The Great Depression The 1930’s

The Crash Black Tuesday Years of over speculation, deregulation leads to market crash Boom market>increased speculation>great sell-off Oct ‘29 America enters the Great Depression

Causes Market crash – “playing the market”, buying on margin Uneven income distribution & overproduction>>easy credit Weak agricultural sector Gov’t policies – Laissez Faire, dereg., high tariffs, Global problems – Interdependence, European debt, Reparations, Tariffs

Effects Bottoms out in ’32? Full recovery took a decade New Economic Theories – John Maynard Keynes Drop in GDP, 50% drop in income, 20% bank failure rate, bank runs, 25-30% unemployed by ’32 End to Republican dominance Reemergence of union movement & radicalism

The Depression Worsens Hoover’s Policies – Prosperity will return, part of the cycle – Relief should come from states and localities – Voluntary action No strikes, no wage cuts, increase in private charities

Actions of Hoover Hawley-Smoot Tariff 1930 – highest in history to protect American manufacturers – Tariff war Debt Moratorium – Loan defaults Domestic programs – Federal Farm Board Hold surplus – too moderate to stabilize prices – Reconstruction Finance Corp Loans to RRs, banks, insurance cos Trickle down

Protest The Bonus Army – Summer of ’32 – WWI vets march on Washington petitioning for army bonuses – Hoover sent Gen McArthur to break the camp – Tear gas, tanks, and the end of Hoover Farmers rise up – Farm Holiday Association Stop the crop ‘32 – Banded together to prevent evictions Hoovervilles

FDR & the NEW DEAL Franklin D. Roosevelt was elected in 1932 w/60% of pop vote Calls for a new deal Gained support of some socialists Dem majorities in both Houses

New Deal The 3 R’s – Relief, Recovery, Reform – The Brain Trust Louis Howe Professors & economists – The 1 st Hundred Days Bank Holiday – Closed until reorganized Repeal of Prohibition Fireside Chats

1 st Hundred Relief – FERA (Federal Emergency Relief Administration) – PWA (Public Works) – CCC (Civilian Conservation Corps) – TVA (Tennessee Valley Authority) Financial Recovery Programs – Emergency Banking Relief Act – FDIC (Federal Deposit Insurance Corp) – HOLC (Home Owners Loan Corp) – Farm Credit Administration

1 st Hundred Industrial recovery program – NIRA (National Industrial Recovery Act) > NRA (National Recovery Administration) – Set wages, production levels – Unconstitutional (Schechter v U.S. 1935) Farm production control program – AAA (Agr. Adjustment Admin) – Subsidies for non-production – Unconstitutional

FERA / 1933 Federal Emergency Relief Act Distributed $500 million of direct aid to unemployed workers such as food, clothing and grants of money to cities. alphabet RELIEF: Ease Suffering of the Needy

PWA / 1933 to 1943 Public Works Administration Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects. alphabet RELIEF: Ease Suffering of the Needy

CCC / 1933 to 1942 Civilian Conservation Corps Sent 3 million young men to work camps to build bridges, replant forests and other conservation tasks. Develop job skills and improve environment. Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families. alphabet RELIEF: Ease Suffering of the Needy

HOLC / 1933 Home Owners Loan Corporation Prevented mortgage foreclosures. US Govt. bought up mortgages and refinanced them so that homeowners could pay their mortgages. alphabet RELIEF: Ease Suffering of the Needy

NIRA / 1933 National Industrial Recovery Act National Recovery Act  Called the National Recovery Act…..  Created NRA to enforce codes of fair competition and minimum wages. alphabet

TVA / 1933 Tennessee Valley Authority Federal government built a series of dams to prevent flooding and sell electricity in the South. alphabet

Regulated stock market and restricted margin buying, and frauds. alphabet REFORM: Prevent Another Depression SEC / 1934 Securities and Exchange Commission

Glass-Steagall Act created federally insured bank deposits ($2500 per investor at first) to prevent bank failures. alphabet REFORM: Prevent Another Depression FDIC / 1933 Federal Deposit Insurance Corporation

The Dust Bowl The Dust Bowl - farmers crops literally blown away or buried OK, KS, CO Okies head west but find few jobs (fruit picking, odd jobs) Grapes of Wrath – John Steinbeck

Life During the Depression Women – lower pay, more working, family strain African Americans – hardest hit, excluded from relief programs, increase in lynchings, little support from FDR – Improvements – some relief provided, support from Eleanor, Fair Employment Practices Committee 1941(A.Phillip Randolph)

Continued Mexican Americans – Discrimination in society & ND, increase in white migrant labor, some return to Mexico N. Americans – John Collier (BIA) brought CCC to reservations, NA included in WPA – Indian Reorganization Act 1934 Repealed Dawes, NA culture ok, no real NA control

2 nd New Deal WPA (Work Progress) 1935 – Harry Hopkins, bridges, roads, pub buildings Resettlement Admin – loans to small/sharecroppers, housing for migrants Nation Labor Relations Act (Wagner) 1935 REA (Rural Electrification) Increased taxes on wealthy Social Security Act 1935

Reaffirmed labor's right to unionize, prohibited unfair labor practices, and created the National Labor Relations Board. alphabet REFORM: Prevent Another Depression Wagner Act / 1935 National Labor Relations Act

It provided retirement pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children. alphabet REFORM: Prevent Another Depression SSA / 1935 Social Security Act SSA / 1935 Social Security Act

Response to critics (Dr.Townsend and Huey Long), it provided pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children. alphabet REFORM: Prevent Another Depression SSA / 1935 Social Security Act SSA / 1935 Social Security Act

Election of 1936 Alf Landon – progressive Rep Landslide win for FDR New Deal Coalition 1930’s-60’s – Solid south, ethnic workers, African Americans (in northern cities), Midwest farmers, labor unions

Critics of The New Deal Liberals – too much for business Conservatives – socialism!!! Demagogues – Father Coughlin (National Union for Social Justice) Dr. Francis Townsend – the Townsend Plan > SS Huey Long “Share the Wealth” – Assassinated will running for Pres

100 days Criticisms of New Deal  US government and President too powerful  Violated laissez faire  Supreme Court declared NIRA and AAA unconstitutional  Critics:  Father Charles Coughlin  Dr. Francis Townsend  Huey Long  Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt.  Welfare state----Created a population of Americans who relied on the US Govt. to live

Successes of New Deal 100 days NEW DEAL55%….. 37% AMERICANS IN 1939 WHO WANTED THE NEW DEAL TO CONTINUE WAS 55%….. 37% REGARDED IT AS A BAD INFLUENCE AND WANTED A NEW PRESIDENT…………...  Stimulated the economy  Put people back to work….  Improved morale and self-confidence of the people  US Govt’s. role changes and became directly involved in helping people  WWII ended the Great Depression not FDR’s New Deal

Spending all $200 would also be required to boost economic demand. Townsend Clubs created all over the nation. Social SecurityInfluenced FDR’s creation of Social Security He wanted the government to help older citizens. Retired California Physician. $200 per month pension This is socialismSuggested a $200 per month pension for people over 60. (This is socialism) Open jobs for the younger unemployed.

alphabet Relief, Recovery, and Reform Part of FDR’s New Deal……Agencie s created by the US Govt. to bring about the 3 R’s……Relief, Recovery, and Reform.