The Great Depression and The New Deal b The Economy- trouble in paradise b The Crash of 1929 b Causes of the Depression b The Hoover Years b FDR and the New Deal b The First 100 Days

Inequality of the Wealth in the 1920s b Real wages increased 21%

Inequality of the Wealth in the 1920s b Real wages increased 21% b But corporate dividends went up 66%

Inequality of the Wealth in the 1920s b Real wages increased 21% b But corporate dividends went up 66% b Richest 5% of population increased its share of the wealth from 1/4 to 1/3

Inequality of the Wealth in the 1920s b Real wages increased 21% b But corporate dividends went up 66% b Richest 5% of population increased its share of the wealth from 1/4 to 1/3 b And the richest 1% controlled 20% of all income in the nation

Inequality of the Wealth in the 1920s b Real wages increased 21% b But corporate dividends went up 66% b Richest 5% of population increased its share of the wealth from 1/4 to 1/3 b And the richest 1% controlled 20% of all income in the nation b 16 million lived below poverty level of $2000

The Stock Market Crash

b b b b b September peaked at 452 then started to fall b October ended up at 224

Herbert Hoover

Some Causes of the Great Depression

b Overproduction and underconsumption

Some Causes of the Great Depression b Overproduction and underconsumption b Inequality of wealth

Some Causes of the Great Depression b Overproduction and underconsumption b Inequality of wealth b Overextension of credit

Some Causes of the Great Depression b Overproduction and underconsumption b Inequality of wealth b Overextension of credit b The Smoot-Hawley Tariff

Some Causes of the Great Depression b Overproduction and underconsumption b Inequality of wealth b Overextension of credit b The Smoot-Hawley Tariff b A series of natural disasters- The Dust Bowl

Hoover’s approach to the Depression b Top down- give money to businesses and banks, to create jobs (trickle-down economics)

Roosevelt and the New Deal b The 100 Days b The National Recovery Act (NRA) b The Tennessee Valley Authority (TVA) b The Safety Net b Nine Old Men- The court-packing scheme b Keynes and Deficit Spending b The New Deal Reassessed

Franklin Delano Roosevelt

Depression Scenes

Food Lines

Hooverville

Migrant mother and family

The Three “R”s of the New Deal

b Relief of Human suffering

The Three “R”s of the New Deal b Relief of Human suffering b Recovery of the Economy

The Three “R”s of the New Deal b Relief of Human suffering b Recovery of the Economy b Reform (to prevent it from happening again)

The New Deal The 100 days

b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC

The New Deal The 100 days b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC b Civilian Conservation Corps

The New Deal The 100 days b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC b Civilian Conservation Corps b Federal Emergency Relief Act (FERA)

The New Deal The 100 days b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC b Civilian Conservation Corps b Federal Emergency Relief Act (FERA) b Agricultural Adjustment Act (AAA)

The New Deal The 100 days b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC b Civilian Conservation Corps b Federal Emergency Relief Act (FERA) b Agricultural Adjustment Act (AAA) b Home-owners Loan Corp. (HOLC)

The New Deal The 100 days b A Bank “Holiday” b Emergency Relief Banking Act- Created the FDIC b Civilian Conservation Corps b Federal Emergency Relief Act (FERA) b Agricultural Adjustment Act (AAA) b Home-owners Loan Corp. (HOLC) b Civil Works Agency (CWA)

National Recovery Act

b Price fixing and codes of fair competition

National Recovery Act b Price fixing and codes of fair competition b Minimum wages and maximum hours

National Recovery Act b Price fixing and codes of fair competition b Minimum wages and maximum hours b Section 7a- Gave organized labor right to organize and bargain collectively

National Recovery Act b Price fixing and codes of fair competition b Minimum wages and maximum hours b Section 7a- Gave organized labor right to organize and bargain collectively b The Public Works Administration (PWA) spent $4 billion on 34,000 projects

The Tennessee Valley Authority

b Conservation

The Tennessee Valley Authority b Conservation b Govt. entered power-producing business

The Tennessee Valley Authority b Conservation b Govt. entered power-producing business b Served as a yardstick to see if private utilities were charging too much

The Tennessee Valley Authority b Conservation b Govt. entered power-producing business b Served as a yardstick to see if private utilities were charging too much b Produced Cheap Electricity

The Tennessee Valley Authority b Conservation b Govt. entered power-producing business b Served as a yardstick to see if private utilities were charging too much b Produced Cheap Electricity b Provided full employment for poor area

The Social Security Act of 1935

b Unemployment Insurance

The Social Security Act of 1935 b Unemployment Insurance b Plan for old-age pensions

The Social Security Act of 1935 b Unemployment Insurance b Plan for old-age pensions b Provisions made for disabled and dependents

John Meynard Keynes b British economist who advocated massive deficit spending by the government to jump start the economy (Keynsian Economics)

Criticism of the New Deal

b Creeping Socialism

Criticism of the New Deal b Creeping Socialism b Wasteful

Criticism of the New Deal b Creeping Socialism b Wasteful b Encouraged planned deficit spending

Criticism of the New Deal b Creeping Socialism b Wasteful b Encouraged planned deficit spending b Made people lazy

Criticism of the New Deal b Creeping Socialism b Wasteful b Encouraged planned deficit spending b Made people lazy b Government had gotten too large

Criticism of the New Deal b Creeping Socialism b Wasteful b Encouraged planned deficit spending b Made people lazy b Government had gotten too large b Said FDR was pampering labor unions

Criticism of the New Deal b Creeping Socialism b Wasteful b Encouraged planned deficit spending b Made people lazy b Government had gotten too large b Said FDR was pampering labor unions b Failure to end the Depression

New Deal Sucesses

b Relief

New Deal Sucesses b Relief b FDR probably saved capitalism by staving off a possible revolution

New Deal Sucesses b Relief b FDR probably saved capitalism by staving off a possible revolution b Provided a stable government

New Deal Sucesses b Relief b FDR probably saved capitalism by staving off a possible revolution b Provided a stable government b Provided the foundations for the modern welfare state- the Safety Net !