End Four Minutes First Four Chart 4/7 - Change Date & label your work 4/7 - Change Think of a time when your life changed dramatically. How did you react to this change? Keep this with all of your other First Four work. To change the timings of this timer, you need to enter the animation settings, and change the timings for the Isosceles Triangles. There will be 2 that need changing (to the same amount) – one animates the top triangle emptying, whilst the other animates the bottom triangle filling. When you change the timings these have to entered as a number of seconds. End

I see, I think, I wonder…

The Great Depression & The New Deal

Guiding Question #1 How great was the impact of the Great Crash and the Great Depression on the USA?

1920s Economy Stock Market Buying on Margin Bull/Bear Market Role of Banks – speculators Superficial prosperity?

1929 Warnings Stock Inflation Overproduction Farm Crisis Stock market value from $27B to $87B Overproduction Farm Crisis

Collapse Black Thursday – Oct. 24, 1929 Black Tuesday – Oct. 29 Effects? Investors – loss of $30 B Banks Public Businesses Workers

Great Crash Investors World Payments Businesses and Workers Banks Investors lose millions. Businesses lose profits. Consumer spending drops. Workers are laid off. Businesses cut investment and production Some fail. Banks Businesses and workers cannot repay bank loans. Savings accounts are wiped out. Bank runs occur. Banks run out of money and fail. World Payments Overall U.S. production plummets. U.S. investors have little or no money to invest. U.S. investments in Germany decline. German war payments to Allies fall off. Europeans cannot afford American goods. Allies cannot pay debts to United States.

CAUSES OF THE GREAT DEPRESSION LAISSEZ-FAIRE POLICIES OVER PRODUCTION DISPARITY OF WEALTH CAUSES OF THE GREAT DEPRESSION STOCK MARKET CRASH LAISSEZ-FAIRE POLICIES OVERUSE OF CREDIT WAR PAYMENTS & TRADE IMBALANCE TARIFFS

Effects of Depression Unemployment Massive poverty Businesses closed 1.2 m 1929 12.1 m 1932 Massive poverty Businesses closed 5,500 banks closed GNP from $104 B to $59 B Farm Prices down 60% 25% unemployment Depression/suicide

Herbert Hoover Bold response Philosophically Opposed Called for tax hike in 1931 1932 Reconstruction Finance Corporation & Public Works Effects Bonus Army

1932 Election Candidates Result Shift in Party Power – to whom?

Franklin D. Roosevelt FDR’s philosophy & Goals “The only thing we have to fear is fear itself.” Relief Recovery: industrial & agriculture Reform Brain Trust Rejected laissez-faire Competition of ideas Eleanor Roosevelt Frances Perkins, Henry Wallace, Henry Morgenthau, etc.

The Hundred Days Banking Crisis Bank Holiday Emergency Banking Act Fireside chats FDIC (Glass-Steagall Act)

The Hundred Days Relief Home Owners Loan Corp. Farm Credit Admin. CCC FERA CWA

For Recovery NIRA PWA NRA: Business cooperation AAA: subsidies TVA*

For Reform & Regulation Federal Securities Act Securities & Exchange Commission (SEC) Buying on Margin

The Dust Bowl Great Plains Massive drought 1932-’34 Effect Okies The Grapes of Wrath

Critics of the New Deal Conservatives Liberals Deficit spending, Socialism Supreme Court NRA, AAA Liberals Father Charles Coughlin Francis Townsend Huey Long

New Deal Changes Course: The 2nd New Deal 1935-’36 Unity fading Increasing criticism FDR - business-class and wealthy Focus on helping the most disadvantaged

The Second New Deal ‘35 Works Progress Admin. Harry Hopkins $11 B for Pub. Works Federal Writer’s Project Federal Music Project Federal Theater Project

Helping the Disadvantaged FDR feared effect of liberal critics Resettlement Administration REA Wagner Act - NLRB Wealth Tax Social Security Act*

Critics of New Deal & FDR Alf Landon XIV. 1936 Election Critics of New Deal & FDR Alf Landon

New Deal Coalition – cities, farmers, unions, women, Northern Blacks, Southerners, immigrants

Minorities & The New Deal A mixed record Programs often discriminated FDR & NAACP Anti-Lynching Campaign FDR’s Appointments Symbolic gestures

Environment, the West, Indians Efforts to stop soil erosion Taylor Grazing Act ‘34 National Parks Olympic N.P., Shenandoah N.P. Dams TVA, Hoover Dam, Grand Coulee American Indians Indian Reorganization Act ‘34

FDR & Supreme Court 1936 FDR’s Problem His Plan “The Court Packing Scheme” Reaction Result The Nine Old Men

End of the New Deal Roosevelt Recession ’37 Last ND legislation Why? FDR’s Response Last ND legislation Farm Security Admin Housing Act ’37 Fair Labor Standards Act ’38 AAA ‘38 Growing conservative opposition Over by 1939 World events would take center stage

XVII. Legacy of the New Deal Did it work? Creation of “welfare state” Size & Cost of Federal Govt. Power & Scope of Govt. New Deal Coalition – Political realignment