programs “unconstitutional” THE FIX??? Roosevelt came up with the “Court Packing Plan” to “fix” the Supreme Court Would allow FDR to add a new justice (pro-New Deal for sure) for every member over 70 who would not retire Congress and the American public totally disagreed with this program! BUT, the SC did become more open to FDR’s programs than before!

By 1938, the New Deal had lost its momentum Keynsian Economics What brings the US out of the Depression? Advocated by John Maynard Keynes Stimulate the economy through deficit spending (more money than you have!) The economy took a nosedive in 1937-38 again called the “Roosevelt Recession” By 1938, the New Deal had lost its momentum