Unit 7: The Great Depression

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Unit 7: The Great Depression 2.27.19

President Roosevelt FDR demanded "broad executive power to wage a war against the emergency, as great as the power that would be given me if we were in fact invaded by a foreign foe." This would not only mean more government intervention in the economy than ever before, but it would also mean more power to the Executive Branch (president) rather than doing this by passing laws through the Legislature

Hoover Presidency FDR’s Presidency 1929-1933 1933-1945

FDR’s Fireside Chats FDR began weekly radio addresses called “fireside chats” In these addresses he tried to reassure and unite the nation He explained parts of the New Deal and his policies to the American pe0ple Play video: https://www.npr.org/templates/story/story.php?storyId=88154042 This is a new thing for the president to speak directly to the American people on this regular of a basis

The First 100 Days In FDR’s first 100 days in office, he pushed 15 major bills through Congress Reshaped every aspect of the economy – from banking and industry to agriculture and social welfare He called his approach “The New Deal”

Attitude Inventory Measures where you are on the political spectrum in regards to economic issues. Circle the number that best represents how much you agree with the statement.

Alexandria Ocasio-Cortez (D-NY) The Green New Deal 70% Marginal Tax Rate

The New Deal: Success or Failure?

The New Deal Goals: Relief – Stop the pain Recovery – Fix the problems Reform – Make sure it never happens again

The New Deal Relief: Stop the Pain

For the people Federal Emergency Relief Administration (FERA) Sent funds to local relief agencies & created public works programs Tennessee Valley Authority (TVA) Created jobs & provided electricity and flood control in underdeveloped rural areas Public Works Administration (PWA) Built dams, ports, sewer systems Civil Works Administration (CWA) Construction jobs (buildings & bridges)

For Homeowners & Farmers Home Owners Loan Corporation (HOLC) Refinanced mortgages Agricultural Adjustment Administration (AAA) Gave farm subsidies

The New Deal Recovery: Fix the Problem

Fixing Banks Declared a bank holiday Glass-Stegall Banking Act of 1933 Created the FDIC to insure banks Guaranteed all bank deposits under $5,000 $250,000 today (deposits only)

Fixing the Market Federal Securities Act Required companies to provide info about their finances if they sell their stock Securities and Exchange Commission (SEC) Regulates the stock market The SEC enforces the rules of the Stock Market and other business practices

The New Deal Reform: Prevent Future Problems

Social Security Aimed to help America’s poor, the elderly, dependent children, & the handicapped Provided monthly stipends Legacy: Still America’s largest and most important safety net? Most Americans depend on Social Security to retire Will run out of $ in 2034

Helping Working People Wagner Act: Legalized union practices Collective bargaining Closed shops – some workplaces only open to union members

WWII 1940: America starts selling weapons to Allies 5.5% - Normal unemployment rate, 1970 - 2008 1940: America starts selling weapons to Allies 1941: America enters WWII

Was the New Deal a Success or a Failure? The Question